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Hitachi Construction Machinery

OTCPK:HTCM.F
Snowflake Description

Adequate balance sheet with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HTCM.F
OTCPK
¥617B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

Hitachi Construction Machinery Co., Ltd., together with its subsidiaries, manufactures, sells, services, and rents construction machinery worldwide. The last earnings update was 62 days ago. More info.


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HTCM.F Share Price and Events
7 Day Returns
0%
OTCPK:HTCM.F
0.7%
US Machinery
0.4%
US Market
1 Year Returns
-
OTCPK:HTCM.F
0.2%
US Machinery
6.8%
US Market
HTCM.F Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Hitachi Construction Machinery (HTCM.F) 0% 0% 0% - - -
US Machinery 0.7% 5.6% 14.3% 0.2% 50.2% 31.1%
US Market 0.4% 2.6% 11% 6.8% 38.1% 45.7%
1 Year Return vs Industry and Market
  • No trading data on HTCM.F.
  • No trading data on HTCM.F.
Price Volatility
HTCM.F
Industry
5yr Volatility vs Market

HTCM.F Value

 Is Hitachi Construction Machinery undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Hitachi Construction Machinery to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Hitachi Construction Machinery.

OTCPK:HTCM.F Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 15 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for OTCPK:HTCM.F
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.07
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.067 (1 + (1- 30.86%) (52.34%))
1.303
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.3
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.303 * 5.96%)
10.5%

Discounted Cash Flow Calculation for OTCPK:HTCM.F using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Hitachi Construction Machinery is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

OTCPK:HTCM.F DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (JPY, Millions) Source Present Value
Discounted (@ 10.5%)
2019 57,512.50 Analyst x4 52,048.47
2020 60,019.22 Analyst x9 49,156.60
2021 62,404.11 Analyst x9 46,254.12
2022 60,000.00 Analyst x1 40,247.06
2023 63,200.00 Analyst x1 38,365.93
2024 64,232.22 Est @ 1.63% 35,288.03
2025 65,492.64 Est @ 1.96% 32,562.12
2026 66,928.64 Est @ 2.19% 30,114.65
2027 68,504.02 Est @ 2.35% 27,895.08
2028 70,193.79 Est @ 2.47% 25,867.59
Present value of next 10 years cash flows ¥377,799.67
OTCPK:HTCM.F DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ¥70,193.79 × (1 + 2.73%) ÷ (10.5% – 2.73%)
¥928,301.27
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ¥928,301.27 ÷ (1 + 10.5%)10
¥342,094.67
OTCPK:HTCM.F Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ¥377,799.67 + ¥342,094.67
¥719,894.34
Equity Value per Share
(JPY)
= Total value / Shares Outstanding
= ¥719,894.34 / 212.65
¥3385.27
OTCPK:HTCM.F Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in OTCPK:HTCM.F represents 0.00851x of TSE:6305
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.00851x
Value per Share
(Listing Adjusted, USD)
= Value per Share (JPY) x Listing Adjustment Factor
= ¥ 3,385.27 x 0.00851
$28.80
Value per share (USD) From above. $28.80
Current discount Discount to share price of $24.70
= -1 x ($24.70 - $28.80) / $28.80
14.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Hitachi Construction Machinery is available for.
Intrinsic value
14%
Share price is $24.7 vs Future cash flow value of $28.8
Current Discount Checks
For Hitachi Construction Machinery to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Hitachi Construction Machinery's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Hitachi Construction Machinery's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Hitachi Construction Machinery's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Hitachi Construction Machinery's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OTCPK:HTCM.F PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in JPY ¥321.66
TSE:6305 Share Price ** TSE (2019-01-17) in JPY ¥2903
United States of America Machinery Industry PE Ratio Median Figure of 103 Publicly-Listed Machinery Companies 21.72x
United States of America Market PE Ratio Median Figure of 3,072 Publicly-Listed Companies 18.08x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Hitachi Construction Machinery.

OTCPK:HTCM.F PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSE:6305 Share Price ÷ EPS (both in JPY)

= 2903 ÷ 321.66

9.03x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hitachi Construction Machinery is good value based on earnings compared to the US Machinery industry average.
  • Hitachi Construction Machinery is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Hitachi Construction Machinery's expected growth come at a high price?
Raw Data
OTCPK:HTCM.F PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.03x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts
1.7%per year
United States of America Machinery Industry PEG Ratio Median Figure of 83 Publicly-Listed Machinery Companies 1.6x
United States of America Market PEG Ratio Median Figure of 2,107 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

OTCPK:HTCM.F PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 9.03x ÷ 1.7%

5.16x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hitachi Construction Machinery is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Hitachi Construction Machinery's assets?
Raw Data
OTCPK:HTCM.F PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in JPY ¥2,200.92
TSE:6305 Share Price * TSE (2019-01-17) in JPY ¥2903
United States of America Machinery Industry PB Ratio Median Figure of 129 Publicly-Listed Machinery Companies 2.43x
United States of America Market PB Ratio Median Figure of 5,176 Publicly-Listed Companies 1.91x
OTCPK:HTCM.F PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSE:6305 Share Price ÷ Book Value per Share (both in JPY)

= 2903 ÷ 2,200.92

1.32x

* Primary Listing of Hitachi Construction Machinery.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hitachi Construction Machinery is good value based on assets compared to the US Machinery industry average.
X
Value checks
We assess Hitachi Construction Machinery's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. Hitachi Construction Machinery has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

HTCM.F Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
1.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Hitachi Construction Machinery expected to grow at an attractive rate?
  • Hitachi Construction Machinery's earnings growth is positive but not above the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Hitachi Construction Machinery's earnings growth is positive but not above the United States of America market average.
  • Hitachi Construction Machinery's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
OTCPK:HTCM.F Future Growth Rates Data Sources
Data Point Source Value (per year)
OTCPK:HTCM.F Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts 1.7%
OTCPK:HTCM.F Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts 1.8%
United States of America Machinery Industry Earnings Growth Rate Market Cap Weighted Average 11%
United States of America Machinery Industry Revenue Growth Rate Market Cap Weighted Average 3.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
OTCPK:HTCM.F Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
All numbers in JPY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OTCPK:HTCM.F Future Estimates Data
Date (Data in JPY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-03-31 1,101,200 116,186 72,100 2
2022-03-31 1,083,000 113,620 70,000 2
2021-03-31 1,050,786 97,917 65,623 14
2020-03-31 1,037,677 96,794 66,001 15
2019-03-31 1,016,886 89,259 64,622 14
OTCPK:HTCM.F Past Financials Data
Date (Data in JPY Millions) Revenue Cash Flow Net Income *
2018-12-31 1,018,443 -11,966 68,402
2018-09-30 1,009,290 8,325 64,702
2018-06-30 987,865 48,345 66,161
2018-03-31 959,153 84,528 60,004
2017-12-31 930,843 70,442 48,403
2017-09-30 859,286 76,925 31,302
2017-06-30 804,144 76,527 19,176
2017-03-31 753,947 87,961 8,022
2016-12-31 716,195 85,596 11,369
2016-09-30 728,178 103,404 4,225
2016-06-30 742,278 105,753 4,407
2016-03-31 758,331 114,874 8,804

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Hitachi Construction Machinery's earnings are expected to grow by 1.7% yearly, however this is not considered high growth (20% yearly).
  • Hitachi Construction Machinery's revenue is expected to grow by 1.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
OTCPK:HTCM.F Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below

All data from Hitachi Construction Machinery Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:HTCM.F Future Estimates Data
Date (Data in JPY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-03-31 324.50 324.50 324.50 1.00
2022-03-31 319.80 319.80 319.80 1.00
2021-03-31 304.97 357.38 222.04 15.00
2020-03-31 307.57 380.90 253.55 16.00
2019-03-31 305.34 343.75 273.00 16.00
OTCPK:HTCM.F Past Financials Data
Date (Data in JPY Millions) EPS *
2018-12-31 321.66
2018-09-30 304.25
2018-06-30 311.11
2018-03-31 282.16
2017-12-31 227.61
2017-09-30 147.19
2017-06-30 90.17
2017-03-31 37.72
2016-12-31 53.46
2016-09-30 19.87
2016-06-30 20.73
2016-03-31 41.41

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Hitachi Construction Machinery is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Hitachi Construction Machinery's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Hitachi Construction Machinery has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

HTCM.F Past Performance

  How has Hitachi Construction Machinery performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Hitachi Construction Machinery's growth in the last year to its industry (Machinery).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Hitachi Construction Machinery has delivered over 20% year on year earnings growth in the past 5 years.
  • Hitachi Construction Machinery's 1-year earnings growth exceeds its 5-year average (41.3% vs 22.3%)
  • Hitachi Construction Machinery's earnings growth has exceeded the US Machinery industry average in the past year (41.3% vs 29.8%).
Earnings and Revenue History
Hitachi Construction Machinery's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Hitachi Construction Machinery Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:HTCM.F Past Revenue, Cash Flow and Net Income Data
Date (Data in JPY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 1,018,443.00 68,402.00 181,354.00
2018-09-30 1,009,290.00 64,702.00 177,923.00
2018-06-30 987,865.00 66,161.00 173,767.00
2018-03-31 959,153.00 60,004.00 170,255.00
2017-12-31 930,843.00 48,403.00 159,067.00
2017-09-30 859,286.00 31,302.00 152,844.00
2017-06-30 804,144.00 19,176.00 147,230.00
2017-03-31 753,947.00 8,022.00 142,661.00
2016-12-31 716,195.00 11,369.00 143,280.00
2016-09-30 728,178.00 4,225.00 148,334.00
2016-06-30 742,278.00 4,407.00 151,948.00
2016-03-31 758,331.00 8,804.00 156,233.00
2015-12-31 785,161.00 10,681.00 166,052.00 -12,112.00
2015-09-30 791,740.00 21,742.00 163,161.00 -7,998.00
2015-06-30 805,448.00 23,255.00 161,678.00 -3,950.00
2015-03-31 815,792.00 26,023.00 156,717.00
2014-12-31 824,899.00 27,134.00 144,857.00 16,397.00
2014-09-30 818,386.00 29,365.00 143,334.00 16,417.00
2014-06-30 804,130.00 35,609.00 142,743.00 16,723.00
2014-03-31 802,988.00 28,939.00 143,590.00 16,734.00
2013-12-31 775,731.00 27,825.00 143,946.00 16,983.00
2013-09-30 769,233.00 18,055.00 140,220.00 17,030.00
2013-06-30 758,293.00 17,016.00 137,103.00 16,796.00
2013-03-31 772,355.00 23,464.00 137,998.00 16,681.00
2012-12-31 818,347.00 23,699.00 138,489.00 16,551.00
2012-09-30 829,108.00 33,663.00 139,786.00 16,389.00
2012-06-30 841,724.00 25,980.00 140,738.00 16,062.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Hitachi Construction Machinery has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Hitachi Construction Machinery used its assets less efficiently than the US Machinery industry average last year based on Return on Assets.
  • Hitachi Construction Machinery has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Hitachi Construction Machinery's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Hitachi Construction Machinery has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

HTCM.F Health

 How is Hitachi Construction Machinery's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Hitachi Construction Machinery's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Hitachi Construction Machinery is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Hitachi Construction Machinery's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Hitachi Construction Machinery's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Hitachi Construction Machinery Company Filings, last reported 3 months ago.

OTCPK:HTCM.F Past Debt and Equity Data
Date (Data in JPY Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 527,165.00 323,108.00 59,702.00
2018-09-30 525,258.00 306,073.00 63,044.00
2018-06-30 508,991.00 291,860.00 81,090.00
2018-03-31 505,030.00 249,504.00 81,929.00
2017-12-31 506,026.00 281,431.00 82,586.00
2017-09-30 487,498.00 279,267.00 76,402.00
2017-06-30 463,450.00 292,486.00 72,844.00
2017-03-31 450,430.00 270,305.00 65,455.00
2016-12-31 448,877.00 232,682.00 81,382.00
2016-09-30 421,299.00 213,564.00 77,599.00
2016-06-30 424,983.00 228,489.00 78,909.00
2016-03-31 456,816.00 241,119.00 79,110.00
2015-12-31 469,128.00 282,376.00 73,019.00
2015-09-30 485,419.00 285,235.00 66,405.00
2015-06-30 498,509.00 300,553.00 65,366.00
2015-03-31 497,902.00 307,764.00 51,433.00
2014-12-31 489,668.00 363,147.00 80,365.00
2014-09-30 467,158.00 351,338.00 52,717.00
2014-06-30 447,638.00 346,750.00 48,061.00
2014-03-31 447,640.00 379,353.00 53,353.00
2013-12-31 439,290.00 393,386.00 69,711.00
2013-09-30 420,930.00 404,210.00 65,905.00
2013-06-30 408,053.00 403,675.00 65,083.00
2013-03-31 416,671.00 403,086.00 62,640.00
2012-12-31 384,441.00 393,667.00 64,083.00
2012-09-30 371,229.00 351,297.00 48,161.00
2012-06-30 363,819.00 368,661.00 63,971.00
  • Hitachi Construction Machinery's level of debt (61.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (89.5% vs 61.3% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are well covered by earnings (EBIT is 20.1x coverage).
X
Financial health checks
We assess Hitachi Construction Machinery's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Hitachi Construction Machinery has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

HTCM.F Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.93%
Current annual income from Hitachi Construction Machinery dividends. Estimated to be 3.31% next year.
If you bought $2,000 of Hitachi Construction Machinery shares you are expected to receive $59 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Hitachi Construction Machinery's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.41%).
  • Hitachi Construction Machinery's dividend is below the markets top 25% of dividend payers in United States of America (3.63%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
OTCPK:HTCM.F Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
United States of America Machinery Industry Average Dividend Yield Market Cap Weighted Average of 77 Stocks 1.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2008 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

OTCPK:HTCM.F Future Dividends Estimate Data
Date (Data in ¥) Dividend per Share (annual) Avg. No. Analysts
2023-03-31 100.00 1.00
2022-03-31 98.00 1.00
2021-03-31 97.22 14.00
2020-03-31 94.58 15.00
2019-03-31 92.82 15.00
OTCPK:HTCM.F Past Annualized Dividends Data
Date (Data in ¥) Dividend per share (annual) Avg. Yield (%)
2018-06-26 85.000 2.761
2018-04-26 85.000 2.160
2018-02-09 72.000 1.708
2018-01-29 72.000 1.572
2017-11-08 72.000 1.797
2017-10-25 72.000 1.846
2017-06-27 12.000 0.383
2017-04-26 12.000 0.447
2017-02-09 8.000 0.294
2017-01-30 8.000 0.304
2016-11-08 8.000 0.322
2016-10-27 8.000 0.368
2016-06-28 20.000 1.109
2016-04-27 20.000 1.216
2016-02-08 60.000 3.451
2016-01-28 60.000 3.550
2015-11-06 60.000 3.268
2015-10-27 60.000 3.176
2015-06-23 60.000 3.164
2015-04-27 60.000 2.731
2015-02-06 60.000 2.735
2015-01-28 60.000 2.691
2014-11-10 60.000 2.394
2014-10-28 60.000 2.655
2014-07-29 60.000 2.879
2014-06-24 60.000 2.938
2014-04-24 60.000 3.128
2014-02-07 50.000 2.552
2014-01-28 50.000 2.545
2013-10-28 50.000 2.333
2013-07-29 50.000 2.385
2013-06-25 50.000 2.398
2013-04-25 50.000 2.134
2013-02-08 40.000 1.903
2013-01-30 40.000 1.862
2012-11-08 40.000 2.495
2012-10-25 40.000 2.936
2012-07-25 40.000 2.983
2012-04-25 40.000 2.696
2012-02-09 30.000 1.726
2012-01-26 30.000 1.998
2011-11-10 30.000 2.202
2011-10-25 30.000 1.999
2011-07-27 30.000 2.135
2011-04-27 20.000 1.144
2011-01-26 20.000 0.981
2010-10-26 20.000 1.038
2010-07-27 20.000 1.122
2010-06-22 20.000 1.159
2010-04-26 20.000 1.098
2010-02-10 10.000 0.484
2009-10-27 10.000 0.449
2009-07-27 10.000 0.522
2009-04-27 10.000 0.648
2009-04-20 44.000 3.343

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Hitachi Construction Machinery's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.5x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Hitachi Construction Machinery's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Hitachi Construction Machinery afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Hitachi Construction Machinery has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

HTCM.F Management

 What is the CEO of Hitachi Construction Machinery's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Kotaro Hirano
AGE 60
CEO Bio

Kotaro Hirano has been the Chief Executive Officer, President and Executive Officer at Hitachi Construction Machinery Co., Ltd. since April 2017. Kotaro Hirano served as Vice President, Head of SCM Transformation Promotion Project, Head of The Next System V20 Project, General Manager of Operations Management Division and Executive Officer at Hitachi Construction Machinery Co., Ltd. Kotaro Hirano has been Director at Hitachi Construction Machinery Co., Ltd. since June 2017.

CEO Compensation
  • Insufficient data for Kotaro to compare compensation growth.
  • Insufficient data for Kotaro to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Hitachi Construction Machinery management team in years:

2
Average Tenure
61
Average Age
  • The tenure for the Hitachi Construction Machinery management team is about average.
Management Team

Tatsuro Ishizuka

TITLE
Chairman & Executive Officer
AGE
63
TENURE
2 yrs

Kotaro Hirano

TITLE
CEO, President
AGE
60

Tetsuo Katsurayama

TITLE
CFO, Executive Officer
AGE
62

Michifumi Tabuchi

TITLE
Chief Technical Officer
AGE
60

Koji Sumioka

TITLE
Chief Information Officer

Yasushi Ochiai

TITLE
Executive VP
AGE
62
TENURE
2.5 yrs

Hirotoyo Fujii

TITLE
Senior VP
AGE
64
TENURE
2 yrs

Tadashi Motoi

TITLE
Chief Procurement Officer
AGE
61
TENURE
4 yrs

Takaharu Ikeda

TITLE
GM of China Business Div & Exec. Officer
AGE
60

Sonosuke Ishii

TITLE
Executive Officer
AGE
60
TENURE
2 yrs
Board of Directors Tenure

Average tenure and age of the Hitachi Construction Machinery board of directors in years:

3.3
Average Tenure
64
Average Age
  • The tenure for the Hitachi Construction Machinery board of directors is about average.
Board of Directors

Tatsuro Ishizuka

TITLE
Chairman & Executive Officer
AGE
63
TENURE
2 yrs

Kotaro Hirano

TITLE
CEO, President
AGE
60
TENURE
1.8 yrs

Tetsuo Katsurayama

TITLE
CFO, Executive Officer
AGE
62
TENURE
3.8 yrs

Koji Sumioka

TITLE
Chief Information Officer
TENURE
3.8 yrs

Hirotoyo Fujii

TITLE
Senior VP
AGE
64
TENURE
1.8 yrs

Osamu Okada

TITLE
Director
AGE
64
TENURE
5.8 yrs

Haruyuki Toyama

TITLE
Outside Director
AGE
59
TENURE
3.8 yrs

Junko Hirakawa

TITLE
Outside Director
AGE
71
TENURE
3.8 yrs

Kazushige Okuhara

TITLE
Outside Director
AGE
70
TENURE
2.8 yrs

Yutaka Saito

TITLE
Director
AGE
64
TENURE
2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Hitachi Construction Machinery's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Hitachi Construction Machinery has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

HTCM.F News

Simply Wall St News

HTCM.F Company Info

Description

Hitachi Construction Machinery Co., Ltd., together with its subsidiaries, manufactures, sells, services, and rents construction machinery worldwide. The company operates in two segments, Construction Machinery Business and Solution Business. The company offers mini and medium excavators, large excavators/loading shovels, wheel loaders, demolition equipment, metal recycling equipment, forest machines, rigid dump trucks, compaction equipment, cranes and foundation machines, double-front work machines, and mine management systems, as well as various used equipment and attachments. It also provides parts, such as hydraulic oils and filters, high pressure hoses, ground engaging tools, and remanufacturing components. The company was founded in 1970 and is headquartered in Tokyo, Japan. Hitachi Construction Machinery Co., Ltd. is a subsidiary of Hitachi Ltd.

Details
Name: Hitachi Construction Machinery Co., Ltd.
HTCM.F
Exchange: OTCPK
Founded: 1970
¥5,513,418,357
212,654,996
Website: http://www.hitachicm.com
Address: Hitachi Construction Machinery Co., Ltd.
2-16-1, Higashiueno,
Taito-ku,
Tokyo,
110-0015,
Japan
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSE 6305 Common Stock The Tokyo Stock Exchange JP JPY 06. Jan 1992
OTCPK HTCM.F Common Stock Pink Sheets LLC US USD 06. Jan 1992
DB HCM Common Stock Deutsche Boerse AG DE EUR 06. Jan 1992
OTCPK HTCM.Y ADR Pink Sheets LLC US USD 23. Oct 2008
Number of employees
Current staff
Staff numbers
23,925
Hitachi Construction Machinery employees.
Industry
Construction Machinery and Heavy Trucks
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/17 00:17
End of day share price update: 2019/01/17 00:00
Last estimates confirmation: 2019/04/03
Last earnings filing: 2019/02/14
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.