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Hitachi,Ltd.
(6501)
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Rating:74Outperform
Price Target:
¥5,552.00
▲(10.53% Upside)
Action:Upgraded
Date:07/30/26
The score is driven primarily by improving financial performance (stronger margins, low leverage, and solid free cash flow) and a constructive earnings update with raised FY2026 guidance and strong backlog. Offsetting factors are a relatively expensive valuation (P/E ~27.9 with a modest ~0.91% yield) and only moderately supported technical signals due to missing momentum indicators and higher volatility (beta ~1.33).
Positive Factors
Strong free cash flow generation
Consistent, large free cash flow provides durable funding for capital expenditure, strategic investments, and shareholder returns without heavy external financing. High FCF conversion (~79% of net income) improves resilience through cycles and underpins buybacks, deleveraging and targeted growth initiatives.
Negative Factors
Uneven historical revenue growth
As a diversified conglomerate, Hitachi’s top line has been cyclical and uneven, which limits predictability of multi‑year earnings. Fluctuating project timing and lumpiness in large contracts can cause durable volatility in revenue and make sustaining margin expansion harder without consistent organic growth drivers.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Consistent, large free cash flow provides durable funding for capital expenditure, strategic investments, and shareholder returns without heavy external financing. High FCF conversion (~79% of net income) improves resilience through cycles and underpins buybacks, deleveraging and targeted growth initiatives.
Read all positive factors
Hitachi,Ltd. (6501) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥23.82T
Dividend Yield0.85%
Average Volume (3M)14.78M
Price to Earnings (P/E)29.8
Beta (1Y)1.32
Revenue Growth12.29%
EPS Growth28.22%
CountryJP
Employees287,901
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)176.99
Shares Outstanding4,535,561,000
10 Day Avg. Volume15,366,370
30 Day Avg. Volume14,781,133
Financial Highlights & Ratios
PEG Ratio0.79
Price to Book (P/B)3.09
Price to Sales (P/S)1.91
P/FCF Ratio15.39
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥6,288.89Price Target Upside25.20% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)204.92
Revenue Forecast (FY)¥11.38T
Hitachi,Ltd. Business Overview & Revenue Model
Company Description
Established in Tokyo in 1910, Hitachi, Ltd. is a global enterprise delivering a comprehensive suite of innovative solutions across diverse sectors, including information technology, energy, industrial systems, mobility, and smart life applications...
How the Company Makes Money
Hitachi makes money primarily by selling equipment, systems, and project-based solutions, and by earning recurring revenue from software, service, and maintenance over the life of the assets it delivers.
1) Digital and IT/OT services (systems int...
Hitachi,Ltd. Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Oct 23, 2026
Earnings Call Sentiment Positive
The call highlighted strong, broad-based Q1 performance with record adjusted EBITA/EBITDA, double-digit sector growth, upgraded full-year guidance, substantial cash flow improvement and active shareholder returns. At the same time, management flagged key risks: Middle East volatility, special/FX-driven one-offs affecting Q1 comparability, market headwinds in parts of the digital business (GlobalLogic), and uncertainty about sustaining Energy margins despite operational improvements. Overall, positives (revenue and margin beats, guidance upgrades, Lumada traction and cash generation) outweigh the cautions, but execution and external risks will be important to monitor.Positive Updates
Strong Top-Line Growth in Q1
Consolidated revenue increased 20% year-on-year in Q1 FY2026 (driven by business expansion and favorable foreign exchange); revenue excluding special factors grew 10% year-on-year.
Negative Updates
Middle East Uncertainty and Project Impacts
Operations were affected by the Middle East situation (raw material shortages and cost increases) and a large project experienced limited disruption in Q1; management acknowledges this remains a source of significant volatility and has factored potential impacts from Q2 onwards.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth in Q1
Consolidated revenue increased 20% year-on-year in Q1 FY2026 (driven by business expansion and favorable foreign exchange); revenue excluding special factors grew 10% year-on-year.
Read all positive updates
Company Guidance
Hitachi raised its FY2026 guidance after a stronger-than-expected Q1: consolidated revenue is now expected to increase ~9% Y/Y (11% Y/Y after home‑appliance/ATM restructuring and FX), adjusted EBITDA and net income have been upgraded, and management targets an adjusted EBITDA margin of 13% (Q1 margin 11.9%, +110 bps Y/Y); ROIC and core free cash flow forecasts were also raised. Segment upgrades include DSS +JPY30bn revenue/+JPY8bn adj. EBITDA, Energy +JPY360bn revenue/+JPY76bn adj. EBITDA (margin to 14.2%, +130 bps), Mobility +JPY100bn/+JPY9bn (margin +120 bps) and Connective Industries +JPY100bn/+JPY14bn; Lumada is targeted at ~JPY5.0tn (+22% Y/Y, ~44% of revenue) with HMAX FY target JPY505bn (Q1 JPY110bn, 22% progress). Other metrics: Q1 consolidated revenue +20% Y/Y (+10% ex‑special factors), Q1 orders by segment DSS +7%, Mobility +25%, CI +25%, order backlog >JPY10tn, Q1 core FCF rose by >JPY200bn Y/Y (ex‑advances), planned CapEx up >JPY170bn Y/Y focused on power grids/energy, share buybacks JPY150bn executed (27% of plan) with ~JPY400bn remaining, and FX assumptions of JPY160/USD and JPY185/EUR.Hitachi,Ltd. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
84
Very Positive
Cash Flow
76
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.04T | 10.59T | 9.78T | 9.73T | 10.88T | 10.26T |
| Gross Profit | 3.33T | 3.18T | 2.82T | 2.58T | 2.69T | 2.56T |
| EBITDA | 1.79T | 1.61T | 1.44T | 1.35T | 1.34T | 1.37T |
| Net Income | 799.61B | 802.37B | 615.72B | 589.90B | 649.12B | 583.47B |
Balance Sheet | ||||||
| Total Assets | 15.04T | 15.04T | 13.28T | 12.22T | 12.50T | 13.89T |
| Cash, Cash Equivalents and Short-Term Investments | 1.50T | 1.32T | 1.18T | 1.04T | 1.18T | 1.35T |
| Total Debt | 1.06T | 1.01T | 1.21T | 1.18T | 2.21T | 3.13T |
| Total Liabilities | 8.28T | 8.27T | 7.25T | 6.36T | 7.17T | 8.53T |
| Stockholders Equity | 6.57T | 6.57T | 5.85T | 5.70T | 4.94T | 4.34T |
Cash Flow | ||||||
| Free Cash Flow | 1.34T | 1.32T | 925.39B | 571.47B | 416.46B | 290.08B |
| Operating Cash Flow | 1.72T | 1.67T | 1.17T | 956.61B | 827.04B | 729.94B |
| Investing Cash Flow | -304.55B | -342.33B | -530.10B | -131.54B | 151.06B | -1.05T |
| Financing Cash Flow | -1.28T | -970.26B | -467.68B | -1.02T | -1.14T | 202.74B |
Hitachi,Ltd. Technical Analysis
Positive
5023.00
Price Trends
4868.00
Positive
4881.60
Positive
4921.52
Positive
Market Momentum
134.23
Negative
71.14
Negative
86.76
Negative
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 5023 is above the 20-day moving average (MA) of 4922.25, above the 50-day MA of 4868.00, and above the 200-day MA of 4921.52, indicating a bullish trend. The MACD of 134.23 indicates Negative momentum. The RSI at 71.14 is Negative, neither overbought nor oversold. The STOCH value of 86.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6501.
Hitachi,Ltd. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥23.82T | 29.76 | 13.65% | 0.90% | 12.29% | 28.22% | |
72 Outperform | ¥15.67T | 15.74 | 14.58% | 2.11% | 0.67% | 3.97% | |
70 Outperform | ¥7.86T | 12.89 | 12.82% | 2.34% | 2.61% | 3.37% | |
70 Neutral | ¥8.63T | 15.74 | 13.62% | 1.97% | 6.11% | 9.13% | |
67 Neutral | ¥15.97T | 22.52 | 8.81% | 2.24% | 1.60% | -10.27% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | ¥13.89T | 16.96 | 10.17% | 2.31% | -4.55% | -5.16% |
* Industrials Sector Average
JP:6501
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Hitachi,Ltd. Corporate Events
Hitachi Corrects Labeling Error in Q1 2026 Results Briefing
Jul 30, 2026
Hitachi, Ltd. has issued a correction to its previously released briefing material on consolidated financial results for the first quarter ended June 30, 2026. The correction relates solely to graph category labels for the DSS overseas IT services...
Hitachi Outlines Q1 FY2026 Results and Lumada-Focused Outlook
Jul 29, 2026
Hitachi, Ltd. has released an outline of its consolidated financial results for the first quarter of fiscal 2026, ended June 30, 2026. The material, presented by Senior Vice President and CFO Tomomi Kato on July 29, 2026, sets the stage for a deta...
Hitachi Delivers Strong Q1 Revenue Growth and Higher Operating Profit in FY2026
Jul 29, 2026
Hitachi reported strong consolidated results for the quarter ended June 30, 2026, with revenues rising 20% year-on-year to ¥2.71 trillion and gross profit up 22%. Adjusted operating income surged 39% to ¥294.3 billion, indicating improve...
Hitachi Reports Progress on Large-Scale Share Buyback Program
Jul 2, 2026
Hitachi, Ltd. has disclosed the status of its ongoing share repurchase program authorized by its board in April 2026 under the Companies Act of Japan and its Articles of Incorporation. Between June 1 and June 30, 2026, the company bought back 12,4...
Hitachi Releases CFO Materials Ahead of Investor Day 2026
Jun 9, 2026
Hitachi, Ltd. announced that it has released the presentation materials for its Hitachi Investor Day 2026, ahead of the event scheduled for June 10, 2026 in Tokyo. The disclosed materials cover the CFO Session to be led by Senior Vice President an...
Hitachi Publishes Digital Systems Strategy Materials Ahead of 2026 Investor Day
Jun 9, 2026
Hitachi, Ltd. announced that it has disclosed presentation materials for Hitachi Investor Day 2026, ahead of the event scheduled for June 10, 2026 in Tokyo. The materials focus on the Digital Systems Services Business Strategy and will be present...
Hitachi Unveils Connective Industries Strategy Ahead of 2026 Investor Day
Jun 9, 2026
Hitachi, Ltd. announced that it has disclosed presentation materials for its Hitachi Investor Day 2026, ahead of the event scheduled for June 10, 2026 in Tokyo. The materials focus on the Connective Industries Business Strategy, led by Senior Vice...
Hitachi Unveils Mobility Strategy Materials Ahead of Investor Day 2026
Jun 9, 2026
Hitachi, Ltd. has released presentation materials for its Hitachi Investor Day 2026, ahead of an event scheduled for June 10, 2026, in Tokyo that will focus on its mobility business strategy. The disclosure signals the company’s intent to pr...
Hitachi Unveils Energy Strategy Materials for Investor Day 2026
Jun 9, 2026
Hitachi, Ltd. has disclosed the presentation materials for its Hitachi Investor Day 2026, ahead of the event scheduled for June 10 in Tokyo, with a specific focus on its Energy Business Strategy. The materials, to be presented by Senior Vice Presi...
Hitachi Publishes CEO Materials Ahead of Investor Day 2026
Jun 9, 2026
Hitachi, Ltd. has released the presentation materials for Hitachi Investor Day 2026, ahead of the event scheduled for June 10, 2026 in Tokyo. The disclosed CEO remarks, to be delivered by President and CEO Toshiaki Tokunaga, provide investors and ...
Hitachi Reports Progress on ¥500 Billion Share Buyback Program
Jun 2, 2026
Hitachi, Ltd. has reported progress on its current share buyback program, repurchasing 7,920,500 shares of common stock on the Tokyo Stock Exchange between April 28 and May 31, 2026, at a total cost of ¥39.44 billion. The repurchases are bein...
Hitachi Lifts Annual Dividend to 50 Yen on Strong FY2025 Earnings
May 14, 2026
Hitachi, Ltd. has approved a year-end dividend of 27 yen per share for the fiscal year ended March 31, 2026, with a total payout of approximately 121.5 billion yen based on outstanding shares excluding treasury stock. Together with an interim divi...
Hitachi Raises Annual Dividend as Earnings Strengthen
May 14, 2026
Hitachi, Ltd. has declared a year-end dividend of 27 yen per share for the fiscal year ended March 31, 2026, with a total payout of 121,493 million yen funded from retained earnings. Combined with the interim dividend of 23 yen, the annual dividen...
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.