Hitachi,Ltd. (6501) AI Stock Analysis

• Market Cap: ¥22.89T
• Dividend Yield: 0.86%
• Average Volume (3M): 14.78M
• Price to Earnings (P/E): 28.8
• Beta (1Y): 1.59
• Revenue Growth: 7.62%
• EPS Growth: 19.76%
• Country: JP
• Employees: 268,655
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 61.51
• Shares Outstanding: 4,581,561,000
• 10 Day Avg. Volume: 15,366,370
• 30 Day Avg. Volume: 14,781,133
• PEG Ratio: 4.72
• Price to Book (P/B): 2.72
• Price to Sales (P/S): 1.63
• P/FCF Ratio: 17.19
• 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: ¥5,554.52
• Price Target Upside: 10.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: ¥5,903.00 ▲(17.82% Upside)

Hitachi, Ltd. demonstrates strong financial performance with robust revenue growth and efficient cash flow management, contributing significantly to the overall score. Positive technical indicators support the stock's bullish momentum. However, a relatively high P/E ratio suggests potential overvaluation, and challenges highlighted in the earnings call, such as Hitachi Astemo's underperformance, temper the overall outlook.

Positive Factors

Revenue Growth

Hitachi's consistent revenue growth reflects strong market demand and effective business strategies, particularly in green energy and digital segments, supporting long-term expansion.

Cash Generation

Robust cash generation enhances Hitachi's ability to reinvest in growth opportunities, reduce debt, and return capital to shareholders, ensuring financial flexibility and stability.

Order Backlog

A strong order backlog in Hitachi Energy indicates sustained demand and revenue visibility, underpinning future growth and reinforcing its competitive position in the energy sector.

Negative Factors

Hitachi Astemo Underperformance

The underperformance of Hitachi Astemo affects overall profitability and highlights operational challenges, which could hinder Hitachi's financial performance if not addressed.

Foreign Exchange Volatility

Foreign exchange volatility poses a risk to Hitachi's revenue stability, as currency fluctuations can impact financial results and obscure organic growth trends.

Storage Business Challenges

Challenges in the storage business due to competition and increased costs could impact profitability and market share, necessitating strategic adjustments to maintain competitiveness.

Hitachi,Ltd. Business Overview & Revenue Model

Company Description

Hitachi, Ltd. provides information technology, energy, industry, mobility, and smart life solutions in Japan and internationally. The company offers information and telecommunication services, such as internet of things, storage systems, servers, software, ATMs, and scanners for manufacturing, communication, finance, healthcare and life science, energy and transportation, and distribution industries, as well as government and urban sectors; drone platform and unmanned aerial system traffic management solutions; infrastructure information systems; and consulting and system integration services. It also operates nuclear power plants, power grides, wind turbines, and power generation systems; provides energy and equipment management services; power semiconductors; elevators, escalators and moving sidewalk, and control elevator systems; and transportation systems. In addition, the company offers medical equipment for radiation therapy, In-vitro diagnosis, and regenerative medicines; automotive systems; home appliances; and water treatment solutions for water supply and sewage infrastructure, industrial water treatment, seawater desalination, and water recycling, as well as maintenance and repair services. Further, it manufactures and sales air and centrifugal compressors, blowers, electrical machinery control systems, fans, pumps, pharmaceutical manufacturing execution systems, induction motors, industrial computers and controllers, inverters, logistics and marking systems, IGBT drives, motors, nitrogen gas generators, rope and chain hoist, PCS, UPS, switches and breakers, steel systems, and transformers. Additionally, the company offers functional components and equipment, power electronic and magnetic materials, wires, and cable and related products; optical disk drives; and property management services. Hitachi, Ltd. was founded in 1910 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Hitachi generates revenue through multiple key streams, predominantly from its IT services and solutions, which include consulting, system integration, and managed services. The company also earns significant income from its social infrastructure business, which provides services and products related to transportation, water, and energy. Additionally, Hitachi's high functional materials and systems division contributes to its earnings through the production of advanced materials and components for various industries. Strategic partnerships with other technology firms and government contracts also play a crucial role in enhancing its revenue. The company's focus on innovation and sustainability drives its growth in emerging markets, further diversifying its income sources.

Hitachi,Ltd. Financial Statement Overview

Summary

Hitachi, Ltd. presents a strong financial profile with robust revenue growth, solid profitability, and efficient cash flow management. The company's improved leverage and stable return on equity enhance its financial stability. Continued focus on maintaining low debt levels and capitalizing on growth opportunities will be key to sustaining its positive financial trajectory.

Income Statement

Hitachi, Ltd. demonstrates strong revenue growth with a TTM increase of 47.9%, indicating robust market demand and expansion. The gross profit margin of 28.8% and net profit margin of 6.3% reflect solid profitability. EBIT and EBITDA margins are healthy at 9.5% and 13.9%, respectively, showcasing efficient operations. The consistent revenue growth trajectory over recent periods underscores a positive outlook.

Balance Sheet

The company's debt-to-equity ratio has improved significantly to 0.21, indicating a strong balance sheet with reduced leverage. Return on equity is stable at 10.6%, reflecting effective use of equity to generate profits. The equity ratio of 43.1% suggests a solid capital structure, though the company should continue to monitor debt levels to maintain financial stability.

Cash Flow

Hitachi, Ltd. shows impressive free cash flow growth of 30.2% TTM, highlighting strong cash generation capabilities. The operating cash flow to net income ratio of 0.20 indicates efficient conversion of earnings into cash. The free cash flow to net income ratio of 0.79 is robust, suggesting effective cash management and potential for reinvestment or shareholder returns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.83T	9.78T	9.73T	10.88T	10.26T	8.73T
Gross Profit	2.84T	2.82T	2.58T	2.69T	2.56T	2.20T
EBITDA	1.44T	1.44T	1.35T	1.34T	1.37T	1.32T
Net Income	632.60B	615.72B	589.90B	649.12B	583.47B	501.61B
Balance Sheet
Total Assets	13.49T	13.28T	12.22T	12.50T	13.89T	11.85T
Cash, Cash Equivalents and Short-Term Investments	1.63T	1.18T	1.04T	1.18T	1.35T	1.34T
Total Debt	1.41T	1.21T	1.18T	2.21T	3.13T	2.40T
Total Liabilities	7.51T	7.25T	6.36T	7.17T	8.53T	7.39T
Stockholders Equity	5.82T	5.85T	5.70T	4.94T	4.34T	3.53T
Cash Flow
Free Cash Flow	1.20T	925.39B	571.47B	416.46B	290.08B	420.18B
Operating Cash Flow	1.47T	1.17T	956.61B	827.04B	729.94B	793.13B
Investing Cash Flow	-369.58B	-530.10B	-131.54B	151.06B	-1.05T	-458.84B
Financing Cash Flow	-652.62B	-467.68B	-1.02T	-1.14T	202.74B	-184.84B

Hitachi,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5010.00
• 50DMA: Positive
• 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:6501, the sentiment is Positive. The current price of 5010 is above the 20-day moving average (MA) of 4887.35, above the 50-day MA of 4771.14, and above the 200-day MA of 4108.86, indicating a bullish trend. The MACD of 28.85 indicates Positive momentum. The RSI at 55.78 is Neutral, neither overbought nor oversold. The STOCH value of 45.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6501.

Hitachi,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6501	77 Outperform	¥22.89T	28.75	13.41%	0.86%	7.62%	19.76%
8053	77 Outperform	¥6.53T	10.72	12.86%	2.50%	3.19%	72.26%
8031	74 Outperform	$13.15T	14.59	11.47%	2.28%	-1.33%	-7.40%
8058	73 Outperform	¥14.26T	21.44	7.39%	2.79%	-7.54%	-35.70%
8002	71 Outperform	¥7.67T	13.27	15.34%	2.18%	9.62%	25.71%
8001	70 Outperform	¥14.05T	14.69	15.80%	2.05%	0.93%	15.80%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Hitachi,Ltd. Corporate Events

Hitachi Reports Progress on Share Repurchase Program

Hitachi, Ltd. announced the status of its share repurchase program, revealing that it has repurchased over 12 million shares of its common stock for approximately 61 billion yen during November 2025. This move is part of a broader strategy approved earlier in the year to buy back up to 140 million shares, aiming to enhance shareholder value and optimize capital structure.

Hitachi Unveils Investor Day Materials Highlighting Growth Prospects

Hitachi, Ltd. announced the release of presentation materials for its ‘Hitachi Energy Investor Day,’ focusing on financial performance and growth outlook. This disclosure aims to provide stakeholders with insights into the company’s strategic direction and future growth potential in the energy sector.

Hitachi Unveils Strategic Outlook for Energy Sector

Hitachi, Ltd. has announced the release of presentation materials for the ‘Hitachi Energy Investor Day’ event, highlighting their strategic outlook in the electricity sector. This disclosure underscores Hitachi’s commitment to leading in the electricity era, potentially impacting its market positioning and offering insights into future operational strategies.

Hitachi Reports Strong Financial Growth in Q2 2025

Hitachi, Ltd. reported a significant increase in its consolidated financial results for the second quarter ended September 30, 2025, with revenues rising to 4,787,406 million yen, a 5% increase from the previous year. The company’s net income attributable to stockholders surged by 62%, reaching 472,862 million yen, reflecting strong operational performance and strategic growth initiatives, which have positively impacted its market positioning and stakeholder value.

Hitachi Announces Progress in Share Repurchase Program

Hitachi, Ltd. announced the status of its share repurchase program, revealing that it has repurchased over 10.57 million shares of its common stock for approximately 41.64 billion yen during September 2025. This move is part of a larger plan approved by the Board of Directors to repurchase up to 140 million shares, aiming to optimize capital structure and enhance shareholder value. The ongoing repurchase program reflects Hitachi’s strategic focus on strengthening its financial position and market competitiveness.