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Hitachi,Ltd.
(6501)
Select Model
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Rating:71Outperform
Price Target:
¥4,940.00
▼(-4.21% Downside)
Action:Reiterated
Date:04/28/26
The score is driven primarily by strong financial performance (improving profitability, low leverage, and solid cash generation) and supported by positive technical momentum. The main constraint is valuation, with a high P/E and low dividend yield.
Positive Factors
Balance-sheet strength
Low current leverage (D/E ~0.17) and an improving capital structure provide durable financial flexibility for large, lumpy infrastructure projects and M&A. Strong equity and ROE (~13.6% TTM) support internal funding of investments and reduce refinancing risk over the medium term.
Negative Factors
Uneven top-line growth
Revenue has been moderate and volatile, limiting revenue predictability and planning for a project-driven business. Uneven top-line trends constrain steady margin leverage and make medium-term forecasting and capacity investments more uncertain for management and investors.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet strength
Low current leverage (D/E ~0.17) and an improving capital structure provide durable financial flexibility for large, lumpy infrastructure projects and M&A. Strong equity and ROE (~13.6% TTM) support internal funding of investments and reduce refinancing risk over the medium term.
Read all positive factors
Hitachi,Ltd. (6501) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥20.87T
Dividend Yield0.9%
Average Volume (3M)14.78M
Price to Earnings (P/E)26.3
Beta (1Y)1.42
Revenue Growth8.21%
EPS Growth32.01%
CountryJP
Employees268,655
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)176.76
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
¥6,325.00Price Target Upside22.65% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)203.57
Revenue Forecast (FY)¥11.29T
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 a mix of (1) large-scale industrial/infrastructure systems and equipment, (2) project-based engineering, procurement, and construction/installation work, and (3) recurring services and digital solutions tha...
Hitachi,Ltd. Earnings Call Summary
Earnings Call Date:Oct 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Jul 24, 2026
Earnings Call Sentiment Positive
The earnings call presented a largely positive outlook with substantial revenue growth and strategic investments in capacity expansion and service business. However, challenges such as the underperformance of Hitachi Astemo and foreign exchange volatility highlighted some areas of concern.Positive Updates
Significant Revenue and Profit Growth
Revenues increased by 11% year-on-year, with adjusted EBITA also rising by 23% year-on-year, driven by strong performance in green energy and digital segments.
Negative Updates
Hitachi Astemo's Performance Deterioration
Hitachi Astemo's equity in profit deteriorated, contributing to a JPY 26 billion decline in equity profit and loss in Q2.
Read all updates
Q2-2025 Updates
Positive
Negative
Significant Revenue and Profit Growth
Revenues increased by 11% year-on-year, with adjusted EBITA also rising by 23% year-on-year, driven by strong performance in green energy and digital segments.
Read all positive updates
Company Guidance
During Hitachi Limited's second quarter fiscal year 2024 earnings call, the company reported an 11% year-on-year increase in revenues across its three sectors: Digital Systems and Services (DSS), Green Energy and Mobility (GEM), and Connective Industries (CI). Adjusted EBITA grew by 23% year-on-year, achieving a 10.7% margin, up by 1 percentage point from the previous year. Net income attributable to Hitachi was JPY 116.9 billion, although consolidated EBITA decreased by JPY 22.1 billion due to a decline in equity profits from Hitachi Astemo. Core free cash flow rose to JPY 97.6 billion. Looking forward, Hitachi revised its fiscal year 2024 forecast upwards, expecting a 7% year-on-year increase in revenues and a 23% rise in adjusted EBITA, with a projected EBITA margin of 11.5%. Despite the upward revisions for the three sectors, consolidated EBITA and net income forecasts remained unchanged due to ongoing challenges with Hitachi Astemo. The company also reported a 9% increase in DSS orders and a 42% rise in GEM orders year-on-year, signaling strong demand in digital transformation and green energy sectors.Hitachi,Ltd. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
72
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 10.59T | 9.78T | 9.73T | 10.88T | 10.26T |
| Gross Profit | 3.18T | 2.82T | 2.58T | 2.69T | 2.56T |
| EBITDA | 1.61T | 1.44T | 1.35T | 1.34T | 1.37T |
| Net Income | 802.37B | 615.72B | 589.90B | 649.12B | 583.47B |
Balance Sheet | |||||
| Total Assets | 15.04T | 13.28T | 12.22T | 12.50T | 13.89T |
| Cash, Cash Equivalents and Short-Term Investments | 1.32T | 1.18T | 1.04T | 1.18T | 1.35T |
| Total Debt | 1.01T | 1.21T | 1.18T | 2.21T | 3.13T |
| Total Liabilities | 8.27T | 7.25T | 6.36T | 7.17T | 8.53T |
| Stockholders Equity | 6.57T | 5.85T | 5.70T | 4.94T | 4.34T |
Cash Flow | |||||
| Free Cash Flow | 1.32T | 925.39B | 571.47B | 416.46B | 290.08B |
| Operating Cash Flow | 1.67T | 1.17T | 956.61B | 827.04B | 729.94B |
| Investing Cash Flow | -342.33B | -530.10B | -131.54B | 151.06B | -1.05T |
| Financing Cash Flow | -970.26B | -467.68B | -1.02T | -1.14T | 202.74B |
Hitachi,Ltd. Technical Analysis
Neutral
5157.00
Price Trends
4890.00
Negative
4911.22
Negative
4825.06
Negative
Market Momentum
-104.53
Positive
44.03
Neutral
32.57
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 5157 is above the 20-day moving average (MA) of 4691.60, above the 50-day MA of 4890.00, and above the 200-day MA of 4825.06, indicating a bearish trend. The MACD of -104.53 indicates Positive momentum. The RSI at 44.03 is Neutral, neither overbought nor oversold. The STOCH value of 32.57 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | ¥20.87T | 26.35 | 13.65% | 0.90% | 8.21% | 32.01% | |
69 Neutral | ¥8.31T | 14.96 | 13.39% | 2.29% | 6.11% | 9.13% | |
69 Neutral | ¥15.47T | 21.49 | 8.81% | 2.94% | 1.60% | -10.27% | |
68 Neutral | ¥14.69T | 15.05 | 15.23% | 2.11% | 0.67% | 3.97% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | ¥7.41T | 12.95 | 12.86% | 2.48% | 0.62% | 7.66% | |
54 Neutral | ¥12.94T | 16.17 | 11.47% | 2.28% | -4.55% | -5.16% |
* Industrials Sector Average
JP:6501
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Hitachi,Ltd. Corporate Events
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...
Hitachi Launches ¥500 Billion Share Buyback to Boost Shareholder Returns
Apr 27, 2026
Hitachi’s board has authorized a substantial share repurchase program of up to 160 million common shares, equivalent to about 3.56% of its outstanding stock excluding treasury shares, with a total purchase amount capped at 500 billion yen. T...
Hitachi Plans Higher Year-End Dividend, Lifting Annual Payout to 50 Yen
Apr 27, 2026
Hitachi, Ltd. has set its planned year-end dividend for the fiscal year ended March 31, 2026 at 27 yen per share, drawing on retained earnings, with total payouts expected to reach about 121.5 billion yen based on shares outstanding excluding trea...
Hitachi Leans on Lumada and AI Tailwinds to Drive Inspire 2027 Targets
Apr 27, 2026
Hitachi reported that expansion of its Lumada digital business has driven both company-wide revenue growth and improved profitability, even amid an uncertain operating environment. The company is benefiting from the rapid expansion of the AI marke...
Hitachi Outlines Fiscal 2025 Results and Sets Framework for 2026
Apr 27, 2026
Hitachi released an outline of its consolidated financial results for the year ended March 31, 2026, labeled as fiscal 2025, presented by Senior Vice President and CFO Tomomi Kato. The document highlights key messages, detailed fiscal 2025 results...
Hitachi Lifts Revenue and Profit on Lumada and Infrastructure Demand in Fiscal 2025
Apr 27, 2026
Hitachi reported consolidated revenues of 10,586.7 billion yen for fiscal 2025, an 8% year-on-year increase driven by expansion of its Lumada digital business, strong demand for energy transmission equipment, solid digital systems demand in Japan,...
Hitachi Nears ¥100 Billion Cap as It Concludes Share Buyback Program
Apr 27, 2026
Hitachi, Ltd. has completed a share repurchase program of its common stock authorized by its board in January 2026, buying back 20,557,500 shares for a total of 99,999,720,301 yen through open-market purchases on the Tokyo Stock Exchange. The late...
Hitachi Revises Board Slate After Director Resignation on Health Grounds
Apr 21, 2026
Hitachi, Ltd. has announced the resignation of director Joe Harlan, effective April 21, 2026, following his request to step down for health reasons. The company confirmed that its board will continue to meet all legal and statutory requirements fo...
Hitachi Advances 100 Billion Yen Share Buyback With 10.8 Million Shares Repurchased
Apr 2, 2026
Hitachi, Ltd. reported that it repurchased 10,803,800 shares of its common stock on the open market through the Tokyo Stock Exchange between March 1 and March 31, 2026, at a total cost of approximately 52.1 billion yen. This transaction forms part...
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.