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Sun Frontier Fudousan Co (TSE:8934) Financial Strength : 4 (As of Dec. 2023)


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What is Sun Frontier Fudousan Co Financial Strength?

Sun Frontier Fudousan Co has the Financial Strength Rank of 4.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Sun Frontier Fudousan Co's Interest Coverage for the quarter that ended in Dec. 2023 was 16.09. Sun Frontier Fudousan Co's debt to revenue ratio for the quarter that ended in Dec. 2023 was 1.29. As of today, Sun Frontier Fudousan Co's Altman Z-Score is 2.83.


Competitive Comparison of Sun Frontier Fudousan Co's Financial Strength

For the Real Estate Services subindustry, Sun Frontier Fudousan Co's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Sun Frontier Fudousan Co's Financial Strength Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Sun Frontier Fudousan Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Sun Frontier Fudousan Co's Financial Strength falls into.



Sun Frontier Fudousan Co Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Sun Frontier Fudousan Co's Interest Expense for the months ended in Dec. 2023 was 円-133 Mil. Its Operating Income for the months ended in Dec. 2023 was 円2,140 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was 円56,412 Mil.

Sun Frontier Fudousan Co's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*2140/-133
=16.09

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Sun Frontier Fudousan Co's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(11948 + 56412) / 53040
=1.29

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Sun Frontier Fudousan Co has a Z-score of 2.83, indicating it is in Grey Zones. This implies that Sun Frontier Fudousan Co is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.83 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Sun Frontier Fudousan Co  (TSE:8934) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Sun Frontier Fudousan Co has the Financial Strength Rank of 4.


Sun Frontier Fudousan Co Financial Strength Related Terms

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Sun Frontier Fudousan Co (TSE:8934) Business Description

Traded in Other Exchanges
N/A
Address
2-2, Yurakucho 1-chom, Tokyo, JPN
Sun Frontier Fudousan Co Ltd is a Japan-based real estate services company. The company revitalizes and distributes real estate properties. Its activities include replanning, property management, commercial real estate brokerage, leasing management and construction and renovation. In the real estate revitalization business, it reduces vacancy rates by revitalizing commercial buildings using capitalization method. In the real estate business, it manages commercial property in central Tokyo, under which its main business are replanning, sales brokerage, rental brokerage, building management, construction planning, delinquent rent guarantee and asset consultancy.

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