Hitachi (HTHIY) AI Stock Analysis

• Market Cap: $142.21B
• Dividend Yield: 0.79%
• Average Volume (3M): 29.95K
• Price to Earnings (P/E): 26.6
• Beta (1Y): 1.37
• 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: 61.73
• Enterprise Value/Revenue: 1.67
• Enterprise Value/Gross Profit: 5.71
• Enterprise Value/Ebitda: 11.89
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: $33.00 ▲(6.66% Upside)

Hitachi's overall stock score reflects a mixed financial performance with strong profitability but declining revenue and cash flow. The earnings call provided a positive outlook with growth in key sectors, which offsets some of the financial challenges. However, technical indicators and valuation suggest caution, as the stock appears relatively expensive with limited momentum.

Positive Factors

Revenue Growth

The significant revenue and EBITA growth in key sectors like DSS and GEM indicates strong market demand and effective business strategies, supporting long-term financial health.

Strategic Partnerships

Strategic partnerships and AI investments enhance Hitachi's technological capabilities and market position, fostering innovation and competitive advantage over the long term.

Balance Sheet Strength

A strong balance sheet with low leverage provides financial stability and flexibility, allowing Hitachi to invest in growth opportunities and withstand economic fluctuations.

Negative Factors

Revenue Decline

A notable revenue decline poses challenges to sustaining growth and profitability, potentially impacting Hitachi's ability to maintain its market position and invest in future initiatives.

Equity Loss in Affiliates

Equity losses in affiliates like Hitachi Astemo can strain overall profitability and highlight vulnerabilities in Hitachi's investment portfolio, affecting long-term financial performance.

Cash Flow Challenges

Declining free cash flow growth may limit Hitachi's ability to fund operations and strategic investments, potentially impacting its capacity to drive future growth and innovation.

Hitachi Business Overview & Revenue Model

Company Description

Hitachi Ltd. is a multinational conglomerate based in Japan, operating across various sectors including information technology, social infrastructure, high functional materials & components, and more. The company is known for its diverse range of products and services, including IT services, cloud computing, power systems, industrial machinery, and consumer electronics. Hitachi aims to contribute to society through its innovative technologies and solutions, focusing on sustainable development and enhancing customer value across its sectors.

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	5.27T	9.78T	9.73T	9.73T	9.73T	9.73T
Gross Profit	1.54T	2.82T	2.58T	2.58T	2.58T	2.58T
EBITDA	738.15B	1.44T	1.35T	1.35T	1.35T	1.35T
Net Income	326.68B	615.72B	589.90B	589.90B	589.90B	589.90B
Balance Sheet
Total Assets	13.89T	13.28T	12.22T	12.22T	12.22T	12.22T
Cash, Cash Equivalents and Short-Term Investments	1.61T	866.24B	1.04T	1.04T	1.04T	1.04T
Total Debt	1.21T	1.21T	1.18T	1.18T	1.18T	1.18T
Total Liabilities	7.60T	7.25T	6.36T	6.36T	6.36T	6.36T
Stockholders Equity	6.12T	5.85T	5.70T	5.70T	5.70T	5.70T
Cash Flow
Free Cash Flow	1.08T	925.39B	571.47B	571.47B	571.47B	571.47B
Operating Cash Flow	1.29T	1.17T	956.61B	956.61B	956.61B	956.61B
Investing Cash Flow	-291.49B	-530.10B	-131.54B	-131.54B	-131.54B	-131.54B
Financing Cash Flow	-560.36B	-467.68B	-1.02T	-1.02T	-1.02T	-1.02T

Hitachi Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 30.94
• 50DMA: Negative
• 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 Negative. The current price of 30.94 is below the 20-day moving average (MA) of 31.24, below the 50-day MA of 31.39, and above the 200-day MA of 27.96, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 46.62 is Neutral, neither overbought nor oversold. The STOCH value of 38.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HTHIY.

Hitachi Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HON	77 Outperform	$126.41B	20.98	35.85%	2.20%	7.48%	9.55%
VMI	71 Outperform	$8.11B	35.42	14.90%	0.64%	1.23%	-22.77%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HTHIY	62 Neutral	$142.21B	26.61	10.93%	0.79%	8.28%	21.01%
MMM	59 Neutral	$86.04B	25.88	73.38%	1.80%	-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.