Hitachi, Ltd. provides information technology, energy, industry, mobility, and smart life solutions in Japan and internationally. More Details
Excellent balance sheet, good value and pays a dividend.
Share Price & News
How has Hitachi's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 6501 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: 6501's weekly volatility (4%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: 6501 exceeded the JP Industrials industry which returned 53.6% over the past year.
Return vs Market: 6501 exceeded the JP Market which returned 21.8% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Hitachi's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Is Hitachi undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 6501 (¥5887) is trading below our estimate of fair value (¥8523.23)
Significantly Below Fair Value: 6501 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 6501 is good value based on its PE Ratio (11.3x) compared to the JP Industrials industry average (11.8x).
PE vs Market: 6501 is good value based on its PE Ratio (11.3x) compared to the JP market (16.2x).
Price to Earnings Growth Ratio
PEG Ratio: 6501 is poor value based on its PEG Ratio (2.8x)
Price to Book Ratio
PB vs Industry: 6501 is overvalued based on its PB Ratio (1.6x) compared to the JP Industrials industry average (1x).
How is Hitachi forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 6501's forecast earnings growth (4% per year) is above the savings rate (0%).
Earnings vs Market: 6501's earnings (4% per year) are forecast to grow slower than the JP market (12.8% per year).
High Growth Earnings: 6501's earnings are forecast to grow, but not significantly.
Revenue vs Market: 6501's revenue (3% per year) is forecast to grow slower than the JP market (5.2% per year).
High Growth Revenue: 6501's revenue (3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 6501's Return on Equity is forecast to be low in 3 years time (13.1%).
How has Hitachi performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 6501 has a large one-off gain of ¥343.4B impacting its March 31 2021 financial results.
Growing Profit Margin: 6501's current net profit margins (5.8%) are higher than last year (1%).
Past Earnings Growth Analysis
Earnings Trend: 6501's earnings have grown by 1.4% per year over the past 5 years.
Accelerating Growth: 6501's earnings growth over the past year (462%) exceeds its 5-year average (1.4% per year).
Earnings vs Industry: 6501 earnings growth over the past year (462%) exceeded the Industrials industry 254%.
Return on Equity
High ROE: 6501's Return on Equity (11.6%) is considered low.
How is Hitachi's financial position?
Financial Position Analysis
Short Term Liabilities: 6501's short term assets (¥5,943.3B) exceed its short term liabilities (¥4,596.9B).
Long Term Liabilities: 6501's short term assets (¥5,943.3B) exceed its long term liabilities (¥2,797.7B).
Debt to Equity History and Analysis
Debt Level: 6501's debt to equity ratio (53.8%) is considered high.
Reducing Debt: 6501's debt to equity ratio has reduced from 86.2% to 53.8% over the past 5 years.
Debt Coverage: 6501's debt is well covered by operating cash flow (33.1%).
Interest Coverage: 6501's interest payments on its debt are well covered by EBIT (84.7x coverage).
What is Hitachi current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 6501's dividend (1.87%) is higher than the bottom 25% of dividend payers in the JP market (1.32%).
High Dividend: 6501's dividend (1.87%) is low compared to the top 25% of dividend payers in the JP market (3.01%).
Stability and Growth of Payments
Stable Dividend: 6501's dividends per share have been stable in the past 10 years.
Growing Dividend: 6501's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (20.2%), 6501's dividend payments are well 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.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Toshiaki Higashihara (66 yo)
Mr. Toshiaki Higashihara has been the Representative Executive Officer of Hitachi, Ltd. since April 1, 2014 and served as its President since April 1, 2014 until June 23, 2021 and has been its Chief Execut...
CEO Compensation Analysis
Compensation vs Market: Insufficient data to establish whether Toshiaki's total compensation is reasonable compared to companies of similar size in the JP market.
Compensation vs Earnings: Toshiaki's compensation has increased by more than 20% in the past year.
Experienced Management: 6501's management team is considered experienced (4.2 years average tenure).
Experienced Board: 6501's board of directors are considered experienced (6.5 years average tenure).
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Hitachi, Ltd.'s company bio, employee growth, exchange listings and data sources
- Name: Hitachi, Ltd.
- Ticker: 6501
- Exchange: TSE
- Founded: 1910
- Industry: Industrial Conglomerates
- Sector: Capital Goods
- Market Cap: JP¥5.694t
- Shares outstanding: 967.18m
- Website: https://www.hitachi.co.jp
Number of Employees
- Hitachi, Ltd.
- 6-6, Marunouchi 1-chome
Hitachi, Ltd. provides information technology, energy, industry, mobility, and smart life solutions in Japan and internationally. The company offers information and telecommunication services, such as inte...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/06/21 16:46|
|End of Day Share Price||2021/06/21 00:00|
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.