Hitachi,Ltd. (JP:6501)
:6501
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Hitachi,Ltd.
(6501)
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Rating:73Outperform
Price Target:
¥5,213.00
▲(7.53% Upside)
Action:ReiteratedDate:03/01/26
The score is primarily supported by strong financial performance (improving margins, healthier leverage, and robust free cash flow). This is partially offset by mixed technical momentum (negative MACD despite supportive moving averages) and a less attractive valuation profile (high P/E and low dividend yield).
Positive Factors
Strong cash generation
Robust TTM free cash flow and strong operating cash flow (FCF growth ~6.3%, cash conversion ~0.82x of net income) provide durable internal funding for capex, R&D and service expansion. High FCF lowers reliance on external financing, enabling steady reinvestment and resilience across cycles.
Negative Factors
Uneven revenue consistency
Annual revenue has been uneven, with mixed yearly trends and a 2024 decline despite modest TTM growth. Reliance on large project and systems sales makes top-line lumpy, reducing predictability of future earnings and complicating capacity planning and long-term margin forecasting.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Robust TTM free cash flow and strong operating cash flow (FCF growth ~6.3%, cash conversion ~0.82x of net income) provide durable internal funding for capex, R&D and service expansion. High FCF lowers reliance on external financing, enabling steady reinvestment and resilience across cycles.
Read all positive factors
Hitachi,Ltd. (6501) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥21.75T
Dividend Yield0.9%
Average Volume (3M)14.78M
Price to Earnings (P/E)33.4
Beta (1Y)1.43
Revenue Growth7.62%
EPS Growth19.76%
CountryJP
Employees268,655
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)36.73
Shares Outstanding4,535,561,000
10 Day Avg. Volume15,366,370
30 Day Avg. Volume14,781,133
Financial Highlights & Ratios
PEG Ratio4.72
Price to Book (P/B)2.72
Price to Sales (P/S)1.63
P/FCF Ratio17.19
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥6,135.97Price Target Upside26.57% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)210.92
Revenue Forecast (FY)¥11.36T
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, ...
How the Company Makes Money
Hitachi makes money primarily by selling products, turnkey systems, and ongoing services across its major business segments. In Digital Systems & Services, it earns revenue from consulting, systems integration, software and platform offerings (inc...
Hitachi,Ltd. Earnings Call Summary
Earnings Call Date:Oct 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Apr 27, 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
82
Very Positive
Balance Sheet
78
Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
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
Positive
4848.00
Price Trends
4959.48
Negative
4990.28
Negative
4632.53
Positive
Market Momentum
-28.21
Negative
51.01
Neutral
72.63
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 4848 is above the 20-day moving average (MA) of 4770.95, below the 50-day MA of 4959.48, and above the 200-day MA of 4632.53, indicating a neutral trend. The MACD of -28.21 indicates Negative momentum. The RSI at 51.01 is Neutral, neither overbought nor oversold. The STOCH value of 72.63 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥9.97T | 14.11 | 13.39% | 2.29% | 9.62% | 25.71% | |
73 Outperform | ¥21.75T | 33.37 | 13.65% | 0.90% | 7.62% | 19.76% | |
71 Outperform | ¥15.76T | 16.87 | 15.23% | 2.11% | 0.93% | 15.80% | |
69 Neutral | ¥7.26T | 15.10 | 12.86% | 2.48% | 3.19% | 72.26% | |
68 Neutral | ¥20.11T | 13.18 | 7.39% | 2.94% | -7.54% | -35.70% | |
67 Neutral | ¥17.70T | 17.68 | 11.47% | 2.28% | -1.33% | -7.40% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
JP:6501
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Hitachi,Ltd. Corporate Events
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...
Hitachi Advances Global, Independent Board Lineup With New Director Candidates
Mar 31, 2026
Hitachi, Ltd. has unveiled a slate of 12 director candidates to be put before shareholders at its June annual meeting, reinforcing its governance model that emphasizes independent oversight. The list includes 10 incumbent directors and two new nom...
Hitachi Revamps Executive Equity Plan to Tighten Link Between Pay and Long-Term Performance
Mar 31, 2026
Hitachi has overhauled its executive equity compensation program by discontinuing its existing restricted stock scheme and replacing it with a globally standardized framework built around Restricted Stock Units (RSUs) and Performance Share Units (...
Hitachi to Cancel 46 Million Treasury Shares, Trimming Share Base by 1%
Mar 23, 2026
Hitachi, Ltd. will cancel 46 million shares of its common stock, representing 1% of its outstanding shares, under Article 178 of the Companies Act of Japan. The cancellation, scheduled for March 31, 2026, will reduce the total number of outstandin...
Hitachi to Launch RSU and Global Stock Purchase Plans to Drive Long-Term Value
Mar 23, 2026
Hitachi, Ltd. will introduce a new Restricted Stock Unit program for employees and roll out a global Employee Stock Purchase Plan from fiscal 2026 as part of its “Inspire 2027” human capital strategy. By structurally linking employee p...
Hitachi Reports No Share Repurchases Yet Under Authorized Buyback Program
Mar 3, 2026
Hitachi, Ltd. reported that it did not repurchase any of its common shares during the period from January 30 to February 28, 2026, despite having Board authorization for a sizeable buyback program. The mandate allows purchases of up to 30 million ...
Hitachi Reshapes Executive Lineup to Strengthen Key Business Sectors
Jan 29, 2026
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, ...
Hitachi Authorizes Up to ¥100 Billion Share Buyback to Enhance Shareholder Returns
Jan 29, 2026
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...
Hitachi Delivers Strong Profit Growth in Nine-Month Results to December 2025
Jan 29, 2026
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 mo...
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.