Hitachi Construction Machinery Co (HTCMY) AI Stock Analysis

• Market Cap: $6.40B
• Dividend Yield: 2.06%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.86
• Revenue Growth: -7.38%
• EPS Growth: -18.24%
• Country: US
• Employees: 26,230
• Sector: Industrials
• Sector Strength: 85
• Industry: Agricultural - Machinery
• EPS (TTM): 5.00
• Shares Outstanding: 107,557,500
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: -2.48
• Price to Book (P/B): 1.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -15.24
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ―

Hitachi Construction Machinery Co receives a solid score driven by strong financial performance, positive technical trends, and reasonable valuation. The company's efficient operations and improved cash flow, coupled with upward stock momentum, position it well for future growth. However, improvements in leverage and cash flow ratios could further enhance its financial health.

Hitachi Construction Machinery Co Business Overview & Revenue Model

Company Description

Hitachi Construction Machinery Co., Ltd. (HTCMY) is a multinational corporation headquartered in Japan, specializing in the manufacturing and sale of construction and mining equipment. The company operates in sectors including construction, mining, and forestry, providing a diverse range of products such as hydraulic excavators, wheel loaders, and mining dump trucks. In addition to machinery, Hitachi Construction Machinery offers complementary services like maintenance, parts supply, and fleet management solutions, catering to a global clientele.

How the Company Makes Money

Hitachi Construction Machinery Co., Ltd. generates revenue primarily through the sale of construction and mining equipment. The company's core product lines include hydraulic excavators, wheel loaders, and rigid dump trucks, which are essential for various infrastructure and resource extraction projects worldwide. Revenue is further bolstered by aftermarket services including maintenance, repair, and parts supply, ensuring continued customer engagement and loyalty. The company also benefits from strategic partnerships and collaborations that enhance its technological capabilities and market reach, contributing to a robust and diversified revenue stream.

Hitachi Construction Machinery Co Financial Statement Overview

Summary

Hitachi Construction Machinery Co demonstrates strong financial performance with robust revenue growth and efficient operations. The balance sheet is stable with moderate leverage, and cash flow has improved. However, there's room for enhancing cash flow ratios and reducing leverage to further strengthen financial health.

Income Statement

Hitachi Construction Machinery Co has shown strong revenue growth over the past year, with a 9.89% increase. The company's gross profit margin is healthy at 30.96%, and the net profit margin is solid at 6.64%. EBIT and EBITDA margins are also robust, reflecting efficient operations. However, the net profit margin, while strong, could be improved further for enhanced profitability.

Balance Sheet

The balance sheet is stable with an acceptable debt-to-equity ratio of 0.85, indicating moderate leverage. Return on equity stands at 12.22%, showing good profitability relative to shareholders' equity. The equity ratio of 41.60% suggests a balanced capital structure. However, reducing debt could further strengthen the financial position.

Cash Flow

Cash flow performance is mixed. The free cash flow grew positively from a negative to a positive figure, indicating improved cash generation. The operating cash flow to net income ratio of 0.78 signifies good conversion of income to cash. While free cash flow to net income is lower, cash flow improvement is a positive sign.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
1.41T	1.41T	1.28T	1.02T	813.33B	931.35B
	Gross Profit
439.30B	435.17B	377.95B	279.99B	193.34B	250.76B
	EBIT
163.22B	168.03B	135.70B	93.52B	32.71B	76.62B
	EBITDA
233.47B	237.03B	200.28B	159.44B	83.81B	125.44B
	Net Income Common Stockholders
86.46B	93.29B	70.17B	75.83B	10.34B	41.17B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
193.87B	177.07B	111.99B	94.26B	80.33B	62.16B
	Total Assets
1.90T	1.84T	1.66T	1.44T	1.24T	1.18T
	Total Debt
694.12B	649.82B	579.26B	414.54B	388.92B	399.73B
	Net Debt
537.94B	506.29B	467.27B	320.28B	308.59B	337.57B
	Total Liabilities
1.04T	1.02T	958.20B	769.48B	673.58B	654.47B
	Stockholders Equity
805.43B	763.38B	659.99B	611.61B	513.60B	473.54B
Cash Flow		Free Cash Flow
41.73B	17.43B	-85.28B	4.78B	58.13B	-16.67B
	Operating Cash Flow
93.85B	73.03B	-26.14B	39.32B	91.34B	22.68B
	Investing Cash Flow
-35.83B	-39.03B	-61.67B	-6.85B	-32.28B	-34.75B
	Financing Cash Flow
-21.50B	-8.92B	106.11B	-25.61B	-46.01B	10.99B

Hitachi Construction Machinery Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 60.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HTCMY, the sentiment is Positive. The current price of 60.51 is above the 20-day moving average (MA) of 60.47, above the 50-day MA of 58.38, and above the 200-day MA of 50.55, indicating a neutral trend. The MACD of 0.41 indicates Positive momentum. The RSI at 50.31 is Neutral, neither overbought nor oversold. The STOCH value of 13.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HTCMY.

Hitachi Construction Machinery Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAT	78 Outperform	$167.93B	17.40	55.67%	1.58%	-5.58%	-7.37%
OSK	77 Outperform	$7.18B	11.92	15.24%	1.83%	5.95%	-10.59%
HTCMY	75 Outperform	$6.40B	12.05	9.99%	2.06%	-7.38%	-18.24%
DE	72 Outperform	$142.03B	25.37	24.07%	1.27%	-22.26%	-37.83%
CNH	66 Neutral	$16.22B	15.62	13.26%	1.99%	-21.99%	-52.11%
Sector *	66 Neutral	$4.50B	12.26	5.40%	3.65%	4.17%	-12.02%
AGCO	55 Neutral	$7.69B	46.40	-13.60%	1.15%	-23.02%	-152.78%