Education
About Us
Working with TipRanks
Follow Us
Hitachi,Ltd. (JP:6501)
:6501
Top Page
Hitachi,Ltd.
(OTC:6501)
71Outperform
Positive Factors
Financial Performance
The forecast for sales in Hitachi's three business domains shows an annual growth of 8%, indicating strong future performance.
Leadership
Mr. Toshiaki Tokunaga is seen as the best candidate to lead Hitachi to achieve further growth based on expertise in digital solutions.
Profitability
There is an expected increase in adjusted EBITA of 19% annually, suggesting a significant improvement in profitability.
Negative Factors
Investor Relations
There is a need for Hitachi to provide a constructive medium-term profit outlook to attract investor attention.
Management Strategy
Hitachi may miss the consensus forecast for FY3/25 due to management's conservatism in its operating profit margin targets for Digital Systems & Services and Green Energy & Mobility.
Stock Market Reaction
Hitachi's share price dropped after the nomination of the new CEO was revealed ahead of the official release.
Hitachi,Ltd. (6501) vs. S&P 500 (SPY)
Market Cap
¥15.62T
Dividend Yield1.2%
Average Volume (3M)15.86M
Price to Earnings (P/E)27.4
Beta (1Y)1.56
Revenue Growth-4.69%
EPS Growth-27.45%
CountryJP
Employees268,655
SectorIndustrials
Sector Strength66
IndustryConglomerates
Share Statistics
EPS (TTM)124.75
Shares Outstanding4,580,342,000
10 Day Avg. Volume15,113,440
30 Day Avg. Volume15,858,873
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
Price to Cash Flow (P/CF)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥4,832.67Price Target Upside41.31% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Hitachi,Ltd. Business Overview & Revenue Model
Company DescriptionHitachi, Ltd. (6501) is a diversified multinational conglomerate headquartered in Tokyo, Japan. The company operates across multiple sectors, including Information Technology, Social Infrastructure, High Functional Materials & Components, and Automotive Systems. Hitachi is renowned for its innovative solutions and products that range from advanced IT services, cloud solutions, and data management systems to cutting-edge infrastructure projects, such as railway systems and power generation, as well as materials and components critical for automotive and electronic applications.
How the Company Makes MoneyHitachi, Ltd. generates revenue through a diverse set of business units that cater to various industries and markets. The company's revenue model is primarily based on delivering technology-driven products and services. Key revenue streams include IT services and solutions, which encompass consulting, system integration, and managed services, contributing significantly to its earnings. The Social Infrastructure segment, involving projects in transportation, power, and water systems, also plays a crucial role in revenue generation. Additionally, the company earns from its High Functional Materials & Components segment, which supplies essential materials and components to the automotive and electronics industries. Strategic partnerships and collaborations with businesses and governments worldwide further enhance its market position and contribute to its financial performance. Hitachi's focus on innovation and sustainability often leads to the development of new technologies and services, continuously expanding its revenue potential.
Hitachi,Ltd. Financial Statement Overview
Summary
Income Statement
Balance Sheet
Cash Flow
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 9.52T | 9.73T | 10.88T | 10.26T | 8.73T | 8.77T | Gross Profit |
| 2.72T | 2.58T | 2.69T | 2.56T | 2.20T | 2.37T | EBIT |
| 885.02B | 755.82B | 942.26B | 738.24B | 495.18B | 661.88B | EBITDA |
| 1.31T | 1.35T | 1.47T | 1.37T | 1.32T | 637.41B | Net Income Common Stockholders |
| 575.59B | 589.90B | 649.12B | 583.47B | 501.61B | 87.60B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 825.27B | 1.04T | 1.18T | 1.35T | 1.34T | 1.09T | Total Assets |
| 8.95T | 12.22T | 12.50T | 13.89T | 11.85T | 9.93T | Total Debt |
| 2.39T | 1.18T | 2.21T | 3.13T | 2.40T | 1.49T | Net Debt |
| 1.82T | 474.65B | 1.38T | 2.16T | 1.38T | 672.71B | Total Liabilities |
| 6.68T | 6.36T | 7.17T | 8.53T | 7.39T | 5.66T | Stockholders Equity |
| 1.28T | 5.70T | 4.94T | 4.34T | 3.53T | 3.16T |
| Cash Flow | Free Cash Flow | ||||
| 778.47B | 571.47B | 416.46B | 290.08B | 420.18B | 139.64B | Operating Cash Flow |
| 1.03T | 956.61B | 827.04B | 729.94B | 793.13B | 560.92B | Investing Cash Flow |
| -381.05B | -131.54B | 151.06B | -1.05T | -458.84B | -525.83B | Financing Cash Flow |
| -568.38B | -1.02T | -1.14T | 202.74B | -184.84B | 2.84B |
Hitachi,Ltd. Technical Analysis
Negative
3420.00
Price Trends
3664.21
Negative
3776.39
Negative
3702.55
Negative
Market Momentum
-85.11
Negative
48.49
Neutral
92.43
Negative
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 3420 is above the 20-day moving average (MA) of 3310.49, below the 50-day MA of 3664.21, and below the 200-day MA of 3702.55, indicating a neutral trend. The MACD of -85.11 indicates Negative momentum. The RSI at 48.49 is Neutral, neither overbought nor oversold. The STOCH value of 92.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6501.
Hitachi,Ltd. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥20.63T | 18.08 | 14.40% | 0.52% | 9.56% | 26.52% | |
71 Outperform | ¥15.62T | 27.41 | 10.16% | 1.20% | -4.69% | -27.45% | |
69 Neutral | $5.37T | 17.01 | 19.16% | 0.96% | 0.40% | 152.61% | |
68 Neutral | $3.53T | 10.59 | 7.23% | 2.59% | 1.72% | -33.60% | |
67 Neutral | €5.31T | 15.17 | 9.27% | 1.98% | 4.88% | 34.48% | |
62 Neutral | $4.13B | 11.17 | 5.46% | 215.76% | 4.12% | -8.54% | |
60 Neutral | ¥449.19B | 35.89 | 2.06% | 3.47% | 0.01% | -54.41% |
* Industrials Sector Average
Performance Comparison
JP:6501
Hitachi,Ltd.
3,365.00
746.49
28.51%
JP:6503
Mitsubishi Electric
2,508.50
128.27
5.39%
JP:7731
Nikon
1,452.50
-56.45
-3.74%
JP:6752
Panasonic
1,520.50
190.38
14.31%
JP:6758
Sony
3,347.00
863.22
34.75%
JP:6702
Fujitsu
2,879.50
434.38
17.77%
Hitachi,Ltd. Earnings Call Summary
Earnings Call Date: Jan 31, 2025 | % Change Since: -8.94% | Next Earnings Date: Apr 28, 2025
Earnings Call Sentiment Positive
The earnings call highlights strong revenue and profit growth, significant contract wins, and a positive performance of the Lumada business. However, challenges in the China market, flat performance in Connective Industries, and profit decline in the Railway segment were noted. Overall, the positive highlights outweigh the lowlights.Highlights
Strong Revenue and Profit Growth
Hitachi Limited reported third-quarter revenues of JPY 2.189 trillion, an 11% year-on-year increase, with an adjusted EBITA of JPY 221.8 billion, a year-on-year increase of JPY 34.1 billion.
Major Contracts and Orders
Hitachi secured significant contracts including a JPY 140 billion deal for high-speed trains in Italy and a JPY 14 billion order for HVDC converter stations from TenneT.
Positive Lumada Performance
Lumada's third-quarter revenue increased by 19% year-on-year, and the full-year forecast anticipates a 19% increase, contributing significantly to the company's growth.
Upward Revision of Financial Forecast
Hitachi revised its full-year financial forecast upwards, expecting revenues of JPY 8.2856 trillion, a 4% increase from the previous forecast.
Lowlights
Challenges in China Market
The Digital Systems & Services sector in China saw a 27% year-on-year decline, attributed to the Chinese government's focus on domestic products.
Flat Performance in Connective Industries
The Connective Industries sector reported flat revenues and a slight increase in adjusted EBITA, impacted by challenges in the semiconductor manufacturing equipment market.
Railway Segment Profit Decline
Despite an increase in revenues, the Railway Systems segment experienced a decline in profit, attributed to cost increases.
Company Guidance
In the earnings call for Hitachi Limited's third quarter ended December 31, 2023, significant financial metrics were discussed. The company reported a revenue of JPY 2.189 trillion, marking an 11% increase year-on-year, with an adjusted EBITA of JPY 221.8 billion, reflecting a JPY 34.1 billion year-on-year increase. For the period from Q1 to Q3, revenues were JPY 6.0537 trillion, a 12% year-on-year increase, with an adjusted EBITA of JPY 581.5 billion, up by JPY 83.4 billion. The fiscal year 2023 forecast was revised upwards, with expected revenues of JPY 8.2856 trillion, a 4% increase from previous forecasts, and an adjusted EBITA of JPY 829.3 billion, up by JPY 11.3 billion. The net income forecast stands at JPY 530 million, a JPY 10 billion increase from previous forecasts, and core free cash flow is projected at JPY 440 billion, a JPY 100 billion increase. Additionally, substantial orders were reported, including JPY 14 billion from TenneT and JPY 140 billion for high-speed trains in Italy. The Digital Systems & Services sector saw orders exceed JPY 2 trillion, a 9% year-on-year increase, with a backlog of JPY 1.5 trillion, while Hitachi Energy's orders were JPY 2.6209 trillion, up 51% year-on-year, with a backlog of JPY 4.3 trillion.Hitachi,Ltd. Corporate Events
Hitachi Announces Strategic Executive Changes for 2025
Jan 31, 2025
Hitachi, Ltd. announced several executive changes effective April 1, 2025, to enhance corporate value. These changes involve promotions, position changes, and responsibility adjustments among top management, which are aimed at strengthening the company’s strategic focus on digital strategies, industrial AI, and connective industries, with potential implications for its leadership continuity and market positioning.
Hitachi Reports Q3 2024 Financial Results with Steady Operational Performance
Jan 31, 2025
Hitachi, Ltd. reported its consolidated financial results for the third quarter of fiscal 2024 with a slight decline in net income compared to the previous year. Despite a decrease in revenues and net income, Hitachi saw improvements in gross profit and adjusted operating income, reflecting operational efficiencies. The company’s comprehensive income also saw a reduction, indicating challenges in other comprehensive income components. Overall, the results suggest Hitachi is navigating a complex market environment while maintaining a steady operational performance.
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.