Hitachi Construction Machinery Co (6305) AI Stock Analysis

• Market Cap: $999.67B
• Dividend Yield: 3.72%
• Average Volume (3M): 766.83K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 1.35
• Revenue Growth: -4.59%
• EPS Growth: -21.22%
• Country: JP
• Employees: 26,230
• Sector: Industrials
• Sector Strength: 75
• Industry: Agricultural - Machinery
• EPS (TTM): 53.03
• Shares Outstanding: 215,115,040
• 10 Day Avg. Volume: 676,270
• 30 Day Avg. Volume: 766,826
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.45
• Enterprise Value/Revenue: 1.06
• Enterprise Value/Gross Profit: 3.38
• Enterprise Value/Ebitda: 7.04
• 1Y Price Target: $4,650.58
• Price Target Upside: -0.82% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 76 Outperform
• Price Target: ¥5,351.00 ▲(14.12% Upside)

The overall score reflects strong technical momentum and reasonable valuation, supported by solid financial performance. The company's growth prospects are encouraging, but the need to manage debt levels and operational costs remains critical. Investors should be mindful of the stock's overbought technical indicators while appreciating its income-generating potential.

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 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 shows solid revenue growth with strong gross profit margins, but declining EBIT and EBITDA margins indicate rising operational costs. The balance sheet is stable with a reasonable equity ratio, though increasing debt dependence poses potential risks. Cash flow improvement is noted, yet further attention is needed for sustainable growth.

Income Statement

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.37T	1.41T	1.28T	1.02T	813.33B
Gross Profit	428.64B	435.17B	377.95B	279.99B	193.34B
EBITDA	160.93B	245.81B	200.28B	159.44B	83.81B
Net Income	81.43B	93.29B	70.17B	75.83B	10.34B
Balance Sheet
Total Assets	1.79T	1.89T	1.63T	1.41T	1.22T
Cash, Cash Equivalents and Short-Term Investments	147.14B	143.53B	141.85B	119.52B	96.50B
Total Debt	610.42B	649.82B	579.26B	414.54B	388.92B
Total Liabilities	933.05B	1.07T	925.96B	741.63B	651.33B
Stockholders Equity	809.34B	763.38B	659.99B	611.61B	514.29B
Cash Flow
Free Cash Flow	111.58B	17.43B	-85.28B	4.78B	58.13B
Operating Cash Flow	143.93B	73.03B	-26.14B	39.32B	91.34B
Investing Cash Flow	-56.46B	-39.03B	-42.65B	-6.85B	-32.28B
Financing Cash Flow	-81.75B	-8.92B	87.09B	-25.61B	-46.01B

Hitachi Construction Machinery Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4689.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 4689 is above the 20-day moving average (MA) of 4548.30, above the 50-day MA of 4405.94, and above the 200-day MA of 3891.00, indicating a bullish trend. The MACD of 86.76 indicates Negative momentum. The RSI at 60.40 is Neutral, neither overbought nor oversold. The STOCH value of 74.86 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6305	76 Outperform	$999.67B	14.68	8.52%	3.72%	-4.59%	-21.22%
Sector *	66 Neutral	£2.68B	13.05	3.30%	3.25%	2.40%	-22.21%
KUBTF	―	$13.87B	11.74	7.15%	2.78%	―	―
TN0	―	€779.11M	22.00	3.22%	―	―	―
6301	78 Outperform	¥4.65T	11.06		3.77%	3.12%	8.28%
6432	―	¥258.94B	10.18		3.64%	―	―
7105	55 Neutral	¥211.68B	79.89		1.20%	-6.01%	-90.78%

Hitachi Construction Machinery Co Corporate Events

Hitachi Construction Machinery Reports Decline in Q1 2025 Financial Results

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

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

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.