Hitachi Construction Machinery Co (6305) AI Stock Analysis

• Market Cap: ¥1.07T
• Dividend Yield: 3.98%
• Average Volume (3M): 544.41K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 1.33
• Revenue Growth: -2.72%
• EPS Growth: 29.43%
• Country: JP
• Employees: 26,230
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): N/A
• Shares Outstanding: 215,115,040
• 10 Day Avg. Volume: 526,440
• 30 Day Avg. Volume: 544,413
• PEG Ratio: -0.74
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 0.62
• P/FCF Ratio: 8.64
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 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: 68 Neutral
• Price Target: ¥5,506.00 ▲(9.46% Upside)

The score is driven primarily by solid margins and a manageable balance sheet, alongside materially improved TTM free cash flow, but is held back by recent revenue declines and historically volatile cash generation. Technicals are mixed (longer-term uptrend but near-term softness), while valuation is supportive with a reasonable P/E and a ~3.6% dividend yield.

Positive Factors

Profitability margins

Sustained mid-teens operating margins indicate structural pricing power and cost control in equipment manufacturing. Durable margins allow reinvestment in R&D and product support, helping preserve competitive positioning across cyclical construction and mining end markets.

Improved cash generation

Materially stronger trailing cash generation provides longer-term financial flexibility to fund capex, service debt, and support parts/service networks. Higher FCF strengthens resilience through cycles and enables strategic investments that sustain aftermarket revenue.

Manageable leverage

Moderate leverage gives the company capacity to absorb cyclical downturns without aggressive refinancing risk. A solid equity base combined with manageable debt supports capital allocation choices and preserves credit flexibility for multi-year infrastructure cycles.

Negative Factors

Revenue stagnation

A persistent revenue plateau undermines long-term growth prospects in a capital goods business where scale and volume drive returns. Without resumption of topline expansion, investment in new products or geographic expansion may be constrained over the coming quarters.

Volatile cash conversion

Material working-capital swings and capital intensity have produced uneven cash conversion historically. This structural variability complicates multi-year planning and raises the risk that shortfalls in weaker cycles could force cutbacks or higher borrowing.

Softened earnings power vs peaks

Declining return metrics versus historical peaks signal pressure on competitive positioning or mix. Sustained weaker earnings power reduces internal funding for growth initiatives and could limit the firm's ability to expand market share in structurally competitive machinery markets.

Hitachi Construction Machinery Co Business Overview & Revenue Model

Company Description

Hitachi Construction Machinery Co., Ltd., together with its subsidiaries, engages in the manufacture, sale, rental, and service of construction and transportation machinery, and other machines and devices worldwide. It offers mini excavators and wheel loaders, road construction machinery, wheel loaders, large and ultra-large hydraulic excavators, rigid dump trucks, and double arm working machines. The company also provides ICT construction solutions; ConSite that monitors machines' operational status, alarms by sending monthly operational reports, and notifies emergency alarms; Fleet management system, which offers real-time monitoring of each dump truck to optimize vehicle operation; and autonomous haulage system that enables the unmanned, autonomous operation of mining dump trucks. In addition, it provides parts, including hydraulic oil and filters, high pressure hoses, ground engaging tools, and remanufacturing components; and used equipment. The company was incorporated in 1951 and is headquartered in Tokyo, Japan. Hitachi Construction Machinery Co., Ltd. is a subsidiary of Hitachi, Ltd.

How the Company Makes Money

Hitachi Construction Machinery generates revenue primarily through the sale of construction and mining equipment, including hydraulic excavators, wheel loaders, and other heavy machinery. The company also earns income from parts and service sales, which include maintenance and repair services for their machinery. Additionally, Hitachi Construction Machinery has established partnerships with various construction firms and contractors, enhancing its market reach and sales potential. The company's revenue is further supported by its focus on research and development, leading to innovative product offerings that meet customer demands. Global economic trends, infrastructure spending, and demand for construction services also significantly influence the company’s earnings.

Hitachi Construction Machinery Co Financial Statement Overview

Summary

Solid profitability (TTM gross margin ~30.6%, EBIT margin ~11.6%) and moderate leverage (debt-to-equity ~0.71) support the score, with improved TTM free cash flow (¥126.2B). Offsetting factors are modest TTM revenue decline (-1.8%), softer earnings versus prior peaks, and historically uneven cash flow/cash conversion.

Income Statement

TTM (Trailing-Twelve-Months) revenue slipped modestly (-1.8%), following a small decline in the latest annual period as well, indicating a near-term demand plateau. Profitability is solid for the group with TTM gross margin ~30.6% and EBIT margin ~11.6%, though earnings power has softened versus prior peaks (annual EBIT and net income were higher in FY2024–FY2025 than in TTM). Net margin is steady in the mid-single digits (~6.4% TTM), but the lack of current growth is the key overhang.

Balance Sheet

Leverage looks manageable with TTM debt-to-equity around 0.71 (improved from higher levels in earlier years), supported by a sizeable equity base. Returns are respectable with TTM return on equity ~10.8%, though below the stronger ~12% levels seen in prior annual periods. Overall balance sheet risk appears moderate rather than aggressive, but the business still carries meaningful debt for a cyclical machinery end market.

Cash Flow

Cash generation improved materially: TTM operating cash flow is strong (¥161.5B) and free cash flow rose sharply (TTM ¥126.2B; strong growth versus the last annual period). However, cash conversion remains a watch item—TTM free cash flow is about 76% of net income, and the provided operating cash flow coverage figure is relatively low, suggesting working-capital swings and/or capital intensity can still create volatility (also evidenced by negative operating and free cash flow in FY2023).

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.37T	1.41T	1.26T	1.02T	813.33B
Gross Profit	428.64B	435.17B	377.95B	279.99B	193.34B
EBITDA	238.01B	240.49B	192.79B	165.15B	83.81B
Net Income	81.43B	93.29B	70.17B	75.83B	10.34B
Balance Sheet
Total Assets	1.79T	1.84T	1.63T	1.41T	1.22T
Cash, Cash Equivalents and Short-Term Investments	178.46B	177.07B	111.99B	94.26B	80.33B
Total Debt	610.42B	649.82B	579.26B	414.54B	388.92B
Total Liabilities	933.05B	1.02T	925.96B	741.63B	651.33B
Stockholders Equity	809.34B	763.38B	659.99B	611.61B	514.29B
Cash Flow
Free Cash Flow	98.86B	17.43B	-85.28B	4.78B	58.13B
Operating Cash Flow	143.93B	73.03B	-26.14B	39.32B	91.34B
Investing Cash Flow	-52.83B	-39.03B	-42.65B	-6.85B	-32.28B
Financing Cash Flow	-85.37B	-8.92B	87.09B	-25.61B	-46.01B

Hitachi Construction Machinery Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5030.00
• 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 JP:6305, the sentiment is Neutral. The current price of 5030 is below the 20-day moving average (MA) of 5100.20, above the 50-day MA of 4800.32, and above the 200-day MA of 4538.83, indicating a neutral trend. The MACD of 91.13 indicates Positive momentum. The RSI at 52.31 is Neutral, neither overbought nor oversold. The STOCH value of 25.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6305.

Hitachi Construction Machinery Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6326	76 Outperform	¥2.70T	15.55	7.16%	2.22%	-3.22%	-29.63%
6432	73 Outperform	¥304.71B	11.27	―	2.99%	0.31%	-11.04%
6305	68 Neutral	¥1.07T	14.18	10.54%	3.98%	-2.72%	29.43%
6301	68 Neutral	¥5.35T	13.60	―	4.06%	0.40%	8.40%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6395	62 Neutral	¥144.40B	13.13	5.59%	2.86%	10.49%	-5.19%
7105	54 Neutral	¥166.82B	-82.43	―	1.56%	-4.63%	-109.63%

Hitachi Construction Machinery Co Corporate Events

Hitachi Construction Machinery Q3 Profit Slips but Equity Strengthens as Full-Year Outlook Held

Hitachi Construction Machinery reported third-quarter revenue of ¥979.3 billion for the period ended 31 December 2025, down 1.2% year-on-year, with adjusted operating income falling 11.4% to ¥92.6 billion and net income attributable to owners of the parent declining 9.2% to ¥56.2 billion. Despite softer earnings, the company’s financial position improved, with total assets rising to ¥1.85 trillion and the equity ratio strengthening to 47.0%, while it maintained its full-year 2026 forecast of virtually flat revenue at ¥1.37 trillion and mid-single-digit declines in profit, and confirmed a total annual dividend of ¥175 per share, signalling a continued commitment to shareholder returns amid a challenging operating environment.

The most recent analyst rating on (JP:6305) stock is a Buy with a Yen5618.00 price target. To see the full list of analyst forecasts on Hitachi Construction Machinery Co stock, see the JP:6305 Stock Forecast page.

Hitachi Construction Machinery Co. Announces Change in Affiliated Company Status

Hitachi Construction Machinery Co., Ltd. announced that Hitachi, Ltd. will reduce its shareholding, ceasing to be an equity-method affiliate. This move is part of a strategy to foster independent management and broaden the company’s shareholder base, while maintaining a cooperative relationship with Hitachi, Ltd. in technology and parts supply.

The most recent analyst rating on (JP:6305) stock is a Buy with a Yen5723.00 price target. To see the full list of analyst forecasts on Hitachi Construction Machinery Co stock, see the JP:6305 Stock Forecast page.