ShareHitachi Capital (LSE: HCU)Websitehitachicapital.co.ukPrice256pMarket cap£109mDirectors own<1%Other majors65%Eps y/e 31/03/0626.4pHistorical P/E9.7Div y/e 31/03/0611pHistorical yield4.3%Tangible book 30/09/06138pP/TBV1.9Eps forecast 31/03/0727.6pEps forecast 31/03/0829.5pForward P/E 31/03/079.3Div forecast 31/03/0712pDiv forecast 31/03/0813pForward yield 31/03/074.7% Hitachi is a finance company, lending money for business and consumer purchases. It is not a pyad play for two reasons. Firstly, it trades well over book with a P/TBV of 1.9 and secondly, it does not have net cash. Companies involved in money lending rarely have net cash because they normally finance the majority of their lending via debt. The effect is that gearing is enormous and way above any kind of usual value criterion.
Tag: Debt
Motley Fool: Doing The Splits
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Around two years ago private equity companies spent around £100b buying up assets around the world. But today, it is estimated that over two thousand private equity companies have raised around £300b to fund their continuing spending spree. What’s more, since private equity firms like to supplement every pound of investor money with another £4 of debt, they may have over a trillion pounds waiting to unleash on global markets.
Scotsman: Scottish Bankruptcies Hit Record
BRITAIN’S debt crisis was laid bare yesterday as figures showed bankruptcies have rocketed to record levels.
Scotsman: Problem Is Growing As Debt Loses Its Stigma
THE quarterly figures for 2006 were already alarming, but these latest statistics for the third quarter show Scots are continuing to suffer under an enormous debt burden.
Motley Fool: Debt: The English Disease!
Sadly, figures out today from the Insolvency Service show that individuals in England and Wales are going bust in record numbers as “easy credit” turns into “tough debt”!
This Is Money: Debt Doomsday ‘is Coming’
Britain faces a debt doomsday where the number of adults struggling with their finances outnumbers those who can cope
This Is Money: Insolvencies To Hit New Record
Official figures to be published today are expected to show a record number of people became insolvent over the summer
This Is Money: Debt Firm Reports IVA Surge
Debt Free Direct reaped the benefit of the UK’s borrowing binge today as it said the number of people it offered rescue packages to doubled