DB:1ZM

Stock Analysis Report

Executive Summary

Hirata Corporation manufactures and sells various manufacturing line systems, industrial robots, and logistic equipment in Japan, South-east Asia, North America, Europe, and internationally.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Hirata's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1ZM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.1%

1ZM

1.8%

DE Machinery

2.1%

DE Market


1 Year Return

-38.1%

1ZM

-29.9%

DE Machinery

-16.6%

DE Market

Return vs Industry: 1ZM underperformed the German Machinery industry which returned -32.4% over the past year.

Return vs Market: 1ZM underperformed the German Market which returned -20.9% over the past year.


Shareholder returns

1ZMIndustryMarket
7 Day-1.1%1.8%2.1%
30 Day-6.1%-13.2%-12.6%
90 Day-33.6%-27.4%-22.9%
1 Year-37.6%-38.1%-27.8%-29.9%-14.2%-16.6%
3 Yearn/a-40.4%-44.6%-14.8%-21.9%
5 Yearn/a-28.6%-36.6%-16.6%-27.8%

Price Volatility Vs. Market

How volatile is Hirata's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Hirata undervalued compared to its fair value and its price relative to the market?

23.46x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1ZM (€35.4) is trading above our estimate of fair value (€16.99)

Significantly Below Fair Value: 1ZM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1ZM is poor value based on its PE Ratio (22.1x) compared to the Machinery industry average (10x).

PE vs Market: 1ZM is poor value based on its PE Ratio (22.1x) compared to the German market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: 1ZM is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: 1ZM is good value based on its PB Ratio (1x) compared to the DE Machinery industry average (1.1x).


Next Steps

Future Growth

How is Hirata forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

58.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1ZM's forecast earnings growth (58.2% per year) is above the savings rate (-0.4%).

Earnings vs Market: 1ZM's earnings (58.2% per year) are forecast to grow faster than the German market (14.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 1ZM's revenue (17% per year) is forecast to grow faster than the German market (3.9% per year).

High Growth Revenue: 1ZM's revenue (17% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1ZM's Return on Equity is forecast to be low in 3 years time (11.8%).


Next Steps

Past Performance

How has Hirata performed over the past 5 years?

18.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1ZM has high quality earnings.

Growing Profit Margin: 1ZM's current net profit margins (3.1%) are lower than last year (6%).


Past Earnings Growth Analysis

Earnings Trend: 1ZM's earnings have grown by 18.6% per year over the past 5 years.

Accelerating Growth: 1ZM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1ZM had negative earnings growth (-59.8%) over the past year, making it difficult to compare to the Machinery industry average (-19.9%).


Return on Equity

High ROE: 1ZM's Return on Equity (4.3%) is considered low.


Next Steps

Financial Health

How is Hirata's financial position?


Financial Position Analysis

Short Term Liabilities: 1ZM's short term assets (¥54.0B) exceed its short term liabilities (¥26.0B).

Long Term Liabilities: 1ZM's short term assets (¥54.0B) exceed its long term liabilities (¥9.6B).


Debt to Equity History and Analysis

Debt Level: 1ZM's debt to equity ratio (32.7%) is considered satisfactory.

Reducing Debt: 1ZM's debt to equity ratio has reduced from 97.1% to 32.7% over the past 5 years.

Debt Coverage: 1ZM's debt is well covered by operating cash flow (77.4%).

Interest Coverage: 1ZM earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Hirata's current dividend yield, its reliability and sustainability?

0.89%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1ZM's dividend (0.94%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.7%).

High Dividend: 1ZM's dividend (0.94%) is low compared to the top 25% of dividend payers in the German market (4.86%).


Stability and Growth of Payments

Stable Dividend: 1ZM's dividend payments have been volatile in the past 10 years.

Growing Dividend: 1ZM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (65.2%), 1ZM's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Yuichiro Hirata (58yo)

9s

Tenure

Yuichiro Hirata has been the President of Hirata Corporation since April 2011 and served as its Executive Officer since April 2007. Yuichiro Hirata served as Senior Executive Vice President of Technology D ...


Leadership Team

NamePositionTenureCompensationOwnership
Yuichiro Hirata
President & Representative Director9yrsno data2.81% ¥11.1m
Yasuhiro Fujimoto
Managing Executive Officer of Financeno datano datano data
Yasuhide Hiraga
Managing Exe. Officer5.83yrsno datano data
Junichiro Yasutaka
Senior Managing Executive Officer6.83yrsno data0.037% ¥144.9k
Itsuo Fujiwara
Managing Executive Officer of Business Headquarters & Director6yrsno datano data
Yuichi Ichihara
Managing Executive Officer of Business Headquarters & Director5.83yrsno datano data
Kenji Kuroda
Senior Managing Executive Officer5.83yrsno data0.047% ¥186.8k
Shojiro Hirata
Director & Managing Executive Officer2.83yrsno datano data
Takenori Hirakawa
Executive Officer & Executive GM of Device Center1.25yrsno datano data
Masanori Koizumi
Executive Officer & Executive GM of 2 Kumamoto Business Division1.25yrsno datano data

1.3yrs

Average Tenure

60yo

Average Age

Experienced Management: 1ZM's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Yuichiro Hirata
President & Representative Director9yrsno data2.81% ¥11.1m
Yasuhide Hiraga
Managing Exe. Officer5.83yrsno datano data
Junichiro Yasutaka
Senior Managing Executive Officer6.83yrsno data0.037% ¥144.9k
Itsuo Fujiwara
Managing Executive Officer of Business Headquarters & Director6yrsno datano data
Yuichi Ichihara
Managing Executive Officer of Business Headquarters & Director5.83yrsno datano data
Kenji Kuroda
Senior Managing Executive Officer5.83yrsno data0.047% ¥186.8k
Shojiro Hirata
Director & Managing Executive Officer2.83yrsno datano data
Toshiharu Tanaka
VP, Division Director of Procurement Div. & Director10yrsno datano data
Hitoki Hongo
Senior Managing Executive Officer of Division Director of Global Business Headquarters & Director5.83yrsno data0.054% ¥213.5k
Hiroyuki Sasabe
Outside Director5.83yrsno datano data

5.8yrs

Average Tenure

64yo

Average Age

Experienced Board: 1ZM's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Hirata Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hirata Corporation
  • Ticker: 1ZM
  • Exchange: DB
  • Founded: 1951
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: JP¥46.641b
  • Listing Market Cap: JP¥395.609m
  • Shares outstanding: 10.38m
  • Website: https://www.hirata.co.jp

Number of Employees


Location

  • Hirata Corporation
  • 111, Hitotsugi
  • Ueki
  • Kumamoto
  • Kumamoto
  • 861-0198
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6258TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYDec 2006
1ZMDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2006

Biography

Hirata Corporation manufactures and sells various manufacturing line systems, industrial robots, and logistic equipment in Japan, South-east Asia, North America, Europe, and internationally. It manufactures and deals in production systems for various fields, including automotive, semiconductors, and home electronics. The company offers automotive related production equipment, such as engine assembly, cylinder head assembly, and piston assembly lines; transmission related equipment comprising CVT assembly, automatic transmission assembly, and DCT assembly lines; and engine and component related equipment. It also provides semiconductor related equipment consisting of equipment front end module/sorters, wafer transfer robots, aligners, load ports, and SMIF openers; and panel manufacturing systems, such as coater systems, glass cutting systems, auto-loader systems, and glass substrate transfer robots. In addition, the company offers industrial robot equipment, including cartesian robots, SCARA-type robots, and robot controllers; electronics and electrical appliance production equipment comprising home electronics related automated assembly lines, and electronic components and others; and power modules consisting of mounters, vacuum reflow ovens, and ultrasonic welders. Further, it provides sorting/stocking systems for material handling, stacker cranes for automated warehousing, and traceability systems for production management; and medical/chemistry and physics devices, such as cell observation devices, cell destructive equipment, stirring equipment, and membrane damage detection systems. The company was founded in 1951 and is headquartered in Kumamoto, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 01:05
End of Day Share Price2020/04/06 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.