Hitachi,Ltd. (6501) AI Stock Analysis

• Market Cap: $17.57T
• Dividend Yield: 1.12%
• Average Volume (3M): 10.95M
• Price to Earnings (P/E): 28.0
• Beta (1Y): 1.64
• Revenue Growth: 2.21%
• EPS Growth: -7.98%
• Country: JP
• Employees: 268,655
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 42.01
• Shares Outstanding: 4,581,561,000
• 10 Day Avg. Volume: 13,181,420
• 30 Day Avg. Volume: 10,954,786
• PEG Ratio: 4.72
• Price to Book (P/B): 2.72
• Price to Sales (P/S): 1.63
• P/FCF Ratio: 17.19
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 1.99
• Enterprise Value/Gross Profit: 6.89
• Enterprise Value/Ebitda: 13.60
• 1Y Price Target: $4,594.71
• Price Target Upside: 19.44% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 72 Outperform
• Price Target: ¥4,396.00 ▲(14.27% Upside)

Hitachi's strong financial performance and positive earnings call sentiment are offset by technical indicators suggesting a bearish trend and a high valuation. The company's robust growth in key sectors and efficient cash flow management are significant strengths, but challenges in certain markets and high P/E ratio present risks.

Positive Factors

Negative Factors

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, software, ATMs, and scanners for manufacturing, communication, finance, healthcare and life science, energy and transportation, and distribution industries, as well as government and urban sectors; drone platform and unmanned aerial system traffic management solutions; infrastructure information systems; and consulting and system integration services. It also operates nuclear power plants, power grides, wind turbines, and power generation systems; provides energy and equipment management services; power semiconductors; elevators, escalators and moving sidewalk, and control elevator systems; and transportation systems. In addition, the company offers medical equipment for radiation therapy, In-vitro diagnosis, and regenerative medicines; automotive systems; home appliances; and water treatment solutions for water supply and sewage infrastructure, industrial water treatment, seawater desalination, and water recycling, as well as maintenance and repair services. Further, it manufactures and sales air and centrifugal compressors, blowers, electrical machinery control systems, fans, pumps, pharmaceutical manufacturing execution systems, induction motors, industrial computers and controllers, inverters, logistics and marking systems, IGBT drives, motors, nitrogen gas generators, rope and chain hoist, PCS, UPS, switches and breakers, steel systems, and transformers. Additionally, the company offers functional components and equipment, power electronic and magnetic materials, wires, and cable and related products; optical disk drives; and property management services. Hitachi, Ltd. was founded in 1910 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Hitachi, Ltd. generates revenue through a wide array of business units, each contributing to its diversified income streams. The company's IT Services and Solutions division is a significant revenue driver, where it provides system integration, consulting, and outsourcing services. Social Infrastructure and Industrial Systems is another key segment, offering products and services in energy, railways, and urban planning. The High Functional Materials & Components sector contributes through the sale of materials and components used in electronics, automotive, and industrial applications. Additionally, Hitachi's Automotive Systems division supplies advanced automotive components and systems. The Construction Machinery segment, which involves the manufacture and sale of construction and mining equipment, also adds to the revenue. Strategic partnerships and joint ventures, especially in areas like digital transformation and smart infrastructure, further bolster Hitachi's earning potential. These diversified operations ensure a balanced revenue model, reducing dependency on any single market or product.

Hitachi,Ltd. Financial Statement Overview

Summary

Hitachi, Ltd. presents a strong financial profile with robust revenue growth, solid profitability, and efficient cash flow management. The company's improved leverage and stable return on equity enhance its financial stability. Continued focus on maintaining low debt levels and capitalizing on growth opportunities will be key to sustaining its positive financial trajectory.

Income Statement

Hitachi, Ltd. demonstrates strong revenue growth with a TTM increase of 47.9%, indicating robust market demand and expansion. The gross profit margin of 28.8% and net profit margin of 6.3% reflect solid profitability. EBIT and EBITDA margins are healthy at 9.5% and 13.9%, respectively, showcasing efficient operations. The consistent revenue growth trajectory over recent periods underscores a positive outlook.

Balance Sheet

The company's debt-to-equity ratio has improved significantly to 0.21, indicating a strong balance sheet with reduced leverage. Return on equity is stable at 10.6%, reflecting effective use of equity to generate profits. The equity ratio of 43.1% suggests a solid capital structure, though the company should continue to monitor debt levels to maintain financial stability.

Cash Flow

Hitachi, Ltd. shows impressive free cash flow growth of 30.2% TTM, highlighting strong cash generation capabilities. The operating cash flow to net income ratio of 0.20 indicates efficient conversion of earnings into cash. The free cash flow to net income ratio of 0.79 is robust, suggesting effective cash management and potential for reinvestment or shareholder returns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.83T	9.78T	9.73T	10.88T	10.26T	8.73T
Gross Profit	2.84T	2.82T	2.58T	2.69T	2.56T	2.20T
EBITDA	1.44T	1.44T	1.35T	1.34T	1.37T	1.32T
Net Income	632.60B	615.72B	589.90B	649.12B	583.47B	501.61B
Balance Sheet
Total Assets	13.49T	13.28T	12.22T	12.50T	13.89T	11.85T
Cash, Cash Equivalents and Short-Term Investments	1.24T	1.18T	1.04T	1.18T	1.35T	1.34T
Total Debt	1.41T	1.21T	1.18T	2.21T	3.13T	2.40T
Total Liabilities	7.51T	7.25T	6.36T	7.17T	8.53T	7.39T
Stockholders Equity	5.82T	5.85T	5.70T	4.94T	4.34T	3.53T
Cash Flow
Free Cash Flow	1.20T	925.39B	571.47B	416.46B	290.08B	420.18B
Operating Cash Flow	1.47T	1.17T	956.61B	827.04B	729.94B	793.13B
Investing Cash Flow	-369.58B	-530.10B	-131.54B	151.06B	-1.05T	-458.84B
Financing Cash Flow	-652.62B	-467.68B	-1.02T	-1.14T	202.74B	-184.84B

Hitachi,Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3847.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6501, the sentiment is Negative. The current price of 3847 is below the 20-day moving average (MA) of 3989.20, below the 50-day MA of 4169.74, and below the 200-day MA of 3918.12, indicating a bearish trend. The MACD of -63.04 indicates Positive momentum. The RSI at 36.46 is Neutral, neither overbought nor oversold. The STOCH value of 16.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6501.

Hitachi,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8053	79 Outperform	5.31T	8.71	12.09%	2.96%	4.25%	59.51%
8001	78 Outperform	12.57T	12.94	16.68%	2.29%	2.83%	22.27%
8031	74 Outperform	10.77T	13.24	10.74%	2.65%	0.76%	-22.37%
6501	72 Outperform	$17.57T	27.98	10.93%	1.12%	2.21%	-7.98%
8058	72 Outperform	13.64T	17.76	8.98%	2.78%	-7.01%	-17.06%
8002	69 Neutral	6.11T	11.64	14.32%	2.61%	8.52%	10.16%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Hitachi,Ltd. Corporate Events

Hitachi Reports Progress on Share Repurchase Initiative

Hitachi, Ltd. announced the status of its ongoing share repurchase program, revealing that it has repurchased over 9.5 million shares of its common stock at a total cost of approximately 39.8 billion yen during August 2025. This move is part of a larger initiative approved by the Board of Directors to repurchase up to 140 million shares by March 2026, aiming to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:6501) stock is a Buy with a Yen4454.00 price target. To see the full list of analyst forecasts on Hitachi,Ltd. stock, see the JP:6501 Stock Forecast page.

Hitachi Announces Significant Share Repurchase Plan

Hitachi, Ltd. announced the repurchase of over 10 million shares of its common stock, amounting to approximately 42.6 billion yen, as part of a broader strategy approved by its Board of Directors to repurchase up to 140 million shares. This move is part of Hitachi’s ongoing efforts to optimize its capital structure and potentially enhance shareholder value, reflecting the company’s strategic financial management and commitment to its investors.

The most recent analyst rating on (JP:6501) stock is a Buy with a Yen4600.00 price target. To see the full list of analyst forecasts on Hitachi,Ltd. stock, see the JP:6501 Stock Forecast page.

Hitachi Reports Strong Q1 Financial Performance for Fiscal 2025

Hitachi, Ltd. reported its consolidated financial results for the first quarter of fiscal 2025, showing a steady increase in revenues and net income compared to the same period last year. The company achieved a 7% rise in adjusted operating income and a 10% increase in net income attributable to stockholders, reflecting strong operational performance. Despite a decrease in comprehensive income due to foreign currency translation adjustments, the overall financial health of the company remains robust, indicating positive implications for stakeholders.

The most recent analyst rating on (JP:6501) stock is a Buy with a Yen4000.00 price target. To see the full list of analyst forecasts on Hitachi,Ltd. stock, see the JP:6501 Stock Forecast page.