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

Fundamentals

Flawless balance sheet with reasonable growth potential.

Risks

  • Hirata is covered by less than 3 analysts.

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


Market Performance


7 Day Return

0.5%

DB:1ZM

-2.7%

DE Machinery

-1.5%

DE Market


1 Year Return

-11.6%

DB:1ZM

-35.9%

DE Machinery

-10.4%

DE Market

1ZM outperformed the Machinery industry which returned -35.9% over the past year.

1ZM underperformed the Market in Germany which returned -10.4% over the past year.


Share holder returns

1ZMIndustryMarket
7 Day0.5%-2.7%-1.5%
30 Day-5.8%-7.5%-4.6%
90 Dayn/a-17.6%-4.6%
1 Year-10.0%-11.6%-33.8%-35.9%-7.6%-10.4%
3 Yearn/a-25.1%-30.4%9.4%0.03%
5 Yearn/a1.2%-10.2%25.6%8.1%

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 based on future cash flows and its price relative to the stock market?

17.88x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Hirata's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Hirata's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Hirata is overvalued based on earnings compared to the DE Machinery industry average.

Hirata is good value based on earnings compared to the Germany market.


Price Based on Expected Growth

Hirata is good value based on expected growth next year.


Price Based on Value of Assets

Hirata is overvalued based on assets compared to the DE Machinery industry average.


Next Steps

Future Growth

How is Hirata expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

20.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Hirata's revenue is expected to grow by 9.5% yearly, however this is not considered high growth (20% yearly).

Hirata's earnings are expected to grow significantly at over 20% yearly.

Hirata's revenue growth is expected to exceed the Germany market average.

Hirata's earnings growth is expected to exceed the Germany market average.

Hirata's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Hirata is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Hirata performed over the past 5 years?

32.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Hirata has delivered over 20% year on year earnings growth in the past 5 years.

Hirata's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Hirata's 1-year earnings growth is negative, it can't be compared to the DE Machinery industry average.


Return on Equity

Hirata has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Hirata used its assets less efficiently than the DE Machinery industry average last year based on Return on Assets.


Return on Capital Employed

Hirata's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Hirata's financial position?


Financial Position Analysis

Hirata is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Hirata's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Hirata's level of debt (38.5%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (108.7% vs 38.5% today).

Debt is well covered by operating cash flow (60%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 185.2x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 3.3x debt.


Next Steps

Dividend

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

1.07%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Hirata's pays a lower dividend yield than the bottom 25% of dividend payers in Germany (1.57%).

Hirata's dividend is below the markets top 25% of dividend payers in Germany (4.29%).

Hirata is not paying a notable dividend for Germany, therefore no need to check if the payments are stable.

Hirata is not paying a notable dividend for Germany, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of Hirata's dividends as it is not paying a notable one for Germany.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Hirata's salary, the management and board of directors tenure and is there insider trading?

0.6yrs

Average management tenure


CEO

Yuichiro Hirata (58yo)

8.3yrs

Tenure

0

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 ...


Management Age and Tenure

0.6yrs

Average Tenure

60yo

Average Age

The average tenure for the Hirata management team is less than 2 years, this suggests a new team.


Board Age and Tenure

5.2yrs

Average Tenure

64yo

Average Age

The tenure for the Hirata board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Yuichiro Hirata (58yo)

    President & Representative Director

    • Tenure: 8.3yrs
  • Itsuo Fujiwara (59yo)

    Managing Executive Officer of Business Headquarters & Director

    • Tenure: 5.3yrs
  • Yasuhide Hiraga (54yo)

    Managing Exe. Officer

    • Tenure: 5.2yrs
  • Yuichi Ichihara (64yo)

    Managing Executive Officer of Business Headquarters & Director

    • Tenure: 5.2yrs
  • Kenji Kuroda (64yo)

    Senior Managing Executive Officer

    • Tenure: 5.2yrs
  • Junichiro Yasutaka (61yo)

    Senior Managing Executive Officer

    • Tenure: 6.2yrs
  • Shojiro Hirata

    Director & Managing Executive Officer

    • Tenure: 2.2yrs
  • Yasuhiro Fujimoto

    Managing Executive Officer of Finance

    • Tenure: 0.0yrs
  • Takenori Hirakawa

    Executive Officer & Executive GM of Device Center

    • Tenure: 0.6yrs
  • Masanori Koizumi

    Executive Officer & Executive GM of 2 Kumamoto Business Division

    • Tenure: 0.6yrs

Board Members

  • Yuichiro Hirata (58yo)

    President & Representative Director

    • Tenure: 8.3yrs
  • Itsuo Fujiwara (59yo)

    Managing Executive Officer of Business Headquarters & Director

    • Tenure: 5.3yrs
  • Toshiharu Tanaka (66yo)

    VP, Division Director of Procurement Div. & Director

    • Tenure: 9.3yrs
  • Yasuhide Hiraga (54yo)

    Managing Exe. Officer

    • Tenure: 5.2yrs
  • Yuichi Ichihara (64yo)

    Managing Executive Officer of Business Headquarters & Director

    • Tenure: 5.2yrs
  • Hitoki Hongo (66yo)

    Senior Managing Executive Officer of Division Director of Global Business Headquarters & Director

    • Tenure: 5.2yrs
  • Kenji Kuroda (64yo)

    Senior Managing Executive Officer

    • Tenure: 5.2yrs
  • Junichiro Yasutaka (61yo)

    Senior Managing Executive Officer

    • Tenure: 6.2yrs
  • Hiroyuki Sasabe (79yo)

    Outside Director

    • Tenure: 5.2yrs
  • Shojiro Hirata

    Director & Managing Executive Officer

    • Tenure: 2.2yrs

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¥70.040b
  • Listing Market Cap: JP¥593.679m
  • 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 manufacture ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/18 22:11
End of Day Share Price2019/08/12 00:00
Earnings2019/06/30
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.