Hitachi Ltd (HTHIY)

Price$34.66Cached quoteAs of 2026-09-04 16:23 UTC

AI: Overvalued

Price checkThe shares look expensive because strong growth is already priced into today’s valuation.

The depositary data place Hitachi at about 29 times recent earnings. Management now forecasts fiscal-year earnings of ¥201.14 per share; using its ¥160-per-dollar planning rate and the one-for-one ordinary-share-to-receipt ratio implies roughly 26 times forecast earnings. Forecast core free cash flow, meaning cash left after normal business investment, is ¥900 billion, only about a 4% yield against the current market value. That leaves little value-investor margin of safety unless double-digit profit growth persists.

Big pictureHitachi now earns far more reliably, but its older history shows real economic sensitivity.

The supplied SEC-derived history shows why durability matters: revenue fell from ¥11.23 trillion in fiscal 2007 to ¥8.97 trillion two years later, while net income was negative for three straight years before rebounding to ¥238.9 billion. Yet operating cash stayed positive throughout, and cash after capital spending ranged from roughly ¥137 billion to ¥587 billion. Today the business is stronger: fiscal 2025 revenue rose 8% to ¥10.59 trillion and shareholder profit rose 30% to ¥802.4 billion.

Business strengthCash generation and the balance sheet provide substantial protection against a normal downturn.

The old SEC history already showed debt falling from ¥2.82 trillion in fiscal 2008 to ¥2.11 trillion by fiscal 2010. The modern balance sheet is much stronger: June 2026 cash was ¥1.50 trillion versus about ¥1.06 trillion of short- and long-term debt, leaving roughly ¥448 billion more cash than debt. First-quarter operating cash flow reached ¥496 billion. Capital allocation also favors owners: weighted-average shares fell about 1.3% last year, and Hitachi spent ¥147.9 billion on repurchases in the latest quarter without issuing new shares.

What could change the storyFaster lasting growth could justify the premium, while weaker orders would expose the valuation.

The strongest bull case is that Energy, digital services and rail keep compounding together: first-quarter revenue rose 20%, and Hitachi raised full-year revenue to ¥11.7 trillion, adjusted operating profit before acquisition amortization to ¥1.52 trillion and shareholder profit to ¥900 billion. The bear case is that investors are paying roughly 26 times those already-raised earnings while capital spending is planned near ¥670 billion. If growth settles near ordinary industrial-cycle levels, that multiple can contract sharply; sustained double-digit profit growth and strong cash conversion are therefore required.

AI: News

Forecast raisedA strong first quarter led Hitachi to raise its full-year sales, profit and cash forecasts.

On July 29, Hitachi reported first-quarter revenue of ¥2.71 trillion, up 20%, while adjusted operating profit before acquisition amortization rose to ¥323.5 billion from ¥237.5 billion. Management lifted full-year revenue guidance by ¥600 billion to ¥11.7 trillion and shareholder-profit guidance by ¥50 billion to ¥900 billion. The U.S. receipt closed about 8% higher that day; the timing is consistent with a favorable response, but does not by itself prove the results caused the move.

Large buyback advancesHitachi is retiring shares aggressively, increasing each remaining owner’s claim on future earnings.

Hitachi disclosed on August 4 that it bought 9.38 million shares for ¥45.5 billion during July. Cumulative purchases under the current program reached 29.73 million shares for ¥145.5 billion through July. The board authorization allows as much as 160 million shares, or 3.56% of shares excluding treasury stock, and up to ¥500 billion. Buybacks can lift per-share value when purchased sensibly, although their benefit becomes less compelling as the stock valuation rises.

Clever Devices acquiredThe rail business added a digital transport platform that could deepen recurring technology revenue in North America.

Hitachi Rail completed its acquisition of Clever Devices on July 1. The target expects more than $220 million of 2026 revenue, employs over 600 people and serves eight of North America’s ten largest transit agencies. Its fleet-management and passenger-information software broadens Hitachi Rail beyond trains into bus and multimodal transport. The financial contribution is still small relative to Hitachi, but successful integration could raise the rail unit’s digital content and create additional sales through Hitachi’s existing customer network.

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Revenue

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2026

Net income

2007

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2026

Free cash flow

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Total cash / debt

CashTotal debt

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Financial statements

	2026	2025	2024	2023	2010	2009	2008	2007
Revenue	¥10.59T	¥9.78T	¥9.73T	¥10.88T	¥9.32T	¥8.97T	¥10.00T	¥11.23T
Gross profit	¥3.18T	¥2.82T	¥2.58T	¥2.69T	¥2.35T	¥2.12T	¥2.18T	¥2.45T
Gross margin	30.03%	28.83%	26.54%	24.71%	25.21%	23.63%	21.84%	21.81%
Research & development	—	—	—	—	¥395.18B	¥372.47B	¥416.52B	—
Operating expenses	¥1.98T	¥1.85T	¥1.83T	¥1.94T	—	—	—	—
Operating income	¥1.20T	¥971.61B	¥755.82B	¥748.14B	—	—	—	—
Operating margin	11.33%	9.93%	7.77%	6.88%	—	—	—	—
EBITDA	¥1.76T	¥1.44T	¥1.35T	¥1.40T	—	—	—	—
EBITDA margin	16.67%	14.73%	13.86%	12.84%	—	—	—	—
Net income	¥802.37B	¥615.72B	¥589.90B	¥649.12B	¥238.87B	−¥106.96B	−¥787.34B	−¥58.13B
Net profit margin	7.58%	6.29%	6.06%	5.97%	2.56%	−1.19%	−7.87%	−0.52%
Basic EPSper basic share	¥176.76	¥133.85	¥126.91	¥136.91	¥52.89	-¥29.20	-¥236.86	-¥17.48
Diluted EPSper diluted share	¥176.63	¥133.72	¥126.75	¥136.78	¥49.38	-¥29.20	-¥236.87	-¥17.77

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 20 reported holders of HTHIY
Holder	Shares held
MOODY LYNN LIEBERSON & WALKER, LLC	629.09K
Ramirez Asset Management, Inc.	245.52K
RHUMBLINE ADVISERS	47.26K
Calydon Capital	33.04K
GAMMA Investing LLC	26.04K
ATLAS CAPITAL ADVISORS INC.	20.99K
Canopy Partners, LLC	9.61K
YOUSIF CAPITAL MANAGEMENT, LLC	8.31K
PARADIGM ASSET MANAGEMENT CO LLC	4.7K
PNC Financial Services Group, Inc.	3.08K
Westside Investment Management, Inc.	2.6K
Salomon & Ludwin, LLC	2.39K
Ascentis Wealth Management, LLC	1.91K
HANTZ FINANCIAL SERVICES, INC.	1.37K
McMillan Office, Inc.	1K
First Command Advisory Services, Inc.	650
THURSTON, SPRINGER, MILLER, HERD & TITAK, INC.	588
IMA Advisory Services, Inc.	583
Winch Advisory Services, LLC	250
Ancora Advisors LLC	223

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)0$0.00 disclosed value

No insider transactions transactions were reported in the stored SEC coverage.

Review ownership filings at SEC.gov ↗

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Hitachi Ltd (HTHIY)

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