tiprankstipranks
Trending News
More News >
Hitachi Construction Machinery Co (JP:6305)
:6305
Advertisement

Hitachi Construction Machinery Co (6305) AI Stock Analysis

Compare
2 Followers

Top Page

JP:6305

Hitachi Construction Machinery Co

(OTC:6305)

Rating:70Outperform
Price Target:
¥5,125.00
▲(6.73% Upside)
Hitachi Construction Machinery Co's stock is supported by solid financial health and positive technical indicators. The company's valuation is attractive with a reasonable P/E ratio and a strong dividend yield. While revenue growth is a challenge, the company's operational efficiency and cash flow improvements are significant strengths.

Hitachi Construction Machinery Co (6305) vs. iShares MSCI Japan ETF (EWJ)

Hitachi Construction Machinery Co Business Overview & Revenue Model

Company DescriptionHitachi Construction Machinery Co., Ltd. is a leading global manufacturer of construction and mining equipment, headquartered in Tokyo, Japan. The company operates in sectors such as construction, mining, and utility equipment, providing a wide range of products including hydraulic excavators, wheel loaders, dump trucks, and other heavy machinery. Hitachi Construction Machinery is known for its innovation, reliability, and commitment to sustainability, serving customers worldwide with solutions that enhance productivity and efficiency.
How the Company Makes MoneyHitachi Construction Machinery Co. generates revenue primarily through the sale and lease of construction and mining equipment. Its key revenue streams include the sale of new machinery, spare parts, and maintenance services. The company also earns income from leasing equipment and providing after-sales support, which includes repairs and maintenance services. In addition to these revenue streams, Hitachi Construction Machinery benefits from strategic partnerships and joint ventures that allow it to expand its market reach and enhance its product offerings. The company’s focus on technological innovation and sustainability also positions it to capture emerging opportunities in smart construction and green technologies, further contributing to its earnings.

Hitachi Construction Machinery Co Financial Statement Overview

Summary
Hitachi Construction Machinery Co exhibits strong revenue growth and a stable financial position. However, the decline in EBIT and EBITDA margins and increasing debt levels are areas of concern. Improvements in operational cash flow are positive, but more attention is needed for sustainable cash flow growth.
Income Statement
75
Positive
Hitachi Construction Machinery Co has shown consistent revenue growth with a notable increase from 2022 to 2023. The Gross Profit Margin has remained strong, reflecting efficient production and cost management. However, there has been a decline in EBIT and EBITDA margins from 2024 to 2025, indicating increased operational costs or competitive pressures affecting profitability.
Balance Sheet
70
Positive
The company's balance sheet reflects a stable financial position with a reasonable Equity Ratio. However, the Debt-to-Equity Ratio has increased over time, suggesting a rising reliance on debt financing which could pose risks if not managed carefully. The Return on Equity remains robust, indicating effective use of shareholders' funds to generate profits.
Cash Flow
65
Positive
Cash flow analysis reveals challenges in maintaining consistent free cash flow growth. Although operating cash flow has improved significantly in 2025, indicating better operational efficiency, the Free Cash Flow to Net Income Ratio suggests room for improvement in translating earnings into cash flow.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.35T1.37T1.41T1.26T1.02T813.33B
Gross Profit415.25B428.64B435.17B377.95B279.99B193.34B
EBITDA223.32B238.01B240.49B192.79B165.15B83.81B
Net Income68.13B81.43B93.29B70.17B75.83B10.34B
Balance Sheet
Total Assets1.78T1.79T1.84T1.63T1.41T1.22T
Cash, Cash Equivalents and Short-Term Investments150.71B178.46B177.07B111.99B94.26B80.33B
Total Debt633.14B610.42B649.82B579.26B414.54B388.92B
Total Liabilities934.56B933.05B1.02T925.96B741.63B651.33B
Stockholders Equity792.98B809.34B763.38B659.99B611.61B514.29B
Cash Flow
Free Cash Flow124.86B98.86B17.43B-85.28B4.78B58.13B
Operating Cash Flow158.64B143.93B73.03B-26.14B39.32B91.34B
Investing Cash Flow-61.11B-52.83B-39.03B-42.65B-6.85B-32.28B
Financing Cash Flow-91.14B-85.37B-8.92B87.09B-25.61B-46.01B

Hitachi Construction Machinery Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4802.00
Price Trends
50DMA
4505.16
Positive
100DMA
4385.79
Positive
200DMA
3989.96
Positive
Market Momentum
MACD
44.05
Negative
RSI
62.57
Neutral
STOCH
70.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6305, the sentiment is Positive. The current price of 4802 is above the 20-day moving average (MA) of 4663.45, above the 50-day MA of 4505.16, and above the 200-day MA of 3989.96, indicating a bullish trend. The MACD of 44.05 indicates Negative momentum. The RSI at 62.57 is Neutral, neither overbought nor oversold. The STOCH value of 70.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6305.

Hitachi Construction Machinery Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
¥1.02T14.998.52%3.64%-4.59%-21.22%
64
Neutral
$10.73B15.747.60%2.01%2.75%-15.09%
$14.22B11.987.15%4.08%
€788.66M22.003.22%
78
Outperform
¥4.74T11.26
3.70%3.12%8.28%
74
Outperform
¥251.31B9.88
3.93%-2.83%-10.80%
54
Neutral
¥194.06B73.24
1.32%-6.01%-90.78%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6305
Hitachi Construction Machinery Co
4,802.00
1,556.08
47.94%
KUBTF
Kubota
12.00
-1.74
-12.66%
DE:TN0
TADANO
6.15
0.48
8.47%
JP:6301
Komatsu Ltd.
5,133.00
1,628.10
46.45%
JP:6432
Takeuchi Mfg.Co., Ltd.
5,270.00
1,296.66
32.63%
JP:7105
Mitsubishi Logisnext Co., Ltd.
1,819.00
609.58
50.40%

Hitachi Construction Machinery Co Corporate Events

Hitachi Construction Machinery Reports Decline in Q1 2025 Financial Results
Jul 30, 2025

Hitachi Construction Machinery Co., Ltd. reported a decline in its consolidated financial results for the first quarter ending June 30, 2025, with revenue decreasing by 6.7% compared to the previous year. The company experienced significant reductions in adjusted operating income and net income, which fell by 31.9% and 49.8% respectively. Despite these challenges, the company has maintained its dividend projections for the fiscal year ending March 2026, indicating a stable outlook for shareholders.

The most recent analyst rating on (JP:6305) stock is a Hold with a Yen3800.00 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 Strengthens Ties with Associated Companies
Jun 24, 2025

Hitachi Construction Machinery Co., Ltd. has announced its relationships with associated companies, highlighting its collaborations with major shareholders like Hitachi, Ltd., HCJI Holdings Ltd., and ITOCHU Corporation. These partnerships enhance the company’s capabilities in research, development, and market expansion, particularly in North America, while maintaining a level of independence in its operations.

The most recent analyst rating on (JP:6305) stock is a Hold with a Yen3800.00 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 Boosts Year-End Dividend
May 23, 2025

Hitachi Construction Machinery Co., Ltd. announced an increase in its year-end dividend to ¥110 per share for the fiscal year ended March 31, 2025, up from ¥65 per share the previous year. This decision reflects the company’s strategy to balance internal reserves with shareholder returns, aiming for a stable dividend payout ratio of 30% to 40% based on consolidated business results.

The most recent analyst rating on (JP:6305) stock is a Hold with a Yen3800.00 price target. To see the full list of analyst forecasts on Hitachi Construction Machinery Co stock, see the JP:6305 Stock Forecast page.

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.Date of analysis: Aug 29, 2025