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Hitachi Zosen Corporation (JP:7004)
:7004
Japanese Market
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Hitachi Zosen Corporation (7004) AI Stock Analysis

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JP:7004

Hitachi Zosen Corporation

(7004)

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Neutral 55 (OpenAI - 5.2)
Rating:55Neutral
Price Target:
¥1,277.00
▲(4.50% Upside)
Action:Reiterated
Date:08/17/26
The score is primarily held back by weakening 2026 profitability and, most importantly, deteriorating cash generation with materially negative free cash flow, alongside rising leverage. Technical signals are broadly neutral-to-mixed, while valuation is relatively reasonable (P/E ~14.1, ~2.0% dividend yield), providing partial support.
Positive Factors
Steady revenue growth
Consistent multi-year revenue expansion indicates sustained demand for the company’s infrastructure, plant engineering and equipment offerings. Continued growth provides a durable base for future earnings if project execution and cost control improve.
Negative Factors
Sharp profitability decline
The substantial deterioration in operating and net margins weakens earnings quality and reduces the buffer available for project overruns or cost inflation. Unless profitability recovers, revenue growth may translate into limited shareholder returns over the next several months.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady revenue growth
Consistent multi-year revenue expansion indicates sustained demand for the company’s infrastructure, plant engineering and equipment offerings. Continued growth provides a durable base for future earnings if project execution and cost control improve.
Read all positive factors

Hitachi Zosen Corporation (7004) vs. iShares MSCI Japan ETF (EWJ)

Hitachi Zosen Corporation Business Overview & Revenue Model

Company Description
Kanadevia Corp is an international engineering and manufacturing firm specializing in diverse environmental and industrial solutions. The company designs, constructs, and operates a variety of essential facilities globally, including plants for co...
How the Company Makes Money
Hitachi Zosen primarily makes money by executing engineering and manufacturing projects and providing related services across its business domains. Key revenue streams typically include: (1) Plant/EPC project revenue: The company earns revenue fro...

Hitachi Zosen Corporation Financial Statement Overview

Summary
Solid multi-year revenue growth, but 2026 profitability weakened sharply (net margin ~1.7% vs ~3.6% in 2025; EBIT margin ~1.9% vs ~4.4%). Leverage increased (debt-to-equity ~0.94 in 2026). The largest negative is cash quality: free cash flow turned materially negative in 2026 (~-¥10.0B) following another negative year in 2025.
Income Statement
60
Neutral
Balance Sheet
66
Positive
Cash Flow
34
Negative
BreakdownMar 2026Mar 2026Mar 2025Mar 2024Mar 2023
Income Statement
Total Revenue645.22B610.52B555.84B492.69B441.80B
Gross Profit109.07B114.19B95.30B83.36B72.15B
EBITDA31.39B37.86B36.42B30.29B23.60B
Net Income11.14B22.10B19.00B15.58B7.90B
Balance Sheet
Total Assets718.64B609.67B533.59B479.68B461.16B
Cash, Cash Equivalents and Short-Term Investments78.01B70.76B71.61B86.40B67.20B
Total Debt184.06B135.76B91.44B86.47B91.88B
Total Liabilities515.23B411.77B364.64B338.37B328.23B
Stockholders Equity196.81B189.37B162.66B139.62B131.30B
Cash Flow
Free Cash Flow-10.05B-412.00M-7.29B21.43B19.38B
Operating Cash Flow11.65B24.77B478.00M28.01B26.86B
Investing Cash Flow-48.03B-56.57B-21.49B-2.46B943.00M
Financing Cash Flow41.54B30.15B-2.61B-7.84B-8.76B

Hitachi Zosen Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
¥110.89B6.903.20%8.13%94.71%
69
Neutral
¥614.22B22.331.32%7.05%12.23%
68
Neutral
¥227.08B14.7812.69%2.69%17.65%72.55%
61
Neutral
¥909.82B37.084.73%1.25%0.99%24.98%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
55
Neutral
¥202.91B13.632.05%7.67%-30.19%
52
Neutral
¥137.31B14.6311.19%2.28%14.61%26.89%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7004
Hitachi Zosen Corporation
1,190.00
221.96
22.93%
JP:6370
Kurita Water Industries
8,219.00
3,340.27
68.47%
JP:9551
METAWATER Co
3,140.00
268.88
9.36%
JP:6013
Takuma Co
3,065.00
900.75
41.62%
JP:6332
TSUKISHIMA HOLDINGS CO. LTD.
2,786.00
-67.97
-2.38%
JP:6368
Organo Corp.
13,415.00
2,359.58
21.34%

Hitachi Zosen Corporation Corporate Events

Kanadevia Returns to Profit as Sales Rise and Outlook Strengthens
Aug 6, 2026
Kanadevia Corporation reported a 13.0% year-on-year rise in net sales to ¥141.7 billion for the quarter ended June 30, 2026, while sharply narrowing losses to post a small profit attributable to owners of ¥94 million, compared with a sig...
Kanadevia Extends Trust Period for Share-Based Executive Pay Plan
Aug 6, 2026
Kanadevia Corporation has decided to extend the duration of its share-based remuneration plan for directors and executive officers, excluding outside directors and non-residents of Japan, in order to continue providing equity incentives. The plan,...
Kanadevia Corrects Cash Flow Presentation in FY2026 Results
Jun 22, 2026
Kanadevia Corporation has corrected errors in the consolidated statements of cash flows for the fiscal year ended March 31, 2026, originally disclosed in May. The revisions affect the classification of cash flows related to the sale of shares of s...
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.Date of analysis: Aug 17, 2026