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Hitachi Ltd (HTHIY)
OTHER OTC:HTHIY
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Hitachi
(OTC:HTHIY)
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Rating:73Outperform
Price Target:
$31.00
â–²(17.65% Upside)
Hitachi's overall stock score reflects strong financial performance and positive earnings call highlights, tempered by technical analysis signals and valuation concerns. The company's growth in strategic sectors and robust cash flow are significant strengths, while high valuation and technical indicators suggest caution.
Hitachi (HTHIY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$120.31B
Dividend Yield0.83%
Average Volume (3M)16.03K
Price to Earnings (P/E)28.5
Beta (1Y)1.31
Revenue Growth1.59%
EPS Growth-8.02%
CountryUS
Employees268,655
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)0.28
Shares Outstanding4,581,561,000
10 Day Avg. Volume0
30 Day Avg. Volume16,029
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.13
Enterprise Value/Revenue0.01
Enterprise Value/Gross Profit0.05
Enterprise Value/Ebitda0.09
Forecast
1Y Price Target
$31.00Price Target Upside17.65% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
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, a robust balance sheet, and strong cash flows. These factors contribute to its financial stability and potential for sustainable growth.Income Statement
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.85
Very Positive
Balance Sheet
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.78
Positive
Cash Flow
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.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
Negative
26.35
Price Trends
28.18
Negative
27.87
Negative
26.43
Negative
Market Momentum
-0.39
Negative
42.05
Neutral
45.18
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 26.35 is below the 20-day moving average (MA) of 26.87, below the 50-day MA of 28.18, and below the 200-day MA of 26.43, indicating a bearish trend. The MACD of -0.39 indicates Negative momentum. The RSI at 42.05 is Neutral, neither overbought nor oversold. The STOCH value of 45.18 is Neutral, 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | 7.60B | 35.82 | 14.24% | 0.69% | -0.15% | 24.55% | |
74 Outperform | 132.18B | 23.67 | 35.52% | 2.17% | 7.16% | 0.21% | |
73 Outperform | $120.31B | 28.50 | 10.93% | 0.83% | 1.59% | -8.02% | |
58 Neutral | 81.39B | 21.25 | 91.82% | 1.89% | -19.56% | 325.26% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
Performance Comparison
HTHIY
Hitachi
26.35
-0.08
-0.30%
MMM
3M
152.81
18.78
14.01%
HON
Honeywell International
208.19
5.68
2.80%
VMI
Valmont
384.87
97.27
33.82%
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.