Hitachi Operating Margin vs. Price To Book

HTHIY Stock  USD 25.16  0.48  1.87%   
Considering the key profitability indicators obtained from Hitachi's historical financial statements, Hitachi Ltd ADR may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in April. Profitability indicators assess Hitachi's ability to earn profits and add value for shareholders.
For Hitachi profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Hitachi to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Hitachi Ltd ADR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Hitachi's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Hitachi Ltd ADR over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Hitachi's value and its price as these two are different measures arrived at by different means. Investors typically determine if Hitachi is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hitachi's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Hitachi Ltd ADR Price To Book vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Hitachi's current stock value. Our valuation model uses many indicators to compare Hitachi value to that of its competitors to determine the firm's financial worth.
Hitachi Ltd ADR is one of the top stocks in operating margin category among its peers. It also is one of the top stocks in price to book category among its peers fabricating about  23.91  of Price To Book per Operating Margin. Comparative valuation analysis is a catch-all model that can be used if you cannot value Hitachi by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Hitachi's Pink Sheet. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Hitachi Price To Book vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Hitachi

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.06 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.

Hitachi

P/B

 = 

MV Per Share

BV Per Share

 = 
1.37 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.

Hitachi Price To Book Comparison

Hitachi is currently under evaluation in price to book category among its peers.

Hitachi Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Hitachi, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Hitachi will eventually generate negative long term returns. The profitability progress is the general direction of Hitachi's change in net profit over the period of time. It can combine multiple indicators of Hitachi, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Hitachi, Ltd. provides information technology, energy, industry, mobility, and smart life solutions in Japan and internationally. Hitachi, Ltd. was founded in 1910 and is headquartered in Tokyo, Japan. Hitachi ADR operates under Conglomerates classification in the United States and is traded on OTC Exchange. It employs 368247 people.

Hitachi Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Hitachi. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Hitachi position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Hitachi's important profitability drivers and their relationship over time.

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Use Investing Themes to Complement your Hitachi position

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Entertainment
Entertainment Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Entertainment theme has 61 constituents at this time.
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Additional Tools for Hitachi Pink Sheet Analysis

When running Hitachi's price analysis, check to measure Hitachi's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Hitachi is operating at the current time. Most of Hitachi's value examination focuses on studying past and present price action to predict the probability of Hitachi's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Hitachi's price. Additionally, you may evaluate how the addition of Hitachi to your portfolios can decrease your overall portfolio volatility.