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Harmonic Drive Systems Inc 6324

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Stock XTKS Rating as of
JPY 4,495.00 −175.00 (3.75%)
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As of Delayed Price Closed
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Company Report

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Wide-Moat Harmonic Drive Systems Strongly Positioned for Secular Growth in the Robotics Space

Jason Kondo

Harmonic Drive Systems has been able to capitalize on demand growth with industrial robots and semiconductor production equipment, by having its compact strain wave reduction gears (also known as speed reducers) serve as critical components of both. The company seeks to continue refining its product quality toward existing applications as well as to find new applications that can serve as new long-term growth drivers. We think small industrial robots and semiconductor equipment will continue to serve as key target markets.

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Price vs Fair Value

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6324 is trading within a range we consider fairly valued.
Price
JPY 4,495.00
Fair Value
JPY 6,366.00
Uncertainty
High
1-Star Price
JPY 5,924.00
5-Star Price
JPY 4,571.00
Economic Moat
Zbst
Capital Allocation
Bxlrmjrb

Bulls Say, Bears Say

Bulls

Dominant market share in the high-end strain wave reduction gear market positions HDS to capitalize on a major growth in the humanoid robot market over next five years

Bears

Higher fixed costs from recent capacity expansion and end-exposure to the electronics industry will prevent long-term margin expansion.

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Trading Information

Previous Close Price
JPY 4,670.00
Day Range
JPY 4,480.00–4,660.00
52-Week Range
JPY 3,115.00–4,775.00
Bid/Ask
JPY 4,490.00 / JPY 4,510.00
Market Cap
JPY 426.92 Bil
Volume/Avg
415,500 / 423,444

Key Statistics

Price/Earnings (Normalized)
223.34
Price/Sales
7.67
Dividend Yield (Trailing)
0.44%
Dividend Yield (Forward)
0.44%
Total Yield
0.54%

Company Profile

Harmonic Drive Systems manufactures and sells high-precision reduction gears (speed reducers) under the Harmonic Drive brand as well as other mechatronics products such as rotary actuators, linear actuators, and AC servo motors. The company also provides planetary-gear speed reducers under the AccuDrive and Harmonic Planetary brands. Its products are used in industrial robots, semiconductor production equipment, and other high-precision equipment. HDS was founded in 1970 and is headquartered in Tokyo.
Sector
Industrials
Industry
Specialty Industrial Machinery
Stock Style Box
Mid Growth
Total Number of Employees
1,719
Website
http://www.hds.co.jp

Competitors

Valuation

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Metric
6324
6861
6954
Price/Earnings (Normalized)
 223.3447.7431.95
Price/Book Value
 5.386.282.50
Price/Sales
 7.6718.235.41
Price/Cash Flow
 62.2346.8826.40
Price/Earnings
6324
6861
6954

Financial Strength

Metric
6324
6861
6954
Quick Ratio
 2.749.914.43
Current Ratio
 4.0510.546.86
Interest Coverage
 −155.45——
Quick Ratio
6324
6861
6954

Profitability

Metric
6324
6861
6954
Return on Assets (Normalized)
 0.39%18.69%9.61%
Return on Equity (Normalized)
 0.57%19.68%10.99%
Return on Invested Capital (Normalized)
 0.32%19.54%10.61%
Return on Assets
6324
6861
6954
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