DB:01H

Stock Analysis Report

Executive Summary

HORIBA, Ltd. provides a range of instruments and systems for automotive research and development (R&D), process and environmental monitoring, in-vitro medical diagnostics, semiconductor manufacturing, metrology, and scientific R&D and QC measurement applications worldwide.

Snowflake

Fundamentals

Excellent balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 01H's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.4%

01H

2.6%

DE Electronic

0.1%

DE Market


1 Year Return

45.5%

01H

4.3%

DE Electronic

8.8%

DE Market

Return vs Industry: 01H exceeded the German Electronic industry which returned 4.3% over the past year.

Return vs Market: 01H exceeded the German Market which returned 8.8% over the past year.


Shareholder returns

01HIndustryMarket
7 Day-2.4%2.6%0.1%
30 Day10.0%13.8%5.9%
90 Day32.9%34.2%15.0%
1 Year50.0%45.5%5.2%4.3%12.2%8.8%
3 Year52.0%42.6%72.3%68.2%25.5%14.5%
5 Year146.2%123.8%143.8%130.9%40.1%21.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

17.98x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 01H (€60.5) is trading above our estimate of fair value (€41.75)

Significantly Below Fair Value: 01H is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 01H is good value based on its PE Ratio (18x) compared to the Electronic industry average (22.9x).

PE vs Market: 01H is good value based on its PE Ratio (18x) compared to the German market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: 01H is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: 01H is overvalued based on its PB Ratio (1.9x) compared to the DE Electronic industry average (1.9x).


Next Steps

Future Growth

How is HORIBA forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

12.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 01H's forecast earnings growth (12.3% per year) is above the savings rate (0.2%).

Earnings vs Market: 01H's earnings (12.3% per year) are forecast to grow slower than the German market (12.7% per year).

High Growth Earnings: 01H's earnings are forecast to grow, but not significantly.

Revenue vs Market: 01H's revenue (4.2% per year) is forecast to grow slower than the German market (4.9% per year).

High Growth Revenue: 01H's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 01H's Return on Equity is forecast to be low in 3 years time (10.7%).


Next Steps

Past Performance

How has HORIBA performed over the past 5 years?

12.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 01H has high quality earnings.

Growing Profit Margin: 01H's current net profit margins (8.6%) are lower than last year (9.1%).


Past Earnings Growth Analysis

Earnings Trend: 01H's earnings have grown by 12.9% per year over the past 5 years.

Accelerating Growth: 01H's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 01H had negative earnings growth (-9%) over the past year, making it difficult to compare to the Electronic industry average (-5.4%).


Return on Equity

High ROE: 01H's Return on Equity (10.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is HORIBA's financial position?


Financial Position Analysis

Short Term Liabilities: 01H's short term assets (¥178.0B) exceeds its short term liabilities (¥71.6B)

Long Term Liabilities: 01H's short term assets (178.0B) exceeds its long term liabilities (39.3B)


Debt to Equity History and Analysis

Debt Level: 01H's debt to equity ratio (25.5%) is considered satisfactory

Reducing Debt: 01H's debt to equity ratio has increased from 23% to 25.5% over the past 5 years.

Debt Coverage: 01H's debt is well covered by operating cash flow (51.1%).

Interest Coverage: 01H's interest payments on its debt are well covered by EBIT (306.3x coverage).


Balance Sheet

Inventory Level: 01H has a high level of physical assets or inventory.

Debt Coverage by Assets: 01H's debt is covered by short term assets (assets are 4.3x debt).


Next Steps

Dividend

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

1.77%

Current Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield vs Market

company1.8%marketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years1.9%

Current dividend yield vs market & industry

Notable Dividend: 01H's dividend (1.77%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: 01H's dividend (1.77%) is low compared to the top 25% of dividend payers in the German market (3.68%).


Stability and Growth of Payments

Stable Dividend: 01H's dividend payments have been volatile in the past 10 years.

Growing Dividend: 01H's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.5%), 01H'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

  • Explore strong dividend paying companies in the Tech industry.

Management

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

1.8yrs

Average management tenure


CEO

Atsushi Horiba (71yo)

27.8yrs

Tenure

JP¥315,000,000

Compensation

Mr. Horiba Atsushi has been the Chief Executive Officer of Horiba, Ltd. since 1992 and served as its President from 1992 to January 2018. Mr. Atsushi serves as External Director at SoftBank Corp. Mr. Atsus ...


CEO Compensation Analysis

Compensation vs Market: Atsushi's total compensation ($USD0.00) is below average for companies of similar size in the German market ($USD2.52M).

Compensation vs Earnings: Atsushi's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.8yrs

Average Tenure

68yo

Average Age

Experienced Management: 01H's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

5.8yrs

Average Tenure

68yo

Average Age

Experienced Board: 01H's board of directors are considered experienced (5.8 years average tenure).


Insider Trading

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.


Management Team

  • Sunao Kikkawa

    Senior Corporate Officer and General Manager of Finance & Control Division

    • Tenure: 0yrs
  • Juichi Saito (61yo)

    Executive Vice Chairman & Group COO

    • Tenure: 1.8yrs
    • Compensation: JP¥138.00m
  • Atsushi Horiba (71yo)

    Chairman & Group CEO

    • Tenure: 27.8yrs
    • Compensation: JP¥315.00m
  • Jai Hakhu (68yo)

    Executive Corporate Officer

    • Tenure: 9.6yrs
  • Masayuki Adachi

    President

    • Tenure: 5.8yrs
    • Compensation: JP¥104.00m
  • Yuichi Muroga

    Senior Corporate Officer & President of HORIBA Techno Service Co Ltd

    • Tenure: 0yrs
  • Tadao Nakamura

    Junior Corporate Officer

    • Tenure: 0yrs
  • Hideyuki Koishi

    Senior Corporate Officer & President of HORIBA STEC Co Ltd

    • Tenure: 0yrs
  • Hideyuki Nishibun

    Junior Corporate Officer and Deputy General Manager of International Sales Division

    • Tenure: 0yrs
  • Masao Okawa

    Senior Corporate Officer and General Manager of General Administration Division

    • Tenure: 0yrs

Board Members

  • Kanji Ishizumi

    Outside Independent Auditor

    • Tenure: 24.8yrs
  • Juichi Saito (61yo)

    Executive Vice Chairman & Group COO

    • Tenure: 1.8yrs
    • Compensation: JP¥138.00m
  • Atsushi Horiba (71yo)

    Chairman & Group CEO

    • Tenure: 27.8yrs
    • Compensation: JP¥315.00m
  • Jai Hakhu (68yo)

    Executive Corporate Officer

    • Tenure: 9.6yrs
  • Masahiro Sugita (75yo)

    Outside Director

    • Tenure: 13.8yrs
  • Sawako Takeuchi (67yo)

    Outside Director

    • Tenure: 3.8yrs
  • Masayuki Adachi

    President

    • Tenure: 5.8yrs
    • Compensation: JP¥104.00m
  • Takashi Nagano

    Director

    • Tenure: 3.6yrs
  • George Gillespie

    Senior Corporate Officer & Executive Chairman of HORIBA MIRA Limited (U.K.)

    • Tenure: 0yrs
  • Jiko Higashifushimi

    Outside Independent Director

    • Tenure: 3.6yrs

Company Information

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


Key Information

  • Name: HORIBA, Ltd.
  • Ticker: 01H
  • Exchange: DB
  • Founded: 1945
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: JP¥310.417b
  • Listing Market Cap: JP¥2.593b
  • Shares outstanding: 42.18m
  • Website: https://www.horiba.com

Number of Employees


Location

  • HORIBA, Ltd.
  • 2 Miyanohigashi
  • Kisshoin
  • Kyoto
  • 601-8510
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6856TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
HRIB.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
01HDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992

Biography

HORIBA, Ltd. provides a range of instruments and systems for automotive research and development (R&D), process and environmental monitoring, in-vitro medical diagnostics, semiconductor manufacturing, metr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/13 21:20
End of Day Share Price2019/11/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.