DB:HOD

Stock Analysis Report

Executive Summary

Hosiden Corporation manufactures and sells electronics, electrical appliances, auto parts, information telecommunications equipment, office machines, and medical equipment and related parts in Japan and internationally.

Rewards

PE ratio (10x) is below the German market (20.5x)

Risk Analysis

Earnings are forecast to decline by an average of -8.1% per year for the next 3 years

Unstable dividend track record

Highly volatile share price over past 3 months



Snowflake Analysis

Excellent balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0.9%

HOD

1.5%

DE Electronic

1.0%

DE Market


1 Year Return

87.0%

HOD

19.6%

DE Electronic

15.7%

DE Market

Return vs Industry: HOD exceeded the German Electronic industry which returned 19.6% over the past year.

Return vs Market: HOD exceeded the German Market which returned 15.7% over the past year.


Shareholder returns

HODIndustryMarket
7 Day0.9%1.5%1.0%
30 Day9.8%-2.1%1.0%
90 Day26.6%11.6%6.7%
1 Year91.9%87.0%22.5%19.6%19.3%15.7%
3 Year51.7%43.8%64.9%59.6%19.5%8.9%
5 Year168.1%147.2%139.0%121.0%36.9%18.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

10.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HOD (€11.2) is trading above our estimate of fair value (€4.63)

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


Price To Earnings Ratio

PE vs Industry: HOD is good value based on its PE Ratio (10x) compared to the Electronic industry average (28.4x).

PE vs Market: HOD is good value based on its PE Ratio (10x) compared to the German market (20.5x).


Price to Earnings Growth Ratio

PEG Ratio: HOD's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: HOD is good value based on its PB Ratio (0.8x) compared to the DE Electronic industry average (2x).


Next Steps

Future Growth

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

-8.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HOD's earnings are forecast to decline over the next 3 years (-8.1% per year).

Earnings vs Market: HOD's earnings are forecast to decline over the next 3 years (-8.1% per year).

High Growth Earnings: HOD's earnings are forecast to decline over the next 3 years.

Revenue vs Market: HOD's revenue (2.3% per year) is forecast to grow slower than the German market (4.9% per year).

High Growth Revenue: HOD's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HOD's Return on Equity is forecast to be low in 3 years time (6.5%).


Next Steps

Past Performance

How has Hosiden performed over the past 5 years?

52.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HOD has high quality earnings.

Growing Profit Margin: HOD's current net profit margins (4.1%) are higher than last year (3.9%).


Past Earnings Growth Analysis

Earnings Trend: HOD has become profitable over the past 5 years, growing earnings by 52.8% per year.

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

Earnings vs Industry: HOD had negative earnings growth (-28.3%) over the past year, making it difficult to compare to the Electronic industry average (-5.4%).


Return on Equity

High ROE: HOD's Return on Equity (8.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hosiden's financial position?


Financial Position Analysis

Short Term Liabilities: HOD's short term assets (¥136.7B) exceed its short term liabilities (¥46.2B).

Long Term Liabilities: HOD's short term assets (¥136.7B) exceed its long term liabilities (¥16.6B).


Debt to Equity History and Analysis

Debt Level: HOD's debt to equity ratio (13%) is considered satisfactory.

Reducing Debt: HOD's debt to equity ratio has increased from 8% to 13% over the past 5 years.

Debt Coverage: HOD's debt is well covered by operating cash flow (211.7%).

Interest Coverage: HOD earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: HOD's debt is covered by short term assets (assets are 10.8x debt).


Next Steps

Dividend

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

1.43%

Current Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield vs Market

company1.4%marketbottom25%1.3%markettop25%3.6%industryaverage1.3%forecastin3Years1.6%

Current dividend yield vs market & industry

Notable Dividend: HOD's dividend (1.43%) is higher than the bottom 25% of dividend payers in the German market (1.33%).

High Dividend: HOD's dividend (1.43%) is low compared to the top 25% of dividend payers in the German market (3.55%).


Stability and Growth of Payments

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

Growing Dividend: HOD's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (14.4%), HOD's dividend payments are thoroughly 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

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

16.2yrs

Average management tenure


CEO

Kenji Furuhashi (64yo)

28.7yrs

Tenure

JP¥109,000,000

Compensation

Mr. Kenji Furuhashi has been the President at Hosiden Corp since April 1991 and served as its Chief Executive Officer. Mr. Furuhashi has been the President of Hong Kong Hosiden Limited, Korea Hosiden Co.,  ...


CEO Compensation Analysis

Compensation vs Market: Kenji's total compensation ($USD0.00) is below average for companies of similar size in the German market ($USD1.28M).

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


Management Age and Tenure

16.2yrs

Average Tenure

68.5yo

Average Age

Experienced Management: HOD's management team is seasoned and experienced (16.2 years average tenure).


Board Age and Tenure

9.5yrs

Average Tenure

70yo

Average Age

Experienced Board: HOD's board of directors are considered experienced (9.5 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

  • Yasuhiro Shigeno (66yo)

    Head of Technology Management Dept

    • Tenure: 0yrs
  • Haremi Kitatani (82yo)

    VP, Head of Hosiden Group & Representative Director

    • Tenure: 21.5yrs
    • Compensation: JP¥100.00m
  • Kenji Furuhashi (64yo)

    President & Representative Director

    • Tenure: 28.7yrs
    • Compensation: JP¥109.00m
  • Shinji Hombo (71yo)

    Head for Office of President

    • Tenure: 14.5yrs

Board Members

  • Yasuhiro Shigeno (66yo)

    Head of Technology Management Dept

    • Tenure: 0yrs
  • Haremi Kitatani (82yo)

    VP, Head of Hosiden Group & Representative Director

    • Tenure: 21.5yrs
    • Compensation: JP¥100.00m
  • Kenji Furuhashi (64yo)

    President & Representative Director

    • Tenure: 28.7yrs
    • Compensation: JP¥109.00m
  • Saburo Kikyo (72yo)

    Audit & Supervisory Board Member

    • Tenure: 9.5yrs
  • Shinji Hombo (71yo)

    Head for Office of President

    • Tenure: 14.5yrs
  • Kenichi Takahashi (74yo)

    External Director

    • Tenure: 4.4yrs
  • Takayuki Tanemura (60yo)

    Outside Audit & Supervisory Board Member

    • Tenure: 0yrs
  • Susumu Maruno (64yo)

    Outside Audit & Supervisory Board Member

    • Tenure: 4.4yrs
  • Hiroshi Horie (70yo)

    External Director

    • Tenure: 2.4yrs

Company Information

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


Key Information

  • Name: Hosiden Corporation
  • Ticker: HOD
  • Exchange: DB
  • Founded: 1947
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: JP¥81.607b
  • Listing Market Cap: JP¥671.766m
  • Shares outstanding: 58.46m
  • Website: https://www.hosiden.co.jp

Number of Employees


Location

  • Hosiden Corporation
  • 4-33, Kitakyuhoji 1-Chome
  • Yao
  • Osaka
  • 581-0071
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HODDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1992
6804TSE (The Tokyo Stock Exchange)YesCommon SharesJPJPYJan 1992
HOIE.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 1992

Biography

Hosiden Corporation manufactures and sells electronics, electrical appliances, auto parts, information telecommunications equipment, office machines, and medical equipment and related parts in Japan and in ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 20:49
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
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.