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7219

HKS TSE:7219 Stock Report

Last Price

JP¥1.98k

Market Cap

JP¥2.8b

7D

-2.1%

1Y

0.4%

Updated

27 Sep, 2022

Data

Company Financials
7219 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance5/6
Financial Health6/6
Dividends5/6

7219 Stock Overview

HKS Co., Ltd. manufactures and sells automobile aftermarket parts in Japan and internationally.

HKS Competitors

Price History & Performance

Summary of all time highs, changes and price drops for HKS
Historical stock prices
Current Share PriceJP¥1,977.00
52 Week HighJP¥2,096.00
52 Week LowJP¥1,746.00
Beta0.95
1 Month Change-2.13%
3 Month Change-0.40%
1 Year Change0.36%
3 Year Change12.97%
5 Year Change-9.62%
Change since IPO-56.79%

Recent News & Updates

Shareholder Returns

7219JP Auto ComponentsJP Market
7D-2.1%-3.0%-2.3%
1Y0.4%-8.7%-8.8%

Return vs Industry: 7219 exceeded the JP Auto Components industry which returned -11.1% over the past year.

Return vs Market: 7219 exceeded the JP Market which returned -10.9% over the past year.

Price Volatility

Is 7219's price volatile compared to industry and market?
7219 volatility
7219 Average Weekly Movement3.5%
Auto Components Industry Average Movement3.3%
Market Average Movement3.5%
10% most volatile stocks in JP Market7.4%
10% least volatile stocks in JP Market1.8%

Stable Share Price: 7219 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 7219's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1973356Daisuke Mizuguchihttps://www.hks-global.com

HKS Co., Ltd. manufactures and sells automobile aftermarket parts in Japan and internationally. It offers turbo kits, exhaust systems, turbochargers, original mufflers, suspensions, electronic parts, NGV parts, and others; race engines; eco-friendly and fuel efficient systems; and conversion kits for converting a gasoline vehicle into compressed natural gas and gasoline Bi-fuel vehicle. The company also engages in developing and selling light sport aircraft engines, as well as the contract and original equipment manufacturing business.

HKS Fundamentals Summary

How do HKS's earnings and revenue compare to its market cap?
7219 fundamental statistics
Market CapJP¥2.80b
Earnings (TTM)JP¥489.00m
Revenue (TTM)JP¥8.34b

5.7x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
7219 income statement (TTM)
RevenueJP¥8.34b
Cost of RevenueJP¥5.00b
Gross ProfitJP¥3.34b
Other ExpensesJP¥2.85b
EarningsJP¥489.00m

Last Reported Earnings

May 31, 2022

Next Earnings Date

Oct 14, 2022

Earnings per share (EPS)345.57
Gross Margin40.03%
Net Profit Margin5.86%
Debt/Equity Ratio12.8%

How did 7219 perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

10%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 7219 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 7219?

Other financial metrics that can be useful for relative valuation.

7219 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.2x
Enterprise Value/EBITDA1.2x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does 7219's PE Ratio compare to its peers?

7219 PE Ratio vs Peers
The above table shows the PE ratio for 7219 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average14.9x
7318 Serendip HoldingsLtd
33.6xn/aJP¥3.2b
6042 Nikki
3.2xn/aJP¥3.7b
3.5xn/aJP¥3.7b
7208 Kanemitsu
19.2xn/aJP¥3.7b
5.7xn/aJP¥2.8b

Price-To-Earnings vs Peers: 7219 is good value based on its Price-To-Earnings Ratio (5.7x) compared to the peer average (14.9x).


Price to Earnings Ratio vs Industry

How does 7219's PE Ratio compare vs other companies in the JP Auto Components Industry?

Price-To-Earnings vs Industry: 7219 is good value based on its Price-To-Earnings Ratio (5.7x) compared to the JP Auto Components industry average (9.2x)


Price to Earnings Ratio vs Fair Ratio

What is 7219's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

7219 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.7x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 7219's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 7219 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 7219 (¥1977) is trading below our estimate of fair value (¥2501.35)

Significantly Below Fair Value: 7219 is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is HKS forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


15.0%

Forecasted Automobiles industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as HKS has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Discover growth companies

  • Examine whether HKS is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.

Past Performance

How has HKS performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


29.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 7219 has high quality earnings.

Growing Profit Margin: 7219's current net profit margins (5.9%) are higher than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: 7219's earnings have grown significantly by 29.4% per year over the past 5 years.

Accelerating Growth: 7219's earnings growth over the past year (69.8%) exceeds its 5-year average (29.4% per year).

Earnings vs Industry: 7219 earnings growth over the past year (69.8%) exceeded the Auto Components industry -15.5%.


Return on Equity

High ROE: 7219's Return on Equity (5.3%) is considered low.


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Financial Health

How is HKS's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 7219's short term assets (¥6.3B) exceed its short term liabilities (¥2.4B).

Long Term Liabilities: 7219's short term assets (¥6.3B) exceed its long term liabilities (¥1.1B).


Debt to Equity History and Analysis

Debt Level: 7219 has more cash than its total debt.

Reducing Debt: 7219's debt to equity ratio has reduced from 18.4% to 12.8% over the past 5 years.

Debt Coverage: 7219's debt is well covered by operating cash flow (57.7%).

Interest Coverage: 7219 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is HKS current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.82%

Current Dividend Yield

Dividend Yield vs Market

HKS Dividend Yield vs Market
How does HKS dividend yield compare to the market?
SegmentDividend Yield
Company (HKS)1.8%
Market Bottom 25% (JP)1.7%
Market Top 25% (JP)3.7%
Industry Average (Auto Components)3.1%
Analyst forecast in 3 Years (HKS)n/a

Notable Dividend: 7219's dividend (1.82%) is higher than the bottom 25% of dividend payers in the JP market (1.68%).

High Dividend: 7219's dividend (1.82%) is low compared to the top 25% of dividend payers in the JP market (3.73%).


Stability and Growth of Payments

Stable Dividend: 7219's dividends per share have been stable in the past 10 years.

Growing Dividend: 7219's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (10.4%), 7219's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (14%), 7219's dividend payments are thoroughly covered by cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

8.2yrs

Average management tenure


CEO

Daisuke Mizuguchi (53 yo)

no data

Tenure

Mr. Daisuke Mizuguchi serves as President at HKS Co., Ltd. and served as its the Manager of Gas Engine Development Department (formerly CNG Development Department) since June 2011. Mr. Mizuguchi has been a...


Leadership Team

Experienced Management: 7219's management team is seasoned and experienced (8.2 years average tenure).


Board Members

Experienced Board: 7219's board of directors are seasoned and experienced ( 10.8 years average tenure).


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

What is the ownership structure of 7219?
Owner TypeNumber of SharesOwnership Percentage
Employee Share Scheme33,0002.3%
Institutions233,00016.5%
General Public366,84425.9%
Individual Insiders782,20055.3%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 16 shareholders own 74.08% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
44.87%
Reiko Hasegawa
635,000¥1.3b0%no data
4.81%
The Shizuoka Bank Ltd., Asset Management Arm
68,000¥134.4m0%0.05%
4.45%
Katsuya Hattori
63,000¥124.6m0%no data
3.82%
Tokio Marine Asset Management Co., Ltd.
54,000¥106.8m0%0.01%
3.53%
The Yamanashi Chuo Bank, Ltd., Asset Management Arm
50,000¥98.9m0%1.02%
2.61%
Mamoru Yamamoto
37,000¥73.1m0%no data
2.47%
Shizuoka Capital Company Limited
35,000¥69.2m0%37.85%
2.33%
HKS Co., Ltd., Employee Shareholding Association
33,000¥65.2m0%no data
1.84%
MUFG Bank, Ltd.,Investment Banking Arm
26,000¥51.4m0%no data
1.41%
Kohei Kakizawa
20,000¥39.5m0%no data
0.79%
Tatsuki Akaike
11,200¥22.1m0%no data
0.59%
Shuji Shiokawa
8,400¥16.6m0%no data
0.28%
Tatsuya Sakazume
4,000¥7.9m0%no data
0.17%
Daisuke Mizuguchi
2,400¥4.7m0%no data
0.057%
Toshimitsu Uematsu
800¥1.6m0%no data
0.028%
Yukimichi Kitane
400¥790.8k0%no data

Company Information

HKS Co., Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: HKS Co., Ltd.
  • Ticker: 7219
  • Exchange: TSE
  • Founded: 1973
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Implied Market Cap: JP¥2.798b
  • Shares outstanding: 1.42m
  • Website: https://www.hks-global.com

Number of Employees


Location

  • HKS Co., Ltd.
  • 2266 Kamiide
  • Fujinomiya
  • Shizuoka
  • 418-0192
  • Japan


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
7219TSE (The Tokyo Stock Exchange)YesCommon SharesJPJPYJun 1999

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/27 00:00
End of Day Share Price2022/09/27 00:00
Earnings2022/05/31
Annual Earnings2021/08/31


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.