Hitachi Construction Machinery Co., Ltd.
Hitachi Construction Machinery Co., Ltd. Fundamental Analysis
Hitachi Construction Machinery Co., Ltd. (HTCMF) shows weak financial fundamentals with a PE ratio of 14.79, profit margin of 5.58%, and ROE of 9.21%. The company generates $1364.6B in annual revenue with weak year-over-year growth of -2.46%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 46.8/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HTCMF's fundamental strength across five key dimensions:
Efficiency Score
WeakHTCMF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHTCMF trades at attractive valuation levels.
Growth Score
WeakHTCMF faces weak or negative growth trends.
Financial Health Score
ExcellentHTCMF maintains a strong and stable balance sheet.
Profitability Score
WeakHTCMF struggles to sustain strong margins.
Key Financial Metrics
Is HTCMF Expensive or Cheap?
P/E Ratio
HTCMF trades at 14.79 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, HTCMF's PEG of -0.01 indicates potential undervaluation.
Price to Book
The market values Hitachi Construction Machinery Co., Ltd. at 1.29 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.70 times EBITDA. This is generally considered low.
How Well Does HTCMF Make Money?
Net Profit Margin
For every $100 in sales, Hitachi Construction Machinery Co., Ltd. keeps $5.58 as profit after all expenses.
Operating Margin
Core operations generate 9.66 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.21 in profit for every $100 of shareholder equity.
ROA
Hitachi Construction Machinery Co., Ltd. generates $4.10 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hitachi Construction Machinery Co., Ltd. produces operating cash flow of $162.12B, showing steady but balanced cash generation.
Free Cash Flow
Hitachi Construction Machinery Co., Ltd. produces free cash flow of $126.68B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $595.46 in free cash annually.
FCF Yield
HTCMF converts 11.25% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.79
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.29
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.83
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.75
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.68
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How HTCMF Stacks Against Its Sector Peers
| Metric | HTCMF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.79 | 25.84 | Better (Cheaper) |
| ROE | 9.21% | 1279.00% | Weak |
| Net Margin | 5.58% | -43714.00% (disorted) | Weak |
| Debt/Equity | 0.75 | 0.80 | Neutral |
| Current Ratio | 1.68 | 10.62 | Neutral |
| ROA | 4.10% | -1537441.00% (disorted) | Weak |
HTCMF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hitachi Construction Machinery Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
44.62%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
94.27%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
523.29%
Industry Style: Cyclical, Value, Infrastructure
High Growth