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:76Outperform
Price Target:
¥5,351.00
▲(15.25%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 (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 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
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.37T1.41T1.28T1.02T813.33B
Gross Profit428.64B435.17B377.95B279.99B193.34B
EBITDA160.93B245.81B200.28B159.44B83.81B
Net Income81.43B93.29B70.17B75.83B10.34B
Balance Sheet
Total Assets1.79T1.89T1.63T1.41T1.22T
Cash, Cash Equivalents and Short-Term Investments147.14B143.53B141.85B119.52B96.50B
Total Debt610.42B649.82B579.26B414.54B388.92B
Total Liabilities933.05B1.07T925.96B741.63B651.33B
Stockholders Equity809.34B763.38B659.99B611.61B514.29B
Cash Flow
Free Cash Flow111.58B17.43B-85.28B4.78B58.13B
Operating Cash Flow143.93B73.03B-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 Price4643.00
Price Trends
50DMA
4343.22
Positive
100DMA
4174.78
Positive
200DMA
3812.06
Positive
Market Momentum
MACD
79.04
Negative
RSI
65.76
Neutral
STOCH
90.23
Negative
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 4643 is above the 20-day moving average (MA) of 4369.40, above the 50-day MA of 4343.22, and above the 200-day MA of 3812.06, indicating a bullish trend. The MACD of 79.04 indicates Negative momentum. The RSI at 65.76 is Neutral, neither overbought nor oversold. The STOCH value of 90.23 is Negative, 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 (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$2.01T10.208.29%2.92%-2.02%-16.84%
76
Outperform
¥987.34B12.139.99%3.77%-2.46%-12.73%
75
Outperform
€140.21B16.844.46%2.86%11.41%-6.80%
73
Outperform
¥5.05T11.55
3.52%5.97%13.80%
59
Neutral
AU$1.65B10.0711.24%3.41%6.92%3.55%
58
Neutral
¥216.38B24.94
1.22%-5.15%-68.51%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6305
Hitachi Construction Machinery Co
4,643.00
1,044.28
29.02%
JP:6301
Komatsu Ltd.
5,397.00
1,070.40
24.74%
JP:7105
Mitsubishi Logisnext Co., Ltd.
1,962.00
656.65
50.30%
JP:6395
TADANO
1,082.50
-23.30
-2.11%
JP:6326
Kubota
1,713.00
-407.38
-19.21%

Hitachi Construction Machinery Co Corporate Events

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: Jul 25, 2025