Hitachi Construction Machinery Co (HTCMY) AI Stock Analysis

• Market Cap: $6.94B
• Dividend Yield: 3.7%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.92
• Revenue Growth: -2.13%
• EPS Growth: 30.47%
• Country: US
• Employees: 26,230
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 1.13
• Shares Outstanding: 107,557,500
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: -0.82
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.62
• P/FCF Ratio: 8.63
• Enterprise Value/Market Cap: 230.94
• Enterprise Value/Revenue: 1.17
• Enterprise Value/Gross Profit: 3.83
• Enterprise Value/Ebitda: 6.88
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: $70.00 ▲(17.37% Upside)

The overall stock score for Hitachi Construction Machinery Co is driven primarily by its mixed financial performance and attractive valuation. While the company shows strong profitability margins and a stable financial structure, challenges in revenue growth and cash flow generation pose risks. The technical analysis indicates a neutral to slightly bearish trend, which tempers the overall score.

Positive Factors

Strong profit margins

Sustained gross and operating margins indicate structural operational efficiency and pricing power in core machinery products. These margins provide a durable buffer against cyclical revenue swings, supporting reinvestment in R&D and after-sales capabilities that preserve long-term competitiveness.

Stable balance sheet

Moderate leverage and a near-47% equity ratio reflect a balanced capital structure that limits refinancing risk and preserves financial flexibility. Reasonable ROE shows capital is being deployed effectively, enabling steady investment in product development and service networks over the medium term.

Recurring after-sales & tech focus

A mix of equipment sales plus recurring after-sales services, leasing and IoT/automation improves revenue durability and customer stickiness. Recurring service revenue typically has higher margin and predictability, strengthening cash conversion and long-term customer relationships.

Negative Factors

Sharp revenue decline

A sustained ~25% revenue contraction materially reduces scale economies and pressures fixed-cost absorption. If the decline persists, it can erode gross profit dollars, constrain R&D and dealer investments, and weaken long-term market presence despite healthy margins.

Weak cash flow generation

A steep drop in FCF growth and low operating cash to net income signal weaker cash conversion and limited internal funding for capex or debt repayment. This reduces financial flexibility for sustaining product development, dealer financing, or weathering prolonged industry downturns.

Cyclical end-market exposure

Concentration in construction and mining exposes revenues to macro cycles and commodity-driven investment swings. Such structural cyclicality can cause volatile equipment demand and utilization, complicating capacity planning and revenue visibility over multiple quarters.

Hitachi Construction Machinery Co Business Overview & Revenue Model

Company Description

Hitachi Construction Machinery Co., Ltd. (HTCMY) is a leading global manufacturer of construction machinery, specializing in the production of hydraulic excavators, wheel loaders, and other heavy equipment for the construction, mining, and forestry industries. The company operates in various sectors, including construction machinery, mining equipment, and landfill compactors, and is recognized for its commitment to innovation and sustainability in machinery design and technology.

How the Company Makes Money

Hitachi Construction Machinery generates revenue primarily through the sale of its construction and mining equipment, which includes hydraulic excavators, dump trucks, and wheel loaders. The company also earns significant income from providing after-sales services, such as maintenance, spare parts, and equipment leasing. Additionally, HTCMY benefits from strategic partnerships and joint ventures with other companies in the construction sector, allowing for expanded market reach and enhanced product offerings. The company's focus on technological advancements, such as the integration of IoT and automation in its machinery, further drives sales and customer retention, contributing to its overall earnings.

Hitachi Construction Machinery Co Financial Statement Overview

Summary

Hitachi Construction Machinery Co exhibits a mixed financial performance. Strong profitability margins are present despite a notable revenue decline. The balance sheet reflects stability with moderate leverage and decent returns on equity. However, challenges in cash flow with declining free cash flow growth could impact future financial flexibility.

Income Statement

Hitachi Construction Machinery Co's income statement shows a mixed performance. The TTM data indicates a significant revenue decline of 24.84%, which is concerning. However, the company maintains a healthy gross profit margin of 30.61% and a net profit margin of 6.43%, suggesting operational efficiency. The EBIT and EBITDA margins are also strong at 11.62% and 17.17%, respectively, indicating good profitability. Despite the revenue drop, the company's margins remain robust, which is a positive sign.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.71, indicating moderate leverage. The return on equity (ROE) is 10.77%, showing decent profitability relative to shareholder equity. The equity ratio stands at 46.89%, suggesting a solid equity base. Overall, the balance sheet demonstrates a balanced approach to debt and equity, with a focus on maintaining financial stability.

Cash Flow

The cash flow statement reveals challenges, with a significant decline in free cash flow growth of 38.62% in the TTM period. The operating cash flow to net income ratio is 0.25, indicating that cash generation from operations is lower relative to net income. The free cash flow to net income ratio is 0.76, showing that a substantial portion of net income is converted into free cash flow. While cash flow conversion is reasonable, the decline in free cash flow growth is a concern.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.37T	1.37T	1.41T	1.28T	1.02T	813.33B
Gross Profit	418.02B	428.64B	435.17B	377.95B	279.99B	193.34B
EBITDA	233.00B	238.01B	237.03B	200.28B	159.44B	83.81B
Net Income	87.89B	81.43B	93.29B	70.17B	75.83B	10.34B
Balance Sheet
Total Assets	1.78T	1.79T	1.84T	1.66T	1.44T	1.24T
Cash, Cash Equivalents and Short-Term Investments	158.67B	178.46B	177.07B	141.85B	119.52B	96.50B
Total Debt	591.26B	610.42B	649.82B	579.26B	414.54B	396.62B
Total Liabilities	898.13B	933.05B	1.02T	958.20B	769.48B	673.58B
Stockholders Equity	834.24B	809.34B	763.38B	659.99B	611.61B	513.60B
Cash Flow
Free Cash Flow	112.26B	98.86B	17.43B	-85.28B	4.78B	58.13B
Operating Cash Flow	147.55B	143.93B	73.03B	-26.14B	39.32B	91.34B
Investing Cash Flow	-49.10B	-52.83B	-39.03B	-61.67B	-6.85B	-32.28B
Financing Cash Flow	-117.02B	-85.37B	-8.92B	106.11B	-25.61B	-46.01B

Hitachi Construction Machinery Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 59.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 59.64 is below the 20-day moving average (MA) of 64.71, below the 50-day MA of 61.14, and below the 200-day MA of 61.32, indicating a bullish trend. The MACD of 1.52 indicates Positive momentum. The RSI at 56.14 is Neutral, neither overbought nor oversold. The STOCH value of 40.22 is Neutral, 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	75 Outperform	$307.63B	34.95	43.54%	0.98%	-1.51%	-9.69%
OSK	74 Outperform	$9.10B	14.35	14.90%	1.56%	-2.28%	-0.53%
TEX	70 Outperform	$3.74B	24.17	7.85%	1.24%	4.60%	-65.73%
DE	66 Neutral	$143.13B	28.54	20.61%	1.34%	-11.66%	-27.80%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HTCMY	63 Neutral	$6.94B	13.78	8.52%	3.70%	-2.13%	30.47%
CNH	55 Neutral	$13.41B	22.56	7.77%	2.67%	-18.10%	-65.24%