DB:HZS

Stock Analysis Report

Executive Summary

Hitachi Zosen Corporation engages in the engineering, procurement, construction, and after-sales services, as well as operation and maintenance of energy-from-waste plants in Japan and internationally.

Snowflake

Fundamentals

Good value with adequate balance sheet.

Risks

  • Hitachi Zosen is covered by less than 3 analysts.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

4.7%

DB:HZS

0.3%

DE Machinery

-0.7%

DE Market


1 Year Return

-22.3%

DB:HZS

-35.4%

DE Machinery

-10.8%

DE Market

HZS outperformed the Machinery industry which returned -35.4% over the past year.

HZS underperformed the Market in Germany which returned -10.8% over the past year.


Share holder returns

HZSIndustryMarket
7 Day4.7%0.3%-0.7%
30 Day-6.7%-6.8%-3.9%
90 Day-0.7%-16.6%-4.3%
1 Year-19.4%-22.3%-33.3%-35.4%-8.0%-10.8%
3 Year-28.5%-33.8%-23.7%-29.2%9.8%0.3%
5 Year-9.7%-19.7%2.4%-9.2%24.0%6.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Hitachi Zosen undervalued based on future cash flows and its price relative to the stock market?

13.55x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

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

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


Price Based on Earnings

Hitachi Zosen is good value based on earnings compared to the DE Machinery industry average.

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


Price Based on Expected Growth

Hitachi Zosen is good value based on expected growth next year.


Price Based on Value of Assets

Hitachi Zosen is good value based on assets compared to the DE Machinery industry average.


Next Steps

Future Growth

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

20.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Hitachi Zosen's revenue is expected to grow by 2.9% yearly, however this is not considered high growth (20% yearly).

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

Hitachi Zosen's revenue growth is positive but not above the Germany market average.

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

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


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Hitachi Zosen will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Hitachi Zosen performed over the past 5 years?

-16.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Hitachi Zosen's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Hitachi Zosen's 1-year earnings growth exceeds its 5-year average (148.3% vs -16.9%)

Hitachi Zosen's earnings growth has exceeded the DE Machinery industry average in the past year (148.3% vs -11.8%).


Return on Equity

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


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Hitachi Zosen's financial position?


Financial Position Analysis

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

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


Debt to Equity History and Analysis

Hitachi Zosen's level of debt (82.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (89.4% vs 82.2% today).

Operating cash flow is negative therefore debt is not well covered.

Interest payments on debt are well covered by earnings (EBIT is 11x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.3x debt.


Next Steps

Dividend

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

3.48%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Hitachi Zosen's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.55%).

Hitachi Zosen's dividend is below the markets top 25% of dividend payers in Germany (4.22%).

Whilst dividend payments have been stable, Hitachi Zosen has been paying a dividend for less than 10 years.

Dividend payments have increased, but Hitachi Zosen only paid a dividend in the past 9 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.1x coverage).


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 Hitachi Zosen's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Takashi Tanisho 0

3.3yrs

Tenure

0

Mr. Takashi Tanisho has been President of Hitachi Zosen Corp. since April 2013 and its Chief Executive Officer since April, 2016. Mr. Tanisho served as Managing Director of Hitachi Zosen Corp. since April  ...


Management Age and Tenure

2.3yrs

Average Tenure

The tenure for the Hitachi Zosen management team is about average.


Board Age and Tenure

2.8yrs

Average Tenure

67.5yo

Average Age

The average tenure for the Hitachi Zosen board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Takashi Tanisho

    Chairman

    • Tenure: 3.3yrs
  • Yutaka Masumizu

    Senior Managing Executive Officer

    • Tenure: 2.3yrs
  • Takashi Mishima

    Executive Officer

    • Tenure: 0.0yrs
  • Sadao Mino

    Executive VP & Director

    • Tenure: 4.2yrs
  • Masanori Shimasaki

    Managing Executive Officer

    • Tenure: 2.3yrs
  • Kazuo Ieyama

    Executive Officer

    • Tenure: 0.0yrs
  • Shoichi Morimoto

    Managing Executive Officer & GM of General Administration Headquarters

    • Tenure: 2.3yrs
  • Toshiyuki Shiraki

    MD, GM of Business Planning & Technology Development Headquarters and Director

    • Tenure: 3.2yrs
  • Tatsuji Kamaya (58yo)

    MD, GM of Corporate Planning HQ & Director

    • Tenure: 2.2yrs
  • Satoshi Kimura

    Managing Executive Officer

    • Tenure: 1.6yrs

Board Members

  • Chiaki Ito (72yo)

    Outside Director

    • Tenure: 6.2yrs
  • Richard Lury (71yo)

    Outside Director

    • Tenure: 3.2yrs
  • Hidenobu Fujii (64yo)

    Vice Chairman

    • Tenure: 2.2yrs
  • Takashi Tanisho

    Chairman

    • Tenure: 3.3yrs
  • Sadao Mino

    Executive VP & Director

    • Tenure: 4.2yrs
  • Tadashi Shibayama

    GM of Machinery Business Headquarters & Director

    • Tenure: 2.2yrs
  • Toshiyuki Shiraki

    MD, GM of Business Planning & Technology Development Headquarters and Director

    • Tenure: 3.2yrs
  • Tatsuji Kamaya (58yo)

    MD, GM of Corporate Planning HQ & Director

    • Tenure: 2.2yrs
  • Kazuhisa Yamamoto

    GM of Environment Business Headquarters & Director

    • Tenure: 2.2yrs
  • Kazuko Takamatsu

    Outside Director

    • Tenure: 4.2yrs

Company Information

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


Key Information

  • Name: Hitachi Zosen Corporation
  • Ticker: HZS
  • Exchange: DB
  • Founded: 1881
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: JP¥58.148b
  • Listing Market Cap: JP¥492.876m
  • Shares outstanding: 168.54m
  • Website: https://www.hitachizosen.co.jp

Number of Employees


Location

  • Hitachi Zosen Corporation
  • 7-89, Nankokita 1-chome
  • Suminoe-ku
  • Osaka
  • 559-8559
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
7004TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
HZSDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992

Biography

Hitachi Zosen Corporation engages in the engineering, procurement, construction, and after-sales services, as well as operation and maintenance of energy-from-waste plants in Japan and internationally. It  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 21:23
End of Day Share Price2019/08/21 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.