Hitachi Capital Corporation provides a range of financial services in Japan, Europe, the Americas, China, and the ASEAN countries.
Average dividend payer and slightly overvalued.
Share Price & News
How has Hitachi Capital's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: HCD's share price has been volatile over the past 3 months.
7 Day Return
DE Consumer Finance
1 Year Return
DE Consumer Finance
Return vs Industry: HCD exceeded the German Consumer Finance industry which returned -44.7% over the past year.
Return vs Market: HCD underperformed the German Market which returned -4.6% over the past year.
Price Volatility Vs. Market
How volatile is Hitachi Capital's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Is Hitachi Capital undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: HCD (€16.9) is trading below our estimate of fair value (€18.32)
Significantly Below Fair Value: HCD is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: HCD is poor value based on its PE Ratio (19.3x) compared to the Consumer Finance industry average (6.4x).
PE vs Market: HCD is poor value based on its PE Ratio (19.3x) compared to the German market (18.6x).
Price to Earnings Growth Ratio
PEG Ratio: HCD is poor value based on its PEG Ratio (1.3x)
Price to Book Ratio
PB vs Industry: HCD is good value based on its PB Ratio (0.6x) compared to the XE Consumer Finance industry average (0.8x).
How is Hitachi Capital forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HCD's forecast earnings growth (15.3% per year) is above the savings rate (0.2%).
Earnings vs Market: HCD's earnings (15.3% per year) are forecast to grow slower than the German market (21.7% per year).
High Growth Earnings: HCD's earnings are forecast to grow, but not significantly.
Revenue vs Market: HCD's revenue (2.7% per year) is forecast to grow slower than the German market (5.7% per year).
High Growth Revenue: HCD's revenue (2.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: HCD's Return on Equity is forecast to be low in 3 years time (9.6%).
How has Hitachi Capital performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HCD has high quality earnings.
Growing Profit Margin: HCD's current net profit margins (2.7%) are lower than last year (8%).
Past Earnings Growth Analysis
Earnings Trend: HCD's earnings have declined by -4.9% per year over the past 5 years.
Accelerating Growth: HCD's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: HCD had negative earnings growth (-65.3%) over the past year, making it difficult to compare to the Consumer Finance industry average (3.2%).
Return on Equity
High ROE: HCD's Return on Equity (2.8%) is considered low.
How is Hitachi Capital's financial position?
Financial Position Analysis
Short Term Liabilities: HCD's short term assets (¥2,962.5B) exceed its short term liabilities (¥144.5B).
Long Term Liabilities: HCD's short term assets (¥2,962.5B) do not cover its long term liabilities (¥3,208.9B).
Debt to Equity History and Analysis
Debt Level: HCD's debt to equity ratio (772%) is considered high.
Reducing Debt: HCD's debt to equity ratio has increased from 593.1% to 772% over the past 5 years.
Debt Coverage: HCD's debt is not well covered by operating cash flow (2.7%).
Interest Coverage: Insufficient data to determine if HCD's interest payments on its debt are well covered by EBIT.
What is Hitachi Capital's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: HCD's dividend (5.71%) is higher than the bottom 25% of dividend payers in the German market (1.36%).
High Dividend: HCD's dividend (5.71%) is in the top 25% of dividend payers in the German market (4.18%)
Stability and Growth of Payments
Stable Dividend: HCD's dividend payments have been volatile in the past 10 years.
Growing Dividend: HCD's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (49.3%), HCD'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.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Seiji Kawabe (64yo)
Mr. Seiji Kawabe has been Chief Executive Officer and President of Hitachi Capital Corporation since April 1, 2016 and serves as its Representative Executive Officer since April 2016. Mr. Kawabe served as ...
|Representative Executive Officer||4.08yrs||no data||0.011% ¥224.0k|
|Senior VP||no data||no data||0.0014% ¥27.8k|
|Legal Director||no data||no data||no data|
|Representative Executive Officer||4.08yrs||no data||0.0097% ¥196.2k|
|Senior VP & Executive Officer||6.08yrs||no data||0.0049% ¥99.0k|
|Senior VP & Executive Officer||4.08yrs||no data||0.0024% ¥48.7k|
Experienced Management: HCD's management team is considered experienced (4.1 years average tenure).
|Representative Executive Officer||4.08yrs||no data||0.011% ¥224.0k|
|Director||2.92yrs||no data||0.016% ¥319.5k|
|Independent Outside Director||2.92yrs||no data||0.00017% ¥3.4k|
|Outside Director||1.92yrs||no data||0.00077% ¥15.6k|
|Independent Chairman of the Board||0.92yr||no data||0.00077% ¥15.6k|
|Independent Outside Director||3.92yrs||no data||0.00026% ¥5.3k|
|Outside Director||2.92yrs||no data||0.00017% ¥3.4k|
|Independent Outside Director||1.92yrs||no data||no data|
Experienced Board: HCD's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Hitachi Capital Corporation's company bio, employee growth, exchange listings and data sources
- Name: Hitachi Capital Corporation
- Ticker: HCD
- Exchange: DB
- Founded: 1957
- Industry: Consumer Finance
- Sector: Diversified Financials
- Market Cap: JP¥237.569b
- Listing Market Cap: JP¥2.029b
- Shares outstanding: 116.86m
- Website: https://www.hitachi-capital.co.jp
Number of Employees
- Hitachi Capital Corporation
- Nishi-Shimbashi Square
- 1-3-1, Nishi Shimbashi
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|8586||TSE (The Tokyo Stock Exchange)||Yes||Common Stock||JP||JPY||Jan 1992|
|HCD||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Jan 1992|
Hitachi Capital Corporation provides a range of financial services in Japan, Europe, the Americas, China, and the ASEAN countries. The company offers sales and trade financing, project financing, factoring, and leasing services. It also provides agency services for invoicing, collections, administrative works, etc.; one-stop services, including business process reconstructing and its operation; and risk solutions for unexpected situations, and long-term disability income and work disability income indemnity insurance products. In addition, the company holds, manages, and maintains commercial real estates; and deals in various real estate properties, such as logistics warehouses and commercial facilities. Further, it provides support services comprising business and financial plans, and operation launch and maintenance services; sells used products, including office and industrial equipment, factory equipment, and scientific instruments; and supports investment cost reduction, early startup of production line, shortening of the depreciation period, cash flow improvement, equipment procurement, and reduction of maintenance and disposal processes. Additionally, the company offers services related to vehicle leasing and management operations, and solutions for insurance, maintenance, technical support, environmental considerations, etc.; and rents information equipment, measuring and scientific instruments, etc. It also provides building lease systems; and real estate leasing services, such as distribution warehouses and data centers, etc. The company was founded in 1957 and is headquartered in Tokyo, Japan.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/05/25 07:01|
|End of Day Share Price||2020/05/22 00:00|
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.