Hitachi Intrinsic Value Calculation – HITACHI Reports Third Quarter Fiscal Year 2023 Earnings on February 9th, 2023
February 20, 2023
Earnings Overview
On February 9, 2023, HITACHI ($TSE:6501) released their fiscal year 2023 third quarter earnings report. From October to December of 2022, total revenue was JPY 119.7 billion, a 6.7% decrease compared to the same period in the previous year. Net income, however, saw a 7.1% increase year-over-year at JPY 2692.0 billion.
Market Price
On that day, the stock opened at JP¥6976.0, and closed at JP¥7043.0, representing an increase of 0.4% from the prior closing price of 7018.0. Overall, shareholders were pleased with this result, given the positive outlook that was achieved for the company during the quarter. The company performed well, achieving a number of objectives that had been earmarked for the period. This included a steady increase in their market share, as well as a rise in revenue and profits.
This demonstrated HITACHI’s continued success in the industry and highlighted their significance within the global economy. These results also showed that HITACHI’s strategy of investing in research and development was paying off, and have established further confidence in their ability to continue to perform moving forward. The company’s outlook is positive, and shareholders are expecting them to continue to report strong earnings in the coming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Hitachi. More…
| Total Revenues | Net Income | Net Margin |
| 11.03M | 424.92k | 3.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Hitachi. More…
| Operations | Investing | Financing |
| 852.88k | -166.41k | -768.25k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Hitachi. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 13.28M | 8.11M | 5.12k |
Key Ratios Snapshot
Some of the financial key ratios for Hitachi are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.8% | 5.5% | 6.8% |
| FCF Margin | ROE | ROA |
| 3.8% | 9.9% | 3.5% |
Analysis – Hitachi Intrinsic Value Calculation
GoodWhale has conducted an in-depth analysis of the wellbeing of HITACHI and have reached a fair value of approximately JP¥6506.2 for its stock. Our Valuation Line, an internal proprietary model, was used to reach this conclusion. However, at the current market price, HITACHI stock is overvalued by 8.3%, trading at JP¥7043.0. We believe these findings are indicative of a potential investment opportunity in the stock. More…
Peers
Hitachi Ltd is one of the largest multinational conglomerates in the world. It is a major player in the technology, electronics, and automotive industries, competing against companies such as Digistar Corp Bhd, Kanaden Corp, and ShinMaywa Industries Ltd. These companies bring their own unique set of strengths to the table, presenting a formidable challenge to Hitachi’s dominance in the global market.
– Digistar Corp Bhd ($KLSE:0029)
Digistar Corp Bhd is a Malaysian-based technology and services provider that specializes in digital media, consumer electronics, and communications solutions. With a market cap of 31.25 million as of 2023, the company has seen considerable growth in value over the past few years. In addition, Digistar Corp Bhd has a Return on Equity (ROE) of 13.16%, demonstrating that the company is generating a good return on its investments. This makes Digistar Corp Bhd an attractive option for investors looking for a profitable technology and services provider.
– Kanaden Corp ($TSE:8081)
Kanaden Corp is a multinational corporation based in Japan that provides a wide range of products and services for the automotive, industrial, and electronics industries. In 2023, the company had a market capitalization of 28.66 billion dollars and a return on equity of 5.12%. The company’s market cap is a reflection of its strong financial performance and ability to generate returns for its shareholders. Furthermore, its return on equity indicates that it is able to effectively utilize the capital invested in the company to generate profits.
– ShinMaywa Industries Ltd ($TSE:7224)
ShinMaywa Industries Ltd is a Japanese industrial firm specializing in the production of aircraft, ships, and other transportation-related products. The company has a market cap of 67.87B as of 2023, indicating a strong presence in the market. Its Return on Equity (ROE) of 7.42% illustrates that the company is making efficient use of its shareholders’ funds, allowing it to generate significant profits. The high market cap and ROE of ShinMaywa Industries Ltd are a testament to its success in the industry.
Summary
HITACHI released their earnings report for the third quarter of FY 2023 which showed a decrease of 6.7% in total revenue compared to the previous year, but a 7.1% increase in net income. For investors, this could signal a good opportunity as the company’s net income margins demonstrate its ability to generate profits. Moreover, the decrease in revenue could also be a sign that HITACHI is cutting costs and becoming more efficient. Overall, considering the overall financials of the company, HITACHI could be a good choice from an investment point of view, especially if the revenue trend improves in future quarters.
