# Hitachi Construction Machinery (6305.JP)

Canonical: https://gigainvestors.com/s/6305.JP

Analysis as of: 2026-10-15T07:10:53.706Z. Financial observations: FY2013–FY2026.

Listing currency: JPY. Reporting currency: JPY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: JPY 5,263.00 per share; close as of 2026-10-15.

Estimated value: low JPY 5,695.06 per share, central JPY 7,575.33 per share, high JPY 8,787.83 per share. Buy at or below the central value JPY 7,575.33 per share. Valuation as of 2026-10-15T07:10:53.706Z; scenarios are not confidence intervals.

Expected annual return: 13.3% at the stated quote. About 13.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; JP 10-year bond 2.9% + 4 points).

## Checklist

### understandable: pass

- 4 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 0

- Operating margin variation: 0.25×

Chart: Operating margin; fiscal year observations.

- FY2018: 0.10×

- FY2019: 0.10×

- FY2020: 0.08×

- FY2021: 0.03×

- FY2022: 0.10×

- FY2023: 0.11×

- FY2024: 0.12×

- FY2025: 0.11×

- FY2026: 0.09×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 9.0%

- ROIC, second-lowest year: 6.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.5%

- ROIC including acquisitions, ten-year median: 6.6%

- Typical minus recent gross margin: -2.0 pp

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2018: 12.3%

- FY2019: 10.7%

- FY2020: 6.8%

- FY2021: 2.5%

- FY2022: 9.2%

- FY2023: 9.0%

- FY2024: 10.4%

- FY2025: 8.6%

- FY2026: 6.9%

### economics: pass

- Owner earnings / net income, 5-yr: 0.98×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: JPY 384B

- Net income, five-year total: JPY 394B

- Working capital / revenue, annual change: 2.1 pp

- Working capital / revenue, final three-year average: 42.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.01×

- FY2023: 0.83×

- FY2024: 0.91×

- FY2025: 1.05×

- FY2026: 1.08×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks unrelated to price (informational)

- Per-share earnings: 41.41 to 382.83 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.0%

- Ordinary dilution, 5-year annual growth: 0.0%

- Market cap gain: JPY 531B

- Cumulative retained earnings: JPY 386B

- Diluted shares, 10-year annual growth: 0.0%

- Diluted shares, 5-year annual growth: 0.0%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 32.0%

- Per-share value change: JPY 341.42

- Per-share value, starting three-year median: JPY 41.41

- Per-share value, ending three-year median: JPY 382.83

- Buyback history: 0 years

- Debt-funded buybacks: No

- Cumulative net income, 10 years: JPY 582B

- ROIC, last three-year median: 8.6%

Chart: Earnings per share; fiscal year observations.

- FY2017: JPY 37.72

- FY2018: JPY 282.16

- FY2019: JPY 322.31

- FY2020: JPY 193.61

- FY2021: JPY 48.62

- FY2022: JPY 356.57

- FY2023: JPY 330.00

- FY2024: JPY 438.68

- FY2025: JPY 382.83

- FY2026: JPY 344.06

### accounting: pass

- Sloan accruals: -4.9%

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.24×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.13×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -7.9%

- FY2018: -2.3%

- FY2019: 8.0%

- FY2020: 1.6%

- FY2021: -6.6%

- FY2022: 2.6%

- FY2023: 5.9%

- FY2024: 1.1%

- FY2025: -3.5%

- FY2026: -4.9%

## Holders

## Price story

Down 25% since Feb 2026 · sales +2.5%

Story as of 2026-10-16T10:00:14.434Z; price observation 2026-10-15.

Price needs cash profits to grow 0.4% a year for ten years

### Sales · FY2025–2026

sales +2.5%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YIBR.pdf; observed 2026-06-23.

- FY2017: JPY 754B 

- FY2018: JPY 959B 

- FY2019: JPY 1.03T 

- FY2020: JPY 931B 

- FY2021: JPY 813B 

- FY2022: JPY 1.02T 

- FY2023: JPY 1.26T 

- FY2024: JPY 1.41T 

- FY2025: JPY 1.37T 

- FY2026: JPY 1.41T 

### Gross margin · FY2026

gross margin 29.7%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YIBR.pdf; observed 2026-06-23.

- FY2018: 27.5% 

- FY2019: 28.8% 

- FY2020: 26.9% 

- FY2021: 23.8% 

- FY2022: 27.3% 

- FY2023: 29.9% 

- FY2024: 31.0% 

- FY2025: 31.3% 

- FY2026: 29.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Annual sales are JPY 1.4 trillion.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YIBR.pdf (filed 2026-06-23); FY2026: revenue 1405493000000; grossProfit 417416000000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 29.7% to 31.3% during 2024–26; it earns 9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-23); FY2024: grossProfit / revenue = 31%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-23); FY2025: grossProfit / revenue = 31.3%.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YIBR.pdf (filed 2026-06-23); FY2026: grossProfit / revenue = 29.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-23); 10-year return on capital observations [[2018,0.12328314896532759],[2019,0.10719904283426493],[2020,0.06752294654980984],[2021,0.02523221155035925],[2022,0.09235367047574361],[2023,0.0900052412019126],[2024,0.10367431684282126],[2025,0.08583655729703045],[2026,0.06856474884772946]]; median 0.0900052412019126. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 9 of 9 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-23); FY2018: growth capex 0; upkeep 21351000000; owner earnings 69500169136.97957. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-23); FY2019: growth capex 2424000000; upkeep 32343000000; owner earnings 62639992936.67268. Growth capex / owner earnings = 0.03869732237119818.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-23); FY2020: growth capex 0; upkeep 39355000000; owner earnings 30489000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-23); FY2021: growth capex 0; upkeep 33204000000; cash acquisitions 0; owner earnings 10014000000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-23); FY2022: growth capex 0; upkeep 34540000000; cash acquisitions 1030000000; owner earnings 76751000000. Growth capex plus acquisitions / owner earnings = 0.013420020586050995.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-23); FY2023: growth capex 4118000000; upkeep 55022000000; cash acquisitions 0; owner earnings 58430000000. Growth capex plus acquisitions / owner earnings = 0.0704774944377888.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-23); FY2024: growth capex 0; upkeep 55603000000; cash acquisitions 0; owner earnings 84494000000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-23); FY2025: growth capex 0; upkeep 45074000000; cash acquisitions 15946000000; owner earnings 85860000000. Growth capex plus acquisitions / owner earnings = 0.18572094106685302.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YIBR.pdf (filed 2026-06-23); FY2026: growth capex 0; upkeep 49033000000; cash acquisitions 0; owner earnings 78963000000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-23); Dividend observations: [[2018,9361000000],[2019,19562000000],[2020,19764000000],[2021,7273000000],[2022,11695000000],[2023,24450000000],[2024,30816000000],[2025,27640000000],[2026,39343000000]]. Zero only counted when supported by a complete cash-flow statement.

### What the price says

The price assumes cash profits grow 0.4% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-23); Ten-year compound average after fade. Initial solved rate -0.007657558413925292. Price 5263; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (JPY per share)

- 2016-11: JPY 2,354.00 per share

- 2016-12: JPY 2,531.00 per share

- 2017-01: JPY 2,603.00 per share

- 2017-02: JPY 2,614.00 per share

- 2017-03: JPY 2,775.00 per share

- 2017-04: JPY 2,871.00 per share

- 2017-05: JPY 2,569.00 per share

- 2017-06: JPY 2,807.00 per share

- 2017-07: JPY 3,165.00 per share

- 2017-08: JPY 3,105.00 per share

- 2017-09: JPY 3,335.00 per share

- 2017-10: JPY 3,865.00 per share

- 2017-11: JPY 3,715.00 per share

- 2017-12: JPY 4,095.00 per share

- 2018-01: JPY 4,885.00 per share

- 2018-02: JPY 4,595.00 per share

- 2018-03: JPY 4,105.00 per share

- 2018-04: JPY 3,985.00 per share

- 2018-05: JPY 4,020.00 per share

- 2018-06: JPY 3,600.00 per share

- 2018-07: JPY 3,570.00 per share

- 2018-08: JPY 3,320.00 per share

- 2018-09: JPY 3,800.00 per share

- 2018-10: JPY 3,010.00 per share

- 2018-11: JPY 3,135.00 per share

- 2018-12: JPY 2,572.00 per share

- 2019-01: JPY 2,748.00 per share

- 2019-02: JPY 2,779.00 per share

- 2019-03: JPY 2,937.00 per share

- 2019-04: JPY 2,950.00 per share

- 2019-05: JPY 2,531.00 per share

- 2019-06: JPY 2,802.00 per share

- 2019-07: JPY 2,582.00 per share

- 2019-08: JPY 2,270.00 per share

- 2019-09: JPY 2,605.00 per share

- 2019-10: JPY 2,824.00 per share

- 2019-11: JPY 2,886.00 per share

- 2019-12: JPY 3,285.00 per share

- 2020-01: JPY 2,995.00 per share

- 2020-02: JPY 2,663.00 per share

- 2020-03: JPY 2,189.00 per share

- 2020-04: JPY 2,546.00 per share

- 2020-05: JPY 2,830.00 per share

- 2020-06: JPY 2,980.00 per share

- 2020-07: JPY 3,020.00 per share

- 2020-08: JPY 3,720.00 per share

- 2020-09: JPY 3,800.00 per share

- 2020-10: JPY 2,560.00 per share

- 2020-11: JPY 2,891.00 per share

- 2020-12: JPY 2,930.00 per share

- 2021-01: JPY 3,040.00 per share

- 2021-02: JPY 3,275.00 per share

- 2021-03: JPY 3,545.00 per share

- 2021-04: JPY 3,355.00 per share

- 2021-05: JPY 3,630.00 per share

- 2021-06: JPY 3,395.00 per share

- 2021-07: JPY 3,075.00 per share

- 2021-08: JPY 3,155.00 per share

- 2021-09: JPY 3,175.00 per share

- 2021-10: JPY 3,625.00 per share

- 2021-11: JPY 3,300.00 per share

- 2021-12: JPY 3,325.00 per share

- 2022-01: JPY 2,890.00 per share

- 2022-02: JPY 2,803.00 per share

- 2022-03: JPY 3,195.00 per share

- 2022-04: JPY 2,955.00 per share

- 2022-05: JPY 3,025.00 per share

- 2022-06: JPY 3,005.00 per share

- 2022-07: JPY 2,916.00 per share

- 2022-08: JPY 2,879.00 per share

- 2022-09: JPY 2,676.00 per share

- 2022-10: JPY 2,914.00 per share

- 2022-11: JPY 3,210.00 per share

- 2022-12: JPY 2,959.00 per share

- 2023-01: JPY 3,045.00 per share

- 2023-02: JPY 3,045.00 per share

- 2023-03: JPY 3,075.00 per share

- 2023-04: JPY 3,330.00 per share

- 2023-05: JPY 3,450.00 per share

- 2023-06: JPY 4,028.00 per share

- 2023-07: JPY 4,257.00 per share

- 2023-08: JPY 4,541.00 per share

- 2023-09: JPY 4,546.00 per share

- 2023-10: JPY 3,852.00 per share

- 2023-11: JPY 3,835.00 per share

- 2023-12: JPY 3,727.00 per share

- 2024-01: JPY 4,234.00 per share

- 2024-02: JPY 4,324.00 per share

- 2024-03: JPY 4,542.00 per share

- 2024-04: JPY 4,538.00 per share

- 2024-05: JPY 4,250.00 per share

- 2024-06: JPY 4,308.00 per share

- 2024-07: JPY 3,792.00 per share

- 2024-08: JPY 3,550.00 per share

- 2024-09: JPY 3,471.00 per share

- 2024-10: JPY 3,355.00 per share

- 2024-11: JPY 3,378.00 per share

- 2024-12: JPY 3,517.00 per share

- 2025-01: JPY 3,730.00 per share

- 2025-02: JPY 3,883.00 per share

- 2025-03: JPY 3,947.00 per share

- 2025-04: JPY 4,244.00 per share

- 2025-05: JPY 4,403.00 per share

- 2025-06: JPY 4,300.00 per share

- 2025-07: JPY 4,390.00 per share

- 2025-08: JPY 4,580.00 per share

- 2025-09: JPY 4,734.00 per share

- 2025-10: JPY 5,031.00 per share

- 2025-11: JPY 4,545.00 per share

- 2025-12: JPY 4,630.00 per share

- 2026-01: JPY 5,051.00 per share

- 2026-02: JPY 7,027.00 per share

- 2026-03: JPY 5,271.00 per share

- 2026-04: JPY 5,472.00 per share

- 2026-05: JPY 5,199.00 per share

- 2026-06: JPY 5,254.00 per share

- 2026-07: JPY 5,394.00 per share

- 2026-08: JPY 5,735.00 per share

- 2026-09: JPY 5,607.00 per share

- 2026-10: JPY 5,607.00 per share

## Annual estimated value (JPY per share)

- FY2022: low JPY 3,539.26 per share, central JPY 3,979.43 per share, high JPY 4,565.38 per share

- FY2023: low JPY 3,851.77 per share, central JPY 4,931.44 per share, high JPY 5,700.63 per share

- FY2024: low JPY 4,447.39 per share, central JPY 5,778.69 per share, high JPY 6,675.12 per share

- FY2025: low JPY 5,460.11 per share, central JPY 7,051.40 per share, high JPY 8,157.88 per share

- FY2026: low JPY 5,695.06 per share, central JPY 7,575.33 per share, high JPY 8,787.83 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T07:10:53.706Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original EDINET filing](https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YIBR.pdf); period 2026-03-31, filed 2026-06-23.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.