Hitachi,Ltd. (6501) AI Stock Analysis

• Market Cap: $23.57T
• Dividend Yield: 0.9%
• Average Volume (3M): 14.78M
• Price to Earnings (P/E): 29.8
• Beta (1Y): 1.54
• Revenue Growth: 7.62%
• EPS Growth: 19.76%
• Country: JP
• Employees: 268,655
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 36.73
• 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: 0.98
• Enterprise Value/Revenue: 2.26
• Enterprise Value/Gross Profit: 7.61
• Enterprise Value/Ebitda: 13.32
• 1Y Price Target: $6,317.93
• Price Target Upside: 22.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: ¥6,112.00 ▲(18.45% Upside)

The score is driven primarily by strong financial performance (margin improvement, robust free cash flow, and healthier leverage) and supportive technical uptrend signals. This is partially offset by a relatively expensive valuation (P/E ~28 and sub-1% yield) and earnings-call risks tied to Astemo performance, FX volatility, and storage competition.

Positive Factors

Cash generation

Sustained, high free cash flow and improving cash conversion provide durable capacity to fund capex, buybacks, dividends and strategic M&A without overreliance on external financing. This strengthens resilience across cycles and enables multi-year investments in digital and energy businesses.

Margin improvement

Meaningful, multi-period margin expansion reflects improving operational leverage and better mix toward higher-margin services and digital offerings. Higher sustainable margins support reinvestment in growth initiatives and improve long-term return on capital across diversified segments.

Low leverage

A conservatively levered balance sheet with improving equity and healthy ROE provides flexibility to pursue the company’s multi-year capex plans and service expansion while retaining capacity to absorb cyclical shocks and execute strategic investments without materially raising financial risk.

Negative Factors

Hitachi Astemo exposure

Material profit swings from an equity-accounted affiliate demonstrate concentrated operational risk outside core reporting lines. Recurrent weakness at Astemo can depress consolidated earnings unpredictably, complicating forecasting and reducing the durability of reported profitability.

Revenue consistency

Lumpy, project-driven revenues and mixed annual growth undermine predictability of cash flow and margins. Inconsistent top-line performance makes long-term planning harder, increases reliance on opportunistic orders, and may require higher working capital or more conservative investment pacing.

Storage competition and FX

Structural competition in storage and sensitivity to memory costs compresses margins in a capital‑intensive segment, while meaningful FX exposure can erode reported results and cash flow. Both factors reduce margin sustainability and add volatility to medium-term earnings profiles.

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

Strong TTM profitability and improving margins (net margin ~7.9%, EBIT margin ~12.0%), with very robust free cash flow and improving cash conversion (~0.82x of net income). Balance sheet leverage is currently well controlled (debt-to-equity ~0.20), but top-line consistency across years and only moderate one-year operating cash flow coverage of debt (~0.26) are key watch items.

Income Statement

TTM (Trailing-Twelve-Months) results show solid profitability and clear margin improvement versus recent annual periods: gross margin ~29.5% and net margin ~7.9% (up from ~6.3% last year), with EBIT margin rising to ~12.0%. Revenue growth is strong in the TTM period (about +2.5%), while annual revenue growth has been more mixed (including a decline in 2024). Net income is also meaningfully higher in TTM than the latest annual figure, supporting a strong earnings trajectory, though the top-line consistency remains a watch item.

Balance Sheet

Leverage looks well controlled in the latest periods, with debt-to-equity around ~0.20 in TTM (much improved versus 2022–2023 when leverage was materially higher). Equity has grown steadily over time, and returns on equity are healthy (about ~13.6% in TTM), indicating good capital efficiency. The main caution is that this is still a large, complex balance sheet (assets are sizable), and the historical swing in leverage suggests capital structure can change materially depending on strategy or cycle.

Cash Flow

Cash generation is a standout: TTM operating cash flow is strong and free cash flow is very robust, with free cash flow growth of ~6.3%. Free cash flow is well supported by earnings (about ~0.82x of net income in TTM, improving from prior years), indicating good cash conversion. A key weakness is that operating cash flow covers only a modest portion of total debt (coverage ratio ~0.26 in TTM), so while leverage is currently low, debt repayment capacity from one year of operating cash flow alone is not exceptionally high.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.27T	9.78T	9.73T	10.88T	10.26T	8.73T
Gross Profit	3.05T	2.82T	2.58T	2.69T	2.56T	2.20T
EBITDA	1.74T	1.44T	1.35T	1.34T	1.37T	1.32T
Net Income	823.50B	615.72B	589.90B	649.12B	583.47B	501.61B
Balance Sheet
Total Assets	14.68T	13.28T	12.22T	12.50T	13.89T	11.85T
Cash, Cash Equivalents and Short-Term Investments	1.12T	1.18T	1.04T	1.18T	1.35T	1.34T
Total Debt	1.06T	1.21T	1.18T	2.21T	3.13T	2.40T
Total Liabilities	8.13T	7.25T	6.36T	7.17T	8.53T	7.39T
Stockholders Equity	6.36T	5.85T	5.70T	4.94T	4.34T	3.53T
Cash Flow
Free Cash Flow	1.39T	925.39B	571.47B	416.46B	290.08B	420.18B
Operating Cash Flow	1.72T	1.17T	956.61B	827.04B	729.94B	793.13B
Investing Cash Flow	-284.34B	-530.10B	-131.54B	151.06B	-1.05T	-458.84B
Financing Cash Flow	-1.36T	-467.68B	-1.02T	-1.14T	202.74B	-184.84B

Hitachi,Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5160.00
• 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 Neutral. The current price of 5160 is below the 20-day moving average (MA) of 5218.20, above the 50-day MA of 5058.84, and above the 200-day MA of 4395.29, indicating a neutral trend. The MACD of 49.73 indicates Positive momentum. The RSI at 49.74 is Neutral, neither overbought nor oversold. The STOCH value of 51.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6501.

Hitachi,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6501	78 Outperform	$23.57T	29.77	13.41%	0.90%	7.62%	19.76%
8053	77 Outperform	$7.44T	13.79	12.86%	2.48%	3.19%	72.26%
8031	74 Outperform	¥14.92T	17.20	11.47%	2.28%	-1.33%	-7.40%
8002	71 Outperform	$9.06T	17.16	15.34%	2.29%	9.62%	25.71%
8001	68 Neutral	$15.92T	15.28	15.80%	2.11%	0.93%	15.80%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
8058	60 Neutral	¥16.44T	23.98	7.39%	2.94%	-7.54%	-35.70%

Hitachi,Ltd. Corporate Events

Hitachi Reshapes Executive Lineup to Strengthen Key Business Sectors

Hitachi, Ltd. announced a series of executive officer changes effective April 1, 2026, aimed at sharpening oversight of key business sectors and strategic functions. The restructuring clarifies and elevates roles in the Digital Systems & Services, Connective Industries, and Energy sectors, with several leaders moving from “head” or “COO” roles to “CEO” positions for their respective sectors and business units, and with continued emphasis on digital engineering, AI solutions, and Lumada strategy. The changes also refine responsibilities in finance and human capital, including adjustments to CFO and CHRO-related roles, suggesting a push to strengthen governance, strategic execution, and global coordination across Hitachi’s core growth businesses.

The most recent analyst rating on (JP:6501) stock is a Buy with a Yen5855.00 price target. To see the full list of analyst forecasts on Hitachi,Ltd. stock, see the JP:6501 Stock Forecast page.

Hitachi Authorizes Up to ¥100 Billion Share Buyback to Enhance Shareholder Returns

Hitachi’s board has approved a share buyback of up to 30 million common shares, representing about 0.67% of its outstanding stock, with a total repurchase ceiling of 100 billion yen to be executed via open-market purchases on the Tokyo Stock Exchange between January 30 and April 30, 2026. Framed as part of its long-term capital policy and supported by its current financial position and progress on asset sales, the move underscores Hitachi’s commitment to boosting shareholder returns, though the company notes the actual volume of buybacks may vary depending on market conditions.

The most recent analyst rating on (JP:6501) stock is a Buy with a Yen5855.00 price target. To see the full list of analyst forecasts on Hitachi,Ltd. stock, see the JP:6501 Stock Forecast page.

Hitachi Delivers Strong Profit Growth in Nine-Month Results to December 2025

Hitachi reported strong consolidated financial results for the nine months ended December 31, 2025, with revenues rising 7% year on year to ¥7.50 trillion and gross profit up 11% to ¥2.23 trillion, reflecting solid underlying business momentum. Adjusted operating income jumped 26% to ¥825.7 billion, while EBIT surged 54% and income before income taxes rose 57%, supported by a sharp increase in financial income and disciplined cost control despite higher selling, general and administrative expenses. Net income climbed 45% to ¥677.6 billion, and net income attributable to Hitachi shareholders increased 48% to ¥638.6 billion, driving basic earnings per share up 50% to ¥140.36 on a post–share-split basis. Comprehensive income also advanced significantly to ¥1.05 trillion, boosted by favorable foreign currency translation effects and improved valuation of financial assets, underscoring a broad-based improvement in profitability and financial position that is likely to strengthen Hitachi’s balance sheet and enhance returns to shareholders.

The most recent analyst rating on (JP:6501) stock is a Buy with a Yen5855.00 price target. To see the full list of analyst forecasts on Hitachi,Ltd. stock, see the JP:6501 Stock Forecast page.

Hitachi Concludes ¥300 Billion Share Repurchase Program Tranche

Hitachi, Ltd. has completed a share repurchase program of its common stock that was authorized by its board in April 2025, buying back 7,918,800 shares for approximately 38.8 billion yen between December 1 and December 17, 2025 via open market purchases on the Tokyo Stock Exchange. Under the broader authorization running from April 30, 2025 to March 31, 2026, the company has so far repurchased a total of 68,675,100 shares at a cumulative cost of about 300 billion yen, signaling continued execution of its capital allocation policy and potentially supporting shareholder value through reduced share count and enhanced capital efficiency.

The most recent analyst rating on (JP:6501) stock is a Buy with a Yen5903.00 price target. To see the full list of analyst forecasts on Hitachi,Ltd. stock, see the JP:6501 Stock Forecast page.

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.

The most recent analyst rating on (JP:6501) stock is a Buy with a Yen5900.00 price target. To see the full list of analyst forecasts on Hitachi,Ltd. stock, see the JP:6501 Stock Forecast page.