TSE:6856

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

HORIBA, Ltd. provides a range of instruments and systems for automotive research and development (R&D), process and environmental monitoring, in-vitro medical diagnostics, semiconductor manufacturing, metrology, and scientific R&D and QC measurement applications worldwide.


Snowflake Analysis

Adequate balance sheet average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 6856's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.1%

6856

4.7%

JP Electronic

2.8%

JP Market


1 Year Return

18.1%

6856

22.2%

JP Electronic

5.4%

JP Market

Return vs Industry: 6856 underperformed the JP Electronic industry which returned 22.2% over the past year.

Return vs Market: 6856 exceeded the JP Market which returned 5.4% over the past year.


Shareholder returns

6856IndustryMarket
7 Day7.1%4.7%2.8%
30 Day10.0%15.3%12.4%
90 Day9.2%16.4%9.3%
1 Year20.5%18.1%24.3%22.2%8.2%5.4%
3 Year-8.9%-14.7%31.1%25.0%9.9%2.4%
5 Year36.1%23.5%37.7%26.6%14.2%1.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

16.83x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 6856 (¥6070) is trading above our estimate of fair value (¥5556.89)

Significantly Below Fair Value: 6856 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 6856 is poor value based on its PE Ratio (16.8x) compared to the Electronic industry average (15.7x).

PE vs Market: 6856 is poor value based on its PE Ratio (16.8x) compared to the JP market (15.3x).


Price to Earnings Growth Ratio

PEG Ratio: 6856 is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: 6856 is overvalued based on its PB Ratio (1.5x) compared to the JP Electronic industry average (0.9x).


Next Steps

Future Growth

How is HORIBA forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

16.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6856's forecast earnings growth (16.5% per year) is above the savings rate (0.05%).

Earnings vs Market: 6856's earnings (16.5% per year) are forecast to grow faster than the JP market (12.2% per year).

High Growth Earnings: 6856's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6856's revenue (5.7% per year) is forecast to grow faster than the JP market (3.1% per year).

High Growth Revenue: 6856'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: 6856's Return on Equity is forecast to be low in 3 years time (12%).


Next Steps

Past Performance

How has HORIBA performed over the past 5 years?

8.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6856 has high quality earnings.

Growing Profit Margin: 6856's current net profit margins (7.6%) are lower than last year (9.2%).


Past Earnings Growth Analysis

Earnings Trend: 6856's earnings have grown by 8.4% per year over the past 5 years.

Accelerating Growth: 6856's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6856 had negative earnings growth (-18.9%) over the past year, making it difficult to compare to the Electronic industry average (-14.7%).


Return on Equity

High ROE: 6856's Return on Equity (9.1%) is considered low.


Next Steps

Financial Health

How is HORIBA's financial position?


Financial Position Analysis

Short Term Liabilities: 6856's short term assets (¥209.7B) exceed its short term liabilities (¥84.6B).

Long Term Liabilities: 6856's short term assets (¥209.7B) exceed its long term liabilities (¥55.0B).


Debt to Equity History and Analysis

Debt Level: 6856's debt to equity ratio (41.1%) is considered high.

Reducing Debt: 6856's debt to equity ratio has increased from 21.8% to 41.1% over the past 5 years.

Debt Coverage: 6856's debt is well covered by operating cash flow (38.9%).

Interest Coverage: 6856's interest payments on its debt are well covered by EBIT (133.2x coverage).


Balance Sheet


Next Steps

Dividend

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

2.14%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 6856's dividend (2.14%) is higher than the bottom 25% of dividend payers in the JP market (1.44%).

High Dividend: 6856's dividend (2.14%) is low compared to the top 25% of dividend payers in the JP market (3.33%).


Stability and Growth of Payments

Stable Dividend: 6856's dividends per share have been stable in the past 10 years.

Growing Dividend: 6856's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.1%), 6856'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?

2.4yrs

Average management tenure


CEO

Atsushi Horiba (71yo)

28.42yrs

Tenure

JP¥301,000,000

Compensation

Mr. Horiba Atsushi has been the Chief Executive Officer of Horiba, Ltd. since 1992 and served as its President from 1992 to January 2018. Mr. Atsushi serves as External Director at SoftBank Corp. since Jun ...


CEO Compensation Analysis

Compensation vs Market: Atsushi's total compensation ($USD2.74M) is above average for companies of similar size in the JP market ($USD1.50M).

Compensation vs Earnings: Atsushi's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Atsushi Horiba
Chairman & Group CEO28.42yrsJP¥301.00m2.47% ¥6.3b
Juichi Saito
Executive Vice Chairman & Group COO2.42yrsJP¥146.00m0.042% ¥106.6m
Masayuki Adachi
President6.42yrsJP¥130.00m0.030% ¥77.2m
Sunao Kikkawa
Senior Corporate Officer and General Manager of Finance & Control Divisionno datano datano data
Masao Okawa
Senior Corporate Officer and General Manager of General Administration Divisionno datano data0.025% ¥64.3m
Hideyuki Nishibun
Junior Corporate Officer and Deputy General Manager of International Sales Division no datano datano data
Jai Hakhu
Executive Corporate Officer10.17yrsno datano data
Yuichi Muroga
Senior Corporate Officer & President of HORIBA Techno Service Co Ltdno datano datano data
Tadao Nakamura
Junior Corporate Officerno datano datano data
Hideyuki Koishi
Senior Corporate Officer & President of HORIBA STEC Co Ltdno datano datano data

2.4yrs

Average Tenure

68yo

Average Age

Experienced Management: 6856's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Atsushi Horiba
Chairman & Group CEO28.42yrsJP¥301.00m2.47% ¥6.3b
Juichi Saito
Executive Vice Chairman & Group COO2.42yrsJP¥146.00m0.042% ¥106.6m
Masayuki Adachi
President6.42yrsJP¥130.00m0.030% ¥77.2m
Jai Hakhu
Executive Corporate Officer10.17yrsno datano data
Masahiro Sugita
Independent Outside Director14.42yrsno data0.0026% ¥6.7m
Sawako Takeuchi
Independent Outside Director4.42yrsno datano data
Takashi Nagano
Director4.17yrsno data0.028% ¥72.8m
George Gillespie
Senior Corporate Officer & Executive Chairman of HORIBA MIRA Limited (U.K.)no datano datano data
Jiko Higashifushimi
Outside Independent Director4.17yrsno datano data
Tomoko Tanabe
Audit & Supervisory Board Memberno datano data0.0024% ¥6.1m

5.4yrs

Average Tenure

67.5yo

Average Age

Experienced Board: 6856's board of directors are considered experienced (5.4 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

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


Key Information

  • Name: HORIBA, Ltd.
  • Ticker: 6856
  • Exchange: TSE
  • Founded: 1945
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: JP¥256.076b
  • Shares outstanding: 42.19m
  • Website: https://www.horiba.com

Number of Employees


Location

  • HORIBA, Ltd.
  • 2 Miyanohigashi
  • Kisshoin
  • Kyoto
  • 601-8510
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6856TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
HRIB.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
01HDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992

Biography

HORIBA, Ltd. provides a range of instruments and systems for automotive research and development (R&D), process and environmental monitoring, in-vitro medical diagnostics, semiconductor manufacturing, metrology, and scientific R&D and QC measurement applications worldwide. Its Automotive Test Systems segment offers emission measurement systems, in-use automotive emissions analyzers, driveline test systems, engine test and brake test systems, fuel cell and battery test systems, and intelligent transport systems; and provides engineering consultancy, test services and consultancy, and R&D facility leasing services. The company’s Process & Environmental Instruments & Systems segment provides stack gas analyzers, water quality analysis and examination systems, air pollution analyzers, environmental radiation monitors, and process measurement equipment. Its Medical-Diagnostic Instruments & Systems segment designs, develops, and distributes hematology analyzers, equipment for measuring immunological responses, clinical chemistry analyzers, and blood sugar measurement systems. The company’s Semiconductor Instruments & Systems segment provides mass flow controllers, chemical concentration monitors, reticle/mask particle detection systems, and residual gas analyzers. Its Scientific Instruments & Systems segment offers pH meters, particle-size distribution analyzers, X-Ray fluorescence analyzers, metal analyzers, Raman fluorescence spectroscopy systems, spectrophotometers, and gratings. HORIBA, Ltd. was founded in 1945 and is headquartered in Kyoto, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 15:25
End of Day Share Price2020/06/05 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.