Is Hoshizaki (TSE:6465) Still Undervalued After Earnings, Guidance And Its Stock Split Plan?

Hoshizaki (TSE:6465) has drawn fresh attention after reporting half year results, raising its second quarter end dividend, approving a future stock split and issuing full year earnings guidance in early August 2026.

See our latest analysis for Hoshizaki.

The recent half year earnings, dividend increase and planned stock split appear to have supported sentiment, with Hoshizaki’s share price returning 9.0% over the past 30 days and 12.65% over 90 days, while the 1 year total shareholder return is slightly negative and the 5 year total shareholder return is positive. This suggests near term momentum has picked up against a steadier long term picture.

If these moves have you thinking about where else capital equipment demand and automation could matter, it may be a good moment to scan 37 robotics and automation stocks

The recent move in Hoshizaki has rewarded investors who were already on board. The question now is whether the current price still leaves meaningful upside on the table or if most of that gain is already in the rearview mirror as valuation is tested next.

Price-to-Earnings of 20.8x: Is it justified?

Based on current data, Hoshizaki trades on a P/E of 20.8x, while also sitting 22.5% below the SWS DCF fair value estimate of ¥7,472.92, against a last close of ¥5,788.

The P/E ratio compares the share price to earnings per share. For a capital equipment company like Hoshizaki, it is often used as a shorthand for how much investors are willing to pay for each unit of current earnings, given expectations for future profit growth and business resilience.

Here the picture is mixed. On one hand, the SWS DCF model suggests the current price is below the estimated value of future cash flows. On the other hand, earnings over the past year declined 2.8% and the return on equity is 9.3%, which is flagged as low compared to a 20% benchmark. Forecasts point to earnings growth of about 9.9% per year, which is ahead of the broader JP market forecast of 8.9% per year, but revenue growth at 5.4% per year is expected to trail the JP market at 6.1% per year.

Relative comparisons sharpen the contrast. Hoshizaki’s P/E of 20.8x is described as expensive against the JP Machinery industry average of 13.4x, suggesting investors are paying a clear premium to the sector. At the same time, that same 20.8x is framed as good value compared with a peer group average P/E of 26.1x, which implies the market is assigning Hoshizaki a lower multiple than some closer comparables while still above the broader industry level.

Explore the SWS fair ratio for Hoshizaki

Result: Price-to-Earnings of 20.8x (ABOUT RIGHT)

However, investors still face risks if earnings growth underwhelms expectations or if Hoshizaki’s premium P/E multiple compresses toward the broader JP Machinery industry level.

Find out about the key risks to this Hoshizaki narrative.

Another view on Hoshizaki’s value

While the P/E ratio for Hoshizaki looks slightly rich against its fair ratio of 18.4x, the SWS DCF model points in a different direction. On this view, the current price of ¥5,788 sits below the estimated future cash flow value of ¥7,472.92, which frames today’s premium multiple as a possible opportunity instead of a clear warning sign.

Investors now have two lenses that do not quite agree, so the key question is which one better reflects how Hoshizaki’s cash generation will evolve over time.

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Hoshizaki for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 26 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

With all this in mind on Hoshizaki, are you leaning optimistic or cautious right now? For more detail on the potential upside, see our 3 key rewards

Looking for more investment ideas beyond Hoshizaki?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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