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Hitachi

OTCPK:HTHI.F
Snowflake Description

Very undervalued with flawless balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HTHI.F
OTCPK
¥3,277B
Market Cap
  1. Home
  2. US
  3. Tech
Company description

Hitachi, Ltd. provides information and telecommunication systems, social infrastructure and industrial systems, electronic systems and equipment, construction machinery, high functional materials and components, automotive systems, smart life and ecofriendly systems, other products, and financial services in Japan and internationally. The last earnings update was 32 days ago. More info.


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HTHI.F Share Price and Events
7 Day Returns
-3.1%
OTCPK:HTHI.F
3%
US Electronic
2.9%
US Market
1 Year Returns
306.9%
OTCPK:HTHI.F
-1%
US Electronic
1.4%
US Market
HTHI.F Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Hitachi (HTHI.F) -3.1% -1.3% 3.1% 306.9% 563.8% 317.5%
US Electronic 3% 2.3% 17.7% -1% 59.1% 59.1%
US Market 2.9% 2.5% 10% 1.4% 38.3% 42%
1 Year Return vs Industry and Market
  • HTHI.F outperformed the Electronic industry which returned -1% over the past year.
  • HTHI.F outperformed the Market in United States of America which returned 1.4% over the past year.
Price Volatility
HTHI.F
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Hitachi 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 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    Our intrinsic value calculation method has changed recently, learn more here.

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

OTCPK:HTHI.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 10.2%
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:HTHI.F
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Electronic Unlevered Beta Simply Wall St/ S&P Global 1.07
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.071 (1 + (1- 30.86%) (40.42%))
1.248
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.25
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.248 * 5.96%)
10.17%

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

The calculations below outline how an intrinsic value for Hitachi 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:HTHI.F DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (JPY, Millions) Source Present Value
Discounted (@ 10.17%)
2019 392,130.25 Analyst x4 355,931.18
2020 379,724.17 Analyst x6 312,852.49
2021 365,800.00 Analyst x3 273,558.85
2022 392,800.00 Analyst x2 266,633.21
2023 449,150.00 Analyst x2 276,738.67
2024 471,479.93 Est @ 4.97% 263,680.10
2025 491,749.41 Est @ 4.3% 249,628.22
2026 510,575.46 Est @ 3.83% 235,258.57
2027 528,439.82 Est @ 3.5% 221,012.45
2028 545,710.33 Est @ 3.27% 207,166.28
Present value of next 10 years cash flows ¥2,662,460.01
OTCPK:HTHI.F DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ¥545,710.33 × (1 + 2.73%) ÷ (10.17% – 2.73%)
¥7,534,809.85
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ¥7,534,809.85 ÷ (1 + 10.17%)10
¥2,860,415.94
OTCPK:HTHI.F Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ¥2,662,460.01 + ¥2,860,415.94
¥5,522,875.96
Equity Value per Share
(JPY)
= Total value / Shares Outstanding
= ¥5,522,875.96 / 965.60
¥51.01
OTCPK:HTHI.F Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in OTCPK:HTHI.F represents 0.00892x of TSE:6501
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.00892x
Value per Share
(Listing Adjusted, USD)
= Value per Share (JPY) x Listing Adjustment Factor
= ¥ 5,719.61 x 0.00892
$51.01
Value per share (USD) From above. $51.01
Current discount Discount to share price of $30.27
= -1 x ($30.27 - $51.01) / $51.01
40.7%

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

Current Discount
Amount off the current price Hitachi is available for.
Intrinsic value
41%
Share price is $30.27 vs Future cash flow value of $51.01
Current Discount Checks
For Hitachi to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Hitachi's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Hitachi's share price is below the future cash flow value, and 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's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Hitachi's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OTCPK:HTHI.F PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in JPY ¥214.96
TSE:6501 Share Price ** TSE (2019-03-13) in JPY ¥3394
United States of America Electronic Industry PE Ratio Median Figure of 92 Publicly-Listed Electronic Companies 19.59x
United States of America Market PE Ratio Median Figure of 3,054 Publicly-Listed Companies 17.61x

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

** Primary Listing of Hitachi.

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

= TSE:6501 Share Price ÷ EPS (both in JPY)

= 3394 ÷ 214.96

15.79x

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

  • Hitachi is good value based on earnings compared to the US Electronic industry average.
  • Hitachi is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Hitachi's expected growth come at a high price?
Raw Data
OTCPK:HTHI.F PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 15.79x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts
29.1%per year
United States of America Electronic Industry PEG Ratio Median Figure of 60 Publicly-Listed Electronic Companies 1.38x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.47x

*Line of best fit is calculated by linear regression .

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

= PE Ratio ÷ Net Income Annual Growth Rate

= 15.79x ÷ 29.1%

0.54x

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

  • Hitachi is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Hitachi's assets?
Raw Data
OTCPK:HTHI.F PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in JPY ¥3,254.17
TSE:6501 Share Price * TSE (2019-03-13) in JPY ¥3394
United States of America Electronic Industry PB Ratio Median Figure of 151 Publicly-Listed Electronic Companies 2.11x
United States of America Market PB Ratio Median Figure of 5,152 Publicly-Listed Companies 1.87x
OTCPK:HTHI.F PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSE:6501 Share Price ÷ Book Value per Share (both in JPY)

= 3394 ÷ 3,254.17

1.04x

* Primary Listing of Hitachi.

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

  • Hitachi is good value based on assets compared to the US Electronic industry average.
X
Value checks
We assess Hitachi'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 Electronic 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 Electronic industry average (and greater than 0)? (1 check)
  5. Hitachi has a total score of 6/6, 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.

Future Performance

 How is Hitachi 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
29.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Hitachi expected to grow at an attractive rate?
  • Hitachi's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Hitachi's earnings growth is expected to exceed the United States of America market average.
  • Hitachi's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
OTCPK:HTHI.F Future Growth Rates Data Sources
Data Point Source Value (per year)
OTCPK:HTHI.F Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts 29.1%
OTCPK:HTHI.F Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts 2.7%
United States of America Electronic Industry Earnings Growth Rate Market Cap Weighted Average 17%
United States of America Electronic Industry Revenue Growth Rate Market Cap Weighted Average 5.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*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:HTHI.F Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 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:HTHI.F Future Estimates Data
Date (Data in JPY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-03-31 10,637,000 924,400 427,500 1
2022-03-31 10,733,712 845,700 727,318 2
2021-03-31 9,796,871 789,308 469,109 14
2020-03-31 9,393,814 829,622 430,657 15
2019-03-31 9,444,582 770,837 198,761 15
OTCPK:HTHI.F Past Financials Data
Date (Data in JPY Millions) Revenue Cash Flow Net Income *
2018-12-31 9,477,555 456,309 207,555
2018-09-30 9,483,981 660,690 414,119
2018-06-30 9,445,844 734,590 403,239
2018-03-31 9,368,614 727,168 379,008
2017-12-31 9,316,981 723,615 303,562
2017-09-30 9,184,957 623,106 285,622
2017-06-30 9,120,466 671,524 256,332
2017-03-31 9,162,264 629,582 237,211
2016-12-31 9,323,358 805,028 233,980
2016-09-30 9,581,191 787,586 233,363
2016-06-30 9,850,749 791,785 228,692
2016-03-31 10,034,305 812,226 229,236

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Hitachi's earnings are expected to grow significantly at over 20% yearly.
  • Hitachi's revenue is expected to grow by 2.7% 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:HTHI.F Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below

All data from Hitachi Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:HTHI.F Future Estimates Data
Date (Data in JPY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-03-31 442.70 442.70 442.70 1.00
2022-03-31 752.61 1,068.72 436.50 2.00
2021-03-31 472.06 538.00 415.80 15.00
2020-03-31 433.15 478.30 369.70 16.00
2019-03-31 206.35 256.80 186.49 13.00
OTCPK:HTHI.F Past Financials Data
Date (Data in JPY Millions) EPS *
2018-12-31 214.96
2018-09-30 428.90
2018-06-30 417.63
2018-03-31 392.54
2017-12-31 314.38
2017-09-30 295.80
2017-06-30 265.46
2017-03-31 245.66
2016-12-31 242.31
2016-09-30 241.67
2016-06-30 236.83
2016-03-31 237.38

*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 is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Hitachi'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 has a total score of 3/6, 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.

Past Performance

  How has Hitachi 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's growth in the last year to its industry (Electronic).
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's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Hitachi's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Hitachi's 1-year earnings growth is negative, it can't be compared to the US Electronic industry average.
Earnings and Revenue History
Hitachi'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 Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:HTHI.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 9,477,555.00 207,555.00 1,785,358.00
2018-09-30 9,483,981.00 414,119.00 1,787,599.00
2018-06-30 9,445,844.00 403,239.00 1,791,885.00
2018-03-31 9,368,614.00 379,008.00 1,787,462.00
2017-12-31 9,316,981.00 303,562.00 1,765,761.00
2017-09-30 9,184,957.00 285,622.00 1,758,577.00
2017-06-30 9,120,466.00 256,332.00 1,764,453.00
2017-03-31 9,162,264.00 237,211.00 1,792,278.00
2016-12-31 9,323,358.00 233,980.00 1,807,848.00
2016-09-30 9,581,191.00 233,363.00 1,865,271.00
2016-06-30 9,850,749.00 228,692.00 1,907,743.00
2016-03-31 10,034,305.00 229,236.00 1,940,363.00
2015-12-31 10,187,141.00 283,459.00 1,880,450.00
2015-09-30 10,085,045.00 288,792.00 1,909,202.00
2015-06-30 9,952,589.00 298,671.00 1,929,848.00
2015-03-31 9,774,930.00 270,983.00 1,935,373.00
2014-12-31 9,659,799.00 312,620.00 2,023,295.00
2014-09-30 9,642,289.00 323,749.00 2,007,715.00
2014-06-30 9,669,628.00 283,053.00 2,002,551.00
2014-03-31 9,666,446.00 420,832.00 1,887,901.00
2013-12-31 9,346,820.00 252,236.00 1,990,139.00
2013-09-30 9,156,189.00 177,967.00 1,950,462.00
2013-06-30 9,003,294.00 179,110.00 1,911,734.00
2013-03-31 9,041,071.00 175,326.00 1,875,052.00
2012-12-31 9,296,908.00 312,308.00 1,499,831.00 412,514.00
2012-09-30 9,448,722.00 326,355.00 1,927,437.00
2012-06-30 9,635,905.00 351,259.00 1,543,535.00 412,514.00
2012-03-31 9,665,883.00 347,179.00 1,974,632.00

*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 has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Hitachi used its assets less efficiently than the US Electronic industry average last year based on Return on Assets.
  • Hitachi has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Hitachi'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 Electronic 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 has a total score of 2/6, 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.

Health

 How is Hitachi'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's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Hitachi is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Hitachi's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Hitachi'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 3.8x 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 Company Filings, last reported 2 months ago.

OTCPK:HTHI.F Past Debt and Equity Data
Date (Data in JPY Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 4,298,371.00 1,324,820.00 1,030,557.00
2018-09-30 4,667,038.00 1,201,401.00 1,126,158.00
2018-06-30 4,539,373.00 1,208,507.00 1,194,320.00
2018-03-31 4,511,671.00 1,050,294.00 1,071,288.00
2017-12-31 4,449,438.00 1,246,913.00 1,136,537.00
2017-09-30 4,341,864.00 1,271,585.00 1,067,792.00
2017-06-30 4,165,236.00 1,268,119.00 1,200,364.00
2017-03-31 4,096,995.00 1,176,603.00 1,154,034.00
2016-12-31 4,066,913.00 1,263,635.00 763,416.00
2016-09-30 3,864,800.00 3,576,861.00 851,528.00
2016-06-30 3,821,494.00 3,494,245.00 682,922.00
2016-03-31 4,125,570.00 3,604,455.00 699,315.00
2015-12-31 4,402,160.00 3,909,990.00 736,125.00
2015-09-30 4,317,460.00 3,643,838.00 695,141.00
2015-06-30 4,400,980.00 3,664,411.00 689,993.00
2015-03-31 4,296,342.00 3,562,293.00 701,703.00
2014-12-31 4,191,834.00 3,578,624.00 761,247.00
2014-09-30 4,025,037.00 3,108,102.00 647,748.00
2014-06-30 3,845,225.00 2,904,415.00 582,190.00
2014-03-31 3,868,831.00 3,035,976.00 560,657.00
2013-12-31 3,603,331.00 3,011,605.00 685,584.00
2013-09-30 3,397,888.00 2,792,339.00 657,815.00
2013-06-30 3,279,330.00 2,804,078.00 613,385.00
2013-03-31 3,179,287.00 2,372,937.00 538,076.00
2012-12-31 2,939,944.00 2,681,390.00 616,142.00
2012-09-30
2012-06-30 2,710,167.00 2,469,520.00 614,260.00
2012-03-31 2,773,995.00 2,399,542.00 631,151.00
  • Hitachi's level of debt (30.8%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (83.5% vs 30.8% today).
  • Debt is well covered by operating cash flow (34.4%, greater than 20% of total debt).
  • Hitachi earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Hitachi'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 has a total score of 6/6, 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.

Dividends

 What is Hitachi'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
2.36%
Current annual income from Hitachi dividends. Estimated to be 2.76% next year.
If you bought $2,000 of Hitachi shares you are expected to receive $47 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's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).
  • Hitachi's dividend is below the markets top 25% of dividend payers in United States of America (3.64%).
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:HTHI.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 Electronic Industry Average Dividend Yield Market Cap Weighted Average of 38 Stocks 1.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2005 Stocks 2.5%
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:HTHI.F Future Dividends Estimate Data
Date (Data in ¥) Dividend per Share (annual) Avg. No. Analysts
2023-03-31 100.00 1.00
2022-03-31 118.67 2.00
2021-03-31 102.27 13.00
2020-03-31 96.07 14.00
2019-03-31 80.59 15.00
OTCPK:HTHI.F Past Annualized Dividends Data
Date (Data in ¥) Dividend per share (annual) Avg. Yield (%)
2019-02-13 80.000 2.357
2019-02-01 80.000 2.318
2018-11-12 80.000 2.464
2018-10-26 80.000 2.321
2018-05-23 80.000 2.116
2018-04-27 80.000 1.881
2018-02-07 70.000 1.763
2018-01-31 70.000 1.638
2017-11-14 70.000 1.600
2017-10-26 70.000 1.576
2017-06-21 70.000 1.866
2017-05-12 70.000 2.085
2017-02-08 60.000 1.949
2017-02-01 60.000 1.810
2016-11-14 60.000 1.886
2016-10-28 60.000 2.183
2016-05-13 60.000 2.514
2016-02-12 60.000 2.401
2016-02-03 60.000 2.462
2015-11-12 60.000 1.801
2015-10-28 60.000 1.683
2015-05-14 60.000 1.626
2015-02-13 60.000 1.466
2015-02-04 60.000 1.502
2014-11-12 60.000 1.341
2014-05-12 55.000 1.430
2014-02-12 50.000 1.306
2013-11-12 50.000 1.296
2013-10-29 50.000 1.466
2013-03-14 50.000 1.582
2013-02-12 50.000 1.896
2013-02-04 50.000 1.860
2012-11-13 50.000 2.039
2012-10-30 50.000 2.399
2012-03-15 50.000 2.138
2012-02-13 30.000 1.295
2012-02-06 30.000 1.402
2011-09-15 30.000 1.464
2011-04-06 30.000 1.365
2011-02-28 30.000 1.352
2011-02-14 30.000 1.215
2011-02-04 30.000 1.220
2010-09-16 30.000 1.507
2010-07-29 30.000 1.686
2010-06-29 30.000 1.776
2010-05-11 30.000 1.661
2010-03-03 0.000 0.000
2010-02-04 0.000 0.000
2009-09-18 0.000 0.000
2009-08-12 0.000 0.000
2009-07-30 0.000 0.000
2009-07-27 0.000 0.000
2009-06-23 0.000 0.000
2009-05-12 0.000 0.000
2009-03-18 15.000 0.961

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

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Hitachi's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.7x 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'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 afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Hitachi has a total score of 4/6, see the detailed checks below.


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

Management

 What is the CEO of Hitachi'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
Toshiaki Higashihara
COMPENSATION ¥209,000,000
AGE 63
TENURE AS CEO 2.9 years
CEO Bio

Mr. Toshiaki Higashihara has been the President and Representative Executive Officer of Hitachi, Ltd. since April 1, 2014 and has been its Chief Executive Officer since April 1, 2016. Mr. Higashihara served as a General Manager of Smart Transformation Project Initiatives Division at Hitachi Ltd. from April 1, 2014 to October 1, 2014 and served as its Chief Operating Officer. He served as President of Hitachi Plant Technologies, Ltd. since April 2010 and served as its Chief Operating Officer. He served as Executive Officer of Infrastructure System Group of Hitachi since April 1, 2012. He served as Senior Vice President and Executive Officer of Medical Systems Business for Hitachi Ltd from April 1, 2013 to April 1, 2014. He served as the Chief Executive Officer and President of Infrastructure Systems Group and Infrastructure Systems Company since January 1, 2014. Mr. Higashihara served as Vice President at Hitachi Ltd. since April 1, 2011 until April 1, 2013. He served as Executive Officer, In Charge of Industrial & Social System Business at Hitachi. He served as the Chief Operating Officer of Power Systems Group of Hitachi Ltd., from April 1, 2007 to March 2008. He served as a Vice President of Hitachi Ltd., from April 1, 2007 to March 2008 and Executive Officer since April 2011. He served as the Chief Operating Officer of Information & Telecommunication Systems Group of Hitachi Ltd. He has been a Director of Hitachi Ltd. since June 2014. Mr. Higashihara served as a Representative Director of Hitachi Plant Technologies, Ltd. since January 1, 2012. He served as Absentee Director at Hitachi Industrial Equipment Systems Co., Ltd. Mr. Higashihara received Master of Science in Computer Science from Boston University in September 1990 and Graduated from the Faculty of Engineering, The University of Tokushima in March 1977.

CEO Compensation
  • Toshiaki's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Toshiaki's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

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

2.9
Average Tenure
62
Average Age
  • The tenure for the Hitachi management team is about average.
Management Team

Hiroaki Nakanishi

TITLE
Chairman of the Board & Executive Officer
COMPENSATION
¥188M
AGE
72
TENURE
9.9 yrs

Toshiaki Higashihara

TITLE
Representative Executive Officer
COMPENSATION
¥209M
AGE
63
TENURE
2.9 yrs

Kenichi Kokubo

TITLE
Senior VP & Executive Officer
COMPENSATION
¥112M
AGE
63
TENURE
0.9 yrs

Alistair Dormer

TITLE
Senior VP & Executive Officer
COMPENSATION
¥145M
AGE
55
TENURE
3.9 yrs

Koji Tanaka

TITLE
Associate
COMPENSATION
¥110M
AGE
66
TENURE
0.9 yrs

Mitsuaki Nishiyama

TITLE
Representative Executive Officer
AGE
62
TENURE
2.9 yrs

Norihiro Suzuki

TITLE
VP, Executive Officer
AGE
57
TENURE
2.9 yrs

Shinichiro Omori

TITLE
Senior VP
AGE
62
TENURE
2.9 yrs

Kohei Kodama

TITLE
VP, Executive Officer & General Counsel
AGE
57
TENURE
0.9 yrs

Hidenobu Nakahata

TITLE
Repre. Exec. Officer
AGE
57
Board of Directors Tenure

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

4.8
Average Tenure
66
Average Age
  • The tenure for the Hitachi board of directors is about average.
Board of Directors

Hiroaki Nakanishi

TITLE
Chairman of the Board & Executive Officer
COMPENSATION
¥188M
AGE
72
TENURE
4.9 yrs

Toshiaki Higashihara

TITLE
Representative Executive Officer
COMPENSATION
¥209M
AGE
63
TENURE
4.8 yrs

Takashi Kawamura

TITLE
Chairman Emeritus
COMPENSATION
¥170M
AGE
79
TENURE
4.8 yrs

Shutoku Watanabe

TITLE
President of New Consumer Business Group Company and Director of New Consumer Business Group Company
TENURE
9.7 yrs

Harufumi Mochizuki

TITLE
Outside Director
AGE
69
TENURE
6.8 yrs

Hiro Yoshihara

TITLE
Outside Director
AGE
61
TENURE
4.8 yrs

Toyoaki Nakamura

TITLE
Director
AGE
66
TENURE
2.8 yrs

George Buckley

TITLE
Outside Director
AGE
71
TENURE
6.8 yrs

Cynthia Carroll

TITLE
Outside Director
AGE
62
TENURE
5.8 yrs

Adele Pentland

TITLE
Outside Director
AGE
46
TENURE
3.8 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'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 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.

News

Simply Wall St News

Company Info

Description

Hitachi, Ltd. provides information and telecommunication systems, social infrastructure and industrial systems, electronic systems and equipment, construction machinery, high functional materials and components, automotive systems, smart life and ecofriendly systems, other products, and financial services in Japan and internationally. The company’s Information & Telecommunication Systems segment offers systems integration, consulting, and cloud services; and servers, storage products, software, telecommunications and network equipment, and ATMs. Its Social Infrastructure & Industrial Systems segment provides industrial machinery and plants, elevators, escalators, and railway systems; and thermal, nuclear, and renewable energy power generation systems, and transmission and distribution systems. The company’s Electronic Systems & Equipment segment offers semiconductor processing equipment, test and measurement equipment, industrial products, and medical electronics equipment. Its Construction Machinery segment provides hydraulic excavators, wheel loaders, and mining machinery. The company’s High Functional Materials & Components segment offers semiconductor and display related materials, circuit boards and materials, automotive parts, energy storage devices, specialty steel products, magnetic materials and applications, and functional components and equipment, as well as wires, cables, and related products. Its Automotive Systems segment provides electric powertrain, integrated vehicle control, and car information systems. The company’s Smart Life & Ecofriendly Systems segment offers air-conditioning equipment, room air conditioners, refrigerators, and washing machines. Its Others segment provides optical disk drives, property management and others services. The company was founded in 1910 and is headquartered in Tokyo, Japan.

Details
Name: Hitachi, Ltd.
HTHI.F
Exchange: OTCPK
Founded: 1910
¥29,380,592,594
965,603,477
Website: http://www.hitachi.com
Address: Hitachi, Ltd.
6-6, Marunouchi 1-chome,
Chiyoda-ku,
Tokyo,
100-8280,
Japan
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSE 6501 Common Stock The Tokyo Stock Exchange JP JPY 06. Jan 1975
OTCPK HTHI.F Common Stock Pink Sheets LLC US USD 06. Jan 1975
DB HIA1 Common Stock Deutsche Boerse AG DE EUR 06. Jan 1975
OTCPK HTHI.Y ADR 2 COM Pink Sheets LLC US USD 14. Dec 1972
Number of employees
Current staff
Staff numbers
307,275
Hitachi employees.
Industry
Electronic Equipment and Instruments
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/17 23:51
End of day share price update: 2019/03/13 00:00
Last estimates confirmation: 2019/03/13
Last earnings filing: 2019/02/13
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.