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Hitachi Ltd (HTHIY)
OTHER OTC:HTHIY
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Hitachi
(OTC:HTHIY)
75Outperform
Hitachi (HTHIY) vs. S&P 500 (SPY)
Market Cap
$102.50B
Dividend Yield0.84%
Average Volume (3M)36.07K
Price to Earnings (P/E)27.3
Beta (1Y)1.39
Revenue Growth-11.80%
EPS Growth-33.45%
CountryUS
Employees268,655
SectorIndustrials
Sector Strength66
IndustryConglomerates
Share Statistics
EPS (TTM)0.20
Shares Outstanding4,580,342,000
10 Day Avg. Volume108,210
30 Day Avg. Volume36,070
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.68
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering0
Hitachi Business Overview & Revenue Model
Company DescriptionHitachi, 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 MoneyHitachi generates revenue through a diverse range of business units, with its IT services and solutions being a significant contributor. The company provides digital transformation services, cloud solutions, and IT consulting to various industries. Additionally, its Energy segment contributes through the sale of power generation systems, including nuclear and renewable energy solutions. In the Industry sector, Hitachi offers industrial equipment and solutions for sectors such as manufacturing, logistics, and construction. Mobility solutions, including railway and automotive systems, are also key revenue streams. Hitachi's strategic partnerships and collaborations in technology, infrastructure, and digital solutions further enhance its revenue potential, allowing it to capitalize on emerging technological trends and global market demands.
Hitachi Financial Statement Overview
Summary
Hitachi demonstrates a well-balanced financial position with strong operational efficiency, stable leverage, and healthy cash flow generation. Despite inconsistent revenue growth, the company maintains solid margins and a robust equity position, enhancing its resilience in a fluctuating market environment.Income Statement
Hitachi displays a stable gross profit margin with a slight decline in net profit margin over the years. Revenue growth rate has been inconsistent, with recent declines, impacting overall profitability. EBIT and EBITDA margins show resilience, indicating operational efficiency even amid fluctuating revenues.72
Positive
Balance Sheet
The balance sheet reveals a solid equity base, with a manageable debt-to-equity ratio indicating moderate leverage. The return on equity is relatively healthy, though slightly declining, pointing to effective use of capital. The equity ratio is robust, suggesting financial stability.75
Positive
Cash Flow
Cash flow statements reflect strong operating cash flows and consistent free cash flow generation, with growth in free cash flow over the years. The operating cash flow to net income ratio is favorable, indicating good cash conversion efficiency. However, variability in free cash flow growth suggests potential volatility.78
Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 9.62T | 9.73T | 10.88T | 10.26T | 8.73T | 8.77T | Gross Profit |
| 2.65T | 2.58T | 2.69T | 2.56T | 2.20T | 2.37T | EBIT |
| 822.89B | 755.82B | 748.14B | 738.24B | 495.18B | 661.88B | EBITDA |
| 1.33T | 1.35T | 1.47T | 1.28T | 986.84B | 1.10T | Net Income Common Stockholders |
| 695.20B | 589.90B | 649.12B | 583.47B | 501.61B | 87.60B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.03T | 1.04T | 833.28B | 968.83B | 1.02T | 812.33B | Total Assets |
| 9.69T | 12.22T | 12.50T | 13.89T | 11.85T | 9.93T | Total Debt |
| 1.32T | 1.18T | 2.21T | 3.13T | 2.40T | 1.49T | Net Debt |
| 616.08B | 474.65B | 1.38T | 2.16T | 1.38T | 672.71B | Total Liabilities |
| 5.40T | 6.36T | 7.17T | 8.53T | 7.39T | 5.66T | Stockholders Equity |
| 3.14T | 5.70T | 4.94T | 4.34T | 3.53T | 3.16T |
| Cash Flow | Free Cash Flow | ||||
| 644.59B | 571.47B | 416.46B | 290.08B | 420.18B | 139.64B | Operating Cash Flow |
| 981.57B | 956.61B | 827.04B | 729.94B | 793.13B | 560.92B | Investing Cash Flow |
| -327.35B | -131.54B | -123.31B | -1.07T | -999.44B | -523.17B | Financing Cash Flow |
| -802.01B | -1.02T | -868.59B | 224.75B | 355.76B | 178.00M |
Hitachi Technical Analysis
Positive
24.96
Price Trends
24.72
Negative
25.04
Negative
24.72
Negative
Market Momentum
-0.17
Negative
56.02
Neutral
97.37
Negative
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 24.96 is above the 20-day moving average (MA) of 22.77, above the 50-day MA of 24.72, and above the 200-day MA of 24.72, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 56.02 is Neutral, neither overbought nor oversold. The STOCH value of 97.37 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HTHIY.
Hitachi Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $102.50B | 27.31 | 10.16% | 0.84% | -11.80% | -33.45% | |
73 Outperform | $127.60B | 22.79 | 33.10% | 2.23% | 5.05% | 2.73% | |
63 Neutral | $4.14B | 11.23 | 5.47% | 215.40% | 4.10% | -8.63% | |
59 Neutral | $73.53B | 18.05 | 94.75% | 2.08% | -24.93% | ― |
* Industrials Sector Average
Performance Comparison
HTHIY
Hitachi
24.96
7.98
47.00%
MMM
3M
138.88
49.51
55.40%
HON
Honeywell International
200.74
11.73
6.21%
Hitachi Earnings Call Summary
Earnings Call Date: Jan 31, 2025 | % Change Since: 2.04% | Next Earnings Date: Apr 28, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue growth and upward forecast revisions, particularly driven by the success in Digital Systems & Services and Hitachi Energy. However, challenges remain in the Chinese market and specific segments like Railway Systems and semiconductor-related businesses. Despite these issues, the overall sentiment leans towards optimism due to overall robust performance and strategic adjustments.Highlights
Revenue and Profit Growth
Revenues for the third quarter were JPY 2.189 trillion, an 11% increase year-on-year, with adjusted EBITA at JPY 221.8 billion, showing a Y-o-Y increase of JPY 34.1 billion. For the accumulated Q1 to Q3, revenues were JPY 6.0537 trillion, a 12% Y-o-Y increase, and adjusted EBITA was JPY 581.5 billion, up by JPY 83.4 billion.
Upward Forecast Revisions
Full-year forecast revenues were revised to JPY 8.2856 trillion, a 4% increase from the previous forecast. Adjusted EBITA was revised to JPY 829.3 billion, up by JPY 11.3 billion from previous forecasts.
Strong Performance of Hitachi Energy
Hitachi Energy orders for the 3 quarters reached JPY 2.6209 trillion, up 51% Y-o-Y, with a backlog of JPY 4.3 trillion, ensuring about 2 years of business.
Digital Systems & Services Success
Digital Systems & Services saw a 9% Y-o-Y increase in revenues and an adjusted EBITA increase of JPY 16.1 billion, achieving the highest-ever record for adjusted EBITA at JPY 87 billion.
GlobalLogic Continues to Grow
GlobalLogic's revenue and profit continued to grow strongly, contributing significantly to the Digital Systems & Services sector.
Lowlights
Challenges in the Chinese Market
The decline in China market revenues, especially in Digital Systems & Services, was noted, with a significant impact from the local government's policy favoring Chinese products.
Railway Systems Profit Decline
Despite increased revenues, Railway Systems experienced a decline in profit during the third quarter, attributed to specific challenges in the quarter.
Semiconductor Equipment Delays
The Measurement & Analysis Systems saw a decline in adjusted EBITA by JPY 6.5 billion due to delays in the semiconductor cycle recovery, now expected to improve in the second half of next year.
Company Guidance
During the earnings call for Hitachi Limited's third quarter ending December 31, 2023, several key metrics and forecasts were discussed. Revenue for the quarter reached JPY 2.189 trillion, marking an 11% year-on-year increase, while adjusted EBITA came in at JPY 221.8 billion, reflecting a JPY 34.1 billion increase from the previous year. For the cumulative period from Q1 to Q3, revenues amounted to JPY 6.0537 trillion, a 12% rise year-on-year, with adjusted EBITA growing by JPY 83.4 billion to JPY 581.5 billion. The company revised its full-year forecast upwards, anticipating revenues of JPY 8.2856 trillion, a 4% increase from previous estimates, and adjusted EBITA of JPY 829.3 billion, which is JPY 11.3 billion higher than earlier projections. Net income is expected to rise by JPY 10 billion to JPY 530 million. Major business wins were highlighted, including a JPY 14 billion contract with TenneT for HVDC converter stations and a JPY 140 billion deal with Trenitalia for high-speed trains. Additionally, the Digital Systems & Services sector reported a 9% rise in orders year-on-year, while Hitachi Energy saw a substantial 51% increase in orders, totaling JPY 2.6209 trillion. The company also emphasized improvements in its core free cash flow, expecting an increase of JPY 100 billion from previous forecasts, reaching JPY 440 billion.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.