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Hitachi Construction Machinery Co
(6305)
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Rating:68Neutral
Price Target:
¥5,716.00
▲(0.63% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by solid financial performance (strong recent revenue growth, healthy operating margins, and improving leverage), supported by reasonable valuation (P/E ~12.76 and ~3.24% dividend yield). Offsetting these positives, technical indicators are mixed with the stock trading below key short-to-medium-term moving averages, and cash-flow variability plus a still-material debt load remain notable risks.
Positive Factors
Strong Revenue Growth
Sustained TTM revenue growth (~164%) indicates expanding end-market demand and/or share gains. A larger sales base increases the installed equipment fleet, which durablely augments aftermarket parts and service revenue, supporting recurring earnings and long-term cash generation.
Negative Factors
High Absolute Debt Load
A large absolute debt stock constrains financial flexibility and raises interest/service obligations. Even with better leverage ratios, the ¥572B debt level increases refinancing and interest-rate sensitivity over the next several years, limiting strategic optionality if markets weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
Sustained TTM revenue growth (~164%) indicates expanding end-market demand and/or share gains. A larger sales base increases the installed equipment fleet, which durablely augments aftermarket parts and service revenue, supporting recurring earnings and long-term cash generation.
Read all positive factors
Hitachi Construction Machinery Co (6305) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.19T
Dividend Yield3.14%
Average Volume (3M)544.41K
Price to Earnings (P/E)13.2
Beta (1Y)1.41
Revenue Growth5.87%
EPS Growth32.02%
CountryJP
Employees25,304
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)422.82
Shares Outstanding215,115,040
10 Day Avg. Volume526,440
30 Day Avg. Volume544,413
Financial Highlights & Ratios
PEG Ratio-1.51
Price to Book (P/B)1.25
Price to Sales (P/S)0.80
P/FCF Ratio9.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)418.75
Revenue Forecast (FY)¥1.47T
Hitachi Construction Machinery Co Business Overview & Revenue Model
Company Description
Hitachi Construction Machinery Co., Ltd., together with its subsidiaries, manufactures and sells construction machineries in Japan, the Americas, Europe, Russia, CIS, Africa, the Middle East, Asia, Oceania, and China. The company operates in two s...
How the Company Makes Money
Hitachi Construction Machinery makes money primarily by selling construction and mining machinery to end customers (such as construction contractors and mining companies) through direct sales and distributor/dealer channels. A significant, recurri...
Hitachi Construction Machinery Co Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
71
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.43T | 1.41T | 1.37T | 1.41T | 1.26T | 1.02T |
| Gross Profit | 438.09B | 417.42B | 428.64B | 435.17B | 377.96B | 279.99B |
| EBITDA | 228.82B | 218.00B | 228.35B | 243.93B | 187.26B | 171.37B |
| Net Income | 89.95B | 73.19B | 81.43B | 93.29B | 70.17B | 75.83B |
Balance Sheet | ||||||
| Total Assets | 1.88T | 1.86T | 1.79T | 1.84T | 1.66T | 1.44T |
| Cash, Cash Equivalents and Short-Term Investments | 130.83B | 141.46B | 147.14B | 143.53B | 111.99B | 94.26B |
| Total Debt | 572.23B | 568.53B | 610.42B | 649.82B | 579.26B | 414.54B |
| Total Liabilities | 901.39B | 901.65B | 933.05B | 1.02T | 958.20B | 769.48B |
| Stockholders Equity | 920.65B | 900.17B | 809.34B | 763.38B | 659.99B | 611.61B |
Cash Flow | ||||||
| Free Cash Flow | 119.54B | 123.25B | 111.58B | 27.31B | -78.97B | 11.39B |
| Operating Cash Flow | 158.52B | 164.22B | 143.93B | 73.03B | -26.14B | 39.32B |
| Investing Cash Flow | -32.74B | -46.73B | -58.05B | -39.63B | -61.67B | -6.85B |
| Financing Cash Flow | -161.71B | -136.32B | -80.16B | -8.32B | 106.11B | -25.61B |
Hitachi Construction Machinery Co Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥366.71B | 12.61 | ― | 2.99% | 10.92% | 14.74% | |
76 Outperform | ¥6.64T | 17.64 | ― | 2.72% | 5.24% | -7.42% | |
68 Neutral | ¥1.19T | 13.20 | 8.61% | 3.08% | 5.87% | 32.02% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | ¥3.14T | 11.74 | 8.59% | 1.82% | 12.54% | 57.90% | |
52 Neutral | ¥15.58B | 2.93 | ― | 5.40% | -1.12% | ― |
* Industrials Sector Average
JP:6305
Hitachi Construction Machinery Co
5,580.00
959.59
20.77%
JP:6326
Kubota
2,763.00
1,008.91
57.52%
JP:6301
Komatsu Ltd.
7,446.00
2,516.63
51.05%
JP:6390
KATO WORKS CO., LTD.
1,330.00
57.85
4.55%
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Takeuchi Mfg.Co., Ltd.
7,690.00
2,341.18
43.77%
Hitachi Construction Machinery Co Corporate Events
Hitachi Construction Machinery Delivers Sharp Profit Rebound in First Quarter 2026
Jul 30, 2026
Hitachi Construction Machinery Co., Ltd., a leading Japanese producer of construction and mining equipment, reported solid first-quarter results for the period ended June 30, 2026, under IFRS. The Tokyo-listed group generates revenue from heavy ma...
Hitachi Construction Machinery Details ITOCHU’s Indirect Control and Affirms Independence
Jun 30, 2026
Hitachi Construction Machinery has detailed its relationship with controlling shareholders, disclosing that ITOCHU Corporation, through Citrus Investment G.K. and HCJI Holdings Ltd., indirectly holds the largest share of its voting rights. HCJI Ho...
Hitachi Construction Machinery to Rebrand as LANDCROS and Shift to Solution-Centric Model
May 25, 2026
Hitachi Construction Machinery Co., Ltd. plans to change its corporate name to LANDCROS Corporation on April 1, 2027, subject to shareholder approval, as part of a shift from a hardware-centric model to a broader solutions provider for the constru...
Hitachi Construction Machinery Confirms ¥175 Annual Dividend, Adjusts Year-End Payout
May 25, 2026
Hitachi Construction Machinery has approved a year-end dividend of ¥100 per share for the fiscal year ended March 31, 2026, bringing total annual dividends to ¥175 per share, unchanged from the previous year despite a reduction in the ye...
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.