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Hitachi Ltd (HTHIY)
OTHER OTC:HTHIY
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Hitachi
(OTC:HTHIY)
Rating:77Outperform
Price Target:―
Hitachi (HTHIY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$135.18B
Dividend Yield0.73%
Average Volume (3M)20.37K
Price to Earnings (P/E)33.6
Beta (1Y)1.26
Revenue Growth-4.62%
EPS Growth0.64%
CountryUS
Employees268,655
SectorIndustrials
Sector Strength87
IndustryConglomerates
Share Statistics
EPS (TTM)0.28
Shares Outstanding4,581,561,000
10 Day Avg. Volume24,970
30 Day Avg. Volume20,371
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)0.14
Price to Sales (P/S)0.00
P/FCF Ratio1.66
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering0
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 a diverse range of business units, with its IT services and solutions being a significant contributor. The company provides digital transformation services, cloud solutions, and IT consulting to various industries. Additionally, its Energy segment contributes through the sale of power generation systems, including nuclear and renewable energy solutions. In the Industry sector, Hitachi offers industrial equipment and solutions for sectors such as manufacturing, logistics, and construction. Mobility solutions, including railway and automotive systems, are also key revenue streams. Hitachi's strategic partnerships and collaborations in technology, infrastructure, and digital solutions further enhance its revenue potential, allowing it to capitalize on emerging technological trends and global market demands.
Hitachi Earnings Call Summary
Earnings Call Date:Apr 28, 2025
(Q4-2024)
| % Change Since: 13.62%|
Next Earnings Date:Jul 25, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced outlook with strong financial performance and strategic growth plans through Inspire 2027, but also highlighted significant challenges such as profitability gaps, the impact of U.S. tariffs, and a decline in the Chinese market.Q4-2024 Updates
Positive Updates
Inspire 2027 Management Plan
Hitachi announced the Inspire 2027 management plan, focusing on cash flow strengthening, capital allocation, and portfolio transformation. Targets include Lumada business representing 80% of revenues and an EBITA margin over 20%.
Record Financial Performance
FY 2024 achieved record-high KPIs, with a revenue increase of 14% year-on-year and adjusted EBITA exceeding JPY 1.1 trillion, marking an improvement to an 11.7% margin.
Lumada Business Growth
Lumada revenues are expected to grow by 30% from FY 2024 to 2025, with a 1 percentage point increase in EBITA margin. Long-term goals aim for a Lumada revenue ratio of over 50% and EBITA margin over 18%.
Dividend and Share Buyback
A dividend increase and a JPY 300 billion share buyback were announced, reflecting a commitment to shareholder returns.
Strong Demand in Energy and Digital Systems
Continued strong demand in renewable energy projects and digital system services, with projected growth in these sectors despite global uncertainties.
Negative Updates
Challenges in Profitability and Capital Efficiency
Hitachi faces gaps in profitability and capital efficiency compared to global peers, with investments not executed as planned in the 2024 MMP.
Impact of U.S. Tariffs
The U.S. tariffs pose a risk, with an estimated direct impact of JPY 350 billion in the current period, requiring supply chain restructuring and cost adjustments.
Decline in Chinese Market
A projected 2% decrease in overall revenue for Connective Industries due to a decline in the Chinese real estate market, impacting building systems.
Company Guidance
During the call, Hitachi outlined its new management plan, Inspire 2027, focusing on key financial metrics and growth strategies. The plan aims to achieve a Lumada business revenue ratio of over 50% and an adjusted EBITA margin of over 18% by 2027, with a long-term goal of Lumada representing 80% of total revenues and achieving an EBITA margin of over 20%. The company targets revenue growth of 7% to 9% and an adjusted EBITA margin of 13% to 15%, while maintaining a cash flow conversion rate of over 90% and aiming for a ROIC between 12% and 13%. Strategic investments, particularly in the Lumada business and digital transformation, are emphasized to drive growth, alongside initiatives to enhance cash flow and optimize capital allocation. The company also plans a share buyback totaling JPY300 billion, indicating a commitment to return value to shareholders.Hitachi Financial Statement Overview
Summary
Hitachi demonstrates strong profitability with healthy margins and improved cash flow, despite a slight revenue decline. The low leverage and solid equity position provide stability, though attention to asset management is necessary.Income Statement
Hitachi's income statement shows a strong gross profit margin of 28.62% and a net profit margin of 6.04% for TTM, indicating solid profitability in its operations. The EBIT margin of 9.29% and EBITDA margin of 13.81% further demonstrate efficient cost management. However, the company faced a slight decline in revenue growth, with a -2.13% change from the previous annual period, suggesting potential challenges in revenue expansion.78
Positive
Balance Sheet
The balance sheet reveals a moderate debt-to-equity ratio of 0.31, indicating a relatively low leverage and a strong equity base. The return on equity (ROE) stands at 9.84% for TTM, reflecting decent returns to shareholders. With an equity ratio of 42.80%, Hitachi maintains a healthy balance between debt and equity, suggesting financial stability. However, the declining total assets in recent periods may pose a risk if it impacts operational capacity.75
Positive
Cash Flow
The cash flow statement highlights robust cash generation, with a significant operating cash flow to net income ratio of 1.79 for TTM, indicating strong cash earnings relative to accounting profits. The free cash flow to net income ratio of 1.35 showcases effective conversion of profits into cash. Additionally, free cash flow growth rate improved substantially by 36.22% over the previous year, demonstrating enhanced cash flow management.82
Very Positive
| Breakdown | TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.52T | 9.73T | 10.88T | 10.26T | 8.73T | 8.77T |
| Gross Profit | 2.72T | 2.58T | 2.69T | 2.56T | 2.20T | 2.37T |
| EBITDA | 1.31T | 1.35T | 1.47T | 1.28T | 986.84B | 1.10T |
| Net Income | 575.59B | 589.90B | 649.12B | 583.47B | 501.61B | 87.60B |
Balance Sheet | ||||||
| Total Assets | 13.67T | 12.22T | 12.50T | 13.89T | 11.85T | 9.93T |
| Cash, Cash Equivalents and Short-Term Investments | 1.33T | 1.04T | 833.28B | 968.83B | 1.02T | 812.33B |
| Total Debt | 1.79T | 1.18T | 2.21T | 3.13T | 2.40T | 1.49T |
| Total Liabilities | 7.65T | 6.36T | 7.17T | 8.53T | 7.39T | 5.66T |
| Stockholders Equity | 5.85T | 5.70T | 4.94T | 4.34T | 3.53T | 3.16T |
Cash Flow | ||||||
| Free Cash Flow | 778.47B | 571.47B | 416.46B | 290.08B | 420.18B | 139.64B |
| Operating Cash Flow | 1.03T | 956.61B | 827.04B | 729.94B | 793.13B | 560.92B |
| Investing Cash Flow | -381.05B | -131.54B | -123.31B | -1.07T | -999.44B | -523.17B |
| Financing Cash Flow | -568.38B | -1.02T | -868.59B | 224.75B | 355.76B | 178.00M |
Hitachi Technical Analysis
Positive
29.54
Price Trends
26.69
Positive
25.84
Positive
25.65
Positive
Market Momentum
0.45
Negative
65.19
Neutral
89.79
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 29.54 is above the 20-day moving average (MA) of 27.96, above the 50-day MA of 26.69, and above the 200-day MA of 25.65, indicating a bullish trend. The MACD of 0.45 indicates Negative momentum. The RSI at 65.19 is Neutral, neither overbought nor oversold. The STOCH value of 89.79 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HTHIY.
Hitachi Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $147.08B | 26.29 | 33.56% | 1.98% | 6.30% | 0.81% | |
77 Outperform | $135.18B | 33.65 | 10.50% | 0.73% | -4.62% | 0.64% | |
63 Neutral | $81.81B | 19.20 | 94.75% | 1.92% | -24.93% | ― | |
59 Neutral | AU$1.62B | 9.53 | 11.29% | 3.73% | 6.45% | 5.22% |
* Industrials Sector Average
Performance Comparison
HTHIY
Hitachi
29.54
6.62
28.88%
MMM
3M
152.02
53.45
54.23%
HON
Honeywell International
228.85
22.24
10.76%
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.