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Hitachi
(OTC:HTHIY)
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Rating:74Outperform
Price Target:
$37.00
â–²(24.92% Upside)
Action:Reiterated
Date:07/31/26
The score is driven primarily by strong financial performance (rapid TTM growth, improving margins, low current leverage, and robust free cash flow) and a constructive earnings update with raised FY2026 guidance and continued buybacks. The main offsets are a less attractive valuation (higher P/E and low yield) and only moderate technical confirmation due to missing momentum indicators.
Positive Factors
Revenue & margin expansion
Sustained double-digit TTM revenue growth with materially higher gross and operating margins indicates structural improvement in mix and execution. Durable margin expansion implies pricing power and operational leverage, supporting persistent earnings strength over the next several quarters.
Negative Factors
Growth aided by FX and one-offs
Management acknowledged a sizable element of recent headline growth was FX and one-off projects. If currency tailwinds normalize or one-off work doesn't recur, organic growth could slow materially, making near-term upgrades less durable and increasing guidance sensitivity to FX.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & margin expansion
Sustained double-digit TTM revenue growth with materially higher gross and operating margins indicates structural improvement in mix and execution. Durable margin expansion implies pricing power and operational leverage, supporting persistent earnings strength over the next several quarters.
Read all positive factors
Hitachi (HTHIY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$163.70B
Dividend Yield0.88%
Average Volume (3M)178.38K
Price to Earnings (P/E)32.6
Beta (1Y)1.34
Revenue Growth8.85%
EPS Growth24.79%
CountryUS
Employees287,901
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)180.73
Shares Outstanding4,535,561,000
10 Day Avg. Volume231,162
30 Day Avg. Volume178,377
Financial Highlights & Ratios
PEG Ratio0.62
Price to Book (P/B)3.18
Price to Sales (P/S)1.87
P/FCF Ratio15.03
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.3
Revenue Forecast (FY)$72.03B
Hitachi Business Overview & Revenue Model
Company Description
Established in Tokyo, Japan, in 1910, Hitachi, Ltd. operates as a diversified global enterprise, delivering a comprehensive array of advanced solutions across information technology, energy, industry, mobility, and smart life sectors to clients bo...
How the Company Makes Money
Hitachi makes money primarily by selling a mix of (1) project-based systems and equipment and (2) recurring services tied to the operation, maintenance, and digital management of those systems.
Key revenue streams typically include:
- Systems, eq...
Hitachi Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Oct 23, 2026
Earnings Call Sentiment Positive
The earnings call conveyed a predominantly positive operating performance: broad-based, double-digit segment revenue growth in Q1, record first-quarter revenue and adjusted EBITA, raised full-year guidance, stronger cash flow, large order backlog and active share buybacks. Key negatives include ongoing geopolitical risk in the Middle East, some supply-chain/cost pressures on large projects, dependence of part of Q1 growth on foreign-exchange and one-off factors, and near-term challenges in parts of the digital engineering business. Overall the company appears to be in growth mode with strengthened guidance and capital allocation but faces execution and macro/geopolitical risks that management is actively monitoring.Positive Updates
Strong Q1 Revenue Growth
Consolidated Q1 revenue increased 20% year-on-year (20% YoY), driven by business expansion and favorable foreign exchange; excluding special factors (FX, one-offs) revenue rose 10% YoY.
Negative Updates
Geopolitical Risk — Middle East
Developments in the Middle East remain a significant source of potential volatility; though Q1 impact was smaller than initially expected, management has factored risks from Q2 onward and cautioned uncertainty could affect results.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Q1 Revenue Growth
Consolidated Q1 revenue increased 20% year-on-year (20% YoY), driven by business expansion and favorable foreign exchange; excluding special factors (FX, one-offs) revenue rose 10% YoY.
Read all positive updates
Company Guidance
Hitachi raised FY2026 guidance after a strong Q1: Q1 revenue +20% YoY (+10% excl. special factors), adjusted EBITDA margin up 110 bps to 11.9%, and core free cash flow rose by over JPY 200bn YoY excluding large advance payments. For FY2026 management now expects revenue +9% YoY (≈+11% including FX and business reorganizations), adjusted EBITDA margin ≈13% (≈+100 bps YoY), and upgraded segment targets—DSS +JPY30bn revenue/+JPY8bn adj. EBITDA; Energy +JPY360bn/+JPY76bn (Energy margin to 14.2%, +130 bps); Mobility +JPY100bn/+JPY9bn (margin +120 bps); CI +JPY100bn/+JPY14bn. Lumada is targeted at ~JPY5.0tn (22% YoY, ~44% of consolidated revenue) with adjusted EBITDA up ~17%; HMAX FY target JPY505bn (Q1 JPY110bn, 22% progress). Orders in Q1: DSS +7%, Mobility +25%, CI +25%, backlog >JPY10tn. Management plans to increase CapEx by >JPY170bn YoY, expand strategic AI investment and hiring, executed JPY150bn share buybacks in Q1 (27% of plan) with ~JPY400bn unexecuted, revised FX assumptions to JPY160/USD and JPY185/EUR, and raised forecasts for adjusted EBITDA, net income, core free cash flow and ROIC.Hitachi Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
80
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.22T | 11.23T | 9.78T | 9.73T | 10.88T | 10.26T |
| Gross Profit | 3.38T | 3.37T | 2.82T | 2.58T | 2.69T | 2.56T |
| EBITDA | 1.93T | 1.27T | 1.44T | 1.35T | 1.34T | 1.37T |
| Net Income | 813.00B | 850.76B | 615.72B | 589.90B | 649.12B | 583.47B |
Balance Sheet | ||||||
| Total Assets | 14.94T | 15.11T | 13.28T | 12.22T | 12.50T | 13.89T |
| Cash, Cash Equivalents and Short-Term Investments | 1.49T | 1.33T | 866.24B | 1.04T | 1.18T | 1.35T |
| Total Debt | 1.05T | 1.01T | 1.21T | 1.18T | 2.21T | 3.13T |
| Total Liabilities | 8.22T | 8.30T | 7.25T | 6.36T | 7.17T | 8.53T |
| Stockholders Equity | 6.53T | 6.60T | 5.85T | 5.70T | 4.94T | 4.34T |
Cash Flow | ||||||
| Free Cash Flow | 1.35T | 1.40T | 925.39B | 571.47B | 416.46B | 290.08B |
| Operating Cash Flow | 1.75T | 1.77T | 1.17T | 956.61B | 827.04B | 729.94B |
| Investing Cash Flow | -318.63B | -362.98B | -530.10B | -131.54B | 151.06B | -1.05T |
| Financing Cash Flow | -1.30T | -1.03T | -467.68B | -1.02T | -1.14T | 202.74B |
Hitachi Technical Analysis
Positive
29.62
Price Trends
30.81
Positive
30.94
Positive
31.62
Positive
Market Momentum
1.65
Negative
78.74
Negative
99.91
Negative
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 29.62 is below the 20-day moving average (MA) of 32.78, below the 50-day MA of 30.81, and below the 200-day MA of 31.62, indicating a bullish trend. The MACD of 1.65 indicates Negative momentum. The RSI at 78.74 is Negative, neither overbought nor oversold. The STOCH value of 99.91 is Negative, 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $163.70B | 32.58 | 12.48% | 1.08% | 8.85% | 24.79% | |
74 Outperform | $74.15B | 9.08 | 41.71% | 4.05% | -2.41% | 53.63% | |
67 Neutral | $94.20B | 32.27 | 77.12% | 1.75% | 2.35% | -21.55% | |
67 Neutral | $9.56B | 19.54 | 29.84% | 0.60% | 3.80% | 138.85% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
HTHIY
Hitachi
36.26
7.42
25.73%
MMM
3M
182.65
32.60
21.72%
HON
Honeywell International
233.96
24.35
11.62%
VMI
Valmont
495.25
122.14
32.73%
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.