Buy Or Sell Opportunity • Jul 08
Now 21% undervalued Over the last 90 days, the stock has risen 12% to JP¥2,845. The fair value is estimated to be JP¥3,593, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.4% over the last 3 years. Earnings per share has grown by 12%. For the next 3 years, revenue is forecast to grow by 9.2% per annum. Earnings are also forecast to grow by 10% per annum over the same time period. Announcement • Jun 28
Hirata Corporation to Report Q1, 2027 Results on Aug 07, 2026 Hirata Corporation announced that they will report Q1, 2027 results on Aug 07, 2026 Valuation Update With 7 Day Price Move • Jun 18
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to JP¥3,100, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 17x in the Machinery industry in Japan. Total returns to shareholders of 18% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥3,417 per share. Buy Or Sell Opportunity • Jun 08
Now 23% undervalued after recent price drop Over the last 90 days, the stock has fallen 4.4% to JP¥2,630. The fair value is estimated to be JP¥3,414, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.4% over the last 3 years. Earnings per share has grown by 12%. For the next 3 years, revenue is forecast to grow by 5.4% per annum. Earnings are also forecast to grow by 9.6% per annum over the same time period. Price Target Changed • Jun 05
Price target decreased by 7.4% to JP¥3,180 Down from JP¥3,435, the current price target is an average from 2 analysts. New target price is 13% above last closing price of JP¥2,820. Stock is up 53% over the past year. The company is forecast to post earnings per share of JP¥220 for next year compared to JP¥199 last year. Valuation Update With 7 Day Price Move • May 21
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to JP¥3,010, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 15x in the Machinery industry in Japan. Total returns to shareholders of 33% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,563 per share. Reported Earnings • May 18
Full year 2026 earnings: EPS in line with analyst expectations despite revenue beat Full year 2026 results: EPS: JP¥199 (up from JP¥154 in FY 2025). Revenue: JP¥94.9b (up 7.3% from FY 2025). Net income: JP¥6.08b (up 27% from FY 2025). Profit margin: 6.4% (up from 5.4% in FY 2025). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.2%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 5.5% p.a. on average during the next 2 years, compared to a 5.7% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 12% per year whereas the company’s share price has increased by 10% per year. New Risk • May 15
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 9.7% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (9.7% average weekly change). Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Announcement • May 14
Hirata Corporation, Annual General Meeting, Jun 24, 2026 Hirata Corporation, Annual General Meeting, Jun 24, 2026. Announcement • May 09
Hirata Corporation to Report Fiscal Year 2026 Results on May 14, 2026 Hirata Corporation announced that they will report fiscal year 2026 results on May 14, 2026 Valuation Update With 7 Day Price Move • Apr 10
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to JP¥2,879, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 16x in the Machinery industry in Japan. Total returns to shareholders of 36% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,442 per share. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥65.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 09 June 2026. Payout ratio is a comfortable 56% and this is well supported by cash flows. Trailing yield: 2.7%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.6%). Reported Earnings • Feb 16
Third quarter 2026 earnings released: EPS: JP¥41.34 (vs JP¥36.73 in 3Q 2025) Third quarter 2026 results: EPS: JP¥41.34 (up from JP¥36.73 in 3Q 2025). Revenue: JP¥23.5b (up 6.9% from 3Q 2025). Net income: JP¥1.27b (up 12% from 3Q 2025). Profit margin: 5.4% (up from 5.2% in 3Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 3.6% p.a. on average during the next 3 years, compared to a 5.3% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 13% per year whereas the company’s share price has increased by 9% per year. Price Target Changed • Jan 31
Price target increased by 18% to JP¥3,195 Up from JP¥2,705, the current price target is an average from 2 analysts. New target price is 24% above last closing price of JP¥2,568. Stock is up 41% over the past year. The company is forecast to post earnings per share of JP¥200 for next year compared to JP¥154 last year. Announcement • Dec 02
Hirata Corporation to Report Q3, 2026 Results on Feb 13, 2026 Hirata Corporation announced that they will report Q3, 2026 results on Feb 13, 2026 New Risk • Dec 02
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.5% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (5.5% average weekly change). Declared Dividend • Nov 10
Dividend of JP¥65.00 announced Shareholders will receive a dividend of JP¥65.00. Ex-date: 30th March 2026 Payment date: 9th June 2026 Dividend yield will be 3.1%, which is higher than the industry average of 2.1%. Sustainability & Growth Dividend is covered by both earnings (57% earnings payout ratio) and cash flows (28% cash payout ratio). The dividend has increased by an average of 32% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 15% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 08
Second quarter 2026 earnings released: EPS: JP¥74.18 (vs JP¥34.67 in 2Q 2025) Second quarter 2026 results: EPS: JP¥74.18 (up from JP¥34.67 in 2Q 2025). Revenue: JP¥23.5b (up 18% from 2Q 2025). Net income: JP¥2.27b (up 110% from 2Q 2025). Profit margin: 9.7% (up from 5.4% in 2Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 3.0% p.a. on average during the next 3 years, compared to a 4.9% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Buy Or Sell Opportunity • Sep 05
Now 21% overvalued The stock has been flat over the last 90 days, currently trading at JP¥1,833. The fair value is estimated to be JP¥1,512, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 8.3% over the last 3 years. Earnings per share has grown by 12%. Revenue is forecast to grow by 7.4% in 2 years. Earnings are forecast to grow by 23% in the next 2 years. Announcement • Sep 01
Hirata Corporation to Report Q2, 2026 Results on Nov 07, 2025 Hirata Corporation announced that they will report Q2, 2026 results on Nov 07, 2025 Buy Or Sell Opportunity • Aug 20
Now 20% undervalued Over the last 90 days, the stock has risen 5.6% to JP¥1,917. The fair value is estimated to be JP¥2,411, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.3% over the last 3 years. Earnings per share has grown by 12%. Revenue is forecast to grow by 9.3% in 2 years. Earnings are forecast to grow by 26% in the next 2 years. Reported Earnings • Aug 09
First quarter 2026 earnings released: EPS: JP¥38.12 (vs JP¥23.19 in 1Q 2025) First quarter 2026 results: EPS: JP¥38.12 (up from JP¥23.19 in 1Q 2025). Revenue: JP¥22.1b (up 8.6% from 1Q 2025). Net income: JP¥1.17b (up 61% from 1Q 2025). Profit margin: 5.3% (up from 3.5% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 4.7% p.a. on average during the next 3 years, compared to a 4.7% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 12% per year whereas the company’s share price has increased by 10% per year. Reported Earnings • Jul 01
Full year 2025 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2025 results: EPS: JP¥463 (up from JP¥139 in FY 2024). Revenue: JP¥88.5b (up 6.8% from FY 2024). Net income: JP¥4.78b (up 10.0% from FY 2024). Profit margin: 5.4% (up from 5.2% in FY 2024). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 1.2%. Earnings per share (EPS) exceeded analyst estimates by 9.2%. Revenue is forecast to grow 4.9% p.a. on average during the next 3 years, compared to a 4.6% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 38% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Announcement • May 31
Hirata Corporation to Report Q1, 2026 Results on Aug 08, 2025 Hirata Corporation announced that they will report Q1, 2026 results on Aug 08, 2025 Valuation Update With 7 Day Price Move • May 16
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥1,819, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 12x in the Machinery industry in Japan. Total returns to shareholders of 34% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,404 per share. New Risk • May 12
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 11% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (11% average weekly change). Minor Risk Paying a dividend despite having no free cash flows. Reported Earnings • May 10
Full year 2025 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2025 results: EPS: JP¥463 (up from JP¥139 in FY 2024). Revenue: JP¥88.5b (up 6.8% from FY 2024). Net income: JP¥4.78b (up 10.0% from FY 2024). Profit margin: 5.4% (up from 5.2% in FY 2024). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 1.2%. Earnings per share (EPS) exceeded analyst estimates by 9.2%. Revenue is forecast to grow 6.7% p.a. on average during the next 2 years, compared to a 4.4% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 38% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Announcement • May 09
Hirata Corporation, Annual General Meeting, Jun 26, 2025 Hirata Corporation, Annual General Meeting, Jun 26, 2025. Buy Or Sell Opportunity • May 09
Now 21% overvalued Over the last 90 days, the stock has fallen 14% to JP¥1,548. The fair value is estimated to be JP¥1,280, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 9.1% over the last 3 years. Earnings per share has grown by 6.9%. Revenue is forecast to grow by 19% in 2 years. Earnings are forecast to grow by 129% in the next 2 years. Valuation Update With 7 Day Price Move • Apr 03
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥1,407, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 12x in the Machinery industry in Japan. Total loss to shareholders of 13% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,300 per share. New Risk • Mar 28
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.2% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (currently running at an operating cash loss). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (5.2% average weekly change). Profit margins are more than 30% lower than last year (3.1% net profit margin). Upcoming Dividend • Mar 21
Upcoming dividend of JP¥120 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 06 June 2025. Payout ratio is a comfortable 39% but the company is not cash flow positive. Trailing yield: 2.3%. Lower than top quartile of Japanese dividend payers (3.7%). In line with average of industry peers (2.1%). Buy Or Sell Opportunity • Mar 12
Now 21% overvalued Over the last 90 days, the stock has fallen 11% to JP¥4,775. The fair value is estimated to be JP¥3,935, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 9.1% over the last 3 years. Earnings per share has grown by 6.9%. Revenue is forecast to grow by 21% in 2 years. Earnings are forecast to grow by 129% in the next 2 years. Announcement • Mar 01
Hirata Corporation to Report Fiscal Year 2025 Results on May 09, 2025 Hirata Corporation announced that they will report fiscal year 2025 results on May 09, 2025 Reported Earnings • Feb 16
Third quarter 2025 earnings released: EPS: JP¥110 (vs JP¥226 in 3Q 2024) Third quarter 2025 results: EPS: JP¥110 (down from JP¥226 in 3Q 2024). Revenue: JP¥22.0b (down 7.0% from 3Q 2024). Net income: JP¥1.14b (down 52% from 3Q 2024). Profit margin: 5.2% (down from 9.9% in 3Q 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 4.7% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Major Estimate Revision • Feb 15
Consensus EPS estimates fall by 15% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from JP¥95.3b to JP¥89.0b. EPS estimate also fell from JP¥475 per share to JP¥405 per share. Net income forecast to grow 31% next year vs 12% growth forecast for Machinery industry in Japan. Consensus price target of JP¥8,480 unchanged from last update. Share price was steady at JP¥5,330 over the past week. Buy Or Sell Opportunity • Feb 12
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 6.4% to JP¥5,460. The fair value is estimated to be JP¥4,540, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 10% over the last 3 years. Earnings per share has grown by 9.6%. Revenue is forecast to grow by 23% in 2 years. Earnings are forecast to grow by 63% in the next 2 years. Announcement • Nov 30
Hirata Corporation to Report Q3, 2025 Results on Feb 14, 2025 Hirata Corporation announced that they will report Q3, 2025 results on Feb 14, 2025 Price Target Changed • Nov 21
Price target decreased by 7.7% to JP¥8,480 Down from JP¥9,185, the current price target is an average from 2 analysts. New target price is 67% above last closing price of JP¥5,080. Stock is down 19% over the past year. The company is forecast to post earnings per share of JP¥492 for next year compared to JP¥418 last year. Declared Dividend • Nov 11
Dividend of JP¥120 announced Shareholders will receive a dividend of JP¥120. Ex-date: 28th March 2025 Payment date: 6th June 2025 Dividend yield will be 2.2%, which is higher than the industry average of 2.1%. Sustainability & Growth Dividend is covered by earnings (27% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 25% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 76% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 09
Second quarter 2025 earnings released: EPS: JP¥104 (vs JP¥115 in 2Q 2024) Second quarter 2025 results: EPS: JP¥104 (down from JP¥115 in 2Q 2024). Revenue: JP¥20.0b (up 9.6% from 2Q 2024). Net income: JP¥1.08b (down 9.8% from 2Q 2024). Profit margin: 5.4% (down from 6.6% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 9.6% p.a. on average during the next 3 years, compared to a 4.8% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Announcement • Nov 08
Hirata Corporation (TSE:6258) announces an Equity Buyback for 250,000 shares, representing 2.41% for ¥1,000 million. Hirata Corporation (TSE:6258) announces a share repurchase program. Under the program, the company will repurchase up to 250,000 shares, representing 2.41% of its share capital, for ¥1,000 million. The company will repurchase its shares in order to improve capital efficiency, return profits to shareholders, and ensure flexibility and agility in capital policy in response to changes in the business environment. The share repurchase program will run until March 31, 2025. As of September 30, 2024, the company had 10,386,997 shares outstanding (excluding treasury shares) and 369,093 shares in treasury. Announcement • Aug 27
Hirata Corporation to Report Q2, 2025 Results on Nov 08, 2024 Hirata Corporation announced that they will report Q2, 2025 results on Nov 08, 2024 Reported Earnings • Aug 12
First quarter 2025 earnings released: EPS: JP¥69.57 (vs JP¥106 in 1Q 2024) First quarter 2025 results: EPS: JP¥69.57 (down from JP¥106 in 1Q 2024). Revenue: JP¥20.4b (up 6.3% from 1Q 2024). Net income: JP¥722.7m (down 35% from 1Q 2024). Profit margin: 3.5% (down from 5.8% in 1Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 9.6% p.a. on average during the next 3 years, compared to a 4.8% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. New Risk • Aug 05
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 6.8% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (currently running at an operating cash loss). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (6.8% average weekly change). Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 29% After last week's 29% share price decline to JP¥4,375, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 12x in the Machinery industry in Japan. Total loss to shareholders of 27% over the past three years. Announcement • Jun 02
Hirata Corporation to Report Q1, 2025 Results on Aug 07, 2024 Hirata Corporation announced that they will report Q1, 2025 results on Aug 07, 2024 Reported Earnings • May 12
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: EPS: JP¥418 (up from JP¥411 in FY 2023). Revenue: JP¥82.8b (up 5.6% from FY 2023). Net income: JP¥4.34b (up 1.8% from FY 2023). Profit margin: 5.2% (down from 5.4% in FY 2023). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 18%. Revenue is forecast to grow 9.8% p.a. on average during the next 2 years, compared to a 4.7% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥100.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 05 June 2024. Payout ratio is a comfortable 16% but the company is not cash flow positive. Trailing yield: 1.2%. Lower than top quartile of Japanese dividend payers (3.2%). Lower than average of industry peers (1.9%). Price Target Changed • Mar 20
Price target increased by 9.9% to JP¥9,185 Up from JP¥8,360, the current price target is an average from 2 analysts. New target price is 17% above last closing price of JP¥7,820. Stock is up 20% over the past year. The company is forecast to post earnings per share of JP¥495 for next year compared to JP¥411 last year. Announcement • Mar 15
Hirata Corporation, Annual General Meeting, Jun 25, 2024 Hirata Corporation, Annual General Meeting, Jun 25, 2024. Announcement • Mar 02
Hirata Corporation to Report Fiscal Year 2024 Results on May 10, 2024 Hirata Corporation announced that they will report fiscal year 2024 results on May 10, 2024 Major Estimate Revision • Feb 22
Consensus EPS estimates increase by 14% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate increased from JP¥432 to JP¥492. Revenue forecast steady at JP¥81.9b. Net income forecast to shrink 0.8% next year vs 3.9% growth forecast for Machinery industry in Japan . Consensus price target of JP¥8,360 unchanged from last update. Share price rose 5.3% to JP¥7,930 over the past week. Reported Earnings • Feb 10
Third quarter 2024 earnings released: EPS: JP¥226 (vs JP¥143 in 3Q 2023) Third quarter 2024 results: EPS: JP¥226 (up from JP¥143 in 3Q 2023). Revenue: JP¥23.6b (up 15% from 3Q 2023). Net income: JP¥2.34b (up 58% from 3Q 2023). Profit margin: 9.9% (up from 7.2% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 8.1% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Price Target Changed • Nov 30
Price target decreased by 9.2% to JP¥8,360 Down from JP¥9,210, the current price target is an average from 2 analysts. New target price is 31% above last closing price of JP¥6,380. Stock is up 13% over the past year. The company is forecast to post earnings per share of JP¥450 for next year compared to JP¥411 last year. New Risk • Nov 15
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Reported Earnings • Nov 11
Second quarter 2024 earnings released: EPS: JP¥115 (vs JP¥89.18 in 2Q 2023) Second quarter 2024 results: EPS: JP¥115 (up from JP¥89.18 in 2Q 2023). Revenue: JP¥18.2b (up 1.7% from 2Q 2023). Net income: JP¥1.20b (up 29% from 2Q 2023). Profit margin: 6.6% (up from 5.2% in 2Q 2023). Revenue is forecast to grow 8.9% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 12
First quarter 2024 earnings released: EPS: JP¥106 (vs JP¥78.70 in 1Q 2023) First quarter 2024 results: EPS: JP¥106 (up from JP¥78.70 in 1Q 2023). Revenue: JP¥19.2b (up 14% from 1Q 2023). Net income: JP¥1.11b (up 35% from 1Q 2023). Profit margin: 5.8% (up from 4.9% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 8.3% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 8% per year whereas the company’s share price has increased by 7% per year. Price Target Changed • Jun 16
Price target increased by 13% to JP¥9,210 Up from JP¥8,150, the current price target is an average from 2 analysts. New target price is 11% above last closing price of JP¥8,280. Stock is up 100% over the past year. The company is forecast to post earnings per share of JP¥455 for next year compared to JP¥411 last year. Reported Earnings • May 14
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: JP¥411 (up from JP¥258 in FY 2022). Revenue: JP¥78.4b (up 17% from FY 2022). Net income: JP¥4.27b (up 59% from FY 2022). Profit margin: 5.4% (up from 4.0% in FY 2022). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 5.7%. Revenue is forecast to grow 12% p.a. on average during the next 2 years, compared to a 4.2% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 10% per year whereas the company’s share price has increased by 7% per year. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥85.00 per share at 1.3% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 06 June 2023. Payout ratio is a comfortable 21% but the company is not cash flow positive. Trailing yield: 1.3%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (2.4%). Price Target Changed • Mar 04
Price target increased by 11% to JP¥8,150 Up from JP¥7,350, the current price target is an average from 2 analysts. New target price is 22% above last closing price of JP¥6,690. Stock is up 31% over the past year. The company is forecast to post earnings per share of JP¥391 for next year compared to JP¥258 last year. Reported Earnings • Feb 12
Third quarter 2023 earnings released: EPS: JP¥142 (vs JP¥73.51 in 3Q 2022) Third quarter 2023 results: EPS: JP¥142 (up from JP¥73.51 in 3Q 2022). Revenue: JP¥20.5b (up 20% from 3Q 2022). Net income: JP¥1.48b (up 94% from 3Q 2022). Profit margin: 7.2% (up from 4.5% in 3Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 17% p.a. on average during the next 3 years, compared to a 4.5% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Announcement • Feb 10
Hirata Corporation, Annual General Meeting, Jun 23, 2023 Hirata Corporation, Annual General Meeting, Jun 23, 2023. Agenda: Annual General Meeting. Announcement • Dec 28
Hirata Corporation to Report Q3, 2023 Results on Feb 10, 2023 Hirata Corporation announced that they will report Q3, 2023 results on Feb 10, 2023 Major Estimate Revision • Dec 23
Consensus EPS estimates fall by 11% The consensus outlook for earnings per share (EPS) in 2023 has deteriorated. 2023 revenue forecast decreased from JP¥84.1b to JP¥80.8b. EPS estimate also fell from JP¥433 per share to JP¥387 per share. Net income forecast to grow 91% next year vs 6.1% growth forecast for Machinery industry in Japan. Consensus price target up from JP¥7,350 to JP¥7,700. Share price fell 3.8% to JP¥5,330 over the past week. Reported Earnings • Nov 16
Second quarter 2023 earnings released: EPS: JP¥89.26 (vs JP¥103 in 2Q 2022) Second quarter 2023 results: EPS: JP¥89.26 (down from JP¥103 in 2Q 2022). Revenue: JP¥17.9b (up 7.0% from 2Q 2022). Net income: JP¥926.8m (down 13% from 2Q 2022). Profit margin: 5.2% (down from 6.4% in 2Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Board Change • Nov 16
Less than half of directors are independent There are 7 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 7 new directors. 4 experienced directors. 1 highly experienced director. 3 independent directors (5 non-independent directors). President & Representative Director Yuichiro Hirata is the most experienced director on the board, commencing their role in 2011. Outside Independent Director Tamami Koyama was the last independent director to join the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Reported Earnings • Nov 13
Second quarter 2023 earnings released: EPS: JP¥89.18 (vs JP¥103 in 2Q 2022) Second quarter 2023 results: EPS: JP¥89.18 (down from JP¥103 in 2Q 2022). Revenue: JP¥17.9b (up 7.0% from 2Q 2022). Net income: JP¥926.0m (down 13% from 2Q 2022). Profit margin: 5.2% (down from 6.4% in 2Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has fallen by 15% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 12
First quarter 2023 earnings released: EPS: JP¥78.71 (vs JP¥88.35 in 1Q 2022) First quarter 2023 results: EPS: JP¥78.71 (down from JP¥88.35 in 1Q 2022). Revenue: JP¥16.7b (up 5.8% from 1Q 2022). Net income: JP¥817.1m (down 11% from 1Q 2022). Profit margin: 4.9% (down from 5.8% in 1Q 2022). The decrease in margin was driven by higher expenses. Over the next year, revenue is forecast to grow 24%, compared to a 9.2% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Major Estimate Revision • Jun 25
Consensus EPS estimates fall by 11% The consensus outlook for earnings per share (EPS) in 2023 has deteriorated. 2023 revenue forecast decreased from JP¥84.8b to JP¥82.6b. EPS estimate also fell from JP¥375 per share to JP¥332 per share. Net income forecast to grow 29% next year vs 6.7% growth forecast for Machinery industry in Japan. Consensus price target down from JP¥7,260 to JP¥5,985. Share price was steady at JP¥4,165 over the past week. 
