Hitachi Zosen Corporation (7004) AI Stock Analysis

• Market Cap: ¥166.01B
• Dividend Yield: 2.33%
• Average Volume (3M): 540.84K
• Price to Earnings (P/E): 7.5
• Beta (1Y): 1.10
• Revenue Growth: 9.84%
• EPS Growth: 16.60%
• Country: JP
• Employees: 12,148
• Sector: Industrials
• Sector Strength: 87
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): 99.29
• Shares Outstanding: 170,214,840
• 10 Day Avg. Volume: 618,740
• 30 Day Avg. Volume: 540,840
• PEG Ratio: 0.07
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.92
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: ¥1,100.00 ▲(11.68%Upside)

Hitachi Zosen Corporation demonstrates strong technical indicators and attractive valuation metrics, making it an appealing investment. Financial performance is robust, with room for improvement in equity strengthening and cash flow management. The absence of recent earnings call insights limits additional context, but the existing data supports a positive outlook.

Hitachi Zosen Corporation Business Overview & Revenue Model

Company Description

Kanadevia Corp design, constructs, and manufactures energy-from-waste plants, desalination plants, and water and sewage treatment plants in Japan and internationally. It operates through three segments: Environment, Machinery & Infrastructure, and Other. The company builds various water-related facilities, including sludge recycling centers and desalination plants, and energy-related facilities, including biomass plants, as well as engages in wind power generation. It also provides marine diesel engines, deck machinery for ships, process equipment, filter presses, industrial equipment, steel stacks, and spent nuclear fuel casks, as well as various types of precision machinery for electronics, semiconductor, food, and medical-related sectors; and engineering, procurement, construction, and after-sales services. In addition, the company engages in building, monitoring, maintenance, and repair of bridges and hydraulic gates for dams and rivers; developing shield tunneling machines for the construction of underground motorways and subway tracks, maintenance and earthquake protection systems for steel structures, electric discharge impulse crushing system, GPS comprehensive oceanographic monitoring systems, GPS remote monitoring systems, and flap-gate type seawalls against flood disaster due to tsunamis or storm surges. Further, it offers all-solid-state lithium-ion batteries and Zeolite Membrane Elements. Hitachi Zosen Corporation was founded in 1881 and is headquartered in Osaka, Japan.

How the Company Makes Money

Hitachi Zosen Corporation generates revenue through a diversified business model centered around its core sectors. The company earns money by designing, manufacturing, and selling environmental systems such as waste-to-energy plants, which convert waste into usable energy. It also profits from the construction and maintenance of industrial plants and facilities, offering solutions for chemical, petrochemical, and steel industries. Additionally, Hitachi Zosen provides engineering and construction services for public infrastructure projects, including bridges and floodgate systems. The company's machinery segment contributes to its income through the production of precision machinery and marine diesel engines. Strategic partnerships and collaborations with both private and public sector entities further enhance its revenue streams by expanding its market reach and technological capabilities.

Hitachi Zosen Corporation Financial Statement Overview

Summary

Hitachi Zosen Corporation has shown solid revenue growth and improved profitability, supported by efficient operational management. The balance sheet is stable with a prudent capital structure, although there is room to enhance the equity position. Cash flow performance is mixed, indicating a need for better capital expenditure management.

Income Statement

Hitachi Zosen Corporation has demonstrated solid revenue growth with a consistent upward trajectory over the past years. The gross profit and net profit margins have shown improvement, reflecting enhanced operational efficiency. The EBIT and EBITDA margins are stable, indicating healthy earnings before interest and taxes. However, the net profit margin, while improving, still has room for growth to reach industry-leading levels.

Balance Sheet

The company maintains a balanced approach to its capital structure with a moderate debt-to-equity ratio, reflecting prudent use of leverage. The return on equity has been increasing, showcasing effective utilization of shareholders' funds. The equity ratio suggests a solid foundation, though there is potential to strengthen the equity position further to enhance financial stability.

Cash Flow

Hitachi Zosen’s cash flow management shows some volatility, with free cash flow fluctuating in recent years. The operating cash flow to net income ratio indicates effective cash generation from core operations. However, the free cash flow to net income ratio suggests a need for improved capital expenditure management to enhance cash flow performance.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	596.96B	610.52B	555.84B	492.69B	441.80B	408.59B
Gross Profit	105.99B	114.19B	95.30B	83.36B	72.15B	72.81B
EBITDA	31.19B	37.86B	36.42B	31.03B	26.46B	26.20B
Net Income	18.43B	22.10B	19.00B	15.58B	7.90B	4.26B
Balance Sheet
Total Assets	540.36B	609.67B	533.59B	479.68B	461.16B	429.34B
Cash, Cash Equivalents and Short-Term Investments	49.61B	70.76B	71.61B	86.40B	67.20B	47.28B
Total Debt	112.11B	135.76B	91.44B	86.47B	91.88B	98.15B
Total Liabilities	365.46B	411.77B	364.65B	338.37B	328.24B	301.17B
Stockholders Equity	166.33B	189.37B	162.66B	139.62B	131.30B	126.33B
Cash Flow
Free Cash Flow	-18.93B	-412.00M	-11.62B	19.37B	17.63B	10.75B
Operating Cash Flow	-26.37B	24.77B	478.00M	28.01B	26.86B	22.68B
Investing Cash Flow	-15.99B	-56.57B	-21.49B	-2.46B	943.00M	-13.85B
Financing Cash Flow	31.92B	30.15B	-2.61B	-7.84B	-8.76B	-5.27B

Hitachi Zosen Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 985.00
• 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:7004, the sentiment is Positive. The current price of 985 is above the 20-day moving average (MA) of 951.10, above the 50-day MA of 926.60, and above the 200-day MA of 936.15, indicating a bullish trend. The MACD of 11.56 indicates Negative momentum. The RSI at 60.67 is Neutral, neither overbought nor oversold. The STOCH value of 76.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7004.

Hitachi Zosen Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7004	77 Outperform	¥166.01B	7.50		2.33%	9.84%	16.60%
9551	77 Outperform	¥79.45B	14.03	8.79%	2.36%	8.17%	-0.38%
6370	76 Outperform	$625.06B	30.79	6.03%	1.65%	6.25%	-30.48%
6332	76 Outperform	¥90.37B	13.76		4.88%	12.10%	148.20%
6368	73 Outperform	¥409.79B	17.00		1.99%	8.59%	39.41%
6013	71 Outperform	$159.52B	15.31	9.36%	3.75%	1.34%	20.86%
Sector *	65 Neutral	$10.56B	15.49	5.57%	1.96%	2.71%	-26.28%

Hitachi Zosen Corporation Corporate Events

Kanadevia Corporation Addresses Inappropriate Conduct Across Business Sectors

Kanadevia Corporation has been dealing with inappropriate conduct in its marine engine business and other sectors. A Special Investigation Committee was established to address these issues, and the company has received the investigation results for businesses other than the marine engine sector. Despite the inappropriate conduct, the company assures stakeholders that there is no immediate impact on product safety and is committed to implementing measures to prevent recurrence and restore trust.

Kanadevia Corporation Proposes Amendments to Strengthen Governance

Kanadevia Corporation has announced a proposal to amend its Articles of Incorporation, specifically aiming to abolish the position of Counselors. This move is intended to strengthen corporate governance and enhance management transparency, reflecting the company’s commitment to improving its operational framework.

Kanadevia Corporation Reports Significant Profit Increase Despite Operational Challenges

Kanadevia Corporation has reported a significant change in its non-consolidated financial results for the fiscal year ending March 2025, with a notable over 30% increase in profit compared to the previous year. The company experienced a decrease in operating and ordinary income due to challenges in its Machinery & Infrastructure and Carbon Neutral Solution businesses, as well as foreign exchange losses. However, a reduction in tax expenses led to an increase in net income.

Kanadevia Corporation Reports Extraordinary Losses Due to Inappropriate Conduct

Kanadevia Corporation has recorded extraordinary losses for the fiscal year ending March 31, 2025, due to inappropriate conduct in its marine engine business and other sectors. The company has accounted for investigation and compliance costs, totaling 3.5 billion yen in consolidated financial statements and 3.2 billion yen in non-consolidated financial statements, impacting its financial results.

Kanadevia Corporation Increases Year-End Dividend Amid Strong Fiscal Performance

Kanadevia Corporation announced an increase in its year-end dividend to 25 yen per share, reflecting a strong fiscal performance that exceeded initial forecasts. The company plans to continue stable dividend distribution while investing in growth areas to strengthen its financial position and management base.

Kanadevia Corporation Implements Measures to Prevent Inappropriate Conduct

Kanadevia Corporation has taken decisive steps to address inappropriate conduct in its operations, specifically outside of its marine engine business. Following an investigation by a Special Investigation Committee, the company has implemented several measures to prevent recurrence, including thorough verification of qualifications, enhanced monitoring systems, and comprehensive training programs. These actions aim to restore stakeholder trust and ensure compliance with industry standards.

Kanadevia Corporation Addresses Inappropriate Conduct in Operations

Kanadevia Corporation, a company involved in manufacturing steel structures, special equipment, and operating waste management facilities, has been addressing inappropriate conduct in its operations. Following an investigation by a Special Committee, the company has identified issues beyond its marine engine business, including inadequate qualifications of welding operators. While these issues do not pose immediate safety risks, Kanadevia is taking corrective measures to restore trust and ensure compliance, although the financial impact remains undetermined.

Kanadevia Corporation Announces Disciplinary Actions for Misconduct

Kanadevia Corporation has announced disciplinary actions following inappropriate conduct within its Marine Engine Business and other sectors. The company has decided that several directors and corporate auditors, including President and CEO Michi Kuwahara, will return a portion of their monthly remuneration for a specified period, starting May 2025, as a measure to address the misconduct and reassure stakeholders.