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8593

Mitsubishi HC Capital TSE:8593 Stock Report

Last Price

JP¥610.00

Market Cap

JP¥875.9b

7D

5.4%

1Y

-5.7%

Updated

20 May, 2022

Data

Company Financials +
8593 fundamental analysis
Snowflake Score
Valuation5/6
Future Growth2/6
Past Performance3/6
Financial Health3/6
Dividends6/6

8593 Stock Overview

Mitsubishi HC Capital Inc., together with its subsidiaries, engages in the lease, installment sale, and various financing activities in Japan, North America, Europe, China, and internationally.

Mitsubishi HC Capital Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Mitsubishi HC Capital
Historical stock prices
Current Share PriceJP¥610.00
52 Week HighJP¥654.00
52 Week LowJP¥521.00
Beta0.86
1 Month Change4.10%
3 Month Change0%
1 Year Change-5.72%
3 Year Change9.91%
5 Year Change8.35%
Change since IPO332.62%

Recent News & Updates

Shareholder Returns

8593JP Diversified FinancialJP Market
7D5.4%0.2%-0.7%
1Y-5.7%1.0%-4.2%

Return vs Industry: 8593 underperformed the JP Diversified Financial industry which returned 1% over the past year.

Return vs Market: 8593 underperformed the JP Market which returned -4.2% over the past year.

Price Volatility

Is 8593's price volatile compared to industry and market?
8593 volatility
8593 Average Weekly Movement4.2%
Diversified Financial Industry Average Movement4.4%
Market Average Movement4.6%
10% most volatile stocks in JP Market9.2%
10% least volatile stocks in JP Market2.5%

Stable Share Price: 8593 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 8593's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19718,786Takahiro Yanaihttps://www.mitsubishi-hc-capital.com

Mitsubishi HC Capital Inc., together with its subsidiaries, engages in the lease, installment sale, and various financing activities in Japan, North America, Europe, China, and internationally. It offers equipment leasing and financing services; purchase and sale of used equipment; develops, operates, and leases logistics and commercial facilities; and engages in community development, food and agriculture, living essentials industry, and non-life insurance businesses. The company also provides real estate securitization finance, as well as engages in real estate investment, management, and leasing business; and is involved in power generation through renewable energy, as well as provision of environment-related equipment leasing and financing services.

Mitsubishi HC Capital Fundamentals Summary

How do Mitsubishi HC Capital's earnings and revenue compare to its market cap?
8593 fundamental statistics
Market CapJP¥875.87b
Earnings (TTM)JP¥99.40b
Revenue (TTM)JP¥1.77t

8.8x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
8593 income statement (TTM)
RevenueJP¥1.77t
Cost of RevenueJP¥1.43t
Gross ProfitJP¥334.66b
Other ExpensesJP¥235.26b
EarningsJP¥99.40b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)69.23
Gross Margin18.95%
Net Profit Margin5.63%
Debt/Equity Ratio604.9%

How did 8593 perform over the long term?

See historical performance and comparison

Dividends

5.1%

Current Dividend Yield

40%

Payout Ratio

Valuation

Is Mitsubishi HC Capital undervalued compared to its fair value and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


30.3%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 8593 (¥610) is trading below our estimate of fair value (¥874.83)

Significantly Below Fair Value: 8593 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 8593 is good value based on its PE Ratio (8.8x) compared to the JP Diversified Financial industry average (10.2x).

PE vs Market: 8593 is good value based on its PE Ratio (8.8x) compared to the JP market (12.2x).


Price to Earnings Growth Ratio

PEG Ratio: 8593 is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: 8593 is good value based on its PB Ratio (0.7x) compared to the JP Diversified Financial industry average (0.8x).


Future Growth

How is Mitsubishi HC Capital forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


8.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 8593's forecast earnings growth (8.5% per year) is above the savings rate (0.02%).

Earnings vs Market: 8593's earnings (8.5% per year) are forecast to grow slower than the JP market (8.7% per year).

High Growth Earnings: 8593's earnings are forecast to grow, but not significantly.

Revenue vs Market: 8593's revenue (5.3% per year) is forecast to grow faster than the JP market (4% per year).

High Growth Revenue: 8593's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 8593's Return on Equity is forecast to be low in 3 years time (8.9%).


Past Performance

How has Mitsubishi HC Capital 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


8.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 8593 has a large one-off gain of ¥30.0B impacting its March 31 2022 financial results.

Growing Profit Margin: 8593's current net profit margins (5.6%) are lower than last year (6.2%).


Past Earnings Growth Analysis

Earnings Trend: 8593's earnings have grown by 8.4% per year over the past 5 years.

Accelerating Growth: 8593's earnings growth over the past year (79.7%) exceeds its 5-year average (8.4% per year).

Earnings vs Industry: 8593 earnings growth over the past year (79.7%) exceeded the Diversified Financial industry 14.4%.


Return on Equity

High ROE: 8593's Return on Equity (7.6%) is considered low.


Financial Health

How is Mitsubishi HC Capital's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 8593's short term assets (¥6,171.3B) exceed its short term liabilities (¥3,235.3B).

Long Term Liabilities: 8593's short term assets (¥6,171.3B) exceed its long term liabilities (¥5,760.1B).


Debt to Equity History and Analysis

Debt Level: 8593's net debt to equity ratio (564.2%) is considered high.

Reducing Debt: 8593's debt to equity ratio has increased from 603.4% to 604.9% over the past 5 years.

Debt Coverage: 8593's debt is not well covered by operating cash flow (2.4%).

Interest Coverage: 8593's interest payments on its debt are well covered by EBIT (40.2x coverage).


Balance Sheet


Dividend

What is Mitsubishi HC Capital 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

  • Future Dividend Coverage


5.08%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 8593's dividend (5.08%) is higher than the bottom 25% of dividend payers in the JP market (1.65%).

High Dividend: 8593's dividend (5.08%) is in the top 25% of dividend payers in the JP market (3.69%)


Stability and Growth of Payments

Stable Dividend: 8593's dividends per share have been stable in the past 10 years.

Growing Dividend: 8593's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (40.4%), 8593's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (23.9%), 8593'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?

5.0yrs

Average management tenure


CEO

Takahiro Yanai (63 yo)

4.92yrs

Tenure

Mr. Takahiro Yanai serves as the President and Chief Executive Officer at Mitsubishi HC Capital Inc. (formerly known as Mitsubishi UFJ Lease & Finance Company Limited) since June 2017. He is Executive Offi...


Leadership Team

Experienced Management: 8593's management team is seasoned and experienced (5 years average tenure).


Board Members

Experienced Board: 8593's board of directors are not considered experienced ( 1.1 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

Mitsubishi HC Capital Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Mitsubishi HC Capital Inc.
  • Ticker: 8593
  • Exchange: TSE
  • Founded: 1971
  • Industry: Specialized Finance
  • Sector: Diversified Financials
  • Implied Market Cap: JP¥875.872b
  • Shares outstanding: 1.44b
  • Website: https://www.mitsubishi-hc-capital.com

Number of Employees


Location

  • Mitsubishi HC Capital Inc.
  • 5-1, Marunouchi 1-chome
  • Chiyoda-ku
  • Tokyo
  • 100-6525
  • Japan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/20 00:00
End of Day Share Price2022/05/20 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.