company background image
6324

Harmonic Drive Systems TSE:6324 Stock Report

Last Price

JP¥5.50k

Market Cap

JP¥526.2b

7D

11.8%

1Y

-9.8%

Updated

15 Aug, 2022

Data

Company Financials +
6324 fundamental analysis
Snowflake Score
Valuation0/6
Future Growth3/6
Past Performance4/6
Financial Health6/6
Dividends0/6

6324 Stock Overview

Harmonic Drive Systems Inc. produces and sells precision control equipment and components worldwide.

Harmonic Drive Systems Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Harmonic Drive Systems
Historical stock prices
Current Share PriceJP¥5,500.00
52 Week HighJP¥6,740.00
52 Week LowJP¥3,015.00
Beta0
1 Month Change18.66%
3 Month Change54.93%
1 Year Change-9.84%
3 Year Change30.02%
5 Year Change18.66%
Change since IPO3,200.00%

Recent News & Updates

Shareholder Returns

6324JP MachineryJP Market
7D11.8%2.8%1.2%
1Y-9.8%-5.9%-0.2%

Return vs Industry: 6324 underperformed the JP Machinery industry which returned -5.9% over the past year.

Return vs Market: 6324 underperformed the JP Market which returned -0.2% over the past year.

Price Volatility

Is 6324's price volatile compared to industry and market?
6324 volatility
6324 Average Weekly Movement7.6%
Machinery Industry Average Movement3.9%
Market Average Movement3.8%
10% most volatile stocks in JP Market7.8%
10% least volatile stocks in JP Market2.0%

Stable Share Price: 6324 is more volatile than 75% of JP stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 6324's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of JP stocks.

About the Company

FoundedEmployeesCEOWebsite
19701,145Akira Nagaihttps://www.hds.co.jp

Harmonic Drive Systems Inc. produces and sells precision control equipment and components worldwide. It offers speed reducers, rotary actuators, linear actuators, AC servo motors, and other mechatronics products, as well as HarmonicDrive, a speed reducer for space. The company also provides high-precision planetary-gear speed reducers under the AccuDrive and Harmonic Planetary brands; galvano mirror type optical scanners under the BEAM SERVO brand; and incremental encoders under the Harmonicsyn name.

Harmonic Drive Systems Fundamentals Summary

How do Harmonic Drive Systems's earnings and revenue compare to its market cap?
6324 fundamental statistics
Market CapJP¥526.21b
Earnings (TTM)JP¥6.73b
Revenue (TTM)JP¥60.88b

78.2x

P/E Ratio

8.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
6324 income statement (TTM)
RevenueJP¥60.88b
Cost of RevenueJP¥37.60b
Gross ProfitJP¥23.28b
Other ExpensesJP¥16.55b
EarningsJP¥6.73b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Nov 08, 2022

Earnings per share (EPS)70.30
Gross Margin38.24%
Net Profit Margin11.05%
Debt/Equity Ratio19.6%

How did 6324 perform over the long term?

See historical performance and comparison

Dividends

0.5%

Current Dividend Yield

30%

Payout Ratio

Does 6324 pay a reliable dividends?

See 6324 dividend history and benchmarks
When do you need to buy 6324 by to receive an upcoming dividend?
Harmonic Drive Systems dividend dates
Ex Dividend DateSep 29 2022
Dividend Pay DateDec 06 2022
Days until Ex dividend44 days
Days until Dividend pay date112 days

Does 6324 pay a reliable dividends?

See 6324 dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is 6324 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • 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 6324?

Other financial metrics that can be useful for relative valuation.

6324 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/Revenue8.7x
Enterprise Value/EBITDA30.2x
PEG Ratio4.3x

Price to Earnings Ratio vs Peers

How does 6324's PE Ratio compare to its peers?

6324 PE Ratio vs Peers
The above table shows the PE ratio for 6324 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average19.5x
6361 Ebara
11.5x6.7%JP¥516.3b
6370 Kurita Water Industries
32.6x7.7%JP¥639.4b
7012 Kawasaki Heavy Industries
25.2x12.1%JP¥437.6b
5333 NGK Insulators
8.6x3.6%JP¥623.9b
6324 Harmonic Drive Systems
78.2x18.0%JP¥526.2b

Price-To-Earnings vs Peers: 6324 is expensive based on its Price-To-Earnings Ratio (78.2x) compared to the peer average (19.5x).


Price to Earnings Ratio vs Industry

How does 6324's PE Ratio compare vs other companies in the JP Machinery Industry?

Price-To-Earnings vs Industry: 6324 is expensive based on its Price-To-Earnings Ratio (78.2x) compared to the JP Machinery industry average (10.5x)


Price to Earnings Ratio vs Fair Ratio

What is 6324'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.

6324 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio78.2x
Fair PE Ratio20.5x

Price-To-Earnings vs Fair Ratio: 6324 is expensive based on its Price-To-Earnings Ratio (78.2x) compared to the estimated Fair Price-To-Earnings Ratio (20.5x).


Share Price vs Fair Value

What is the Fair Price of 6324 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6324 (¥5500) is trading above our estimate of fair value (¥2259.98)

Significantly Below Fair Value: 6324 is trading above our estimate of fair value.


Analyst Price Targets

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

Analyst Forecast: Target price is lower than the current share price.


Discover undervalued companies

Future Growth

How is Harmonic Drive Systems forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


18.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6324's forecast earnings growth (18% per year) is above the savings rate (0.04%).

Earnings vs Market: 6324's earnings (18% per year) are forecast to grow faster than the JP market (8.5% per year).

High Growth Earnings: 6324's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6324's revenue (7% per year) is forecast to grow faster than the JP market (4.3% per year).

High Growth Revenue: 6324's revenue (7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6324's Return on Equity is forecast to be low in 3 years time (12.4%).


Discover growth companies

Past Performance

How has Harmonic Drive Systems performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-44.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6324 has high quality earnings.

Growing Profit Margin: 6324's current net profit margins (11%) are higher than last year (4.2%).


Past Earnings Growth Analysis

Earnings Trend: 6324's earnings have declined by 44% per year over the past 5 years.

Accelerating Growth: 6324's earnings growth over the past year (303.5%) exceeds its 5-year average (-44% per year).

Earnings vs Industry: 6324 earnings growth over the past year (303.5%) exceeded the Machinery industry 25.9%.


Return on Equity

High ROE: 6324's Return on Equity (6.9%) is considered low.


Discover strong past performing companies

Financial Health

How is Harmonic Drive Systems'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: 6324's short term assets (¥48.4B) exceed its short term liabilities (¥18.7B).

Long Term Liabilities: 6324's short term assets (¥48.4B) exceed its long term liabilities (¥30.7B).


Debt to Equity History and Analysis

Debt Level: 6324's net debt to equity ratio (0.7%) is considered satisfactory.

Reducing Debt: 6324's debt to equity ratio has reduced from 25.2% to 19.6% over the past 5 years.

Debt Coverage: 6324's debt is well covered by operating cash flow (50.9%).

Interest Coverage: 6324 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Discover healthy companies

Dividend

What is Harmonic Drive Systems's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


0.53%

Current Dividend Yield

Upcoming Dividend Payment

TodayAug 15 2022Ex Dividend DateSep 29 2022Dividend Pay DateDec 06 202268 days from Ex DividendBuy in the next 44 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: 6324's dividend (0.53%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.63%).

High Dividend: 6324's dividend (0.53%) is low compared to the top 25% of dividend payers in the JP market (3.59%).


Stability and Growth of Payments

Stable Dividend: 6324 is not paying a notable dividend for the JP market, therefore no need to check if payments are stable.

Growing Dividend: 6324 is not paying a notable dividend for the JP market, therefore no need to check if payments are increasing.


Earnings Payout to Shareholders

Earnings Coverage: 6324 is not paying a notable dividend for the JP market.


Cash Payout to Shareholders

Cash Flow Coverage: 6324 is not paying a notable dividend for the JP market.


Discover strong dividend paying companies

Management

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

6.2yrs

Average management tenure


CEO

Akira Nagai (74 yo)

9.17yrs

Tenure

JP¥148,540,000

Compensation

Mr. Akira Nagai serves as Chief Executive Officer and Chief Financial Officer of HD Systems, Inc. He serves as Chief Executive officer for Harmonic Drive Systems Inc. Mr. Nagai has been President of Harmon...


CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Akira's total compensation is reasonable compared to companies of similar size in the JP market.

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


Leadership Team

Experienced Management: 6324's management team is seasoned and experienced (6.2 years average tenure).


Board Members

Experienced Board: 6324's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


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

Harmonic Drive Systems Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Harmonic Drive Systems Inc.
  • Ticker: 6324
  • Exchange: TSE
  • Founded: 1970
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Implied Market Cap: JP¥526.209b
  • Shares outstanding: 95.67m
  • Website: https://www.hds.co.jp

Number of Employees


Location

  • Harmonic Drive Systems Inc.
  • Ichigo Omori Building
  • 4th Floor
  • Tokyo
  • 140-0013
  • Japan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/15 00:00
End of Day Share Price2022/08/15 00:00
Earnings2022/06/30
Annual Earnings2022/03/31


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.