Sekisui House, Ltd.
Sekisui House, Ltd. Fundamental Analysis
Sekisui House, Ltd. (SKHSF) shows moderate financial fundamentals with a PE ratio of 13.92, profit margin of 3.91%, and ROE of 8.38%. The company generates $4197.9B in annual revenue with moderate year-over-year growth of 3.43%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 51.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SKHSF's fundamental strength across five key dimensions:
Efficiency Score
WeakSKHSF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSKHSF trades at attractive valuation levels.
Growth Score
WeakSKHSF faces weak or negative growth trends.
Financial Health Score
ExcellentSKHSF maintains a strong and stable balance sheet.
Profitability Score
WeakSKHSF struggles to sustain strong margins.
Key Financial Metrics
Is SKHSF Expensive or Cheap?
P/E Ratio
SKHSF trades at 13.92 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SKHSF's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Sekisui House, Ltd. at 1.07 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.32 times EBITDA. This is generally considered low.
How Well Does SKHSF Make Money?
Net Profit Margin
For every $100 in sales, Sekisui House, Ltd. keeps $3.91 as profit after all expenses.
Operating Margin
Core operations generate 5.88 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.38 in profit for every $100 of shareholder equity.
ROA
Sekisui House, Ltd. generates $3.28 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sekisui House, Ltd. generates limited operating cash flow of $216.31B, signaling weaker underlying cash strength.
Free Cash Flow
Sekisui House, Ltd. produces free cash flow of $149.38B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $230.44 in free cash annually.
FCF Yield
SKHSF converts 6.52% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.92
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.004
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.07
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.54
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.86
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.79
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How SKHSF Stacks Against Its Sector Peers
| Metric | SKHSF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.92 | 23.83 | Better (Cheaper) |
| ROE | 8.38% | 1168.00% | Weak |
| Net Margin | 3.91% | -2451.00% (disorted) | Weak |
| Debt/Equity | 0.86 | 0.74 | Neutral |
| Current Ratio | 2.79 | 2.57 | Strong Liquidity |
| ROA | 3.28% | -34556.00% (disorted) | Weak |
SKHSF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sekisui House, Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
80.48%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
97.63%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
18.54%
Industry Style: Cyclical, Growth, Discretionary
High Growth