Hitachi Zosen Corporation (7004) AI Stock Analysis

• Market Cap: ¥163.48B
• Dividend Yield: 2.02%
• Average Volume (3M): 837.20K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 1.09
• Revenue Growth: 2.47%
• EPS Growth: 1.47%
• Country: JP
• Employees: 12,148
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): -11.14
• Shares Outstanding: 170,214,840
• 10 Day Avg. Volume: 639,370
• 30 Day Avg. Volume: 837,203
• PEG Ratio: 0.42
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.25
• P/FCF Ratio: -373.77
• 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
• EPS Forecast (FY): 17,295.7
• Revenue Forecast (FY): ¥10.00T>

• Rating: 66 Neutral
• Price Target: ¥1,001.00 ▲(2.56% Upside)

The overall stock score is driven by solid financial performance and attractive valuation metrics. However, technical analysis indicates bearish momentum, which tempers the overall outlook. The absence of recent earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health and expansion.

Stable Margins

Stable margins suggest operational efficiency and cost management, which are crucial for maintaining profitability and competitive advantage.

Moderate Debt Levels

Prudent use of leverage enhances financial stability, allowing for strategic investments and resilience against economic fluctuations.

Negative Factors

Cash Flow Volatility

Volatile cash flow can hinder investment capabilities and financial planning, impacting long-term growth and operational flexibility.

Net Profit Margin

Lower net profit margins compared to industry leaders may indicate less competitive pricing or higher costs, affecting profitability.

Capital Expenditure Management

Inefficient capital expenditure management could limit the company's ability to invest in growth opportunities and maintain competitive edge.

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 multiple streams, primarily by providing engineering services and manufacturing equipment for infrastructure projects, including waste management and water treatment facilities. The company earns money through the sale of its products, such as waste-to-energy plants and other environmental technologies. Additionally, it engages in project-based contracts, where it partners with government entities and private companies to deliver large-scale industrial solutions. Significant partnerships with local and international firms enhance its project capabilities and widen its market reach, contributing to consistent revenue growth. The company also benefits from after-sales services and maintenance contracts, ensuring ongoing income from its installations.

Hitachi Zosen Corporation Financial Statement Overview

Summary

Hitachi Zosen Corporation has demonstrated solid revenue growth and improved profitability, with stable EBIT and EBITDA margins. The balance sheet is stable with a moderate debt-to-equity ratio and increasing return on equity. However, cash flow management shows volatility, indicating a need for improved 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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	614.40B	610.52B	555.84B	492.69B	441.80B	408.59B
Gross Profit	114.13B	114.19B	95.30B	83.36B	72.15B	72.81B
EBITDA	38.82B	37.86B	36.42B	31.03B	23.60B	18.41B
Net Income	21.28B	22.10B	19.00B	15.58B	7.90B	4.26B
Balance Sheet
Total Assets	564.56B	609.67B	533.59B	479.68B	461.16B	429.34B
Cash, Cash Equivalents and Short-Term Investments	53.25B	70.76B	71.61B	86.40B	67.20B	47.28B
Total Debt	107.47B	137.42B	91.44B	86.47B	91.88B	98.15B
Total Liabilities	374.68B	411.77B	364.65B	338.37B	328.24B	301.17B
Stockholders Equity	181.23B	189.37B	162.66B	139.62B	131.30B	126.33B
Cash Flow
Free Cash Flow	-29.61B	-412.00M	-11.62B	19.37B	17.63B	10.75B
Operating Cash Flow	-4.43B	24.77B	478.00M	28.01B	26.86B	22.68B
Investing Cash Flow	-33.57B	-56.57B	-21.49B	-2.46B	943.00M	-13.85B
Financing Cash Flow	8.85B	30.15B	-2.61B	-7.84B	-8.76B	-5.27B

Hitachi Zosen Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 976.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 976 is below the 20-day moving average (MA) of 980.50, below the 50-day MA of 1036.50, and above the 200-day MA of 970.16, indicating a neutral trend. The MACD of -23.49 indicates Negative momentum. The RSI at 44.46 is Neutral, neither overbought nor oversold. The STOCH value of 69.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7004.

Hitachi Zosen Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9551	76 Outperform	$121.17B	14.74	12.54%	1.65%	13.86%	51.05%
6368	76 Outperform	¥593.11B	21.57	―	1.31%	7.87%	38.32%
6332	72 Outperform	¥107.27B	12.23	―	3.75%	2.46%	533.70%
6013	71 Outperform	¥193.81B	18.68	9.02%	3.16%	1.25%	-3.97%
6370	67 Neutral	¥694.51B	30.35	6.61%	1.61%	5.02%	-27.41%
7004	66 Neutral	¥163.48B	9.20	―	2.02%	2.47%	1.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Hitachi Zosen Corporation Corporate Events

Kanadevia Corporation Addresses Inappropriate Conduct at Mukaishima Works

Kanadevia Corporation has submitted an interim report to the Ministry of Land, Infrastructure, Transport and Tourism regarding inappropriate conduct at its Mukaishima Works. The company acknowledges the breach of trust caused by inadequate qualifications of welding operators but assures that safety is not significantly impacted. They are implementing preventive measures and conducting inspections to ensure the safety of bridges and structures.

The most recent analyst rating on (JP:7004) stock is a Buy with a Yen1264.00 price target. To see the full list of analyst forecasts on Hitachi Zosen Corporation stock, see the JP:7004 Stock Forecast page.