DB:HMO

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Hino Motors, Ltd. manufactures and sells large commercial vehicles under the Hino brand worldwide.


Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: HMO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.0%

HMO

-0.2%

DE Machinery

1.5%

DE Market


1 Year Return

-19.1%

HMO

-16.8%

DE Machinery

-1.8%

DE Market

Return vs Industry: HMO underperformed the German Machinery industry which returned -16.5% over the past year.

Return vs Market: HMO underperformed the German Market which returned -0.7% over the past year.


Shareholder returns

HMOIndustryMarket
7 Day-5.0%-0.2%1.5%
30 Day-6.5%2.6%4.3%
90 Day27.8%22.7%25.1%
1 Year-17.0%-19.1%-15.9%-16.8%0.2%-1.8%
3 Year-36.2%-40.7%-32.5%-36.5%1.3%-6.9%
5 Year-37.1%-44.5%-9.1%-18.4%15.0%-0.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

12.97x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HMO (€5.75) is trading above our estimate of fair value (€1.22)

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


Price To Earnings Ratio

PE vs Industry: HMO is good value based on its PE Ratio (12.9x) compared to the Machinery industry average (15.6x).

PE vs Market: HMO is good value based on its PE Ratio (12.9x) compared to the German market (20.7x).


Price to Earnings Growth Ratio

PEG Ratio: HMO is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: HMO is good value based on its PB Ratio (0.8x) compared to the DE Machinery industry average (1.4x).


Next Steps

Future Growth

How is Hino Motors forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

8.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HMO's forecast earnings growth (8.6% per year) is above the savings rate (0.2%).

Earnings vs Market: HMO's earnings (8.6% per year) are forecast to grow slower than the German market (22.2% per year).

High Growth Earnings: HMO's earnings are forecast to grow, but not significantly.

Revenue vs Market: HMO's revenue is expected to decline over the next 3 years (-0.5% per year).

High Growth Revenue: HMO's revenue is forecast to decline over the next 3 years (-0.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HMO's Return on Equity is forecast to be low in 3 years time (5.2%).


Next Steps

Past Performance

How has Hino Motors performed over the past 5 years?

-11.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HMO has high quality earnings.

Growing Profit Margin: HMO's current net profit margins (1.7%) are lower than last year (2.8%).


Past Earnings Growth Analysis

Earnings Trend: HMO's earnings have declined by -11.3% per year over the past 5 years.

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

Earnings vs Industry: HMO had negative earnings growth (-42.6%) over the past year, making it difficult to compare to the Machinery industry average (-22.8%).


Return on Equity

High ROE: HMO's Return on Equity (5.9%) is considered low.


Next Steps

Financial Health

How is Hino Motors's financial position?


Financial Position Analysis

Short Term Liabilities: HMO's short term assets (¥660.8B) exceed its short term liabilities (¥569.2B).

Long Term Liabilities: HMO's short term assets (¥660.8B) exceed its long term liabilities (¥113.2B).


Debt to Equity History and Analysis

Debt Level: HMO's debt to equity ratio (35.8%) is considered satisfactory.

Reducing Debt: HMO's debt to equity ratio has increased from 31.3% to 35.8% over the past 5 years.

Debt Coverage: HMO's debt is well covered by operating cash flow (44.9%).

Interest Coverage: HMO's interest payments on its debt are well covered by EBIT (17.3x coverage).


Balance Sheet


Next Steps

Dividend

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

2.81%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HMO's dividend (2.82%) is higher than the bottom 25% of dividend payers in the German market (1.28%).

High Dividend: HMO's dividend (2.82%) is low compared to the top 25% of dividend payers in the German market (3.82%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.5%), HMO's dividend payments are well 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?

4.1yrs

Average board tenure


CEO

Yoshio Shimo (61yo)

3.08yrs

Tenure

JP¥110,000,000

Compensation

Mr. Yoshio Shimo has been President and Chief Executive Officer of Hino Motors, Ltd. since June 27, 2017. Mr. Shimo has been Chief Officer of Strategic Top Executive Meeting Office, Chief Officer of Fronti ...


CEO Compensation Analysis

Compensation vs Market: Yoshio's total compensation ($USD1.02M) is below average for companies of similar size in the German market ($USD2.41M).

Compensation vs Earnings: Insufficient data to compare Yoshio's compensation with company performance.


Board Members

NamePositionTenureCompensationOwnership
Yoshio Shimo
President3.08yrsJP¥110.00m0.011% ¥370.4k
Toshitaka Hagiwara
Independent External Director5.08yrsno data0.0019% ¥64.8k
Shin Endo
Director5.08yrsno data0.0028% ¥94.2k
Yasuhiko Ichihashi
Chairman of the Board3.08yrsJP¥111.00m0.012% ¥405.8k
Hirofumi Muta
Director3.08yrsno data0.0059% ¥199.9k
Motokazu Yoshida
Independent External Director5.08yrsno datano data
Satoru Mori
Director4.08yrsno data0.0070% ¥235.3k
Taketo Nakane
Director4.08yrsno data0.0042% ¥141.1k
Shigeki Terashi
Director4.08yrsno datano data
Shinichi Sato
Director2.08yrsno data0.0063% ¥211.7k

4.1yrs

Average Tenure

64.5yo

Average Age

Experienced Board: HMO's board of directors are considered experienced (4.1 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

Hino Motors, Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hino Motors, Ltd.
  • Ticker: HMO
  • Exchange: DB
  • Founded: 1910
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: JP¥408.227b
  • Listing Market Cap: JP¥3.376b
  • Shares outstanding: 574.16m
  • Website: https://www.hino.co.jp

Number of Employees


Location

  • Hino Motors, Ltd.
  • 1-1 Hinodai 3-chome
  • Hino-shi
  • Tokyo
  • 191-8660
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HINO.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
HMODB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
7205TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
HINO.YOTCPK (Pink Sheets LLC)ADRUSUSDNov 1992

Biography

Hino Motors, Ltd. manufactures and sells large commercial vehicles under the Hino brand worldwide. It offers trucks and buses; and light commercial vehicles and passenger cars, as well as automotive and industrial diesel engines, vehicle parts, and others. The company was founded in 1910 and is headquartered in Hino-shi, Japan. Hino Motors, Ltd. is a subsidiary of Toyota Motor Corporation. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/02 21:32
End of Day Share Price2020/07/02 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.