Hitachi (HTHIY) AI Stock Analysis

• Market Cap: $155.77B
• Dividend Yield: 0.77%
• Average Volume (3M): 29.95K
• Price to Earnings (P/E): 29.0
• Beta (1Y): 1.32
• Revenue Growth: 8.28%
• EPS Growth: 21.01%
• Country: US
• Employees: 268,655
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 0.40
• Shares Outstanding: 4,581,561,000
• 10 Day Avg. Volume: 30,860
• 30 Day Avg. Volume: 29,948
• PEG Ratio: 2.40
• Price to Book (P/B): 1.38
• Price to Sales (P/S): 0.83
• P/FCF Ratio: 8.74
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 0.01
• Enterprise Value/Gross Profit: 0.05
• Enterprise Value/Ebitda: 0.09
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $33.00 ▲(3.64% Upside)

Hitachi's overall stock score is driven by its strong financial performance and positive earnings call outlook, despite valuation concerns and mixed technical indicators. The company's strategic focus on growth sectors and effective cash flow management support its potential for continued success.

Positive Factors

Revenue Growth

Sustained revenue growth, particularly in DSS and GEM sectors, indicates strong market demand and effective business strategies, supporting long-term expansion.

Strategic Partnerships

Strategic partnerships enhance Hitachi's market offerings and innovation capacity, fostering growth and competitive advantage in key sectors.

Cash Flow Management

Strong cash flow management supports operational needs and growth initiatives, providing financial stability and flexibility for future investments.

Negative Factors

Equity Loss in Affiliates

Equity losses in affiliates like Hitachi Astemo can strain overall profitability and indicate potential challenges in managing joint ventures.

Competitive Pressures

Intensified competition in the storage business could impact market share and profitability, necessitating strategic adjustments to maintain competitiveness.

Foreign Exchange Impact

Foreign exchange fluctuations can lead to unpredictable revenue and profitability, posing a risk to financial stability, especially in international operations.

Hitachi Business Overview & Revenue Model

Company Description

Hitachi, 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 Money

Hitachi generates revenue through multiple key streams, primarily from IT services, social infrastructure projects, and high functional materials. The IT Services segment, which includes system integration and consulting, is a significant contributor, capitalizing on the increasing demand for digital transformation. The social infrastructure sector involves large-scale projects such as transportation systems and energy solutions, where Hitachi partners with governments and private entities, ensuring long-term contracts and steady income. Additionally, the high functional materials & components sector provides advanced materials for various industries, further diversifying revenue sources. Strategic partnerships with leading technology firms enhance their offerings, driving sales and fostering innovation, while a focus on sustainability and smart technology solutions attracts investment and customer interest, boosting overall earnings.

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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 31.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 31.84 is below the 20-day moving average (MA) of 32.43, above the 50-day MA of 30.22, and above the 200-day MA of 27.64, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 52.57 is Neutral, neither overbought nor oversold. The STOCH value of 32.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HTHIY.

Hitachi Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HON	79 Outperform	$120.62B	20.01	35.85%	2.28%	7.48%	9.55%
VMI	78 Outperform	$8.07B	35.27	14.90%	0.63%	1.23%	-22.77%
HTHIY	73 Outperform	$155.77B	29.04	10.93%	0.77%	8.28%	21.01%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MMM	59 Neutral	$90.73B	27.30	73.38%	1.70%	-13.09%	-20.63%

Hitachi Corporate Events

Hitachi Ltd’s Mixed Earnings Call: Growth Amid Challenges

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

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.