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Hitachi Ltd (HTHIY)
OTHER OTC:HTHIY
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Hitachi
(OTC:HTHIY)
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Rating:78Outperform
Price Target:
$39.00
▲(16.24% Upside)
Hitachi's overall stock score is driven by its strong financial performance and positive earnings call outlook. The stock's technical indicators show bullish momentum, though valuation metrics suggest it may be overvalued. Strategic advancements and growth in key sectors are significant positives, despite some challenges in specific business areas.
Hitachi (HTHIY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$155.77B
Dividend Yield0.72%
Average Volume (3M)29.95K
Price to Earnings (P/E)29.0
Beta (1Y)1.32
Revenue Growth8.28%
EPS Growth21.01%
CountryUS
Employees268,655
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)0.40
Shares Outstanding4,581,561,000
10 Day Avg. Volume30,860
30 Day Avg. Volume29,948
Financial Highlights & Ratios
PEG Ratio2.40
Price to Book (P/B)1.38
Price to Sales (P/S)0.83
P/FCF Ratio8.74
Enterprise Value/Market Cap0.87
Enterprise Value/Revenue0.01
Enterprise Value/Gross Profit0.05
Enterprise Value/Ebitda0.09
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Hitachi Business Overview & Revenue Model
Company DescriptionHitachi, Ltd. (HTHIY) is a multinational conglomerate headquartered in Tokyo, Japan, operating in various sectors including Information Technology, Social Infrastructure, High Functional Materials & Components, and Healthcare. The company is known for its wide range of products and services, including IT services, data storage solutions, industrial machinery, and advanced healthcare systems. Hitachi focuses on innovation and sustainability, leveraging technology to enhance social infrastructure and improve quality of life across the globe.
How the Company Makes MoneyHitachi generates revenue through multiple streams, primarily from its diverse business segments. The Information Technology sector contributes significantly through IT services, including system integration, cloud services, and data analytics. The Social Infrastructure segment earns revenue from projects involving transportation systems, urban development, and energy solutions. High Functional Materials & Components focuses on producing advanced materials for electronics and automotive applications, while the Healthcare division offers medical equipment and healthcare IT solutions. Additionally, strategic partnerships and collaborations with other companies enhance Hitachi's capabilities and expand its market reach, further driving revenue growth. The company also invests in research and development to innovate and maintain a competitive edge, ensuring ongoing earnings across its various sectors.
Hitachi Earnings Call Summary
Earnings Call Date:Oct 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 04, 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.Q2-2025 Updates
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.
Upward Revision in FY 2024 Forecast
Due to strong demand in the GEM sector, Hitachi has revised its revenue forecast upwards by JPY 150 billion and adjusted EBITA by JPY 19.5 billion.
Strong Order Growth in GEM
Orders in the GEM sector increased by 42% year-on-year, with significant contributions from railway BU and Hitachi Energy.
Strategic Partnerships and AI Investments
Hitachi is expanding its strategic partnerships, such as with Singtel, and investing JPY 300 billion in generative AI, focusing on infrastructure development and service engineering.
Increased Interim Dividend
Hitachi announced a 10% increase in dividends, representing a 31% year-on-year increase from the previous year's interim dividend.
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.
Challenges in Storage Business
The DSS segment's storage business experienced a decline due to intensified competition and a shift in projects, impacting profitability.
Impact of Foreign Exchange and Project Delays
Hitachi Energy's Q2 performance was affected by foreign exchange rates and project delays, resulting in fluctuations in revenue and profitability.
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
Hitachi's financial performance is robust, with strong revenue growth of 47.9% and solid profitability margins. The company demonstrates effective cost management and cash flow efficiency, supported by low leverage and a strong equity base.Income Statement
Hitachi's income statement reflects strong financial performance with a notable revenue growth rate of 47.9% in the TTM period, indicating robust expansion. The gross profit margin of 28.9% and net profit margin of 6.4% demonstrate solid profitability. EBIT and EBITDA margins are healthy at 10.3% and 14.7%, respectively, showing effective cost management. Overall, the company exhibits a strong growth trajectory and profitability.85
Very Positive
Balance Sheet
The balance sheet shows a stable financial position with a debt-to-equity ratio of 0.24 in the TTM period, indicating low leverage and financial stability. The return on equity (ROE) is 11.0%, reflecting efficient use of equity to generate profits. The equity ratio stands at 43.1%, suggesting a strong equity base relative to total assets. Overall, the balance sheet is solid with low risk and good profitability.78
Positive
Cash Flow
Cash flow analysis reveals a strong free cash flow growth rate of 30.2% in the TTM period, highlighting improved cash generation. The operating cash flow to net income ratio is 0.24, and the free cash flow to net income ratio is 0.82, indicating efficient cash conversion. The company demonstrates strong cash flow management, supporting its growth and operational needs.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2023 | Dec 2023 | Dec 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.83T | 9.78T | 9.73T | 9.73T | 9.73T | 9.73T |
| Gross Profit | 2.84T | 2.82T | 2.58T | 2.58T | 2.58T | 2.58T |
| EBITDA | 1.44T | 1.44T | 1.35T | 1.35T | 1.35T | 1.35T |
| Net Income | 632.60B | 615.72B | 589.90B | 589.90B | 589.90B | 589.90B |
Balance Sheet | ||||||
| Total Assets | 13.49T | 13.28T | 12.22T | 12.22T | 12.22T | 12.22T |
| Cash, Cash Equivalents and Short-Term Investments | 1.24T | 866.24B | 1.04T | 1.04T | 1.04T | 1.04T |
| Total Debt | 1.41T | 1.21T | 1.18T | 1.18T | 1.18T | 1.18T |
| Total Liabilities | 7.51T | 7.25T | 6.36T | 6.36T | 6.36T | 6.36T |
| Stockholders Equity | 5.82T | 5.85T | 5.70T | 5.70T | 5.70T | 5.70T |
Cash Flow | ||||||
| Free Cash Flow | 1.20T | 925.39B | 571.47B | 571.47B | 571.47B | 571.47B |
| Operating Cash Flow | 1.47T | 1.17T | 956.61B | 956.61B | 956.61B | 956.61B |
| Investing Cash Flow | -369.58B | -530.10B | -131.54B | -131.54B | -131.54B | -131.54B |
| Financing Cash Flow | -652.62B | -467.68B | -1.02T | -1.02T | -1.02T | -1.02T |
Hitachi Technical Analysis
Positive
33.55
Price Trends
28.89
Positive
28.78
Positive
27.20
Positive
Market Momentum
1.43
Negative
62.63
Neutral
71.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HTHIY, the sentiment is Positive. The current price of 33.55 is above the 20-day moving average (MA) of 31.21, above the 50-day MA of 28.89, and above the 200-day MA of 27.20, indicating a bullish trend. The MACD of 1.43 indicates Negative momentum. The RSI at 62.63 is Neutral, neither overbought nor oversold. The STOCH value of 71.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HTHIY.
Hitachi Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $125.10B | 20.76 | 35.85% | 2.07% | 7.48% | 9.55% | |
78 Outperform | $8.06B | 35.21 | 14.90% | 0.63% | 1.23% | -22.77% | |
78 Outperform | $155.77B | 29.04 | 10.93% | 0.72% | 8.28% | 21.01% | |
67 Neutral | $87.29B | 26.26 | 73.38% | 1.80% | -13.09% | -20.63% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
HTHIY
Hitachi
33.55
6.96
26.18%
MMM
3M
164.84
33.12
25.14%
HON
Honeywell International
194.07
-8.52
-4.21%
VMI
Valmont
407.78
70.11
20.76%
Hitachi Corporate Events
Hitachi Ltd’s Mixed Earnings Call: Growth Amid Challenges
Nov 8, 2025
Hitachi Ltd’s recent earnings call painted a picture of both optimism and caution. The company reported robust revenue growth and strategic advancements, particularly in the AI and energy sectors. However, challenges such as equity losses in affiliates and competitive pressures in certain business areas were also highlighted, indicating a mixed outlook for the future.
Hitachi Ltd. Reports Strong Q2 2025 Financial Results
Oct 31, 2025
Hitachi Ltd. is a diversified multinational conglomerate company headquartered in Tokyo, Japan, primarily operating in sectors such as information technology services, energy systems, and industrial systems. The company is known for its wide range of products and services, including digital solutions, energy systems, and mobility solutions.
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.