Inpex (1605.T)
Energy · Tokyo · Japan
Fundamentals
Valuation and ratings
Inpex trades at ¥3,395.00, which is 24% below the ¥4,207.52 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 66 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 10.2 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Inpex
Inpex Corporation engages in the research, exploration, development, production, and sale of oil, natural gas, and other mineral resources in Japan and internationally. It is involved in investment and lending to companies engaged in mineral resources business. The company also transports natural gas, as well as oil; operates, manages, and maintains gas pipelines. In addition, it engages in gas, heat, and electricity supply business; manufacture, processing, and sale of drilling mud water conditioners and cement additives; development and management of geothermal projects; power generation and supply; real estate management, lease, brokerage, and sales; and contracting for excavation work of oil and geothermal wells, and diameter foundation works. The company was formerly known as Inpex Holdings, Inc. Inpex Corporation was founded in 1966 and is headquartered in Minato, Japan.
1605.T passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Inpex (1605.T) undervalued?
Against our discounted cash flow estimate of ¥4,207.52, 1605.T at ¥3,395.00 is 24% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is 1605.T's P/E ratio?
1605.T trades at 10.2 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.