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Hitachi Construction Machinery Co (JP:6305)
:6305

Hitachi Construction Machinery Co (6305) AI Stock Analysis

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JP

Hitachi Construction Machinery Co

(OTC:6305)

Rating:75Outperform
Price Target:
Hitachi Construction Machinery Co's stock score is bolstered by strong technical indicators and attractive valuation metrics. However, increased debt levels and pressure on operational margins temper the overall score. Continued revenue growth and stable financial health provide a solid foundation, yet careful monitoring of debt and operational costs is essential.

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. (6305) is a leading global manufacturer and supplier of construction and mining equipment. The company operates in various sectors, including construction machinery, mining operations, and utility equipment. Its core product offerings include hydraulic excavators, wheel loaders, rigid dump trucks, and crawler cranes, which are essential for infrastructure development and resource extraction projects worldwide.
How the Company Makes MoneyHitachi Construction Machinery Co., Ltd. generates revenue primarily through the sale of construction and mining equipment. The company earns income by manufacturing and distributing a wide range of heavy machinery to industries such as construction, mining, and infrastructure development. Key revenue streams include the sale of new equipment, provision of aftermarket parts and services, and leasing arrangements. Significant partnerships, such as joint ventures and collaborations with other industry leaders, also contribute to its earnings by enhancing product offerings and expanding market reach. Additionally, the company benefits from its global network of dealers and service centers, which facilitate sales and provide ongoing support to customers.

Hitachi Construction Machinery Co Financial Statement Overview

Summary
Hitachi Construction Machinery Co shows strong revenue growth and a stable financial position. However, increased debt reliance and pressure on operational margins are potential risks. Cash flow management has improved, but further attention is needed to ensure sustainable 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.
Breakdown
Mar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
1.37T1.41T1.28T1.02T813.33B
Gross Profit
428.64B435.17B377.95B279.99B193.34B
EBIT
144.99B168.03B133.31B106.59B28.23B
EBITDA
160.93B245.81B200.28B159.44B83.81B
Net Income Common Stockholders
81.43B93.29B70.17B75.83B10.34B
Balance SheetCash, Cash Equivalents and Short-Term Investments
147.14B143.53B141.85B119.52B96.50B
Total Assets
1.79T1.89T1.63T1.41T1.22T
Total Debt
610.42B649.82B579.26B414.54B388.92B
Net Debt
463.29B506.29B467.27B320.28B308.59B
Total Liabilities
933.05B1.07T925.96B741.63B651.33B
Stockholders Equity
809.34B763.38B659.99B611.61B514.29B
Cash FlowFree Cash Flow
111.58B17.43B-85.28B4.78B58.13B
Operating Cash Flow
143.93B73.03B-26.14B39.32B91.34B
Investing Cash Flow
-56.46B-39.03B-42.65B-6.85B-32.28B
Financing Cash Flow
-81.75B-8.92B87.09B-25.61B-46.01B

Hitachi Construction Machinery Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4442.00
Price Trends
50DMA
4137.12
Positive
100DMA
3929.82
Positive
200DMA
3638.84
Positive
Market Momentum
MACD
62.96
Positive
RSI
63.49
Neutral
STOCH
78.06
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 4442 is above the 20-day moving average (MA) of 4363.75, above the 50-day MA of 4137.12, and above the 200-day MA of 3638.84, indicating a bullish trend. The MACD of 62.96 indicates Positive momentum. The RSI at 63.49 is Neutral, neither overbought nor oversold. The STOCH value of 78.06 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 (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥4.13T9.44
4.25%5.97%13.78%
75
Outperform
¥944.60B11.609.99%3.75%-2.46%-12.73%
70
Outperform
$1.85T9.418.29%2.79%-2.02%-16.84%
66
Neutral
$4.51B12.295.40%248.53%4.14%-12.41%
65
Neutral
¥225.83B26.03
1.13%-5.15%-68.51%
64
Neutral
€123.20B14.804.46%2.37%11.41%-6.80%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6305
Hitachi Construction Machinery Co
4,442.00
435.99
10.88%
JP:6301
Komatsu Ltd.
4,470.00
45.30
1.02%
JP:7105
Mitsubishi Logisnext Co., Ltd.
2,115.00
717.69
51.36%
JP:6395
TADANO
959.10
-126.13
-11.62%
JP:6326
Kubota
1,604.00
-556.71
-25.77%

Hitachi Construction Machinery Co Corporate Events

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.

Hitachi Construction Machinery Reports Decline in Annual Financial Results
Apr 25, 2025

Hitachi Construction Machinery Co., Ltd. reported a decline in its consolidated financial results for the year ended March 31, 2025, with revenue and net income showing a decrease compared to the previous year. Despite the drop in financial performance, the company increased its dividend payout, indicating a commitment to returning value to shareholders. The company also provided a modest revenue forecast for the next fiscal year, reflecting cautious optimism in its market positioning.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.