Hitachi Ltd (HTHIY)
OTHER OTC:HTHIY
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Hitachi
(OTC:HTHIY)
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Rating:71Outperform
Price Target:
$32.00
â–²(3.43% Upside)
Action:ReiteratedDate:02/28/26
The score is driven primarily by strong financial performance (improving margins, low current leverage, and very strong free cash flow). This is tempered by weaker/mixed technical signals (negative MACD and below the 20-day average) and a less attractive valuation profile (higher P/E and low dividend yield).
Positive Factors
Strong free cash flow generation
Hitachi's very strong trailing‑12‑month free cash flow (≈¥1.41T) and high conversion versus net income provide durable internal funding for capital spending, maintenance of service contracts, debt reduction, and strategic reinvestment. Robust FCF underpins balance sheet flexibility and reduces reliance on external financing over the medium term.
Negative Factors
Uneven and modest revenue growth
Top‑line growth has lacked consistency, with strong periods followed by softer years and low‑single‑digit trailing growth. Persistent modest revenue expansion constrains scalability of improved margins and limits long‑term profit compounding, increasing reliance on margin gains and cost control to sustain EPS growth.
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Positive Factors
Negative Factors
Strong free cash flow generation
Hitachi's very strong trailing‑12‑month free cash flow (≈¥1.41T) and high conversion versus net income provide durable internal funding for capital spending, maintenance of service contracts, debt reduction, and strategic reinvestment. Robust FCF underpins balance sheet flexibility and reduces reliance on external financing over the medium term.
Read all positive factors
Hitachi (HTHIY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$136.28B
Dividend Yield0.77%
Average Volume (3M)115.32K
Price to Earnings (P/E)32.7
Beta (1Y)1.28
Revenue Growth8.28%
EPS Growth21.01%
CountryUS
Employees268,655
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)0.24
Shares Outstanding4,535,561,000
10 Day Avg. Volume170,871
30 Day Avg. Volume115,316
Financial Highlights & Ratios
PEG Ratio4.80
Price to Book (P/B)2.77
Price to Sales (P/S)1.65
P/FCF Ratio17.48
Enterprise Value/Market Cap158.73
Enterprise Value/Revenue2.66
Enterprise Value/Gross Profit8.93
Enterprise Value/Ebitda15.69
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.36
Revenue Forecast (FY)$72.93B
Hitachi Business Overview & Revenue Model
Company Description
Hitachi, Ltd. provides information technology, energy, industry, mobility, and smart life solutions in Japan and internationally. The company offers information and telecommunication services, such as internet of things, storage systems, servers, ...
How the Company Makes Money
Hitachi makes money primarily by selling a mix of (1) project-based systems and equipment and (2) ongoing services tied to those systems. Key revenue streams typically include: (a) Digital and IT/OT solutions: fees from consulting, systems integra...
Hitachi Earnings Call Summary
Earnings Call Date:Oct 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with strong revenue growth and strategic advancements in AI and energy sectors, but challenges remain in the form of equity losses in affiliates and competitive pressures in specific business areas.Positive Updates
Revenue and Profit Growth
Hitachi achieved an 11% year-on-year increase in revenue and a 23% increase in adjusted EBITA in Q2 FY 2024, driven by strong performance in DSS and GEM sectors.
Negative Updates
Equity Loss in Hitachi Astemo
Hitachi reported a decline in consolidated EBITA by JPY 22.1 billion year-on-year due to deterioration in equity in profit of affiliates, particularly Hitachi Astemo.
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Q2-2025 Updates
Positive
Negative
Revenue and Profit Growth
Hitachi achieved an 11% year-on-year increase in revenue and a 23% increase in adjusted EBITA in Q2 FY 2024, driven by strong performance in DSS and GEM sectors.
Read all positive updates
Company Guidance
The guidance provided during Hitachi Limited's Q2 FY 2024 web conference highlighted several key financial metrics. The company reported an 11% year-on-year increase in revenues, driven primarily by growth in the GEM (Green Energy and Mobility) and DSS (Digital Systems and Services) sectors. Adjusted EBITA rose by 23% year-on-year, with the adjusted EBITA margin improving by 1 percentage point to 10.7%. Net income attributable to Hitachi was reported at JPY 116.9 billion. Despite an increase in adjusted EBITA for the three sectors, consolidated EBITA decreased by JPY 22.1 billion due to a deterioration in equity profit from affiliates, notably Hitachi Astemo. Core free cash flow increased to JPY 97.6 billion. The fiscal year 2024 outlook was optimistic, with a revised revenue forecast up by JPY 150 billion and adjusted EBITA up by JPY 19.5 billion. Core free cash flow is expected to reach JPY 1.5 trillion, exceeding the medium-term target by JPY 300 billion. The company is also anticipating a 7% year-on-year increase in revenues and a 23% year-on-year rise in adjusted EBITA for FY 2024, with the adjusted EBITA margin projected to improve by 1.5 percentage points to 11.5%.Hitachi Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
85
Very Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.12T | 9.78T | 9.73T | 10.88T | 10.26T | 8.73T |
| Gross Profit | 2.42T | 2.82T | 2.58T | 2.69T | 2.56T | 2.20T |
| EBITDA | 1.38T | 1.44T | 1.35T | 1.34T | 1.37T | 1.32T |
| Net Income | 640.51B | 615.72B | 589.90B | 649.12B | 583.47B | 501.61B |
Balance Sheet | ||||||
| Total Assets | 14.69T | 13.28T | 12.22T | 12.50T | 13.89T | 11.85T |
| Cash, Cash Equivalents and Short-Term Investments | 1.13T | 866.24B | 1.04T | 1.18T | 1.35T | 1.34T |
| Total Debt | 1.06T | 1.21T | 1.18T | 2.21T | 3.13T | 2.40T |
| Total Liabilities | 8.14T | 7.25T | 6.36T | 7.17T | 8.53T | 7.39T |
| Stockholders Equity | 6.36T | 5.85T | 5.70T | 4.94T | 4.34T | 3.53T |
Cash Flow | ||||||
| Free Cash Flow | 1.41T | 925.39B | 571.47B | 416.46B | 290.08B | 420.18B |
| Operating Cash Flow | 1.74T | 1.17T | 956.61B | 827.04B | 729.94B | 793.13B |
| Investing Cash Flow | -293.02B | -530.10B | -131.54B | 151.06B | -1.05T | -458.84B |
| Financing Cash Flow | -1.39T | -467.68B | -1.02T | -1.14T | 202.74B | -184.84B |
Hitachi Technical Analysis
Negative
30.94
Price Trends
31.96
Negative
32.01
Negative
30.37
Negative
Market Momentum
-0.74
Positive
43.06
Neutral
39.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HTHIY, the sentiment is Negative. The current price of 30.94 is above the 20-day moving average (MA) of 30.10, below the 50-day MA of 31.96, and above the 200-day MA of 30.37, indicating a bearish trend. The MACD of -0.74 indicates Positive momentum. The RSI at 43.06 is Neutral, neither overbought nor oversold. The STOCH value of 39.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HTHIY.
Hitachi Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $7.87B | 23.29 | 20.28% | 0.63% | 1.23% | -22.77% | |
71 Outperform | $136.28B | 32.67 | 13.65% | 0.77% | 8.28% | 21.01% | |
69 Neutral | $145.86B | 24.26 | 31.25% | 2.24% | 7.48% | 9.55% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
55 Neutral | $76.09B | 26.32 | 71.89% | 1.82% | -13.09% | -20.63% |
* Industrials Sector Average
HTHIY
Hitachi
29.34
11.08
60.72%
MMM
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144.47
18.25
14.46%
HON
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229.45
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32.70%
VMI
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402.90
141.00
53.84%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.