DB:HRO

Stock Analysis Report

Hirose ElectricLtd

Executive Summary

Hirose Electric Co.,Ltd. manufactures and sells connectors in Japan and internationally.


Snowflake Analysis

Flawless balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-11.3%

HRO

-8.8%

DE Electronic

-9.1%

DE Market


1 Year Return

5.1%

HRO

-5.2%

DE Electronic

2.9%

DE Market

Return vs Industry: HRO exceeded the German Electronic industry which returned -5.2% over the past year.

Return vs Market: HRO exceeded the German Market which returned 2.9% over the past year.


Shareholder returns

HROIndustryMarket
7 Day-11.3%-8.8%-9.1%
30 Day-20.3%2.0%-7.2%
90 Day-15.3%-0.5%-6.5%
1 Year7.2%5.1%-3.2%-5.2%6.1%2.9%
3 Year-20.2%-25.5%31.2%27.0%3.5%-5.6%
5 Year-14.0%-22.4%94.3%80.2%8.0%-6.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

28.52x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HRO (€99) is trading above our estimate of fair value (€64.33)

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


Price To Earnings Ratio

PE vs Industry: HRO is poor value based on its PE Ratio (29.9x) compared to the Electronic industry average (24.9x).

PE vs Market: HRO is poor value based on its PE Ratio (29.9x) compared to the German market (19.9x).


Price to Earnings Growth Ratio

PEG Ratio: HRO is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: HRO is good value based on its PB Ratio (1.4x) compared to the DE Electronic industry average (1.7x).


Next Steps

Future Growth

How is Hirose ElectricLtd forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

8.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HRO's forecast earnings growth (8.4% per year) is above the savings rate (-0.4%).

Earnings vs Market: HRO's earnings (8.4% per year) are forecast to grow slower than the German market (13.1% per year).

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

Revenue vs Market: HRO's revenue (4.8% per year) is forecast to grow slower than the German market (5.1% per year).

High Growth Revenue: HRO's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HRO's Return on Equity is forecast to be low in 3 years time (6.9%).


Next Steps

Past Performance

How has Hirose ElectricLtd performed over the past 5 years?

-6.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HRO has high quality earnings.

Growing Profit Margin: HRO's current net profit margins (12.2%) are lower than last year (14.6%).


Past Earnings Growth Analysis

Earnings Trend: HRO's earnings have declined by -6.6% per year over the past 5 years.

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

Earnings vs Industry: HRO had negative earnings growth (-20.9%) over the past year, making it difficult to compare to the Electronic industry average (-3.9%).


Return on Equity

High ROE: HRO's Return on Equity (4.8%) is considered low.


Next Steps

Financial Health

How is Hirose ElectricLtd's financial position?


Financial Position Analysis

Short Term Liabilities: HRO's short term assets (¥220.1B) exceed its short term liabilities (¥24.3B).

Long Term Liabilities: HRO's short term assets (¥220.1B) exceed its long term liabilities (¥12.7B).


Debt to Equity History and Analysis

Debt Level: HRO is debt free.

Reducing Debt: HRO has not had any debt for past 5 years.

Debt Coverage: HRO has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: HRO has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if HRO's debt is covered by short term assets.


Next Steps

Dividend

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

2.09%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 29 2020Ex Dividend DateMar 30 2020Dividend Pay DateJun 28 202090 days from Ex DividendBuy in the next 30 days to receive upcoming dividend

Dividend Yield vs Market

Notable Dividend: HRO's dividend (2%) is higher than the bottom 25% of dividend payers in the German market (1.52%).

High Dividend: HRO's dividend (2%) is low compared to the top 25% of dividend payers in the German market (3.92%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (59.7%), HRO'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?


CEO

Kazunori Ishii 0

Mr. Kazunori Ishii serves as the President and Representative Director of Hirose Electric Co. Ltd. and served as its a Senior Managing Director. Mr. Ishii served as the President and Representative Directo ...


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

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


Key Information

  • Name: Hirose Electric Co.,Ltd.
  • Ticker: HRO
  • Exchange: DB
  • Founded: 1937
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: JP¥415.622b
  • Listing Market Cap: JP¥3.488b
  • Shares outstanding: 36.27m
  • Website: https://www.hirose.com

Number of Employees


Location

  • Hirose Electric Co.,Ltd.
  • 5-23. Osaki 5-chome
  • shinagawa-ku
  • Tokyo
  • 141-8587
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HRODB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
6806TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992

Biography

Hirose Electric Co.,Ltd. manufactures and sells connectors in Japan and internationally. The company offers multi-pin connectors, including circular and rectangular connectors; connectors for ribbon cables; connectors used for printed circuit boards comprising flexible printed circuit boards; and nylon connectors for use in a range of fields, such as smartphones, communications equipment, and automotive electronics, as well as in industrial fields, such as measuring and control equipment, FA equipment, and medical electronics equipment. The company also provides coaxial connectors for microwave and other high-frequency signals; and optical fiber connectors and coaxial switches used in various applications, which include microwave communications devices, satellite communications equipment, electronic measuring instruments, smartphones, switching and transmission equipment, and other electronic equipment. In addition, it provides micro switches and instruments for connectors. The company was formerly known as Hirose Manufacturing Co., Ltd. and changed its name to Hirose Electric Co.,Ltd. in August 1963. Hirose Electric Co.,Ltd. was founded in 1937 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 Analysis2020/02/28 20:39
End of Day Share Price2020/02/28 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.