Hitachi Construction Machinery Co (6305) AI Stock Analysis

• Market Cap: $906.11B
• Dividend Yield: 5.16%
• Average Volume (3M): 741.42K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 1.36
• Revenue Growth: -2.46%
• EPS Growth: -12.73%
• Country: JP
• Employees: 26,230
• Sector: Industrials
• Sector Strength: 86
• Industry: Agricultural - Machinery
• EPS (TTM): 91.91
• Shares Outstanding: 215,115,040
• 10 Day Avg. Volume: 824,020
• 30 Day Avg. Volume: 741,420
• PEG Ratio: -0.74
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.26
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $4,159.55
• Price Target Upside: -2.38% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 69 Neutral
• Price Target: ¥4,690.00 ▲(10.07%Upside)

Hitachi Construction Machinery Co scores well in valuation due to its low P/E ratio and high dividend yield, making it attractive to value and income investors. However, operational cost pressures and increased leverage present risks, while technical indicators suggest short-term caution. Overall, the stock is positioned moderately well but requires careful monitoring of operational and financial metrics.

Hitachi Construction Machinery Co Business Overview & Revenue Model

Company Description

Hitachi 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 Money

Hitachi 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

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: 4261.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 4261 is below the 20-day moving average (MA) of 4288.95, below the 50-day MA of 4305.72, and above the 200-day MA of 3734.89, indicating a neutral trend. The MACD of -12.63 indicates Positive momentum. The RSI at 48.06 is Neutral, neither overbought nor oversold. The STOCH value of 38.71 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
6301	79 Outperform	¥4.37T	10.00		4.52%	5.97%	13.80%
6326	72 Outperform	$1.88T	9.55	8.29%	3.06%	-2.02%	-16.84%
Sector *	71 Outperform	¥253.62B	13.00	8.49%	3.09%	6.31%	12.77%
6305	69 Neutral	$906.11B	11.13	9.99%	5.16%	-2.46%	-12.73%
6395	65 Neutral	€123.43B	14.83	4.46%	3.70%	11.41%	-6.80%
7105	57 Neutral	¥202.88B	23.38		1.26%	-5.15%	-68.51%

Hitachi Construction Machinery Co Corporate Events

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.

Hitachi Construction Machinery Reports Decline in Annual Financial Results

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.