Hitachi,Ltd. (6501) AI Stock Analysis

• Market Cap: $18.36T
• Dividend Yield: 1.01%
• Average Volume (3M): 11.06M
• Price to Earnings (P/E): 30.0
• Beta (1Y): 1.58
• Revenue Growth: 0.56%
• EPS Growth: 5.32%
• Country: JP
• Employees: 268,655
• Sector: Industrials
• Sector Strength: 90
• Industry: Conglomerates
• EPS (TTM): 40.35
• Shares Outstanding: 4,581,561,000
• 10 Day Avg. Volume: 12,337,930
• 30 Day Avg. Volume: 11,060,506
• PEG Ratio: 3.97
• Price to Book (P/B): 3.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.24
• 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: $4,750.29
• Price Target Upside: 15.52% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 79 Outperform
• Price Target: ―

Hitachi's overall stock score of 77 reflects its solid financial performance, driven by consistent revenue growth and strong profitability margins. The company's strategic focus on digital transformation and shareholder returns supports a positive outlook. While technical indicators show moderate strength, valuation concerns and economic challenges, particularly in the Chinese market and potential U.S. tariffs, necessitate cautious optimism.

Positive Factors

Cash Flow

The company is expected to have a robust increase in core free cash flow during FY3/26-28, indicating strong cash generation capabilities.

Financial Performance

Analysts forecast strong growth in adjusted EBITA margin, reaching 14.2% in FY3/28 from 10.8% in FY3/25.

Leadership

The new CEO is expected to reveal a constructive business strategy that demonstrates Hitachi's competitiveness against overseas peers.

Negative Factors

Investor Sentiment

The market had a tepid response to the nomination of the new CEO, suggesting that Hitachi needs to provide a constructive medium-term profit outlook to attract investors.

Management Strategy

Management's conservatism in its operating margin targets for Digital Systems & Services and Green Energy & Mobility may lead to missing the consensus forecast.

Stock Price Reaction

Hitachi's share price dropped after the nomination of the new CEO was revealed ahead of the official release.

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, Ltd. generates revenue through a diverse set of business units that cater to various industries and markets. The company's revenue model is primarily based on delivering technology-driven products and services. Key revenue streams include IT services and solutions, which encompass consulting, system integration, and managed services, contributing significantly to its earnings. The Social Infrastructure segment, involving projects in transportation, power, and water systems, also plays a crucial role in revenue generation. Additionally, the company earns from its High Functional Materials & Components segment, which supplies essential materials and components to the automotive and electronics industries. Strategic partnerships and collaborations with businesses and governments worldwide further enhance its market position and contribute to its financial performance. Hitachi's focus on innovation and sustainability often leads to the development of new technologies and services, continuously expanding its revenue potential.

Hitachi,Ltd. Financial Statement Overview

Summary

Hitachi showcases a robust financial profile with consistent revenue growth, strong profitability margins, and effective cash flow management. The company maintains a low debt profile, ensuring financial stability and flexibility. While there is potential for optimizing liability management, the overall financial health supports a positive outlook for future growth.

Income Statement

Hitachi has demonstrated strong performance with consistent revenue growth, evidenced by a 0.56% increase from 2024 to 2025 and solid margins. The gross profit margin stands at 28.83%, and the net profit margin is 6.29%. The company maintains a stable EBIT margin of 9.93% and a robust EBITDA margin of 14.27% for 2025, reflecting efficient operational management and cost control.

Balance Sheet

The balance sheet remains strong with a debt-to-equity ratio of 0.21, indicating low leverage and sound financial management. Return on Equity (ROE) is impressive at 10.53%, highlighting effective use of equity. The equity ratio of 44.01% signifies a stable financial foundation, although there is room for improvement in reducing total liabilities.

Cash Flow

Hitachi's cash flow position is solid, with a free cash flow growth rate of 61.91% from 2024 to 2025. The operating cash flow to net income ratio is 1.90, and the free cash flow to net income ratio is 1.50, indicating strong cash generation relative to earnings, which supports future investments and debt servicing.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
9.78T	9.73T	10.88T	10.26T	8.73T
	Gross Profit
2.82T	2.58T	2.69T	2.56T	2.20T
	EBIT
971.61B	755.82B	942.26B	738.24B	495.18B
	EBITDA
1.40T	1.35T	1.47T	1.37T	1.32T
	Net Income Common Stockholders
615.72B	589.90B	649.12B	583.47B	501.61B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
866.24B	1.04T	1.18T	1.35T	1.34T
	Total Assets
13.28T	12.22T	12.50T	13.89T	11.85T
	Total Debt
1.21T	1.18T	2.21T	3.13T	2.40T
	Net Debt
339.87B	474.65B	1.38T	2.16T	1.38T
	Total Liabilities
7.25T	6.36T	7.17T	8.53T	7.39T
	Stockholders Equity
5.85T	5.70T	4.94T	4.34T	3.53T
Cash Flow		Free Cash Flow
925.39B	571.47B	416.46B	290.08B	420.18B
	Operating Cash Flow
1.17T	956.61B	827.04B	729.94B	793.13B
	Investing Cash Flow
-530.10B	-131.54B	151.06B	-1.05T	-458.84B
	Financing Cash Flow
-467.68B	-1.02T	-1.14T	202.74B	-184.84B

Hitachi,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4112.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 4112 is above the 20-day moving average (MA) of 3917.60, above the 50-day MA of 3631.42, and above the 200-day MA of 3763.96, indicating a bullish trend. The MACD of 102.84 indicates Negative momentum. The RSI at 65.20 is Neutral, neither overbought nor oversold. The STOCH value of 78.16 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	79 Outperform	$18.36T	30.03	10.50%	1.01%	0.56%	5.32%
Sector *	66 Neutral	$4.50B	12.29	5.40%	248.66%	4.13%	-12.33%
ITOCF		$74.61B	13.12	15.55%	2.50%	―	―
MARUF		$32.93B	9.82	13.98%	3.23%	―	―
MITSF		$58.40B	10.33	11.74%	3.19%	―	―
MSBHF		$76.89B	12.96	10.17%	3.29%	―	―
SSUMF		$30.38B	8.40	12.19%	3.37%	―	―

Hitachi,Ltd. Corporate Events

Hitachi Reports Growth in Fiscal 2024 Financial Results

Hitachi, Ltd. reported a 1% increase in consolidated revenues for fiscal 2024, reaching 9,783.3 billion yen, driven by strong domestic demand for digital transformation and the expansion of its Lumada business. The company saw significant growth in adjusted operating income and EBITA, attributed to robust performances in its Digital Systems & Services, Green Energy & Mobility, and Connective Industries sectors, as well as the acquisition of Thales GTS, indicating a positive impact on its financial health and market positioning.