Education
About Us
Working with TipRanks
Follow Us
Hitachi Ltd (HTHIY)
:HTHIY
Top Page
Hitachi
(OTC:HTHIY)
Rating:75Outperform
Price Target:
$33.00
â–²(15.38% Upside)
Hitachi (HTHIY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$130.87B
Dividend Yield0.77%
Average Volume (3M)23.70K
Price to Earnings (P/E)30.9
Beta (1Y)1.32
Revenue Growth1.59%
EPS Growth-8.02%
CountryUS
Employees268,655
SectorIndustrials
Sector Strength84
IndustryConglomerates
Share Statistics
EPS (TTM)0.28
Shares Outstanding4,581,561,000
10 Day Avg. Volume0
30 Day Avg. Volume23,704
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue0.01
Enterprise Value/Gross Profit0.06
Enterprise Value/Ebitda0.10
Forecast
1Y Price Target
$33.00Price Target Upside15.38% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Hitachi Business Overview & Revenue Model
Company DescriptionHitachi, Ltd. (HTHIY) is a multinational conglomerate headquartered in Tokyo, Japan, operating in various sectors including Information Technology, Social Infrastructure, High Functional Materials & Components, and Healthcare. The company is known for its wide range of products and services, including IT services, data storage solutions, industrial machinery, and advanced healthcare systems. Hitachi focuses on innovation and sustainability, leveraging technology to enhance social infrastructure and improve quality of life across the globe.
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: -7.23%|
Next Earnings Date:Oct 24, 2025
Earnings Call Sentiment Neutral
While the earnings call highlighted strong performance in the Energy and Mobility sectors and record-breaking adjusted EBITDA, there were notable challenges including the impact of U.S. tariffs, a decline in the China market, and difficulties in the DSS overseas operations. Overall, the sentiment is balanced with significant achievements and challenges.Q1-2025 Updates
Positive Updates
Record Adjusted EBITDA and Core Free Cash Flow
Adjusted EBITDA achieved a record high, and core free cash flow increased significantly year-on-year to approximately JPY 350 billion, driven by advanced payments for large-scale projects.
Strong Performance in Energy and Mobility Sectors
The Energy power grids and Mobility railways systems businesses performed well, with revenues and profits increasing in the first quarter. The Energy sector saw an increase in revenues due to strong demand in transmission upgrades and renewable energy projects, while Mobility saw growth in signaling business.
Positive Outlook for Fiscal Year 2025
Despite short-term risks, revenue growth and profit increases are expected for Hitachi as a whole, driven by the growth of Energy DSS and mobility sectors, with revenues projected to increase by 6% excluding currency effects.
Expansion of Lumada Business
Lumada business revenues for Q1 of FY 2025 increased by 54% year-on-year, with revenue ratio on Hitachi consolidated basis reaching 41%.
Negative Updates
Impact of U.S. Tariffs
The direct and indirect impacts of U.S. tariffs amounted to a deterioration of JPY 2.5 billion in adjusted EBITDA for the first quarter, with a total deterioration risk of JPY 30 billion for the fiscal year.
Decline in China Market
China business declined by 16% due to a decline in new demand for elevators and escalators.
Challenges in DSS Overseas Operations
Overseas operations saw a decline in revenue and profit due to customers' investment restraint caused by the indirect impact of U.S. tariffs and intensified competition in the storage business.
Decreased Core Free Cash Flow Expectation
Core free cash flow is expected to decrease year-on-year due to the reactionary decline to the increase in advance payments received in the previous fiscal year.
Company Guidance
During the Q1 FY 2025 earnings call, Hitachi Limited provided guidance indicating robust performance despite challenges such as U.S. tariffs and exchange rate fluctuations. Key metrics highlighted include a 5% year-on-year revenue growth excluding foreign exchange effects, a record-high adjusted EBITDA with a margin improvement of 0.4 percentage points to 10.5%, and a significant increase in core free cash flow to approximately JPY 350 billion. Net income attributable to parent company shareholders exceeded JPY 190 billion. The company anticipates a 6% revenue increase for FY 2025, excluding currency effects, with expectations of continued demand in the Energy DSS and Mobility sectors. Despite anticipated decreases in core free cash flow due to previous fiscal year advance payments, the ROIC is expected to remain stable, and the company maintains its full-year forecast. The Energy sector saw a 33% revenue increase due to strong demand, and Mobility grew by 17% driven by acquisitions. However, overseas operations in the DSS segment faced revenue declines due to U.S. tariffs and competition, prompting efforts to improve earnings through sales expansion and cost reductions.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
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 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 9.78T | 9.73T | 10.88T | 10.26T | 8.73T |
| Gross Profit | 2.82T | 2.58T | 2.69T | 2.56T | 2.20T |
| EBITDA | 1.44T | 1.35T | 1.47T | 1.28T | 986.84B |
| Net Income | 615.72B | 589.90B | 649.12B | 583.47B | 501.61B |
Balance Sheet | |||||
| Total Assets | 13.28T | 12.22T | 12.50T | 13.89T | 11.85T |
| Cash, Cash Equivalents and Short-Term Investments | 1.18T | 1.04T | 833.28B | 968.83B | 1.02T |
| Total Debt | 1.21T | 1.18T | 2.21T | 3.13T | 2.40T |
| Total Liabilities | 7.25T | 6.36T | 7.17T | 8.53T | 7.39T |
| Stockholders Equity | 5.85T | 5.70T | 4.94T | 4.34T | 3.53T |
Cash Flow | |||||
| Free Cash Flow | 780.59B | 571.47B | 416.46B | 290.08B | 420.18B |
| Operating Cash Flow | 1.17T | 956.61B | 827.04B | 729.94B | 793.13B |
| Investing Cash Flow | -573.65B | -131.54B | -123.31B | -1.07T | -999.44B |
| Financing Cash Flow | -424.12B | -1.02T | -868.59B | 224.75B | 355.76B |
Hitachi Technical Analysis
Neutral
28.60
Price Trends
28.59
Negative
26.66
Positive
26.12
Positive
Market Momentum
<0.01
Positive
46.97
Neutral
17.88
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HTHIY, the sentiment is Neutral. The current price of 28.6 is below the 20-day moving average (MA) of 29.42, above the 50-day MA of 28.59, and above the 200-day MA of 26.12, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.97 is Neutral, neither overbought nor oversold. The STOCH value of 17.88 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HTHIY.
Hitachi Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $130.87B | 30.94 | 10.93% | 0.77% | 1.59% | -8.02% | |
68 Neutral | $137.33B | 24.59 | 34.60% | 2.07% | 7.16% | 0.21% | |
62 Neutral | C$7.21B | -0.65 | -4.20% | 2.36% | 10.97% | -26.89% | |
58 Neutral | $81.65B | 21.32 | 96.00% | 1.84% | -19.56% | 325.26% |
* Industrials Sector Average
Performance Comparison
HTHIY
Hitachi
28.56
4.93
20.86%
MMM
3M
155.31
32.50
26.46%
HON
Honeywell International
216.45
23.77
12.34%
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.