TSE:6501

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Excellent balance sheet average dividend payer.


Similar Companies

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.2%

6501

0.3%

JP Electronic

-0.9%

JP Market


1 Year Return

-14.0%

6501

15.2%

JP Electronic

0.9%

JP Market

Return vs Industry: 6501 underperformed the JP Electronic industry which returned 13.9% over the past year.

Return vs Market: 6501 underperformed the JP Market which returned 0.8% over the past year.


Shareholder returns

6501IndustryMarket
7 Day-1.2%0.3%-0.9%
30 Day-3.2%3.1%-0.2%
90 Day2.0%6.3%3.8%
1 Year-11.6%-14.0%17.1%15.2%3.4%0.9%
3 Year-12.0%-18.2%17.5%12.0%2.3%-4.9%
5 Year9.3%-2.8%59.0%46.4%22.4%8.9%

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

Valuation

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

1.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 6501 (¥3550) is trading below our estimate of fair value (¥3585.46)

Significantly Below Fair Value: 6501 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 6501 is poor value based on its PE Ratio (17.8x) compared to the JP Electronic industry average (17.2x).

PE vs Market: 6501 is poor value based on its PE Ratio (17.8x) compared to the JP market (16.7x).


Price to Earnings Growth Ratio

PEG Ratio: 6501 is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: 6501 is overvalued based on its PB Ratio (1.1x) compared to the JP Electronic industry average (0.9x).


Next Steps

Future Growth

How is Hitachi forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

9.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6501's forecast earnings growth (9.9% per year) is above the savings rate (0.05%).

Earnings vs Market: 6501's earnings (9.9% per year) are forecast to grow slower than the JP market (17.4% per year).

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

Revenue vs Market: 6501's revenue (5.7% per year) is forecast to grow faster than the JP market (5.2% per year).

High Growth Revenue: 6501's revenue (5.7% 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 (11.6%).


Next Steps

Past Performance

How has Hitachi performed over the past 5 years?

-5.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6501 has a large one-off loss of ¥346.0B impacting its June 30 2020 financial results.

Growing Profit Margin: 6501's current net profit margins (2.3%) are lower than last year (2.7%).


Past Earnings Growth Analysis

Earnings Trend: 6501's earnings have declined by 5.2% per year over the past 5 years.

Accelerating Growth: 6501's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6501 had negative earnings growth (-23.9%) over the past year, making it difficult to compare to the Electronic industry average (-9.2%).


Return on Equity

High ROE: 6501's Return on Equity (5.8%) is considered low.


Next Steps

Financial Health

How is Hitachi's financial position?


Financial Position Analysis

Short Term Liabilities: 6501's short term assets (¥5,780.1B) exceed its short term liabilities (¥4,635.5B).

Long Term Liabilities: 6501's short term assets (¥5,780.1B) exceed its long term liabilities (¥1,824.2B).


Debt to Equity History and Analysis

Debt Level: 6501's debt to equity ratio (66%) is considered high.

Reducing Debt: 6501's debt to equity ratio has reduced from 82.1% to 66% over the past 5 years.

Debt Coverage: 6501's debt is well covered by operating cash flow (26%).

Interest Coverage: 6501's interest payments on its debt are well covered by EBIT (240.9x coverage).


Balance Sheet


Next Steps

Dividend

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

2.82%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 6501's dividend (2.82%) is higher than the bottom 25% of dividend payers in the JP market (1.33%).

High Dividend: 6501's dividend (2.82%) is low compared to the top 25% of dividend payers in the JP market (3.22%).


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 reasonably low payout ratio (47.7%), 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.


Next Steps

Management

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

5.5yrs

Average management tenure


CEO

Toshiaki Higashihara (65 yo)

4.5yrs

Tenure

JP¥368,000,000

Compensation

Mr. Toshiaki Higashihara has been the President and Representative Executive Officer of Hitachi, Ltd. since April 1, 2014 and has been its Chief Executive Officer since April 1, 2016. Mr. Higashihara serve ...


CEO Compensation Analysis

Compensation vs Market: Toshiaki's total compensation ($USD0.00) is below average for companies of similar size in the JP market ($USD1.98M).

Compensation vs Earnings: Toshiaki's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Hiroaki Nakanishi
Executive Chairman & Executive Officer6.5yrsJP¥282.00m0.012%
¥ 423.2m
Toshiaki Higashihara
Representative Executive Officer4.5yrsJP¥368.00m0.014%
¥ 486.1m
Yoshihiko Kawamura
Representative Executive Officer0.75yrJP¥107.00m0.0035%
¥ 121.2m
Hidenobu Nakahata
Representative Executive Officerno dataJP¥106.00m0.0039%
¥ 134.0m
Keiji Kojima
Representative Exec. Officer8.5yrsJP¥138.00m0.0054%
¥ 186.4m
Keiichi Shiotsuka
Rep. Exec. Officer7.5yrsJP¥168.00m0.0053%
¥ 182.3m
Alistair Dormer
Representative Executive Officer & Executive VP5.5yrsJP¥332.00m0.00020%
¥ 6.9m
Ryuichi Otsuki
VP, Executive Officer & GM of Investment Strategy Divisionno dataJP¥109.00m0.0027%
¥ 92.7m
Nishino Koichi
Executive Officerno dataJP¥156.00mno data
Aoki Yuwa
Executive Officerno dataJP¥155.00mno data
Norihiro Suzuki
VP, Executive Officer4.5yrsno data0.0019%
¥ 65.6m
Masao Yoshikawa
Executive General Manager of Investor Relations Divisionno datano datano data

5.5yrs

Average Tenure

64yo

Average Age

Experienced Management: 6501's management team is seasoned and experienced (5.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hiroaki Nakanishi
Executive Chairman & Executive Officer6.5yrsJP¥282.00m0.012%
¥ 423.2m
Toshiaki Higashihara
Representative Executive Officer4.5yrsJP¥368.00m0.014%
¥ 486.1m
Shutoku Watanabe
President of New Consumer Business Group Company and Director of New Consumer Business Group Company11.25yrsno datano data
George Buckley
Independent Outside Director8.33yrsno data0.00064%
¥ 22.2m
Takashi Kawamura
Chairman Emeritus6.33yrsJP¥134.00mno data
Cynthia Carroll
Independent Outside Director7.33yrsno data0.00012%
¥ 4.2m
Katsumi Ihara
Independent Outside Director2.33yrsno data0.000060%
¥ 2.1m
Takatoshi Shinji Yamamoto
Independent Outside Director4.33yrsno data0.0010%
¥ 34.7m
Hiroaki Yoshihara
Independent Outside Director6.33yrsno data0.00023%
¥ 8.0m
Adele Pentland
Independent Outside Director5.33yrsno data0.000090%
¥ 3.1m
Harufumi Mochizuki
Independent Outside Director8.33yrsno data0.00039%
¥ 13.5m
Hideaki Seki
Director0.75yrJP¥105.00m0.0012%
¥ 40.3m

6.3yrs

Average Tenure

68yo

Average Age

Experienced Board: 6501's board of directors are considered experienced (6.3 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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hitachi, Ltd.
  • Ticker: 6501
  • Exchange: TSE
  • Founded: 1910
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: JP¥3.472t
  • Shares outstanding: 966.86m
  • Website: https://www.hitachi.co.jp/

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HTHI.YOTCPK (Pink Sheets LLC)ADR 2 COMUSUSDDec 1972
HTHI.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1975
6501TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1975
HIA1DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1975

Biography

Hitachi, Ltd. provides information technology, energy, industry, mobility, and smart life solutions in Japan and internationally. The company offers systems integration, consulting, and cloud services, as ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/19 14:30
End of Day Share Price2020/10/16 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


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.