DB:HW4

Stock Analysis Report

Executive Summary

Hanwa Co., Ltd. trades in steel, metals and alloys, nonferrous metals, food products, petroleum and chemicals, lumber, machinery, and other products in Japan, Asia, and internationally.


Snowflake Analysis

Good value with adequate balance sheet and pays a dividend.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: HW4 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.4%

HW4

-1.7%

DE Trade Distributors

-0.9%

DE Market


1 Year Return

-21.3%

HW4

8.5%

DE Trade Distributors

12.8%

DE Market

Return vs Industry: HW4 underperformed the German Trade Distributors industry which returned 8.5% over the past year.

Return vs Market: HW4 underperformed the German Market which returned 12.8% over the past year.


Shareholder returns

HW4IndustryMarket
7 Day-3.4%-1.7%-0.9%
30 Day-8.2%2.5%0.6%
90 Day-10.1%1.5%2.9%
1 Year-17.4%-21.3%11.8%8.5%16.3%12.8%
3 Yearn/a-5.9%-12.6%15.8%5.7%
5 Yearn/a0.8%-10.1%19.7%3.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

8.18x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HW4 (€20.34) is trading above our estimate of fair value (€11.25)

Significantly Below Fair Value: HW4 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HW4 is good value based on its PE Ratio (8.2x) compared to the Trade Distributors industry average (15.7x).

PE vs Market: HW4 is good value based on its PE Ratio (8.2x) compared to the German market (20.8x).


Price to Earnings Growth Ratio

PEG Ratio: HW4 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: HW4 is good value based on its PB Ratio (0.5x) compared to the DE Trade Distributors industry average (1.3x).


Next Steps

Future Growth

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

13.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HW4's forecast earnings growth (13% per year) is above the savings rate (-0.4%).

Earnings vs Market: HW4's earnings (13% per year) are forecast to grow slower than the German market (13% per year).

High Growth Earnings: HW4's earnings are forecast to grow, but not significantly.

Revenue vs Market: HW4's revenue (1.3% per year) is forecast to grow slower than the German market (5.2% per year).

High Growth Revenue: HW4's revenue (1.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HW4's Return on Equity is forecast to be low in 3 years time (7.4%).


Next Steps

Past Performance

How has Hanwa performed over the past 5 years?

1.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HW4 has high quality earnings.

Growing Profit Margin: HW4's current net profit margins (0.6%) are lower than last year (0.8%).


Past Earnings Growth Analysis

Earnings Trend: HW4's earnings have grown by 1.4% per year over the past 5 years.

Accelerating Growth: HW4's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HW4 had negative earnings growth (-26.1%) over the past year, making it difficult to compare to the Trade Distributors industry average (20.1%).


Return on Equity

High ROE: HW4's Return on Equity (5.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hanwa's financial position?


Financial Position Analysis

Short Term Liabilities: HW4's short term assets (¥693.9B) exceed its short term liabilities (¥433.0B).

Long Term Liabilities: HW4's short term assets (¥693.9B) exceed its long term liabilities (¥261.6B).


Debt to Equity History and Analysis

Debt Level: HW4's debt to equity ratio (178.9%) is considered high.

Reducing Debt: HW4's debt to equity ratio has reduced from 221.2% to 178.9% over the past 5 years.

Debt Coverage: HW4's debt is not well covered by operating cash flow (19%).

Interest Coverage: HW4's interest payments on its debt are well covered by EBIT (22x coverage).


Balance Sheet

Inventory Level: HW4 has a high level of physical assets or inventory.

Debt Coverage by Assets: HW4's debt is covered by short term assets (assets are 1.9x debt).


Next Steps

Dividend

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

5.95%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Hanwa before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company6.0%marketbottom25%1.3%markettop25%3.6%industryaverage2.7%forecastin3Years5.7%

Current dividend yield vs market & industry

Notable Dividend: HW4's dividend (5.95%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: HW4's dividend (5.95%) is in the top 25% of dividend payers in the German market (3.63%)


Stability and Growth of Payments

Stable Dividend: HW4's dividend payments have been volatile in the past 10 years.

Growing Dividend: HW4's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (73.1%), HW4'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?

2.8yrs

Average management tenure


CEO

Hironari Furukawa 0

8.8yrs

Tenure

0

Mr. Hironari Furukawa serves as the President of Hanwa Co. Ltd. since April 2011 and served as its Executive Vice President, Senior Managing Director and Managing Director. Mr. Furukawa serves as a Represe ...


Leadership Team

NamePositionTenureCompensationOwnership
Hironari Furukawa
President & Representative Director8.8yrsno data0.070% ¥589.7k
Yoichi Nakagawa
Senior Managing Executive Officer of Administration4.7yrsno data0.011% ¥93.4k
Toshihiro Kawaguchi
Executive Officer of Personnel3.8yrsno datano data
Yoshimasa Ikeda
Executive Officer of Legal3.8yrsno datano data
Takatoshi Kuchiishi
Managing Executive Officer & Director9.7yrsno data0.022% ¥188.9k
Yasumichi Kato
Executive VP & Director9.7yrsno data0.060% ¥508.7k
Chiro Ideriha
Managing Executive Officer & Director2.7yrsno data0.020% ¥172.3k
Yasuharu Kurata
Senior Managing Executive Officer & Director3.7yrsno data0.0039% ¥33.2k
Hidemi Nagashima
Senior Managing Executive Officer & Director4.7yrsno data0.025% ¥211.8k
Hiromasa Yamamoto
Senior Managing Executive Officer1.1yrsno data0.027% ¥226.3k

2.8yrs

Average Tenure

Experienced Management: HW4's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hironari Furukawa
President & Representative Director8.8yrsno data0.070% ¥589.7k
Yoichi Nakagawa
Senior Managing Executive Officer of Administration4.7yrsno data0.011% ¥93.4k
Takatoshi Kuchiishi
Managing Executive Officer & Director9.7yrsno data0.022% ¥188.9k
Yasumichi Kato
Executive VP & Director9.7yrsno data0.060% ¥508.7k
Chiro Ideriha
Managing Executive Officer & Director2.7yrsno data0.020% ¥172.3k
Yasuharu Kurata
Senior Managing Executive Officer & Director3.7yrsno data0.0039% ¥33.2k
Hidemi Nagashima
Senior Managing Executive Officer & Director4.7yrsno data0.025% ¥211.8k
Yasushi Hatanaka
Senior Managing Executive Officer5.7yrsno data0.013% ¥105.9k
Yoichi Sasayama
Managing Executive Officer2.7yrsno data0.0029% ¥24.9k
Ryuji Hori
Outside Director5.7yrsno data0.0022% ¥18.6k

5.2yrs

Average Tenure

Experienced Board: HW4's board of directors are considered experienced (5.2 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

Hanwa Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hanwa Co., Ltd.
  • Ticker: HW4
  • Exchange: DB
  • Founded: 1947
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: JP¥102.367b
  • Listing Market Cap: JP¥843.708m
  • Shares outstanding: 40.64m
  • Website: https://www.hanwa.co.jp

Number of Employees


Location

  • Hanwa Co., Ltd.
  • Ginza Shochiku Square Building
  • 1-13-1, Tsukiji
  • Tokyo
  • 104-8429
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8078TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
HW4DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992

Biography

Hanwa Co., Ltd. trades in steel, metals and alloys, nonferrous metals, food products, petroleum and chemicals, lumber, machinery, and other products in Japan, Asia, and internationally. The company operates through six segments: Steel Business, Metals and alloys Business, Non-Ferrous Metals Business, Foods Business, Petroleum and Chemicals Business, and Overseas Sales Subsidiaries. The Steel Business segment sells steel bars and shapes, steel plates and sheets, special steels, wire products, steel pipes, and steelmaking raw materials. The Metals and Alloys Business segment offers nickel, chromium, silicon, manganese, and steel alloys. The Non-Ferrous Metals Business segment recycles aluminum, copper, and zinc. The Foods Business segment provides seafood and meat products. The Petroleum and Chemicals Business segment offers petroleum products, industrial chemicals, chemicals, refuse plastics, and paper fuel. The Overseas Sales Subsidiaries segment trades in various goods and related business activities internationally. It also imports forest products, as well as handles various amusement facilities and industrial machinery. Hanwa Co., Ltd. was founded in 1947 and is headquartered in Tokyo, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 00:27
End of Day Share Price2020/02/21 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.