Hamamatsu Photonics K.K (TSE:6965) - Share price, News & Analysis

Q: What is the Fair Price of 6965 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

6965 (¥6190) is trading above our estimate of [[fair value]] (¥6045.96)

6965 fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	2/6
Past Performance	5/6
Financial Health	6/6
Dividends	4/6

6965 Stock Overview

Hamamatsu Photonics K.K. manufactures and sells photomultiplier tubes, imaging devices, light sources, opto-semiconductors, and imaging and analyzing systems in Japan and internationally.

Rewards

Earnings are forecast to grow 4.75% per year

Earnings grew by 74.7% over the past year

Risk Analysis

No risks detected for 6965 from our risk checks.

Hamamatsu Photonics K.K Competitors

Hirose ElectricLtd

TSE:6806

JP¥680.8b

IbidenLtd

TSE:4062

JP¥648.5b

Taiyo Yuden

TSE:6976

JP¥565.1b

TDK

TSE:6762

JP¥1.9t

Price History & Performance

Summary of all time highs, changes and price drops for Hamamatsu Photonics K.K
Historical stock prices
Current Share Price	JP¥6,190.00
52 Week High	JP¥7,500.00
52 Week Low	JP¥5,190.00
Beta	0
1 Month Change	7.47%
3 Month Change	6.54%
1 Year Change	3.51%
3 Year Change	63.54%
5 Year Change	84.50%
Change since IPO	996.96%

Shareholder Returns

	6965	JP Electronic	JP Market
7D	0.5%	3.8%	2.5%
1Y	3.5%	-3.3%	1.9%

Return vs Industry: 6965 exceeded the JP Electronic industry which returned -2.3% over the past year.

Return vs Market: 6965 exceeded the JP Market which returned 2.5% over the past year.

Price Volatility

Is 6965's price volatile compared to industry and market?
6965 volatility
6965 Average Weekly Movement	3.8%
Electronic Industry Average Movement	4.0%
Market Average Movement	3.8%
10% most volatile stocks in JP Market	7.8%
10% least volatile stocks in JP Market	2.0%

Stable Share Price: 6965 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 6965's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1953	5,279	Akira Hiruma	https://www.hamamatsu.com

Hamamatsu Photonics K.K. manufactures and sells photomultiplier tubes, imaging devices, light sources, opto-semiconductors, and imaging and analyzing systems in Japan and internationally. The company operates through three segments: Electron Tube, Opto-Semiconductor, and Imaging and Measurement Instruments. The Electron Tube segment provides photomultiplier tubes, electron multipliers, microchannel plates, image intensifiers, X-ray products, and various light sources for use in medical, chemical analysis, measurement, industrial testing, and academic research applications.

Hamamatsu Photonics K.K Fundamentals Summary

How do Hamamatsu Photonics K.K's earnings and revenue compare to its market cap?
6965 fundamental statistics
Market Cap	JP¥958.45b
Earnings (TTM)	JP¥38.84b
Revenue (TTM)	JP¥198.92b

24.7x

P/E Ratio

4.8x

P/S Ratio

Is 6965 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
6965 income statement (TTM)
Revenue	JP¥198.92b
Cost of Revenue	JP¥93.31b
Gross Profit	JP¥105.61b
Other Expenses	JP¥66.77b
Earnings	JP¥38.84b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	250.87
Gross Margin	53.09%
Net Profit Margin	19.53%
Debt/Equity Ratio	3.8%

How did 6965 perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

12%

Payout Ratio

Does 6965 pay a reliable dividends?

See 6965 dividend history and benchmarks

When do you need to buy 6965 by to receive an upcoming dividend?
Hamamatsu Photonics K.K dividend dates
Ex Dividend Date	Sep 29 2022
Dividend Pay Date	Dec 20 2022
Days until Ex dividend	43 days
Days until Dividend pay date	125 days

Does 6965 pay a reliable dividends?

See 6965 dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is 6965 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6965?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 6965. This is calculated by dividing 6965's market cap by their current preferred multiple.
What is 6965's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	JP¥958.45b

6965 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/Revenue	4.3x
Enterprise Value/EBITDA	12.8x
PEG Ratio	5.2x

Price to Earnings Ratio vs Peers

How does 6965's PE Ratio compare to its peers?

6965 PE Ratio vs Peers

The above table shows the PE ratio for 6965 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	14.6x
6806 Hirose ElectricLtd	19.6x	5.0%	JP¥680.8b
4062 IbidenLtd	14.3x	14.3%	JP¥648.5b
6976 Taiyo Yuden	10.5x	9.1%	JP¥565.1b
6762 TDK	14x	7.3%	JP¥1.9t
6965 Hamamatsu Photonics K.K	24.7x	4.7%	JP¥958.4b

Price-To-Earnings vs Peers: 6965 is expensive based on its Price-To-Earnings Ratio (24.7x) compared to the peer average (14.6x).

Price to Earnings Ratio vs Industry

How does 6965's PE Ratio compare vs other companies in the JP Electronic Industry?

Price-To-Earnings vs Industry: 6965 is expensive based on its Price-To-Earnings Ratio (24.7x) compared to the JP Electronic industry average (11.7x)

Price to Earnings Ratio vs Fair Ratio

What is 6965'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.

6965 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	24.7x
Fair PE Ratio	14.3x

Price-To-Earnings vs Fair Ratio: 6965 is expensive based on its Price-To-Earnings Ratio (24.7x) compared to the estimated Fair Price-To-Earnings Ratio (14.3x).

Share Price vs Fair Value

What is the Fair Price of 6965 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6965 (¥6190) is trading above our estimate of fair value (¥6045.96)

Significantly Below Fair Value: 6965 is trading above our estimate of fair value.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Future Growth

How is Hamamatsu Photonics K.K forecast to perform in the next 1 to 3 years based on estimates from 9 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

4.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6965's forecast earnings growth (4.7% per year) is above the savings rate (0.04%).

Earnings vs Market: 6965's earnings (4.7% per year) are forecast to grow slower than the JP market (8.6% per year).

High Growth Earnings: 6965's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6965's revenue (5.5% per year) is forecast to grow faster than the JP market (4.3% per year).

High Growth Revenue: 6965's revenue (5.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 6965's Return on Equity is forecast to be low in 3 years time (13.3%).

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Past Performance

How has Hamamatsu Photonics K.K performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

11.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6965 has high quality earnings.

Growing Profit Margin: 6965's current net profit margins (19.5%) are higher than last year (14%).

Past Earnings Growth Analysis

Earnings Trend: 6965's earnings have grown by 11.2% per year over the past 5 years.

Accelerating Growth: 6965's earnings growth over the past year (74.7%) exceeds its 5-year average (11.2% per year).

Earnings vs Industry: 6965 earnings growth over the past year (74.7%) exceeded the Electronic industry 28.2%.

Return on Equity

High ROE: 6965's Return on Equity (14.4%) is considered low.

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Financial Health

How is Hamamatsu Photonics K.K's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 6965's short term assets (¥231.7B) exceed its short term liabilities (¥61.1B).

Long Term Liabilities: 6965's short term assets (¥231.7B) exceed its long term liabilities (¥15.1B).

Debt to Equity History and Analysis

Debt Level: 6965 has more cash than its total debt.

Reducing Debt: 6965's debt to equity ratio has reduced from 5.2% to 3.8% over the past 5 years.

Debt Coverage: 6965's debt is well covered by operating cash flow (407.7%).

Interest Coverage: 6965 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Hamamatsu Photonics K.K 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
Cash Flow Coverage

1.03%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: 6965's dividend (1.03%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.63%).

High Dividend: 6965's dividend (1.03%) is low compared to the top 25% of dividend payers in the JP market (3.61%).

Stability and Growth of Payments

Stable Dividend: 6965's dividends per share have been stable in the past 10 years.

Growing Dividend: 6965's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (12.2%), 6965's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (36.3%), 6965'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?

1.7yrs

Average management tenure

CEO

Akira Hiruma

no data

Tenure

Mr. Akira Hiruma serves as the Chief Executive Officer, President, Executive Officer and Representative Director of Hamamatsu Photonics K.K. Mr. Hiruma served as an Outside Director of Roland DG Corporatio...

Leadership Team

Experienced Management: 6965's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.

Board Members

Experienced Board: 6965's board of directors are not considered experienced ( 1.7 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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/16 00:00
End of Day Share Price	2022/08/16 00:00
Earnings	2022/06/30
Annual Earnings	2021/09/30