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Hitachi Ltd.

  • Market Cap: Large Cap
  • Industry: Industrial Manufacturing
  • ISIN: JP3788600009
JPY
5,620.00
0.00 (0.00%)

Aug 10

TKS

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
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.
Daifuku Co., Ltd.
DISCO Corp.
DAIKIN INDUSTRIES Ltd.
SMC Corp. (Japan)
Hitachi Ltd.
FANUC Corp.
Toyota Industries Corp.
YASKAWA Electric Corp.
OMRON Corp.
TOSHIBA Corp.

Why is Hitachi Ltd. ?

1
The company is Net-Debt Free
  • The company is Net-Debt Free
2
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
3
Positive results in Jun 26
  • OPERATING CASH FLOW(Y) Highest at JPY 1,722,144 MM
  • RAW MATERIAL COST(Y) Fallen by -2.09% (YoY)
  • CASH AND EQV(HY) Highest at JPY 2,827,976 MM
4
With ROCE of 18.17%, it has a fair valuation with a 3.41 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 33.59%, its profits have risen by 34.7% ; the PEG ratio of the company is 0.7
5
Majority shareholders : Non Institution
6
Underperformed the market in the last 1 year
  • The stock has generated a return of 33.59% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Hitachi Ltd. should be less than 10%
  2. 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.
32.92%
358.57
39.92%
Japan Nikkei 225
60.14%
2.04
29.37%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
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)
18.80
Debt to EBITDA (avg)
0.56
Net Debt to Equity (avg)
0.02
Sales to Capital Employed (avg)
1.37
Tax Ratio
34.31%
Dividend Payout Ratio
28.29%
Pledged Shares
0
Institutional Holding
0.00%
ROCE (avg)
14.54%
ROE (avg)
11.07%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
25
Industry P/E
Price to Book Value
3.39
EV to EBIT
18.79
EV to EBITDA
13.57
EV to Capital Employed
3.41
EV to Sales
2.09
PEG Ratio
0.68
Dividend Yield
NA
ROCE (Latest)
18.17%
ROE (Latest)
13.66%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
No Trend
Mildly Bullish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

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

8What is working for the Company
OPERATING CASH FLOW(Y)

Highest at JPY 1,722,144 MM

RAW MATERIAL COST(Y)

Fallen by -2.09% (YoY

CASH AND EQV(HY)

Highest at JPY 2,827,976 MM

DEBT-EQUITY RATIO (HY)

Lowest at -6.81 %

INVENTORY TURNOVER RATIO(HY)

Highest at 4.37 times

DEBTORS TURNOVER RATIO(HY)

Highest at 3.27 times

-4What is not working for the Company
INTEREST(HY)

At JPY 21,260 MM has Grown at 53.15%

Here's what is working for Hitachi Ltd.

Operating Cash Flow
Highest at JPY 1,722,144 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)

Cash and Eqv
Highest at JPY 2,827,976 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio
Lowest at -6.81 %
in the last five Semi-Annual periods
MOJO Watch
The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio
Highest at 4.37 times
in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio
Highest at 3.27 times
in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost
Fallen by -2.09% (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 Hitachi Ltd.

Interest
At JPY 21,260 MM has Grown at 53.15%
over previous Semi-Annual period
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

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