Hitachi Ltd. (6501) 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

Tokyo Electron Ltd.

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DISCO Corp.

DAIKIN INDUSTRIES Ltd.

Hitachi Ltd.

FANUC Corp.

OMRON Corp.

Toyota Industries Corp.

YASKAWA Electric Corp.

SMC Corp. (Japan)

TOSHIBA Corp.

Why is Hitachi Ltd. ?

High Management Efficiency with a high ROCE of 12.67%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 17.50

Poor long term growth as Net Sales has grown by an annual rate of 4.10% and Operating profit at 16.46% over the last 5 years

Positive results in Mar 26

OPERATING CASH FLOW(Y) Highest at JPY 1,668,061 MM
DIVIDEND PER SHARE(HY) Highest at JPY 2.82
DIVIDEND PAYOUT RATIO(Y) Highest at 74.17%

With ROCE of 18.17%, it has a very attractive valuation with a 3.54 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 9.35%, its profits have risen by 34.7% ; the PEG ratio of the company is 0.7

Majority shareholders : Non Institution

Underperformed the market in the last 1 year

The stock has generated a return of 9.35% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hitachi Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Hitachi Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Hitachi Ltd.

9.35%

278.36

40.90%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.10%

EBIT Growth (5y)

16.46%

EBIT to Interest (avg)

17.50

Debt to EBITDA (avg)

0.80

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

1.36

Tax Ratio

33.82%

Dividend Payout Ratio

32.12%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

12.67%

ROE (avg)

11.07%

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

3.51

EV to EBIT

19.47

EV to EBITDA

14.07

EV to Capital Employed

3.54

EV to Sales

2.16

PEG Ratio

0.71

Dividend Yield

ROCE (Latest)

18.17%

ROE (Latest)

13.66%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Mildly Bearish

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

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 1,668,061 MM

DIVIDEND PER SHARE(HY)

Highest at JPY 2.82

DIVIDEND PAYOUT RATIO(Y)

Highest at 74.17%

RAW MATERIAL COST(Y)

Fallen by -4.26% (YoY

CASH AND EQV(HY)

Highest at JPY 2,448,132 MM

DEBT-EQUITY RATIO (HY)

Lowest at -4.79 %

NET SALES(Q)

Highest at JPY 3,084,984 MM

OPERATING PROFIT(Q)

Highest at JPY 497,209 MM

-8What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.82 times

INTEREST(Q)

Highest at JPY 14,250 MM

PRE-TAX PROFIT(Q)

Lowest at JPY 219,332 MM

NET PROFIT(Q)

Lowest at JPY 163,808 MM

EPS(Q)

Lowest at JPY 36.39

Here's what is working for Hitachi Ltd.

Operating Cash Flow

Highest at JPY 1,668,061 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Dividend per share

Highest at JPY 2.82 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Net Sales

Highest at JPY 3,084,984 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 3,084,984 MM has Grown at 20.11%

over average net sales of the previous four periods of JPY 2,568,486.25 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 497,209 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Cash and Eqv

Highest at JPY 2,448,132 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -4.79 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend Payout Ratio

Highest at 74.17%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -4.26% (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

Depreciation

Highest at JPY 123,649 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Hitachi Ltd.

Interest

At JPY 14,250 MM has Grown at 250.64%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 14,250 MM

in the last five periods and Increased by 250.64% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

Lowest at JPY 219,332 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 219,332 MM has Fallen at -31.89%

over average net sales of the previous four periods of JPY 322,010.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 163,808 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 36.39

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debtors Turnover Ratio

Lowest at 2.82 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio