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Hitachi Ltd (HTHIY)
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Hitachi (HTHIY) AI Stock Analysis

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HTHIY

Hitachi

(OTC:HTHIY)

Rating:69Neutral
Price Target:
$29.00
â–²(8.25% Upside)
Hitachi's overall score is driven by strong financial performance and positive earnings call highlights, offset by bearish technical indicators and a high valuation. The company's growth in strategic sectors and robust cash flow are key strengths, while technical weakness and valuation concerns present risks.

Hitachi (HTHIY) vs. SPDR S&P 500 ETF (SPY)

Hitachi Business Overview & Revenue Model

Company DescriptionHitachi, 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, software, ATMs, and scanners for manufacturing, communication, finance, healthcare and life science, energy and transportation, and distribution industries, as well as government and urban sectors; drone platform and unmanned aerial system traffic management solutions; infrastructure information systems; and consulting and system integration services. It also operates nuclear power plants, power grides, wind turbines, and power generation systems; provides energy and equipment management services; power semiconductors; elevators, escalators and moving sidewalk, and control elevator systems; and transportation systems. In addition, the company offers medical equipment for radiation therapy, In-vitro diagnosis, and regenerative medicines; automotive systems; home appliances; and water treatment solutions for water supply and sewage infrastructure, industrial water treatment, seawater desalination, and water recycling, as well as maintenance and repair services. Further, it manufactures and sales air and centrifugal compressors, blowers, electrical machinery control systems, fans, pumps, pharmaceutical manufacturing execution systems, induction motors, industrial computers and controllers, inverters, logistics and marking systems, IGBT drives, motors, nitrogen gas generators, rope and chain hoist, PCS, UPS, switches and breakers, steel systems, and transformers. Additionally, the company offers functional components and equipment, power electronic and magnetic materials, wires, and cable and related products; optical disk drives; and property management services. Hitachi, Ltd. was founded in 1910 and is headquartered in Tokyo, Japan.
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:Jul 31, 2025
(Q1-2025)
|
% Change Since: |
Next Earnings Date:Oct 24, 2025
Earnings Call Sentiment Positive
Hitachi's earnings call presented a positive outlook with strong growth in key sectors such as Energy and Mobility, alongside record high adjusted EBITDA and free cash flow. However, challenges remain in the form of a decline in the China business and the indirect impact of U.S. tariffs on DSS overseas operations.
Q1-2025 Updates
Positive Updates
Record High Adjusted EBITDA
Adjusted EBITDA achieved a record high, with a year-on-year increase and a margin improvement of 0.4 percentage points to 10.5%.
Significant Increase in Free Cash Flow
Free cash flow increased significantly year-on-year due to advanced payments for large projects, reaching approximately JPY 350 billion.
Strong Performance in Energy and Mobility Sectors
The Energy sector saw revenues and profit growth driven by strong demand in transmission upgrades and renewable energy projects. Mobility also witnessed an increase in revenues and profits, particularly in the signaling business.
Lumada Business Expansion
Lumada business revenues increased by 54% year-on-year, with the revenue ratio on a consolidated basis reaching 41%.
Negative Updates
Decline in China Business
China business declined by 16% due to reduced demand for elevators and escalators, impacting the CI sector's overall performance.
Challenges in DSS Overseas Operations
Overseas operations in the DSS segment experienced a decline in revenue and profit due to investment restraints from customers and intensified competition in the storage business.
Indirect Impact of U.S. Tariffs
The indirect impact of U.S. tariffs resulted in investment restraints by some customers, notably affecting the DSS segment, with a total deterioration risk of JPY 30 billion in adjusted EBITDA.
Company Guidance
In the recent earnings call for Q1 FY 2025, Hitachi Limited reported a strong performance across several metrics, despite facing challenges such as exchange rate fluctuations and U.S. tariffs. The company achieved a record high in adjusted EBITDA with a margin improvement of 0.4 percentage points, reaching 10.5%. Revenues excluding foreign exchange effects grew by 5% year-on-year. Net income attributable to parent company shareholders rose to over JPY 190 billion, while core free cash flow increased significantly to approximately JPY 350 billion. Looking ahead to the full fiscal year, Hitachi anticipates a 6% increase in revenues, adjusted EBITDA, and net income, although core free cash flow is projected to decrease due to a decline in advance payments received in the previous fiscal year. The company maintains its forecast for the fiscal year, acknowledging the uncertainty in the business environment and the potential impacts of tariffs and strategic investments. The Energy sector, notably the power grid business, and Mobility, particularly the signaling business, showed significant growth, prompting an upward revision of their fiscal year forecasts. However, overseas operations in the DSS segment faced revenue and profit declines due to investment restraints and intensified competition. The company also highlighted strong demand for generative AI-related services and ongoing opportunities in the semiconductor manufacturing equipment sector. Overall, despite some challenges, Hitachi remains optimistic about its growth trajectory driven by strategic sectors and ongoing demand for digital and green solutions.

Hitachi Financial Statement Overview

Summary
Hitachi demonstrates strong financial health with consistent revenue growth, efficient operations, and a robust balance sheet. The company has a solid cash flow position, providing a buffer for investments and obligations.
Income Statement
85
Very Positive
Hitachi has demonstrated solid revenue growth over the years with a positive trajectory, notably improving its gross profit and net profit margins. The EBIT and EBITDA margins also show strong operational efficiency. The company has maintained consistent revenue growth, indicating strong market demand and operational execution.
Balance Sheet
78
Positive
Hitachi maintains a robust balance sheet with a healthy equity ratio, indicating financial stability. The debt-to-equity ratio is reasonable, suggesting manageable leverage. Overall, the company's financial position is strong, thanks to its substantial equity base, though some fluctuations in total debt levels should be monitored.
Cash Flow
82
Very Positive
The cash flow statement reveals a steady increase in operating cash flow, which indicates efficient cash management. Free cash flow has shown significant growth, improving the company's liquidity position. The ratio of operating cash flow to net income is robust, reflecting strong cash generation relative to earnings.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue9.78T9.73T10.88T10.26T8.73T
Gross Profit2.82T2.58T2.69T2.56T2.20T
EBITDA1.44T1.35T1.47T1.28T986.84B
Net Income615.72B589.90B649.12B583.47B501.61B
Balance Sheet
Total Assets13.28T12.22T12.50T13.89T11.85T
Cash, Cash Equivalents and Short-Term Investments1.18T1.04T833.28B968.83B1.02T
Total Debt1.21T1.18T2.21T3.13T2.40T
Total Liabilities7.25T6.36T7.17T8.53T7.39T
Stockholders Equity5.85T5.70T4.94T4.34T3.53T
Cash Flow
Free Cash Flow780.59B571.47B416.46B290.08B420.18B
Operating Cash Flow1.17T956.61B827.04B729.94B793.13B
Investing Cash Flow-573.65B-131.54B-123.31B-1.07T-999.44B
Financing Cash Flow-424.12B-1.02T-868.59B224.75B355.76B

Hitachi Technical Analysis

Technical Analysis Sentiment
Negative
Last Price26.79
Price Trends
50DMA
28.64
Negative
100DMA
27.44
Negative
200DMA
26.31
Negative
Market Momentum
MACD
-0.56
Positive
RSI
32.37
Neutral
STOCH
5.28
Positive
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 26.79 is below the 20-day moving average (MA) of 28.11, below the 50-day MA of 28.64, and above the 200-day MA of 26.31, indicating a bearish trend. The MACD of -0.56 indicates Positive momentum. The RSI at 32.37 is Neutral, neither overbought nor oversold. The STOCH value of 5.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HTHIY.

Hitachi Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$7.25B34.1114.51%0.70%-0.15%24.55%
74
Outperform
$139.36B24.9634.60%2.08%7.16%0.21%
69
Neutral
$122.22B28.9810.93%0.82%1.59%-8.02%
64
Neutral
$10.74B15.628.14%2.00%2.79%-14.82%
58
Neutral
$82.84B21.4696.00%1.87%-19.56%325.26%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HTHIY
Hitachi
25.84
2.56
11.00%
MMM
3M
152.00
22.43
17.31%
HON
Honeywell International
217.60
16.24
8.07%
VMI
Valmont
367.29
97.55
36.16%
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.Date of analysis: Sep 03, 2025