Hitachi Construction Machinery Co (6305) AI Stock Analysis

• Market Cap: $931.84B
• Dividend Yield: 4.07%
• Average Volume (3M): 544.41K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 1.29
• Revenue Growth: -2.72%
• EPS Growth: 29.43%
• Country: JP
• Employees: 26,230
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 124.43
• 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: 1.55
• Enterprise Value/Revenue: 1.06
• Enterprise Value/Gross Profit: 3.48
• Enterprise Value/Ebitda: 6.20
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥5,016.00 ▲(8.93% Upside)

The overall stock score of 69 reflects a combination of strong financial performance, attractive valuation, and neutral technical indicators. The company's robust revenue growth and profitability are offset by challenges in cash flow management. The stock's undervaluation and high dividend yield enhance its attractiveness, despite the lack of strong technical momentum.

Positive Factors

Revenue Growth

Consistent revenue growth reflects the company's ability to expand its market presence and meet customer demand, supporting long-term business stability.

Profitability Margins

Strong profitability margins indicate efficient cost management and operational effectiveness, contributing to sustainable financial health.

Market Position

Being a leading manufacturer in its industry, the company benefits from a strong market position, enhancing its competitive advantage and growth potential.

Negative Factors

Free Cash Flow Growth

Challenges in free cash flow generation may limit the company's ability to invest in growth opportunities and maintain financial flexibility.

Debt Levels

While debt levels are moderate, reliance on debt financing may increase financial risk, especially if not managed carefully in changing market conditions.

Net Profit Margin Volatility

Fluctuations in net profit margin suggest potential volatility in income performance, which could affect long-term profitability and investor confidence.

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

Hitachi Construction Machinery Co demonstrates solid financial health with stable profitability and efficient operations. While revenue growth has been challenging, the company maintains healthy margins and a balanced financial structure. Cash flow generation is improving, but there is a need to enhance cash conversion efficiency.

Income Statement

Hitachi Construction Machinery Co shows a stable gross profit margin around 31%, indicating efficient cost management. However, the net profit margin has slightly decreased to 5.94% in TTM, reflecting some pressure on profitability. Revenue growth has been negative recently, suggesting challenges in expanding sales. The EBIT and EBITDA margins remain healthy, supporting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is moderate at 0.75, indicating a balanced approach to leveraging. Return on equity is reasonable at 10.20%, showing effective use of equity to generate profits. The equity ratio is stable, suggesting a solid financial structure, but there is room for improvement in reducing debt levels.

Cash Flow

Free cash flow has grown by 11.89% in the TTM, a positive sign of improving cash generation. However, the operating cash flow to net income ratio is relatively low, indicating potential challenges in converting earnings into cash. The free cash flow to net income ratio is strong, reflecting good cash profitability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.36T	1.37T	1.41T	1.26T	1.02T	813.33B
Gross Profit	416.14B	428.64B	435.17B	377.95B	279.99B	193.34B
EBITDA	233.43B	238.01B	240.49B	192.79B	165.15B	83.81B
Net Income	87.43B	81.43B	93.29B	70.17B	75.83B	10.34B
Balance Sheet
Total Assets	1.78T	1.79T	1.84T	1.63T	1.41T	1.22T
Cash, Cash Equivalents and Short-Term Investments	158.67B	178.46B	177.07B	111.99B	94.26B	80.33B
Total Debt	591.26B	610.42B	649.82B	579.26B	414.54B	388.92B
Total Liabilities	898.13B	933.05B	1.02T	925.96B	741.63B	651.33B
Stockholders Equity	834.24B	809.34B	763.38B	659.99B	611.61B	514.29B
Cash Flow
Free Cash Flow	111.13B	98.86B	17.43B	-85.28B	4.78B	58.13B
Operating Cash Flow	146.17B	143.93B	73.03B	-26.14B	39.32B	91.34B
Investing Cash Flow	-55.74B	-52.83B	-39.03B	-42.65B	-6.85B	-32.28B
Financing Cash Flow	-108.20B	-85.37B	-8.92B	87.09B	-25.61B	-46.01B

Hitachi Construction Machinery Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4605.00
• 50DMA: Negative
• 100DMA: Negative
• 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 4605 is above the 20-day moving average (MA) of 4563.30, below the 50-day MA of 4687.90, and above the 200-day MA of 4351.74, indicating a neutral trend. The MACD of -16.79 indicates Negative momentum. The RSI at 49.43 is Neutral, neither overbought nor oversold. The STOCH value of 21.42 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
6432	81 Outperform	¥306.62B	11.36	―	2.81%	0.31%	-11.04%
6326	76 Outperform	$2.32T	13.52	7.16%	2.20%	-3.22%	-29.63%
6305	69 Neutral	$931.84B	10.66	10.54%	4.07%	-2.72%	29.43%
6301	68 Neutral	¥4.84T	11.28	―	4.07%	0.40%	8.40%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6395	62 Neutral	€137.17B	23.87	5.59%	2.79%	10.49%	-5.19%
7105	54 Neutral	¥165.08B	-81.58	―	1.56%	-4.63%	-109.63%

Hitachi Construction Machinery Co Corporate Events

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.

Hitachi Construction Machinery Reports Improved Profitability Amid Slight Revenue Decline

Hitachi Construction Machinery Co., Ltd. reported its consolidated financial results for the semi-annual period ending September 30, 2025, showing a slight decline in revenue by 1.8% compared to the previous year. Despite this, the company experienced a significant increase in net income attributable to owners of the parent by 18.9%, indicating improved profitability. The company also announced a dividend increase, reflecting confidence in its financial stability. The results suggest a positive outlook for stakeholders, with an emphasis on continued growth and strategic positioning in the competitive construction machinery market.