Hitachi Construction Machinery Co., Ltd. (6305) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

MODEC, Inc.

Hitachi Construction Machinery Co., Ltd.

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Kubota Corp.

Nisshinbo Holdings, Inc.

Aichi Corp.

MITSUI E&S Co., Ltd.

TADANO Ltd.

Kyokuto Kaihatsu Kogyo Co., Ltd.

Why is Hitachi Construction Machinery Co., Ltd. ?

High Management Efficiency with a high ROCE of 10.69%

Healthy long term growth as Net Sales has grown by an annual rate of 8.04%

Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at JPY 158,637 MM
DEBT-EQUITY RATIO (HY) Lowest at 60.84 %

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 26.95%, its profits have fallen by -27.9%
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How 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?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Hitachi Construction Machinery Co., Ltd.

26.95%

545.53

34.14%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality 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)

1.03

Tax Ratio

33.46%

Dividend Payout Ratio

45.71%

Pledged Shares

Institutional Holding

ROCE (avg)

10.68%

ROE (avg)

10.65%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

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

Dividend Yield

0.01%

ROCE (Latest)

11.96%

ROE (Latest)

10.35%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 158,637 MM

DEBT-EQUITY RATIO (HY)

Lowest at 60.84 %

-17What is not working for the Company

INTEREST(HY)

At JPY 11,785 MM has Grown at 144.71%

ROCE(HY)

Lowest at 8.44%

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.63%

PRE-TAX PROFIT(Q)

At JPY 18,732 MM has Fallen at -50.94%

NET PROFIT(Q)

At JPY 11,280 MM has Fallen at -52.72%

RAW MATERIAL COST(Y)

Grown by 6.86% (YoY

NET SALES(Q)

Lowest at JPY 306,152 MM

Here's what is working for Hitachi Construction Machinery Co., Ltd.

Operating Cash Flow

Highest at JPY 158,637 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Debt-Equity Ratio

Lowest at 60.84 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Depreciation

Highest at JPY 18,964 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Depreciation

At JPY 18,964 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

Here's what is not working for Hitachi Construction Machinery Co., Ltd.

Interest

At JPY 11,785 MM has Grown at 144.71%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY 18,732 MM has Fallen at -50.94%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 11,280 MM has Fallen at -52.72%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Inventory Turnover Ratio

Lowest at 1.63% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Sales

Lowest at JPY 306,152 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Raw Material Cost

Grown by 6.86% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales