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6501

Hitachi TSE:6501 Stock Report

Last Price

JP¥6.66k

Market Cap

JP¥6.4t

7D

2.8%

1Y

4.6%

Updated

28 Jun, 2022

Data

Company Financials +
6501 fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance3/6
Financial Health5/6
Dividends5/6

6501 Stock Overview

Hitachi, Ltd. provides information technology, energy, industry, mobility, and smart life solutions in Japan and internationally.

Hitachi Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Hitachi
Historical stock prices
Current Share PriceJP¥6,656.00
52 Week HighJP¥7,460.00
52 Week LowJP¥4,750.00
Beta0.97
1 Month Change-1.83%
3 Month Change7.96%
1 Year Change4.64%
3 Year Change60.39%
5 Year Change89.93%
Change since IPO41.77%

Recent News & Updates

Shareholder Returns

6501JP IndustrialsJP Market
7D2.8%1.5%1.8%
1Y4.6%6.1%-4.7%

Return vs Industry: 6501 underperformed the JP Industrials industry which returned 6.1% over the past year.

Return vs Market: 6501 exceeded the JP Market which returned -4.7% over the past year.

Price Volatility

Is 6501's price volatile compared to industry and market?
6501 volatility
6501 Average Weekly Movement4.0%
Industrials Industry Average Movement3.5%
Market Average Movement4.2%
10% most volatile stocks in JP Market8.5%
10% least volatile stocks in JP Market2.3%

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.

About the Company

FoundedEmployeesCEOWebsite
1910368,247Keiji Kojimahttps://www.hitachi.co.jp

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 internet of things, storage systems and platforms, servers, software, ATMs and self service terminals, and scanners for manufacturing, communication, finance, healthcare and life science, energy and transportation, and distribution industries, as well as government and urban sectors; drone platform solutions, including consulting, system integration, and other services; and infrastructure inspection, data, security, measurement, unmanned aerial system traffic management, and inventory management services. It operates nuclear power plants, power grides, wind turbines, and power generation systems; provides energy and equipment management services; power semiconductors; elevators, escalators and moving sidewalk, and control elevator systems; and transportation systems and equipment.

Hitachi Fundamentals Summary

How do Hitachi's earnings and revenue compare to its market cap?
6501 fundamental statistics
Market CapJP¥6.43t
Earnings (TTM)JP¥583.47b
Revenue (TTM)JP¥10.26t

11.0x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
6501 income statement (TTM)
RevenueJP¥10.26t
Cost of RevenueJP¥7.71t
Gross ProfitJP¥2.56t
Other ExpensesJP¥1.98t
EarningsJP¥583.47b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)604.44
Gross Margin24.93%
Net Profit Margin5.68%
Debt/Equity Ratio58.4%

How did 6501 perform over the long term?

See historical performance and comparison

Dividends

2.0%

Current Dividend Yield

21%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 6501 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6501?

Other financial metrics that can be useful for relative valuation.

6501 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/Revenue0.9x
Enterprise Value/EBITDA7.2x
PEG Ratio5.5x

Price to Earnings Ratio vs Peers

How does 6501's PE Ratio compare to its peers?

6501 PE Ratio vs Peers
The above table shows the PE ratio for 6501 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average17.5x
6502 Toshiba
12.8x-2.5%JP¥2.5t
9045 Keihan Holdings
37.1x24.0%JP¥355.9b
3105 Nisshinbo Holdings
7.4x6.0%JP¥178.3b
3167 TOKAI Holdings
12.8xn/aJP¥115.0b
6501 Hitachi
11x2.0%JP¥6.4t

Price-To-Earnings vs Peers: 6501 is good value based on its Price-To-Earnings Ratio (11x) compared to the peer average (17.5x).


Price to Earnings Ratio vs Industry

How does 6501's PE Ratio compare vs other companies in the Asian Industrials Industry?

Price-To-Earnings vs Industry: 6501 is good value based on its Price-To-Earnings Ratio (11x) compared to the JP Industrials industry average (13.6x)


Price to Earnings Ratio vs Fair Ratio

What is 6501'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.

6501 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11x
Fair PE Ratio18.1x

Price-To-Earnings vs Fair Ratio: 6501 is good value based on its Price-To-Earnings Ratio (11x) compared to the estimated Fair Price-To-Earnings Ratio (18.1x).


Share Price vs Fair Value

What is the Fair Price of 6501 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6501 (¥6656) is trading below our estimate of fair value (¥13305.41)

Significantly Below Fair Value: 6501 is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: 6501 is poor value based on its PEG Ratio (5.5x)


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Future Growth

How is Hitachi forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


2.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6501's forecast earnings growth (2% per year) is above the savings rate (0.02%).

Earnings vs Market: 6501's earnings (2% per year) are forecast to grow slower than the JP market (8.9% per year).

High Growth Earnings: 6501's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6501's revenue is expected to decline over the next 3 years (-1% per year).

High Growth Revenue: 6501's revenue is forecast to decline over the next 3 years (-1% 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 (11.9%).


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Past Performance

How has Hitachi performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


14.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6501 has high quality earnings.

Growing Profit Margin: 6501's current net profit margins (5.7%) are lower than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: 6501's earnings have grown by 14.2% per year over the past 5 years.

Accelerating Growth: 6501's earnings growth over the past year (16.2%) exceeds its 5-year average (14.2% per year).

Earnings vs Industry: 6501 earnings growth over the past year (16.2%) underperformed the Industrials industry 16.2%.


Return on Equity

High ROE: 6501's Return on Equity (12.5%) is considered low.


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Financial Health

How is Hitachi's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 6501's short term assets (¥6,599.4B) exceed its short term liabilities (¥5,854.1B).

Long Term Liabilities: 6501's short term assets (¥6,599.4B) exceed its long term liabilities (¥2,678.2B).


Debt to Equity History and Analysis

Debt Level: 6501's net debt to equity ratio (33.3%) is considered satisfactory.

Reducing Debt: 6501's debt to equity ratio has increased from 27.5% to 58.4% over the past 5 years.

Debt Coverage: 6501's debt is well covered by operating cash flow (23.3%).

Interest Coverage: 6501 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.95%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 6501's dividend (1.95%) is higher than the bottom 25% of dividend payers in the JP market (1.67%).

High Dividend: 6501's dividend (1.95%) is low compared to the top 25% of dividend payers in the JP market (3.71%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (20.7%), 6501's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (43.3%), 6501's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

3.2yrs

Average management tenure


CEO

Keiji Kojima (66 yo)

1

Tenure

JP¥185,000,000

Compensation

Mr. Keiji Kojima serves as Chief Executive Officer at Hitachi, Ltd. since 2022. He has been Representative Executive Officer since April 1, 2018, President & Chief Operating Officer since June 23, 2021, Ge...


CEO Compensation Analysis

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

Compensation vs Earnings: Keiji's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: 6501's management team is considered experienced (3.2 years average tenure).


Board Members

Experienced Board: 6501's board of directors are considered experienced (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

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


Top Shareholders

Company Information

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


Key Information

  • Name: Hitachi, Ltd.
  • Ticker: 6501
  • Exchange: TSE
  • Founded: 1910
  • Industry: Industrial Conglomerates
  • Sector: Capital Goods
  • Implied Market Cap: JP¥6.425t
  • Shares outstanding: 965.31m
  • Website: https://www.hitachi.co.jp

Number of Employees


Location

  • Hitachi, Ltd.
  • 6-6, Marunouchi 1-chome
  • Chiyoda-ku
  • Tokyo
  • 100-8280
  • Japan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/28 00:00
End of Day Share Price2022/06/28 00:00
Earnings2022/03/31
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.