Fact based stock research
Hitachi (TSE:6501)

JP3788600009

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Hitachi stock research in summary

hitachi.co.jp

ANALYSIS: With an Obermatt Combined Rank of 73 (better than 73% compared with investment alternatives), Hitachi (Industrial Conglomerates, Japan) shares have above-average financial characteristics compared with similar stocks. Shares of Hitachi are a good value (attractively priced) with a consolidated Value Rank of 61 (better than 61% of alternatives), show above-average growth (Growth Rank of 55), and are safely financed (Safety Rank of 50), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 73, is a buy recommendation based on Hitachi's financial characteristics. As the company Hitachi's key financial metrics all exhibit excellent performance, such as good value (Obermatt Value Rank of 61), above-average growth (Obermatt Growth Rank of 55), and indicate that the company is safely financed (Obermatt Safety Rank of 50), it is a solid stock investment where the risk of paying too much for the share is limited, unless the company has a bleak future. Such good financial performance can indicate that the company's future might actually be challenging, as it may be difficult to maintain the good performance. If they are safely financed and have been growing above average, and are still a good value, it means that the market is keeping prices low, for a reason which may become clearer over time. We recommend evaluating the future of Hitachi. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	n/a
Growth Rank	n/a
Safety Rank	n/a
Combined Rank	n/a

Country	Japan
Industry	Industrial Conglomerates
Index	TOPIX 100, Human Rights, Water Tech, Nikkei 225
Size class	XX-Large

This stock has achievements: Top 10 Stock.

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Hitachi

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	95	78	63	n/a
GROWTH
GROWTH	64	11	15	n/a
SAFETY
SAFETY	23	49	63	n/a
SENTIMENT
SENTIMENT	n/a	26	39	^new
360° VIEW
360° VIEW	n/a	30	37	^new

Most recent update of the stock research: . Financial reporting date used for calculating ranks: . Stock research history is based on the Obermatt Method. The higher the rank, the better Hitachi is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	95	78	63	n/a
GROWTH
GROWTH	64	11	15	n/a
SAFETY
SAFETY	23	49	63	n/a
COMBINED
COMBINED	72	49	52	n/a

Last update of combined financial performance: . Stock analysis on combined financial performance: The higher the rank of Hitachi the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 61 (better than 61% compared with alternatives), Hitachi shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Hitachi. Price-to-Sales (P/S) is 65, which means that the stock price compared with what market professionals expect for future sales is lower than for 65% of comparable companies, indicating a good value regarding Hitachi's revenue size. The same is valid for expected Price to Profits (or Price / Earnings, P/E), more favorable than for 59% of alternatives, and it's also true for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 50. But, compared with other companies in the same industry, dividend yields are expected to be lower than average; only 30% of all competitors have even lower dividend yields than Hitachi (a Dividend Yield Rank of 30). 70% alternative investments in the same business provide a higher dividend yield. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 61, is a buy recommendation based on Hitachi's stock price compared with the company's operational size and dividend yields. The below-average dividend yield may be a good sign, as it could mean the company has more attractive investment opportunities for the generated cash than to pay it out as dividends. A low dividend yield can also indicate a growth phase. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	98	81	64	n/a
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	93	79	58	n/a
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	76	55	55	n/a
DIVIDEND YIELD
DIVIDEND YIELD	80	45	41	n/a
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	95	78	63	n/a

Last update of Value Rank: . Stock analysis on value ratios: The higher the rank, the lower the value ratio of Hitachi; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 55 (better than 55% compared with alternatives), Hitachi shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Hitachi. Capital Growth has a rank of 91, which means that currently professionals expect the company to grow its invested capital more than 36% of its competitors. Investors welcomed this, visible in the Stock Returns rank of 85 (above 85% of alternative investments). But Sales Growth has only a rank of 4, which means that, currently, professionals expect the company to grow less than 96% of its competitors, and Profit Growth is also low at a rank of 36. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 55, is a buy recommendation for growth and momentum investors. This is an ambiguous picture. Revenue growth and capital growth are strong, but the growth in profit, which seems good, can also be an indication that growth momentum may be negative. The fact that stock returns have been above average doesn't help much, as stock returns are less reliable in showing a company’s future growth potential. Prices may perform well for the simple reason that investors were too pessimistic in the past and are now correcting their opinions and moving the stock price to a more reasonable level. As the growth picture is mixed for Hitachi, investors may want to look at value and sentiment indicators for a well-rounded picture of this stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	35	1	4	n/a
PROFIT GROWTH
PROFIT GROWTH	38	24	36	n/a
CAPITAL GROWTH
CAPITAL GROWTH	n/a	38	27	n/a
STOCK RETURNS
STOCK RETURNS	88	87	73	n/a
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	64	11	15	n/a

Last update of Growth Rank: . Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Hitachi.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 50 (better than 50% compared with alternatives), the company Hitachi has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Hitachi is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Hitachi. Liquidity is at 60, meaning the company generates more profit to service its debt than 60% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 15, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 85% of its competitors. Leverage is also high at a rank of 48, which means that the company has an above-average debt-to-equity ratio. It has more debt than 52% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 50 (better than 50% compared with alternatives), Hitachi has a financing structure that is safer than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	14	39	48	n/a
REFINANCING
REFINANCING	76	29	31	n/a
LIQUIDITY
LIQUIDITY	23	59	58	n/a
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	23	49	63	n/a

Last update of Safety Rank: . Stock analysis on safety metrics: The higher the rank, the lower the leverage of Hitachi and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	72	62	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	47	68	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	18	77	^new
MARKET PULSE
MARKET PULSE	n/a	21	18	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	26	39	^new

Last update of Sentiment Rank: . Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Hitachi.
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