Hino Motors, Ltd. (7205) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Suzuki Motor Corp.

Isuzu Motors Ltd.

Toyota Motor Corp.

Mazda Motor Corp.

Hino Motors, Ltd.

Mitsubishi Motors Corp.

Yamaha Motor Co., Ltd.

Subaru Corp.

Shimano, Inc.

Honda Motor Co., Ltd.

Nissan Motor Co., Ltd.

Why is Hino Motors, Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 11.36% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -1.34% and Operating profit at 12.75% over the last 5 years

With a growth in Operating Profit of 104.98%, the company declared Very Positive results in Dec 25

PRE-TAX PROFIT(Q) At JPY 22,286 MM has Grown at 1,829.52%
NET PROFIT(Q) At JPY 11,799.99 MM has Grown at 372.96%
ROCE(HY) Highest at 45.77%

With ROCE of 15.51%, it has a risky valuation with a 1.22 Enterprise value to Capital Employed

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -11.47%, its profits have fallen by -15.8%
At the current price, the company has a high dividend yield of 0.4

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -11.47% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hino Motors, Ltd. should be less than 10%
Overall Portfolio exposure to Automobiles should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Automobiles)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Hino Motors, Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hino Motors, Ltd.

-11.47%

-0.14

43.53%

Japan Nikkei 225

38.94%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.34%

EBIT Growth (5y)

12.75%

EBIT to Interest (avg)

4.20

Debt to EBITDA (avg)

2.75

Net Debt to Equity (avg)

2.29

Sales to Capital Employed (avg)

2.54

Tax Ratio

11.61%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

5.11%

ROE (avg)

11.36%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.48

EV to EBIT

7.86

EV to EBITDA

3.98

EV to Capital Employed

1.22

EV to Sales

0.28

PEG Ratio

Dividend Yield

0.43%

ROCE (Latest)

15.51%

ROE (Latest)

35.87%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

21What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 22,286 MM has Grown at 1,829.52%

NET PROFIT(Q)

At JPY 11,799.99 MM has Grown at 372.96%

ROCE(HY)

Highest at 45.77%

INTEREST COVERAGE RATIO(Q)

Highest at 1,187.09

RAW MATERIAL COST(Y)

Fallen by -8.29% (YoY

CASH AND EQV(HY)

Highest at JPY 208,122 MM

OPERATING PROFIT(Q)

Highest at JPY 39,898 MM

OPERATING PROFIT MARGIN(Q)

Highest at 10.02 %

-7What is not working for the Company

INTEREST(HY)

At JPY 7,570 MM has Grown at 10.82%

NET SALES(HY)

At JPY 776,993 MM has Grown at -10.6%

Here's what is working for Hino Motors, Ltd.

Pre-Tax Profit

At JPY 22,286 MM has Grown at 1,829.52%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 11,799.99 MM has Grown at 372.96%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Interest Coverage Ratio

Highest at 1,187.09

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit

Highest at JPY 39,898 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 10.02 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at JPY 208,122 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -8.29% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Hino Motors, Ltd.

Interest

At JPY 7,570 MM has Grown at 10.82%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

At JPY 776,993 MM has Grown at -10.6%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)