ScoreWhy is Hitachi Construction Machinery Co., Ltd. ?
1
High Management Efficiency with a high ROCE of 10.69%
2
Healthy long term growth as Net Sales has grown by an annual rate of 8.04%
3
Positive results in Dec 25
- OPERATING CASH FLOW(Y) Highest at JPY 161,472 MM
- DEBT-EQUITY RATIO (HY) Lowest at 53.86 %
- INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
4
With ROCE of 11.96%, it has a very attractive valuation with a 1.11 Enterprise value to Capital Employed
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 28.29%, its profits have fallen by -27.9%
- At the current price, the company has a high dividend yield of 0
5
Majority shareholders : Non Institution
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to Hitachi Construction Machinery Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Automobiles should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Automobiles)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Hitachi Construction Machinery Co., Ltd. for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Hitachi Construction Machinery Co., Ltd.
28.29%
566.77
39.01%
Japan Nikkei 225
36.73%
1.30
28.24%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
8.04%
EBIT Growth (5y)
13.61%
EBIT to Interest (avg)
6.86
Debt to EBITDA (avg)
2.25
Net Debt to Equity (avg)
0.50
Sales to Capital Employed (avg)
1.02
Tax Ratio
33.46%
Dividend Payout Ratio
45.71%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
10.68%
ROE (avg)
10.65%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
11
Industry P/E
Price to Book Value
1.17
EV to EBIT
9.32
EV to EBITDA
7.43
EV to Capital Employed
1.11
EV to Sales
0.98
PEG Ratio
NA
Dividend Yield
0.01%
ROCE (Latest)
11.96%
ROE (Latest)
10.35%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Bullish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
OPERATING CASH FLOW(Y)
Highest at JPY 161,472 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 53.86 %
INTEREST COVERAGE RATIO(Q)
The company hardly has any interest cost
RAW MATERIAL COST(Y)
Fallen by 1.97% (YoY
-4What is not working for the Company
INVENTORY TURNOVER RATIO(HY)
Lowest at 1.61 times
PRE-TAX PROFIT(Q)
Fallen at -31.14%
NET PROFIT(Q)
Fallen at -38.08%
Here's what is working for Hitachi Construction Machinery Co., Ltd.
Operating Cash Flow
Highest at JPY 161,472 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (JPY MM)
Debt-Equity Ratio
Lowest at 53.86 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by 1.97% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at JPY 20,296 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Here's what is not working for Hitachi Construction Machinery Co., Ltd.
Inventory Turnover Ratio
Lowest at 1.61 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Pre-Tax Profit
Fallen at -31.14%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Net Profit
Fallen at -38.08%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
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