OTCPK:HULC.F

Stock Analysis Report

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Executive Summary

Hulic Co., Ltd. engages in the investment, development, reconstruction, rental, sale, and brokerage of real estate properties in Japan.


Snowflake Analysis

Proven track record and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

HULC.F

6.7%

US Real Estate

2.9%

US Market


1 Year Return

n/a

HULC.F

-10.5%

US Real Estate

8.9%

US Market

Return vs Industry: Insufficient data to determine how HULC.F performed against the US Real Estate industry.

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


Shareholder returns

HULC.FIndustryMarket
7 Day0%6.7%2.9%
30 Day8.0%18.0%10.6%
90 Dayn/a-18.4%5.1%
1 Yearn/a-9.9%-10.5%11.4%8.9%
3 Yearn/a-11.3%-13.3%34.3%25.4%
5 Yearn/a-19.0%-21.4%60.7%42.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

11.6x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HULC.F ($9.4) is trading above our estimate of fair value ($2.87)

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


Price To Earnings Ratio

PE vs Industry: HULC.F is good value based on its PE Ratio (11.6x) compared to the Real Estate industry average (15.5x).

PE vs Market: HULC.F is good value based on its PE Ratio (11.6x) compared to the US market (16.1x).


Price to Earnings Growth Ratio

PEG Ratio: HULC.F is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: HULC.F is overvalued based on its PB Ratio (1.7x) compared to the US Real Estate industry average (1.1x).


Next Steps

Future Growth

How is Hulic forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

5.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HULC.F's forecast earnings growth (5.4% per year) is above the savings rate (2.2%).

Earnings vs Market: HULC.F's earnings (5.4% per year) are forecast to grow slower than the US market (22.2% per year).

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

Revenue vs Market: HULC.F's revenue (4.4% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: HULC.F's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HULC.F's Return on Equity is forecast to be low in 3 years time (12.5%).


Next Steps

Past Performance

How has Hulic performed over the past 5 years?

16.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HULC.F has high quality earnings.

Growing Profit Margin: HULC.F's current net profit margins (16.6%) are lower than last year (17%).


Past Earnings Growth Analysis

Earnings Trend: HULC.F's earnings have grown by 16% per year over the past 5 years.

Accelerating Growth: HULC.F's earnings growth over the past year (37.8%) exceeds its 5-year average (16% per year).

Earnings vs Industry: HULC.F earnings growth over the past year (37.8%) exceeded the Real Estate industry -6.4%.


Return on Equity

High ROE: HULC.F's Return on Equity (14.8%) is considered low.


Next Steps

Financial Health

How is Hulic's financial position?


Financial Position Analysis

Short Term Liabilities: HULC.F's short term assets (¥241.4B) exceed its short term liabilities (¥220.2B).

Long Term Liabilities: HULC.F's short term assets (¥241.4B) do not cover its long term liabilities (¥1,202.4B).


Debt to Equity History and Analysis

Debt Level: HULC.F's debt to equity ratio (286.3%) is considered high.

Reducing Debt: HULC.F's debt to equity ratio has increased from 255.5% to 286.3% over the past 5 years.

Debt Coverage: HULC.F's debt is not well covered by operating cash flow (18.2%).

Interest Coverage: HULC.F's interest payments on its debt are well covered by EBIT (22.1x coverage).


Balance Sheet


Next Steps

Dividend

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

3.02%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HULC.F's dividend (3.02%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: HULC.F's dividend (3.02%) is low compared to the top 25% of dividend payers in the US market (4.39%).


Stability and Growth of Payments

Stable Dividend: HULC.F has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: HULC.F's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32%), HULC.F'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?

7.8yrs

Average management tenure


CEO

Manabu Yoshidome (66yo)

4.25yrs

Tenure

JP¥194,000,000

Compensation

Mr. Manabu Yoshidome has been Chief Executive Officer and President at Hulic Co., Ltd., since April 01, 2016 and served as its Executive Vice President until April 01, 2016. Mr. Yoshidome served as Vice Pr ...


CEO Compensation Analysis

Compensation vs Market: Manabu's total compensation ($USD1.78M) is below average for companies of similar size in the US market ($USD7.24M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Manabu Yoshidome
President4.25yrsJP¥194.00m0.012% ¥838.5k
Hajime Kobayashi
Senior Executive Managing Officer7.25yrsJP¥107.00m0.018% ¥1.3m
Hidehiro Shiga
VP & Representative Director14.25yrsJP¥115.00m0.038% ¥2.6m
Shin Ito
Executive Managing Officer and GM of Corporate Communications & IRno datano datano data
Takaya Maeda
Senior Executive Managing Officer & Director11.25yrsno data0.015% ¥1.0m
Hiroshi Kitano
Executive Managing Officerno datano datano data
Noritaka Takahashi
Executive Managing Officerno datano datano data
Tadashi Nakajima
Executive Managing Officer & Director0.17yrno data0.00051% ¥35.7k
Taichi Nakamura
Managing Officerno datano datano data
Yoshito Nishikawa
Managing Officerno datano datano data

7.8yrs

Average Tenure

63yo

Average Age

Experienced Management: HULC.F's management team is seasoned and experienced (7.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Manabu Yoshidome
President4.25yrsJP¥194.00m0.012% ¥838.5k
Hajime Kobayashi
Senior Executive Managing Officer7.25yrsJP¥107.00m0.018% ¥1.3m
Hidehiro Shiga
VP & Representative Director14.25yrsJP¥115.00m0.038% ¥2.6m
Takaya Maeda
Senior Executive Managing Officer & Director11.25yrsno data0.015% ¥1.0m
Tadashi Nakajima
Executive Managing Officer & Director0.17yrno data0.00051% ¥35.7k
Saburo Nishiura
Chairman of the Board4.25yrsJP¥194.00m0.076% ¥5.3m
Kaoru Takahashi
External Independent Director4.25yrsno datano data
Hideo Yamada
External Independent Director11.25yrsno data0.0037% ¥255.5k
Tsukasa Miyajima
External Independent Director11.25yrsno data0.0037% ¥255.5k
Fukushima Atsuko
External Independent Director8.25yrsno data0.00066% ¥46.2k

7.8yrs

Average Tenure

63.5yo

Average Age

Experienced Board: HULC.F's board of directors are considered experienced (7.8 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

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


Key Information

  • Name: Hulic Co., Ltd.
  • Ticker: HULC.F
  • Exchange: OTCPK
  • Founded: 1957
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: JP¥762.676b
  • Listing Market Cap: JP¥6.999b
  • Shares outstanding: 667.84m
  • Website: https://www.hulic.co.jp

Number of Employees


Location

  • Hulic Co., Ltd.
  • 7-3 Nihonbashi Odenmacho
  • Chuo-ku
  • Tokyo
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3003TSE (The Tokyo Stock Exchange)YesCommon SharesJPJPYJun 2012
HULC.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJun 2012

Biography

Hulic Co., Ltd. engages in the investment, development, reconstruction, rental, sale, and brokerage of real estate properties in Japan. The company operates through three segments: Real Estate, Insurance Agency, and Staffing. Its property portfolio includes office buildings, commercial buildings, residential and retail properties, hotels, and others. As of December 31, 2018, the company had a portfolio of approximately 240 lease properties. It is also involved in the asset management and insurance agency; and temporary staffing and staffing agency businesses. Hulic Co., Ltd. was founded in 1957 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 Analysis2020/06/04 05:14
End of Day Share Price2020/05/19 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.