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Market Cap

JP¥920.1b

Last Updated

2021/09/20 08:03 UTC

Data Sources

Company Financials +

Executive Summary

Hitachi Metals, Ltd. manufacture and sell specialty steel products, functional components and equipment, magnetic materials and applications/power electronics materials, wires and cables, and related products in Japan, North America, Asia, Europe, and internationally. More Details


Snowflake Analysis

Adequate balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Hitachi Metals's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 5486 is less volatile than 75% of JP stocks over the past 3 months, typically moving +/- 0% a week.

Volatility Over Time: 5486's weekly volatility (0%) has been stable over the past year.


Market Performance


7 Day Return

0.4%

5486

-3.0%

JP Metals and Mining

0.4%

JP Market


1 Year Return

29.6%

5486

48.2%

JP Metals and Mining

25.6%

JP Market

Return vs Industry: 5486 underperformed the JP Metals and Mining industry which returned 48.2% over the past year.

Return vs Market: 5486 exceeded the JP Market which returned 25.6% over the past year.


Shareholder returns

5486IndustryMarket
7 Day0.4%-3.0%0.4%
30 Day1.4%11.4%11.3%
90 Day1.4%13.6%10.0%
1 Year30.0%29.6%50.7%48.2%28.2%25.6%
3 Year62.7%54.7%-1.5%-7.5%25.2%16.6%
5 Year98.3%81.6%32.3%19.1%73.8%54.6%

Long-Term Price Volatility Vs. Market

How volatile is Hitachi Metals's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Hitachi Metals undervalued compared to its fair value and its price relative to the market?

1.87x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 5486 (¥2152) is trading above our estimate of fair value (¥1472.3)

Significantly Below Fair Value: 5486 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 5486 is unprofitable, so we can't compare its PE Ratio to the JP Metals and Mining industry average.

PE vs Market: 5486 is unprofitable, so we can't compare its PE Ratio to the JP market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 5486's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 5486 is overvalued based on its PB Ratio (1.9x) compared to the JP Metals and Mining industry average (0.5x).


Future Growth

How is Hitachi Metals forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

25.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 5486 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0%).

Earnings vs Market: 5486 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 5486's is expected to become profitable in the next 3 years.

Revenue vs Market: 5486's revenue (2.2% per year) is forecast to grow slower than the JP market (4.8% per year).

High Growth Revenue: 5486's revenue (2.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 5486's Return on Equity is forecast to be low in 3 years time (5.5%).


Past Performance

How has Hitachi Metals performed over the past 5 years?

-56.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 5486 is currently unprofitable.

Growing Profit Margin: 5486 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 5486 is unprofitable, and losses have increased over the past 5 years at a rate of 56.8% per year.

Accelerating Growth: Unable to compare 5486's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 5486 is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (20.5%).


Return on Equity

High ROE: 5486 has a negative Return on Equity (-7.33%), as it is currently unprofitable.


Financial Health

How is Hitachi Metals's financial position?


Financial Position Analysis

Short Term Liabilities: 5486's short term assets (¥495.5B) exceed its short term liabilities (¥341.6B).

Long Term Liabilities: 5486's short term assets (¥495.5B) exceed its long term liabilities (¥160.9B).


Debt to Equity History and Analysis

Debt Level: 5486's debt to equity ratio (40.4%) is considered high.

Reducing Debt: 5486's debt to equity ratio has reduced from 43.7% to 40.4% over the past 5 years.

Debt Coverage: 5486's debt is well covered by operating cash flow (28.7%).

Interest Coverage: 5486's interest payments on its debt are not well covered by EBIT (0.5x coverage).


Balance Sheet


Dividend

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

1.16%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 5486's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 5486's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 5486's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 5486's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 5486 is not paying a notable dividend for the JP market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 5486's dividend in 3 years as they are not forecast to pay a notable one for the JP market.


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Mitsuaki Nishiyama (65 yo)

1.42yrs

Tenure

Mr. Mitsuaki Nishiyama serves as President at Hitachi Metals, Ltd. since June 1, 2020 and also serves as Representative Executive Officer. Mr. Nishiyama has been Chairperson and Chief Executive Officer of...


Leadership Team

Experienced Management: 5486's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: 5486's board of directors are not considered experienced ( 2.3 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

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


Key Information

  • Name: Hitachi Metals, Ltd.
  • Ticker: 5486
  • Exchange: TSE
  • Founded: 1910
  • Industry: Steel
  • Sector: Materials
  • Market Cap: JP¥920.108b
  • Shares outstanding: 427.56m
  • Website: https://www.hitachi-metals.co.jp

Number of Employees


Location

  • Hitachi Metals, Ltd.
  • Shinagawa Season Terrace
  • 2-70, Konan 1-chome
  • Tokyo
  • 108-8224
  • Japan

Listings


Biography

Hitachi Metals, Ltd. manufacture and sell specialty steel products, functional components and equipment, magnetic materials and applications/power electronics materials, wires and cables, and related produ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/20 08:03
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2021/03/31


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.