OTCPK:HOIE.F

Stock Analysis Report

Executive Summary

Hosiden Corporation manufactures and sells electronics, electrical appliances, auto parts, information telecommunications equipment, office machines, and medical equipment and related parts in Japan and internationally.

Rewards

Trading at 18.7% below its fair value

Earnings grew by 14.9% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -18.4% per year for the next 3 years

High level of non-cash earnings

Unstable dividend track record



Snowflake Analysis

Excellent balance sheet and good value.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

HOIE.F

-0.9%

US Electronic

0.5%

US Market


1 Year Return

n/a

HOIE.F

8.9%

US Electronic

20.3%

US Market

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

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


Shareholder returns

HOIE.FIndustryMarket
7 Day0%-0.9%0.5%
30 Dayn/a-4.6%2.0%
90 Dayn/a2.4%9.4%
1 Yearn/a10.0%8.9%22.8%20.3%
3 Year21.0%21.0%37.1%33.4%50.1%40.4%
5 Year92.5%92.5%69.1%60.8%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

18.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HOIE.F ($10.55) is trading below our estimate of fair value ($12.97)

Significantly Below Fair Value: HOIE.F is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HOIE.F is good value based on its PE Ratio (6.4x) compared to the Electronic industry average (19.8x).

PE vs Market: HOIE.F is good value based on its PE Ratio (6.4x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: HOIE.F's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: HOIE.F is good value based on its PB Ratio (0.6x) compared to the US Electronic industry average (1.9x).


Next Steps

Future Growth

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

-18.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HOIE.F's earnings are forecast to decline over the next 3 years (-18.4% per year).

Earnings vs Market: HOIE.F's earnings are forecast to decline over the next 3 years (-18.4% per year).

High Growth Earnings: HOIE.F's earnings are forecast to decline over the next 3 years.

Revenue vs Market: HOIE.F's revenue (3.4% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: HOIE.F's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HOIE.F's Return on Equity is forecast to be low in 3 years time (6.2%).


Next Steps

Past Performance

How has Hosiden performed over the past 5 years?

51.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HOIE.F has a high level of non-cash earnings.

Growing Profit Margin: HOIE.F's current net profit margins (5.1%) are higher than last year (3.3%).


Past Earnings Growth Analysis

Earnings Trend: HOIE.F has become profitable over the past 5 years, growing earnings by 51% per year.

Accelerating Growth: HOIE.F's earnings growth over the past year (14.9%) is below its 5-year average (51% per year).

Earnings vs Industry: HOIE.F earnings growth over the past year (14.9%) exceeded the Electronic industry 14.6%.


Return on Equity

High ROE: HOIE.F's Return on Equity (10.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hosiden's financial position?


Financial Position Analysis

Short Term Liabilities: HOIE.F's short term assets (¥127.4B) exceed its short term liabilities (¥33.2B).

Long Term Liabilities: HOIE.F's short term assets (¥127.4B) exceed its long term liabilities (¥17.0B).


Debt to Equity History and Analysis

Debt Level: HOIE.F's debt to equity ratio (12.5%) is considered satisfactory.

Reducing Debt: HOIE.F's debt to equity ratio has increased from 8.9% to 12.5% over the past 5 years.

Debt Coverage: HOIE.F's debt is well covered by operating cash flow (36.8%).

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


Balance Sheet

Inventory Level: HOIE.F has a high level of physical assets or inventory.

Debt Coverage by Assets: HOIE.F's debt is covered by short term assets (assets are 10.1x debt).


Next Steps

Dividend

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

1.80%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Years2.0%

Current dividend yield vs market & industry

Notable Dividend: HOIE.F's dividend (1.8%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: HOIE.F's dividend (1.8%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: HOIE.F's dividend payments have been volatile in the past 10 years.

Growing Dividend: HOIE.F's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (11.5%), HOIE.F's dividend payments are thoroughly 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?

16.3yrs

Average management tenure


CEO

Kenji Furuhashi (64yo)

28.8yrs

Tenure

JP¥109,000,000

Compensation

Mr. Kenji Furuhashi has been the President at Hosiden Corp since April 1991 and served as its Chief Executive Officer. Mr. Furuhashi has been the President of Hong Kong Hosiden Limited, Korea Hosiden Co.,  ...


CEO Compensation Analysis

Compensation vs Market: Kenji's total compensation ($USD0.00) is below average for companies of similar size in the US market ($USD1.66M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kenji Furuhashi
President & Representative Director28.8yrsJP¥109.00m1.78% ¥10.4m
Shinji Hombo
Head for Office of President14.7yrsno data0.11% ¥631.2k
Yasuhiro Shigeno
Head of Technology Management Dept0yrsno data0.091% ¥531.0k
Haremi Kitatani
VP, Head of Hosiden Group & Representative Director21.7yrsJP¥100.00m0.19% ¥1.1m

16.3yrs

Average Tenure

68.5yo

Average Age

Experienced Management: HOIE.F's management team is seasoned and experienced (16.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kenji Furuhashi
President & Representative Director28.8yrsJP¥109.00m1.78% ¥10.4m
Shinji Hombo
Head for Office of President14.7yrsno data0.11% ¥631.2k
Yasuhiro Shigeno
Head of Technology Management Dept0yrsno data0.091% ¥531.0k
Haremi Kitatani
VP, Head of Hosiden Group & Representative Director21.7yrsJP¥100.00m0.19% ¥1.1m
Saburo Kikyo
Audit & Supervisory Board Member9.7yrsno data0.012% ¥70.1k
Kenichi Takahashi
External Director4.6yrsno data0.022% ¥130.3k
Takayuki Tanemura
Outside Audit & Supervisory Board Member0yrsno data0.0017% ¥10.0k
Susumu Maruno
Outside Audit & Supervisory Board Member4.6yrsno data0.0034% ¥20.0k
Hiroshi Horie
External Director2.6yrsno data0.0017% ¥10.0k

9.7yrs

Average Tenure

70yo

Average Age

Experienced Board: HOIE.F's board of directors are considered experienced (9.7 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

Hosiden Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hosiden Corporation
  • Ticker: HOIE.F
  • Exchange: OTCPK
  • Founded: 1947
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: JP¥65.063b
  • Listing Market Cap: JP¥585.662m
  • Shares outstanding: 58.46m
  • Website: https://www.hosiden.co.jp

Number of Employees


Location

  • Hosiden Corporation
  • 4-33, Kitakyuhoji 1-Chome
  • Yao
  • Osaka
  • 581-0071
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HODDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1992
6804TSE (The Tokyo Stock Exchange)YesCommon SharesJPJPYJan 1992
HOIE.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 1992

Biography

Hosiden Corporation manufactures and sells electronics, electrical appliances, auto parts, information telecommunications equipment, office machines, and medical equipment and related parts in Japan and internationally. It offers miniature circular, DIN, multi-pole circular and rectangular, slim rectangular, display port, HDMI, USB, IC card, optical, AC inlets/power supply, waterproof, PV, and PV junction box connectors; and plugs and jacks, such as miniature, pin, and DC power jacks. The company also provides slide and tactile push switches, multi-function switches, shuttle switches, circuit protectors, switches units, and touch panels, as well as DC switches for solar PV generation system; and acoustic components comprising micro speakers, receiver units, headphones, earphone-mics, microphones and microphone units, and Bluetooth modules. In addition, it offers wireless modules consisting of Bluetooth, Bluetooth low energy, wireless audio, and ANT modules; and other products, such as chargers, wireless power transfer systems, touch panels, and DC solenoids, as well as electro-magnetic components, LCD devices, and assembled products. The company’s products are used in mobile phones, audio and visual products, PCs and PC peripherals, PV generation systems, and car electronics. Hosiden Corporation was founded in 1947 and is headquartered in Yao, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 03:03
End of Day Share Price2020/02/10 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.