The Yokohama Rubber Co., Ltd.
The Yokohama Rubber Co., Ltd. Fundamental Analysis
The Yokohama Rubber Co., Ltd. (YORUY) shows moderate financial fundamentals with a PE ratio of 8.67, profit margin of 8.55%, and ROE of 11.56%. The company generates $1248.8B in annual revenue with strong year-over-year growth of 11.10%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 68.1/100 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 YORUY's fundamental strength across five key dimensions:
Efficiency Score
WeakYORUY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentYORUY trades at attractive valuation levels.
Growth Score
ExcellentYORUY delivers strong and consistent growth momentum.
Financial Health Score
ExcellentYORUY maintains a strong and stable balance sheet.
Profitability Score
WeakYORUY struggles to sustain strong margins.
Key Financial Metrics
Is YORUY Expensive or Cheap?
P/E Ratio
YORUY trades at 8.67 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, YORUY's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values The Yokohama Rubber Co., Ltd. at 0.90 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.09 times EBITDA. This is generally considered low.
How Well Does YORUY Make Money?
Net Profit Margin
For every $100 in sales, The Yokohama Rubber Co., Ltd. keeps $8.55 as profit after all expenses.
Operating Margin
Core operations generate 13.51 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.56 in profit for every $100 of shareholder equity.
ROA
The Yokohama Rubber Co., Ltd. generates $5.33 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The Yokohama Rubber Co., Ltd. produces operating cash flow of $140.88B, showing steady but balanced cash generation.
Free Cash Flow
The Yokohama Rubber Co., Ltd. generates weak or negative free cash flow of $26.69B, restricting financial flexibility.
FCF Per Share
Each share generates $169.25 in free cash annually.
FCF Yield
YORUY converts 2.88% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.67
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.002
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.90
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.74
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.52
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.85
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How YORUY Stacks Against Its Sector Peers
| Metric | YORUY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.67 | 23.64 | Better (Cheaper) |
| ROE | 11.56% | 1155.00% | Weak |
| Net Margin | 8.55% | 669.00% | Weak |
| Debt/Equity | 0.52 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 1.85 | 2.57 | Neutral |
| ROA | 5.33% | -8241.00% (disorted) | Weak |
YORUY outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The Yokohama Rubber Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
68.60%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
78.81%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
25.59%
Industry Style: Cyclical, Growth, Discretionary
High Growth