# Hitachi (6501.JP)

Canonical: https://gigainvestors.com/s/6501.JP

Analysis as of: 2026-10-15T07:10:59.513Z. 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 5,595.00 per share; close as of 2026-10-15.

Estimated value: low JPY 1,964.55 per share, central JPY 2,201.65 per share, high JPY 2,517.28 per share. Buy at or below the central value JPY 2,201.65 per share. Valuation as of 2026-10-15T07:10:59.513Z; scenarios are not confidence intervals.

Expected annual return: 5.5% at the stated quote. About 5.5% 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: 0.34×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.06×

- FY2018: 0.07×

- FY2019: 0.06×

- FY2020: 0.02×

- FY2021: 0.10×

- FY2022: 0.08×

- FY2023: 0.08×

- FY2024: 0.09×

- FY2025: 0.10×

- FY2026: 0.12×

### moat: pass

- ROIC, median of available years: 26.2%

- ROIC, second-lowest year: 13.9%

- Typical minus recent gross margin: -2.3 pp

- Typical gross margin (annual median): 26.5%

- Recent gross margin (lower of latest and 3-year median): 28.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.5%

- ROIC including acquisitions, ten-year median: 12.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 13.9%

- FY2018: 24.8%

- FY2019: 17.4%

- FY2020: 7.7%

- FY2021: 31.9%

- FY2022: 28.2%

- FY2023: 27.5%

- FY2024: 25.5%

- FY2025: 26.8%

- FY2026: 33.1%

### economics: fail

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 1.10×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: JPY 3.55T

- Net income, five-year total: JPY 3.24T

- Return on incremental invested capital: 44.3%

- Working capital / revenue, annual change: 1.4 pp

- Working capital / revenue, change between three-year averages: 10.6 pp

- Working capital / revenue, final three-year average: 35.5%

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

- FY2022: 1.15×

- FY2023: 1.18×

- FY2024: 1.11×

- FY2025: 1.06×

- FY2026: 1.00×

### management: pass

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

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 17.4% vs 26.8%

- Per-share earnings: 47.90 to 133.85 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.6%

- Ordinary dilution, 5-year annual growth: -1.2%

- Market cap gain: JPY 17.35T

- Cumulative retained earnings: JPY 2.97T

- Diluted shares, 10-year annual growth: -0.6%

- Diluted shares, 5-year annual growth: -1.2%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 13.7%

- Per-share value change: JPY 85.95

- Per-share value, starting three-year median: JPY 47.90

- Per-share value, ending three-year median: JPY 133.85

- Buybacks concentrated in cheaper years (correlation): -0.47

- Average buyback yield: 0.7%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: JPY 3.04T

- Cumulative net income, 10 years: JPY 4.65T

- ROIC, first three-year median: 17.4%

- ROIC, last three-year median: 26.8%

Chart: Earnings per share; fiscal year observations.

- FY2017: JPY 47.90

- FY2018: JPY 75.19

- FY2019: JPY 46.09

- FY2020: JPY 18.14

- FY2021: JPY 103.86

- FY2022: JPY 120.75

- FY2023: JPY 136.91

- FY2024: JPY 126.91

- FY2025: JPY 133.85

- FY2026: JPY 176.76

### accounting: pass

- Sloan accruals: -5.8%

- Receivables to sales index (DSRI): 1.06×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.08×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.59×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -4.1%

- FY2018: -3.6%

- FY2019: -4.0%

- FY2020: -4.8%

- FY2021: -2.5%

- FY2022: -1.1%

- FY2023: -1.4%

- FY2024: -3.0%

- FY2025: -4.2%

- FY2026: -5.8%

## Holders

## Price story

Price needs cash profits to grow 13.6% a year for ten years · sales +8.2%

Story as of 2026-10-16T10:00:14.463Z; price observation 2026-10-15.

Price needs cash profits to grow 13.6% a year for ten years

### Sales · FY2025–2026

sales +8.2%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YGBO.pdf; observed 2026-06-22.

- FY2017: JPY 9.16T 

- FY2018: JPY 9.37T 

- FY2019: JPY 9.48T 

- FY2020: JPY 8.77T 

- FY2021: JPY 8.73T 

- FY2022: JPY 10.26T 

- FY2023: JPY 10.88T 

- FY2024: JPY 9.73T 

- FY2025: JPY 9.78T 

- FY2026: JPY 10.59T 

### Gross margin · FY2026

gross margin 30%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YGBO.pdf; observed 2026-06-22.

- FY2017: 26.0% 

- FY2018: 26.7% 

- FY2019: 26.5% 

- FY2020: 27.0% 

- FY2021: 25.1% 

- FY2022: 24.9% 

- FY2023: 24.7% 

- FY2024: 26.5% 

- FY2025: 28.8% 

- FY2026: 30.0% 

## Owner memo

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

### How it makes money

Operates in conglomerates; annual sales are JPY 10.6 trillion.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YGBO.pdf (filed 2026-06-22); FY2026: revenue 10586781000000; grossProfit 3179529000000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 26.5% to 30% during 2024–26; it earns 26.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); FY2024: grossProfit / revenue = 26.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); FY2025: grossProfit / revenue = 28.8%.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YGBO.pdf (filed 2026-06-22); FY2026: grossProfit / revenue = 30%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); 10-year return on capital observations [[2017,0.1392618388174157],[2018,0.24759041443088728],[2019,0.17417660252332087],[2020,0.07714275206238377],[2021,0.3193657541099612],[2022,0.282272084789003],[2023,0.27478066028657744],[2024,0.2554243258186352],[2025,0.26833912224532486],[2026,0.3309344827947012]]; median 0.26188172403198007. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 25% gross margin through 2022 cost inflation.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YGBO.pdf (filed 2026-06-22); Gross margin observations: [[2021,0.25149005704534527],[2022,0.24926645962502977],[2023,0.24713261006419357]]; range within 2 percentage points.

### Where the cash goes

Spends 5% of cash earnings on expansion; earns 44.3% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); FY2018: growth capex 46800738236.200134; upkeep 396774261763.79987; owner earnings 339073918802.8995. Growth capex / owner earnings = 0.13802517870271516.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); FY2019: growth capex 24259756600.272278; upkeep 447989243399.7277; owner earnings 167124582970.526. Growth capex / owner earnings = 0.14515971360449537.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); FY2020: growth capex 0; upkeep 421276000000; owner earnings 95775555129.43433. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); FY2021: growth capex 0; upkeep 372945000000; owner earnings 616462264496.3453. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); FY2022: growth capex 0; upkeep 439861000000; owner earnings 670782982616.4469. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); FY2023: growth capex 0; upkeep 410585000000; owner earnings 764849000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); FY2024: growth capex 0; upkeep 385145000000; owner earnings 656276000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); FY2025: growth capex 0; upkeep 391648000000; owner earnings 655610000000. Growth capex / owner earnings = 0.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YGBO.pdf (filed 2026-06-22); FY2026: growth capex 39856000000; upkeep 457973000000; owner earnings 802368000000. Growth capex / owner earnings = 0.049672968014676556.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); Incremental return on capital 0.44305899983231134, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); Dividend observations: [[2017,57935000000],[2018,67568000000],[2019,77194000000],[2020,91699000000],[2021,96611000000],[2022,111149000000],[2023,129005000000],[2024,144343000000],[2025,189057000000],[2026,204915000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/api/fundamentals/HIA1.F.json#2026-03-31 (filed 2026-06-22); FY2026: cash repurchases 352260000000 JPY.

### What could break it

"①経済環境に係るリスク" (6501 filing, Jun 2026)

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YGBO.pdf (filed 2026-06-22); ①経済環境に係るリスク

### What the price says

The price assumes cash profits grow 13.6% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); Ten-year compound average after fade. Initial solved rate 0.18345530315532. Price 5595; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share -44.139260573320556 → FY2026 176.76. Closing-price date 2026-10-15.

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

- 2016-11: JPY 609.30 per share

- 2016-12: JPY 632.00 per share

- 2017-01: JPY 647.60 per share

- 2017-02: JPY 618.80 per share

- 2017-03: JPY 602.50 per share

- 2017-04: JPY 615.10 per share

- 2017-05: JPY 668.70 per share

- 2017-06: JPY 689.40 per share

- 2017-07: JPY 759.60 per share

- 2017-08: JPY 757.00 per share

- 2017-09: JPY 792.90 per share

- 2017-10: JPY 897.00 per share

- 2017-11: JPY 834.20 per share

- 2017-12: JPY 877.90 per share

- 2018-01: JPY 866.40 per share

- 2018-02: JPY 818.00 per share

- 2018-03: JPY 770.80 per share

- 2018-04: JPY 801.60 per share

- 2018-05: JPY 796.60 per share

- 2018-06: JPY 781.60 per share

- 2018-07: JPY 778.60 per share

- 2018-08: JPY 725.50 per share

- 2018-09: JPY 772.00 per share

- 2018-10: JPY 692.40 per share

- 2018-11: JPY 657.60 per share

- 2018-12: JPY 587.10 per share

- 2019-01: JPY 682.60 per share

- 2019-02: JPY 667.00 per share

- 2019-03: JPY 717.00 per share

- 2019-04: JPY 737.80 per share

- 2019-05: JPY 737.20 per share

- 2019-06: JPY 789.80 per share

- 2019-07: JPY 778.40 per share

- 2019-08: JPY 725.80 per share

- 2019-09: JPY 804.60 per share

- 2019-10: JPY 813.80 per share

- 2019-11: JPY 860.00 per share

- 2019-12: JPY 925.20 per share

- 2020-01: JPY 846.00 per share

- 2020-02: JPY 727.40 per share

- 2020-03: JPY 628.60 per share

- 2020-04: JPY 648.20 per share

- 2020-05: JPY 691.00 per share

- 2020-06: JPY 680.60 per share

- 2020-07: JPY 625.60 per share

- 2020-08: JPY 706.00 per share

- 2020-09: JPY 708.60 per share

- 2020-10: JPY 700.40 per share

- 2020-11: JPY 793.20 per share

- 2020-12: JPY 813.00 per share

- 2021-01: JPY 861.20 per share

- 2021-02: JPY 975.20 per share

- 2021-03: JPY 1,000.80 per share

- 2021-04: JPY 1,076.20 per share

- 2021-05: JPY 1,147.20 per share

- 2021-06: JPY 1,272.20 per share

- 2021-07: JPY 1,251.60 per share

- 2021-08: JPY 1,217.00 per share

- 2021-09: JPY 1,328.00 per share

- 2021-10: JPY 1,310.80 per share

- 2021-11: JPY 1,337.60 per share

- 2021-12: JPY 1,246.00 per share

- 2022-01: JPY 1,187.80 per share

- 2022-02: JPY 1,130.00 per share

- 2022-03: JPY 1,233.00 per share

- 2022-04: JPY 1,214.40 per share

- 2022-05: JPY 1,345.00 per share

- 2022-06: JPY 1,287.60 per share

- 2022-07: JPY 1,340.80 per share

- 2022-08: JPY 1,399.20 per share

- 2022-09: JPY 1,222.80 per share

- 2022-10: JPY 1,352.00 per share

- 2022-11: JPY 1,459.80 per share

- 2022-12: JPY 1,338.20 per share

- 2023-01: JPY 1,356.40 per share

- 2023-02: JPY 1,378.00 per share

- 2023-03: JPY 1,450.40 per share

- 2023-04: JPY 1,497.00 per share

- 2023-05: JPY 1,609.20 per share

- 2023-06: JPY 1,779.20 per share

- 2023-07: JPY 1,859.60 per share

- 2023-08: JPY 1,938.80 per share

- 2023-09: JPY 1,855.00 per share

- 2023-10: JPY 1,895.40 per share

- 2023-11: JPY 2,057.00 per share

- 2023-12: JPY 2,034.00 per share

- 2024-01: JPY 2,335.00 per share

- 2024-02: JPY 2,533.00 per share

- 2024-03: JPY 2,787.00 per share

- 2024-04: JPY 2,924.00 per share

- 2024-05: JPY 3,229.00 per share

- 2024-06: JPY 3,601.00 per share

- 2024-07: JPY 3,288.00 per share

- 2024-08: JPY 3,572.00 per share

- 2024-09: JPY 3,781.00 per share

- 2024-10: JPY 3,924.00 per share

- 2024-11: JPY 3,751.00 per share

- 2024-12: JPY 3,937.00 per share

- 2025-01: JPY 3,946.00 per share

- 2025-02: JPY 3,750.00 per share

- 2025-03: JPY 3,458.00 per share

- 2025-04: JPY 3,518.00 per share

- 2025-05: JPY 4,046.00 per share

- 2025-06: JPY 4,205.00 per share

- 2025-07: JPY 4,697.00 per share

- 2025-08: JPY 4,049.00 per share

- 2025-09: JPY 3,930.00 per share

- 2025-10: JPY 5,318.00 per share

- 2025-11: JPY 4,968.00 per share

- 2025-12: JPY 4,902.00 per share

- 2026-01: JPY 5,361.00 per share

- 2026-02: JPY 5,226.00 per share

- 2026-03: JPY 4,464.00 per share

- 2026-04: JPY 4,882.00 per share

- 2026-05: JPY 5,166.00 per share

- 2026-06: JPY 4,471.00 per share

- 2026-07: JPY 5,267.00 per share

- 2026-08: JPY 5,438.00 per share

- 2026-09: JPY 5,489.00 per share

- 2026-10: JPY 5,850.00 per share

## Annual estimated value (JPY per share)

- FY2020: low JPY 307.63 per share, central JPY 337.52 per share, high JPY 377.32 per share

- FY2021: low JPY 516.76 per share, central JPY 564.78 per share, high JPY 628.70 per share

- FY2022: low JPY 977.78 per share, central JPY 1,093.64 per share, high JPY 1,247.89 per share

- FY2023: low JPY 1,769.13 per share, central JPY 1,995.15 per share, high JPY 2,296.03 per share

- FY2024: low JPY 1,858.38 per share, central JPY 2,377.81 per share, high JPY 2,761.78 per share

- FY2025: low JPY 1,713.90 per share, central JPY 1,930.11 per share, high JPY 2,217.94 per share

- FY2026: low JPY 1,964.55 per share, central JPY 2,201.65 per share, high JPY 2,517.28 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

## Sources

[Original EDINET filing](https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YGBO.pdf); period 2026-03-31, filed 2026-06-22.

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.

## Reported holder observations