OTCPK:HSYD.F

Stock Analysis Report

Executive Summary

Harmonic Drive Systems Inc. produces and sells mechatronics products.


Snowflake Analysis

High growth potential with excellent balance sheet.


Similar Companies

Share Price & News

How has Harmonic Drive Systems's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HSYD.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

HSYD.F

-1.2%

US Machinery

-2.6%

US Market


1 Year Return

n/a

HSYD.F

-23.5%

US Machinery

-13.3%

US Market

Return vs Industry: Insufficient data to determine how HSYD.F performed against the US Machinery industry.

Return vs Market: Insufficient data to determine how HSYD.F performed against the US Market.


Shareholder returns

HSYD.FIndustryMarket
7 Day0%-1.2%-2.6%
30 Day0%-17.4%-15.2%
90 Dayn/a-29.7%-22.2%
1 Yearn/a-21.3%-23.5%-11.5%-13.3%
3 Yearn/a-1.8%-8.9%13.2%5.7%
5 Yearn/a21.1%5.7%31.8%17.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Harmonic Drive Systems undervalued compared to its fair value and its price relative to the market?

225.7x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HSYD.F ($45) is trading above our estimate of fair value ($23.71)

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


Price To Earnings Ratio

PE vs Industry: HSYD.F is poor value based on its PE Ratio (225.7x) compared to the Machinery industry average (15.2x).

PE vs Market: HSYD.F is poor value based on its PE Ratio (225.7x) compared to the US market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: HSYD.F is poor value based on its PEG Ratio (4x)


Price to Book Ratio

PB vs Industry: HSYD.F is overvalued based on its PB Ratio (4.3x) compared to the US Machinery industry average (1.6x).


Next Steps

Future Growth

How is Harmonic Drive Systems forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

56.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HSYD.F's forecast earnings growth (56.6% per year) is above the savings rate (1.7%).

Earnings vs Market: HSYD.F's earnings (56.6% per year) are forecast to grow faster than the US market (13.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HSYD.F's revenue (20.9% per year) is forecast to grow faster than the US market (7% per year).

High Growth Revenue: HSYD.F's revenue (20.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HSYD.F's Return on Equity is forecast to be low in 3 years time (8.4%).


Next Steps

Past Performance

How has Harmonic Drive Systems performed over the past 5 years?

10.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HSYD.F has high quality earnings.

Growing Profit Margin: HSYD.F's current net profit margins (4.2%) are lower than last year (16.7%).


Past Earnings Growth Analysis

Earnings Trend: HSYD.F's earnings have grown by 10.5% per year over the past 5 years.

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

Earnings vs Industry: HSYD.F had negative earnings growth (-83.1%) over the past year, making it difficult to compare to the Machinery industry average (-1.6%).


Return on Equity

High ROE: HSYD.F's Return on Equity (2.3%) is considered low.


Next Steps

Financial Health

How is Harmonic Drive Systems's financial position?


Financial Position Analysis

Short Term Liabilities: HSYD.F's short term assets (¥34.9B) exceed its short term liabilities (¥4.8B).

Long Term Liabilities: HSYD.F's short term assets (¥34.9B) exceed its long term liabilities (¥21.5B).


Debt to Equity History and Analysis

Debt Level: HSYD.F's debt to equity ratio (6.6%) is considered satisfactory.

Reducing Debt: HSYD.F's debt to equity ratio has increased from 2.1% to 6.6% over the past 5 years.

Debt Coverage: HSYD.F's debt is well covered by operating cash flow (292.1%).

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


Balance Sheet


Next Steps

Dividend

What is Harmonic Drive Systems's current dividend yield, its reliability and sustainability?

0.45%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HSYD.F's dividend (0.45%) isn’t notable compared to the bottom 25% of dividend payers in the US market (2.01%).

High Dividend: HSYD.F's dividend (0.45%) is low compared to the top 25% of dividend payers in the US market (5.66%).


Stability and Growth of Payments

Stable Dividend: HSYD.F is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: HSYD.F is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: HSYD.F is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Akira Nagai (71yo)

6.83s

Tenure

JP¥148,540,000

Compensation

Mr. Akira Nagai has been the Chief Executive Officer and President, Executive President and Head of Marketing and Sales of Harmonic Drive Systems Inc. since June 2013 and served as its Marketing and Sales  ...


CEO Compensation Analysis

Compensation vs Market: Akira's total compensation ($USD1.36M) is below average for companies of similar size in the US market ($USD5.69M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mitsumasa Ito
Executive Chairman16.83yrsJP¥141.90m1.11% ¥43.6m
Akira Nagai
CEO, President6.83yrsJP¥148.54m0.037% ¥1.5m
Kazutoshi Kamijoh
Executive Officer and Head of Corporate Planningno datano datano data
Yoshihide Kiyosawa
Fellow Executive Officer3.58yrsno datano data
Hiroshi Ozawa
Executive Officer & Head of Public Relations3.58yrsno datano data
Yoshinori Ito
Executive Officer & Director1.25yrsno data0.0021% ¥81.7k
Tetsuaki Maruyama
Executive Officerno datano datano data
Hideo Yasue
Managing Executive Officer3.83yrsno data0.075% ¥2.9m
Yoshihiro Tanioka
Executive Officerno datano datano data
Hidefumi Iguchi
Executive Officerno datano datano data

3.7yrs

Average Tenure

67.5yo

Average Age

Experienced Management: HSYD.F's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mitsumasa Ito
Executive Chairman16.83yrsJP¥141.90m1.11% ¥43.6m
Akira Nagai
CEO, President6.83yrsJP¥148.54m0.037% ¥1.5m
Yoshinori Ito
Executive Officer & Director1.25yrsno data0.0021% ¥81.7k
Hideo Yasue
Managing Executive Officer3.83yrsno data0.075% ¥2.9m
Akira Maruyama
Executive Officer & Director3.83yrsno data0.0014% ¥53.0k
Haruhiko Yoshida
Independent Outside Director16.83yrsno datano data
Yoshio Yamazaki
Standing Corporate Auditor3.83yrsno datano data
Yoshimasa Ito
Director25.83yrsno data0.84% ¥33.1m
Masanobu Nakamura
Independent Outside Director6.83yrsno datano data
Shinji Sakai
Outside Director15.83yrsno datano data

6.8yrs

Average Tenure

73yo

Average Age

Experienced Board: HSYD.F's board of directors are considered experienced (6.8 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

Harmonic Drive Systems Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Harmonic Drive Systems Inc.
  • Ticker: HSYD.F
  • Exchange: OTCPK
  • Founded: 1970
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: JP¥428.371b
  • Listing Market Cap: JP¥3.929b
  • Shares outstanding: 96.26m
  • Website: https://www.hds.co.jp

Number of Employees


Location

  • Harmonic Drive Systems Inc.
  • Ichigo Omori Building
  • 7th Floor
  • Tokyo
  • 140-0013
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6324JASDAQ (TSE JASDAQ)YesCommon StockJPJPYMar 1998
HSYD.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDMar 1998
K3RDB (Deutsche Boerse AG)YesCommon StockDEEURMar 1998

Biography

Harmonic Drive Systems Inc. produces and sells mechatronics products. It offers speed reducers, rotary actuators, linear actuators, AC servo motors, and other mechatronics products, as well as HarmonicDrive, a speed reducer for space. The company also provides high-precision planetary-gear speed reducers under the AccuDrive and Harmonic Planetary brands; galvano mirror type optical scanners under the BEAM SERVO name; and incremental encoders under the Harmonicsyn name. Its products are used in industrial robots, semiconductor manufacturing equipment, and other systems. Harmonic Drive Systems Inc. was founded in 1970 and is headquartered in Tokyo, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 03:44
End of Day Share Price2020/01/27 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.