Hitachi Construction Machinery Co Ltd (JP:6305)
:6305
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Hitachi Construction Machinery Co
(6305)
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Rating:61Neutral
Price Target:
¥5,742.00
▲(7.03% Upside)
Action:ReiteratedDate:04/26/26
The score is driven mainly by solid financial performance (healthy profitability, improving leverage, and strong recent free cash flow) and supportive valuation (moderate P/E and ~3.2% yield). These positives are tempered by weak technical signals, including a negative MACD and trading below key short- and medium-term moving averages.
Positive Factors
Improving leverage
A materially lower debt-to-equity ratio and meaningful equity growth improve financial flexibility and reduce refinancing risk. Over the next 2–6 months this supports capacity to fund working capital, service cycles, and selective investments without stressing liquidity or capital structure.
Negative Factors
Slowing revenue growth
Post-cycle normalization and flattening sales reduce operating leverage and limit near-term topline upside. If demand remains subdued, revenue stagnation can restrain capacity utilization and slow margin recovery, making earnings gains harder to achieve over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving leverage
A materially lower debt-to-equity ratio and meaningful equity growth improve financial flexibility and reduce refinancing risk. Over the next 2–6 months this supports capacity to fund working capital, service cycles, and selective investments without stressing liquidity or capital structure.
Read all positive factors
Hitachi Construction Machinery Co (6305) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.21T
Dividend Yield3.98%
Average Volume (3M)544.41K
Price to Earnings (P/E)16.5
Beta (1Y)1.56
Revenue Growth2.49%
EPS Growth-10.13%
CountryJP
Employees26,230
SectorIndustrials
Sector Strength72
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)344.07
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 Target
¥5,700.00Price Target Upside6.24% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)415.53
Revenue Forecast (FY)¥1.44T
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 w...
How the Company Makes Money
The company primarily makes money by selling construction and mining equipment (e.g., hydraulic excavators, mining machinery, wheel loaders) to contractors, mining operators, dealers, and rental companies. In addition to initial equipment sales, i...
Hitachi Construction Machinery Co Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
67
Positive
Cash Flow
61
Positive
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.41T | 1.37T | 1.41T | 1.26T | 1.02T |
| Gross Profit | 417.42B | 428.64B | 435.17B | 377.96B | 279.99B |
| EBITDA | 210.80B | 218.84B | 236.15B | 199.53B | 149.00B |
| Net Income | 73.19B | 81.43B | 93.29B | 70.17B | 75.83B |
Balance Sheet | |||||
| Total Assets | 1.86T | 1.79T | 1.84T | 1.66T | 1.44T |
| Cash, Cash Equivalents and Short-Term Investments | 141.46B | 147.14B | 143.53B | 111.99B | 94.26B |
| Total Debt | 568.53B | 610.42B | 649.82B | 579.26B | 414.54B |
| Total Liabilities | 901.65B | 933.05B | 1.02T | 958.20B | 769.48B |
| Stockholders Equity | 900.17B | 809.34B | 763.38B | 659.99B | 611.61B |
Cash Flow | |||||
| Free Cash Flow | 123.25B | 111.58B | 27.31B | -78.97B | 11.39B |
| Operating Cash Flow | 164.22B | 143.93B | 73.03B | -26.14B | 39.32B |
| Investing Cash Flow | -46.73B | -58.05B | -39.63B | -61.67B | -6.85B |
| Financing Cash Flow | -136.32B | -80.16B | -8.32B | 106.11B | -25.61B |
Hitachi Construction Machinery Co Technical Analysis
Negative
5365.00
Price Trends
5875.29
Negative
5302.60
Positive
4900.07
Positive
Market Momentum
-38.82
Negative
42.82
Neutral
49.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6305, the sentiment is Negative. The current price of 5365 is below the 20-day moving average (MA) of 5462.68, below the 50-day MA of 5875.29, and above the 200-day MA of 4900.07, indicating a neutral trend. The MACD of -38.82 indicates Negative momentum. The RSI at 42.82 is Neutral, neither overbought nor oversold. The STOCH value of 49.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6305.
Hitachi Construction Machinery Co Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | ¥348.11B | 18.05 | ― | 2.99% | 5.65% | 11.14% | |
70 Outperform | ¥3.20T | 9.53 | 7.55% | 2.22% | 5.51% | 12.24% | |
69 Neutral | ¥5.93T | 12.74 | ― | 4.06% | 0.69% | -12.55% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | ¥1.21T | 16.50 | 9.16% | 3.98% | 2.49% | -10.13% | |
51 Neutral | ¥16.47B | 0.51 | ― | 5.40% | -0.98% | ― |
* Industrials Sector Average
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Hitachi Construction Machinery Co Corporate Events
Hitachi Construction Machinery Revamps Board With New Outside Director From ITOCHU
Apr 24, 2026
Hitachi Construction Machinery has announced changes to its board, nominating a slate of directors to be voted on at its 62nd Ordinary General Meeting of Shareholders scheduled for June 2026. The list includes the reappointment of several outside ...
Hitachi Construction Machinery Profit Hit by Subsidiary Reorganization Despite Stronger Operations
Apr 24, 2026
Hitachi Construction Machinery reported that its non-consolidated net sales for the fiscal year ended March 31, 2026, fell 4.7% year on year to ¥689.4 billion, mainly due to lower OEM supplies to the United States. Despite the revenue decline...
Hitachi Construction Machinery Lifts Revenue but Sees Profit Dip, Targets Earnings Rebound in FY2027
Apr 24, 2026
Hitachi Construction Machinery reported a 2.5% rise in consolidated revenue to ¥1.41 trillion for the year ended March 31, 2026, while adjusted operating income fell 8.3% and net income attributable to owners declined 10.1%, reflecting margin...
Hitachi Construction Machinery Revamps Top Executive Lineup for 2026
Feb 27, 2026
Hitachi Construction Machinery Co., Ltd. announced a leadership reshuffle effective April 1, 2026, including changes to its representative executive officers as part of a planned reorganization at the end of current terms. Yoshihiro Narukawa will ...
Hitachi Construction Machinery Reshapes Shareholder Base as ITOCHU Stake Rises to One‑Third
Feb 19, 2026
Hitachi Construction Machinery announced changes in its shareholder structure as HCJI Holdings, its largest shareholder with a 26% stake, will see all HCJI shares held by JIP SPC transferred to HCJI as treasury shares, effectively ending Japan Ind...
Hitachi Construction Machinery Q3 Profit Slips but Equity Strengthens as Full-Year Outlook Held
Jan 29, 2026
Hitachi Construction Machinery reported third-quarter revenue of ¥979.3 billion for the period ended 31 December 2025, down 1.2% year-on-year, with adjusted operating income falling 11.4% to ¥92.6 billion and net income attributable to o...
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.