Want to see HTHIY full AI Analyst Report?
Top Page
Hitachi
(OTC:HTHIY)
Select Model
Select Model
Rating:73Outperform
Price Target:
$40.00
â–²(20.19% Upside)
Action:Reiterated
Date:10/28/26
The score is driven primarily by strong financial performance (rapid TTM growth, improving margins, low current leverage, and robust free cash flow) and a very constructive earnings call with upward guidance revisions and stronger shareholder returns. Offsetting factors are a mixed technical picture with subdued short-term momentum and a relatively high P/E with only a modest dividend yield.
Positive Factors
Revenue and Margin Expansion
Strong revenue growth alongside expanding gross, operating, and net margins indicates improving operating leverage and execution. If sustained across Hitachi’s digital, energy, mobility, and industrial businesses, this combination can support stronger earnings power and reinvestment over the next several quarters.
Negative Factors
Large-Project Execution Risk
Large infrastructure projects can create earnings volatility when costs exceed estimates or delivery timelines slip. These risks may pressure margins, delay cash collection, and consume management resources, limiting the durability of otherwise strong growth in the Power Grid and other project-led businesses.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Margin Expansion
Strong revenue growth alongside expanding gross, operating, and net margins indicates improving operating leverage and execution. If sustained across Hitachi’s digital, energy, mobility, and industrial businesses, this combination can support stronger earnings power and reinvestment over the next several quarters.
Read all positive factors
Hitachi (HTHIY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$161.19B
Dividend Yield1.01%
Average Volume (3M)14.85K
Price to Earnings (P/E)31.8
Beta (1Y)1.28
Revenue Growth8.85%
EPS Growth24.79%
CountryUS
Employees287,901
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)180.73
Shares Outstanding4,535,561,000
10 Day Avg. Volume0
30 Day Avg. Volume14,847
Financial Highlights & Ratios
PEG Ratio0.62
Price to Book (P/B)3.18
Price to Sales (P/S)1.87
P/FCF Ratio15.03
Enterprise Value/Market Cap0.95
Enterprise Value/Revenue0.01
Enterprise Value/Gross Profit0.05
Enterprise Value/Ebitda0.08
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.38
Revenue Forecast (FY)$75.27B
Hitachi Business Overview & Revenue Model
Company Description
Established in Tokyo, Japan, in 1910, Hitachi, Ltd. operates as a diversified global enterprise, delivering a comprehensive array of advanced solutions across information technology, energy, industry, mobility, and smart life sectors to clients bo...
How the Company Makes Money
Hitachi primarily makes money by selling complex equipment and systems, delivering large-scale engineering and integration projects, and providing ongoing services tied to installed infrastructure and enterprise operations.
Key revenue streams ty...
Hitachi Earnings Call Summary
Earnings Call Date:Oct 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 03, 2027
Earnings Call Sentiment Positive
The call was strongly positive. Hitachi reported record second-quarter revenue and adjusted EBITA, broad-based growth across all four sectors, strong order momentum, improved margins and cash flow, upward revisions to key full-year forecasts, and increased shareholder returns. Management also highlighted continued investment in AI, HMAX, Power Grid capacity, and Hitachi Digital. The main challenges were a JPY 9 billion one-time DSS project loss, a severe overseas digital engineering market, supply-chain and delivery uncertainties, and broader geopolitical, interest-rate, cybersecurity, and large-project execution risks.Positive Updates
Record Q2 Revenue and Adjusted EBITA
Q2 revenues rose 15% year-on-year, driven by business growth and foreign exchange effects. All four sectors—Energy, DSS, Connective Industries, and Mobility—posted higher revenues and higher profits, while both revenues and adjusted EBITA reached record highs for a second quarter.
Negative Updates
One-Time DSS Project Loss
DSS incurred a one-time loss cost of JPY 9 billion from a loss-cost overrun on a social infrastructure systems-integration project. Management said the project should wind down in Q2 and does not expect further effects going forward.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Q2 Revenue and Adjusted EBITA
Q2 revenues rose 15% year-on-year, driven by business growth and foreign exchange effects. All four sectors—Energy, DSS, Connective Industries, and Mobility—posted higher revenues and higher profits, while both revenues and adjusted EBITA reached record highs for a second quarter.
Read all positive updates
Company Guidance
For fiscal year 2026, Hitachi raised its revenue forecast by JPY 300 billion and adjusted EBITA by JPY 40 billion, while revising full free cash flow and ROIC upward; DSS revenue was raised by JPY 70 billion, with full year growth of 8% in fiscal year 2026, 2 points higher than the previous forecast, Energy expects full-year growth of 21% and adjusted EBITA was raised by JPY 33 billion, with profit margin expected to improve by 15%, and CI revenue and adjusted EBITA were raised by JPY 50 billion and JPY 5 billion, respectively. Consolidated revenues are expected to grow 13% year-on-year, or 11% excluding special factors, with adjusted EBITA margin focused at 13% or 13.6% excluding special factors, expected to improve by 120 basis points for the full year; net income is expected to rise by approximately JPY 120 billion year-on-year, core free cash flow to increase by approximately JPY 90 billion excluding the effect of last year's large advance payments, and cash conversion ratio to remain at 100%. HMAX revenue is planned to rise by 25% and profit margin by 17%, with a progress rate of 47% against the FY 2026 four-year forecast of JPY 510 billion; SI productivity enhancement is targeted at 20% this fiscal year and 30% in FY 2027, while Hitachi Digital sees higher double-digit growth opportunities in the coming years across seven verticals, four horizontals, 200 top customers contributing today to about 80% of revenues, and 11 ecosystem partners.Hitachi Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
80
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.22T | 11.23T | 9.78T | 9.73T | 10.88T | 10.26T |
| Gross Profit | 3.38T | 3.37T | 2.82T | 2.58T | 2.69T | 2.56T |
| EBITDA | 1.93T | 1.73T | 1.44T | 1.35T | 1.34T | 1.37T |
| Net Income | 813.00B | 850.76B | 615.72B | 589.90B | 649.12B | 583.47B |
Balance Sheet | ||||||
| Total Assets | 14.94T | 15.11T | 13.28T | 12.22T | 12.50T | 13.89T |
| Cash, Cash Equivalents and Short-Term Investments | 1.49T | 1.33T | 866.24B | 1.04T | 1.18T | 1.35T |
| Total Debt | 1.05T | 1.01T | 1.21T | 1.18T | 2.21T | 3.13T |
| Total Liabilities | 8.22T | 8.30T | 7.25T | 6.36T | 7.17T | 8.53T |
| Stockholders Equity | 6.53T | 6.60T | 5.85T | 5.70T | 4.94T | 4.34T |
Cash Flow | ||||||
| Free Cash Flow | 1.35T | 1.40T | 925.39B | 571.47B | 416.46B | 290.08B |
| Operating Cash Flow | 1.75T | 1.77T | 1.17T | 956.61B | 827.04B | 729.94B |
| Investing Cash Flow | -318.63B | -362.98B | -530.10B | -131.54B | 151.06B | -1.05T |
| Financing Cash Flow | -1.30T | -1.03T | -467.68B | -1.02T | -1.14T | 202.74B |
Hitachi Technical Analysis
Positive
33.28
Price Trends
34.86
Positive
32.86
Positive
32.33
Positive
Market Momentum
0.32
Positive
49.82
Neutral
9.94
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HTHIY, the sentiment is Positive. The current price of 33.28 is below the 20-day moving average (MA) of 35.86, below the 50-day MA of 34.86, and above the 200-day MA of 32.33, indicating a neutral trend. The MACD of 0.32 indicates Positive momentum. The RSI at 49.82 is Neutral, neither overbought nor oversold. The STOCH value of 9.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HTHIY.
Hitachi Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $69.58B | 9.91 | 36.19% | 2.03% | -17.35% | 23.22% | |
73 Outperform | $161.19B | 31.75 | 12.48% | 1.01% | 8.85% | 24.79% | |
70 Outperform | $8.32B | 16.33 | 30.42% | 0.69% | 4.55% | 131.74% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
57 Neutral | $89.29B | 25.60 | 94.02% | 1.78% | 1.70% | 7.26% | |
56 Neutral | $356.23M | -4.37 | -27.83% | 4.15% | 5.09% | 14.61% | |
45 Neutral | $593.67M | -20.45 | -5.81% | 5.36% | -31.82% | 55.14% |
* Industrials Sector Average
HTHIY
Hitachi
35.52
3.59
11.26%
MMM
3M
172.80
11.15
6.90%
HON
Honeywell International
219.26
13.05
6.33%
MATW
Matthews International
19.02
-3.24
-14.54%
NNBR
NN
3.80
1.90
100.00%
VMI
Valmont
434.60
18.10
4.35%
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.