Hitachi Construction Machinery Co Ltd (HTCMY) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Hitachi Construction Machinery Co Ltd stock $98.75, price $65.00, upside +51.9%, quality 59 out of 100. Rating: strongly undervalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 8, 2026.
How to read this chart
60‑month range $25.38 – $85.44 · fair‑value band $74.06 – $123.44 · the $65.00 price screens below the $98.75 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 8, 2026.
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Hitachi Construction Machinery Co., Ltd., together with its subsidiaries, manufactures and sells construction machineries in Japan, the Americas, Europe, Russia, CIS, Africa, the Middle East, Asia, Oceania, and China.
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The company operates in two segments, Construction Machinery Business and Specialized Parts and Service Business. It offers excavators and wheel loaders, hydraulic excavators, compaction equipment, and rigid dump trucks.
The company also provides ICT construction solutions; ConSite that monitors machines' operational status and alarms by sending monthly operational reports, as well as notifies emergency alarms; Fleet Management System, which offers real-time monitoring of dump truck for optimizing vehicle operations; and Autonomous Haulage System for mining operations.
In addition, it provides parts and services; used equipment under the PREMIUM USED brand; machinery rental services under the PREMIUM RENTAL and REC brand names; and parts remanufacturing services. The company was incorporated in 1951 and is headquartered in Tokyo, Japan.
Stock analysis
Hitachi Construction Machinery Co Ltd (HTCMY) currently trades at $65.00, while our model-based Fair Value estimate is $98.75, implying the stock looks roughly 34% undervalued today.
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Valuation
Bull case: the Growth DCF group reads highest at a median of $125.10 per share, and 18 of the 26 models we run sit above the $65.00 price.
Bear case: the Dividend Discount group reads lowest at $39.32, and 8 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: $74.06 (bear) to $123.44 (bull), the price of $65.00 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 59/100 (solid quality), in the Industrials sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Hitachi Construction Machinery Co Ltd ADR reported revenue of ¥1.5T in FY2026 versus ¥1.0T in FY2022, a compound +9.8%/yr. Reported net income was ¥77.6B in FY2026, compounding +0.6%/yr from FY2022.
Key figures
Market cap $6.9B Mid · P/E ratio 11.9 · P/S ratio 0.62 · EPS (TTM) $5.48 · Dividend yield 3.3% · Net margin 5.2% · Return on equity 10.9% · Return on assets (EBIT) 8.0% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 47 out of 100 (low confidence).
What moves the price
The share trades about 24% below its 52-week high and 20% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Industrials peers we cover trades at 10% fair-value upside, at 52%, HTCMY screens cheaper than that median.
Fair Value models
Bear$74.06Fair Value $98.75Bull$123.44
Price $65.00 · Upside +51.9%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 7 months old). Earnings retained since then ($3.33 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.88/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+8.7%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+5.2%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+12.9%
Start year 2021 (pandemic). Over 10 years: +7.0% a year
Revenue growth 21 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+5.9%
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What shareholders gained per year (last 5 years), in JPY ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in JPY: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+16.8%
Earnings growth per share plus dividend.
Earnings per share, growth per year+13.5%
Dividend (yield on the price)3.3%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.13.5% vs 24.3%, slowing
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.4% → 10%
Pace: the 5-year rate starts in 2021 (pandemic)
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far and less than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−1.6%
The company could shrink this much every year for the next five years and today's price would still be justified.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+2.6%
Yearly sales growth analysts expect, extended to five years.
After inflation (figures in JPY, Japan: IMF forecast 2.1% a year to 2030, 1.3% from 2016 to 2025) that is about −3.6% a year for the price and +0.5% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (30 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
AI conclusion: Average profitability in heavy machinery is supported by targeted Physical AI research on excavators yet weakened by limited signals of durable advantages and unclear pricing power.
Main risk: Manufacturers such as XCMG and SANY could capture more customers in excavators and other heavy equipment by offering competitively priced alternatives, pressuring Hitachi Construction Machinery's sales volumes and margins.
Bull case: By accelerating its Physical AI and autonomy programmes alongside service and data offerings under the LANDCROS brand, the company could differentiate its equipment and capture recurring revenue that offsets any price pressure from rivals.
Bear case: If lower-cost Chinese competitors expand their global dealer networks and product ranges, Hitachi Construction Machinery might lose market share in segments such as excavators, leading to reduced production volumes and thinner margins.
Hitachi Construction Machinery has begun research and development on Physical AI that learns hydraulic excavator operator skills from camera images and work data. The effort targets autonomous work at disaster sites as well as excavation and loading in construction and mining. Our models see the shares as undervalued. Will the technology deliver faster productivity gains than the costs and integration hurdles it creates?
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Farm & Heavy Construction Machinery · 145 stocks
Beats the industry median on 12/15 measures
Overall it ranks above its industry peers.
Valuation
Quality Score59 · Above median
Fair Value upside+51.9% · Top 25%
Profitability
Return on equity (12 months)10.9% · Above median
Return on assets4.2% · Below median
Net margin (12 months)6.3% · Above median
Operating margin (12 months)13.7% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)7.5% · Below median
Dividend yield (12 months)3.3% · Above median
Balance sheet
Debt / equity0.20× · Above median
Valuation Multiplesvs Farm & Heavy Construction Machinery median · lower = cheaper
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Hitachi Construction Machinery Co Ltd ADR Fair Value". https://www.fairvalue-calculator.com/stock/HTCMY
Frequently asked questions
Is Hitachi Construction Machinery Co Ltd (HTCMY) overvalued or undervalued?
As of Nov 8, 2026, our model estimates a fair value of $98.75 versus a price of $65.00, about +52% upside (undervalued).
What is the fair value of HTCMY?
Our model-based fair value for Hitachi Construction Machinery Co Ltd is $98.75 (as of Nov 8, 2026), built from audited fundamentals. The current price: $65.00.
What is the quality score of HTCMY?
Hitachi Construction Machinery Co Ltd has a Quality Score of 59/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Hitachi Construction Machinery Co Ltd (HTCMY)?
Our model-based price target is the fair value of $98.75 (as of Nov 8, 2026) from 26 valuation models. Cautious scenario $74.06, optimistic scenario $123.44. It is a calculation from audited fundamentals, not an analyst target.
What is the Hitachi Construction Machinery Co Ltd ADR stock forecast for 2026?
Our models put fair value at $98.75, about +52% upside versus a price of $65.00 (undervalued). Cautious scenario $74.06, optimistic scenario $123.44. The calculation is refreshed regularly with new filings.
What is the revenue of Hitachi Construction Machinery Co Ltd (HTCMY)?
Hitachi Construction Machinery Co Ltd reported trailing-twelve-month revenue of about ¥1.4T (latest available figure, as of Nov 8, 2026).
Does Hitachi Construction Machinery Co Ltd ADR pay a dividend?
Hitachi Construction Machinery Co Ltd currently shows a dividend yield of 3.28% relative to its recent price (as of Nov 8, 2026).
How much is the dividend of Hitachi Construction Machinery Co Ltd (HTCMY) and when is the ex-dividend date?
Hitachi Construction Machinery Co Ltd has a dividend yield of 3.3%. The last ex-dividend date was Mar 31, 2026. A dividend has been paid every year since at least 2009. The payout ratio is 45.3% of earnings. Free cash flow covers the dividend 3.71 times. Our assessment: Well covered. A low payout and the dividend is fully funded by free cash flow, a comfortable, sustainable dividend.
What growth is priced into Hitachi Construction Machinery Co Ltd (HTCMY)?
For today's price to be fair in a discounted-cash-flow model, Hitachi Construction Machinery Co Ltd would have to grow free cash flow by -1.6 % per year for five years (discount rate 9.5 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +12.9 % per year. As of Nov 8, 2026.
What discount rate (WACC) does the fair value of HTCMY use?
Our models discount Hitachi Construction Machinery Co Ltd at 9.5 %: a base by market capitalisation (mid), damped by beta 0.92, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Hitachi Construction Machinery Co Ltd that is -1.6 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (9.5 %) and the same formula as our fair value.
How much growth has Hitachi Construction Machinery Co Ltd (HTCMY) delivered so far?
Over the past 5 years revenue at Hitachi Construction Machinery Co Ltd grew +12.9 % a year. The price currently implies free-cash-flow growth of -1.6 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Hitachi Construction Machinery Co Ltd (HTCMY) growing?
The median revenue growth in the sector is +7.8 % a year. That is the yardstick for the growth priced into Hitachi Construction Machinery Co Ltd (-1.6 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Hitachi Construction Machinery Co Ltd (HTCMY)?
The free-cash-flow yield on the price is 11.93 %: that much free cash flow Hitachi Construction Machinery Co Ltd produces per unit of market value. When it exceeds the discount rate of our models (9.5 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Hitachi Construction Machinery Co Ltd (HTCMY)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Hitachi Construction Machinery Co Ltd it is $98.75 per share (as of Nov 8, 2026), against a price of $65.00. It is the blended result of 26 valuation models in 8 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is Hitachi Construction Machinery Co Ltd ADR stock overvalued or undervalued in 2026?
As of Nov 8, 2026, HTCMY trades below its calculated fair value: price $65.00, fair value $98.75, a gap of about +52% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of HTCMY?
No. The price is what the market pays today ($65.00); the fair value is what the company's own numbers justify ($98.75). For Hitachi Construction Machinery Co Ltd the two are $33.75 per share apart. That gap is exactly why we show both numbers side by side.
How much is Hitachi Construction Machinery Co Ltd ADR worth?
The market values Hitachi Construction Machinery Co Ltd at about $6.9B (market capitalisation, as of Nov 8, 2026). Per share that is $65.00; our models calculate a fair value of $98.75 per share.
What do the bullish and bearish scenarios say about HTCMY?
Our models span a range for Hitachi Construction Machinery Co Ltd: cautious scenario $74.06, base $98.75, optimistic $123.44 per share (as of Nov 8, 2026, price $65.00). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of HTCMY?
Hitachi Construction Machinery Co Ltd trades at a price-to-earnings ratio of 11.9 (as of Nov 8, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $98.75 is built from several models across several years. Other multiples: PEG 1.0, P/B 1.2, P/S 0.8, EV/EBITDA 4.7.
What is the PEG ratio of HTCMY?
The PEG ratio of Hitachi Construction Machinery Co Ltd is 0.96 (P/E divided by earnings growth, as of Nov 8, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of Hitachi Construction Machinery Co Ltd (HTCMY)?
Balance-sheet figures for Hitachi Construction Machinery Co Ltd (as of Nov 8, 2026): return on equity 10.9%, debt of 0.20 per unit of equity. They feed the Quality Score of 59/100, which measures business quality independently of the share price.
How far is HTCMY from its 52-week high?
Hitachi Construction Machinery Co Ltd trades at $65.00, about 24% below its 52-week high of $85.44 and 20% above the low of $54.18 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $98.75 is for.
Which stocks are comparable to Hitachi Construction Machinery Co Ltd ADR?
From the same area (Industrials) we also value Caterpillar Inc, Deere & Company, PACCAR Inc, Daimler Truck Holding, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Hitachi Construction Machinery Co Ltd ADR stock attractive at the current price?
The data as of Nov 8, 2026: price $65.00, calculated fair value $98.75 (+52%), Quality Score 59/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of HTCMY calculated?
We run Hitachi Construction Machinery Co Ltd through 26 models from 8 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $98.75 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.0% above its aggregate fair value. Hitachi Construction Machinery Co Ltd currently trades 34% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Hitachi Construction Machinery Co Ltd (HTCMY)?
The closing price on Nov 6, 2026 was $65.00. Our model-based fair value is $98.75, about +52% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Hitachi Construction Machinery Co Ltd ADR right now?
The price is below even our cautious bear case ($74.06). The market is more pessimistic than our downside scenario. Solid quality (59/100) at a price below fair value, the discount is the argument here, not the business quality.
Where does the earnings growth of Hitachi Construction Machinery Co Ltd (HTCMY) come from?
Earnings per share at Hitachi Construction Machinery Co Ltd grew +21.8 % a year from 2015 to 2026. Broken into its drivers: revenue per share +7.0 %, EBIT margin +9.5 %, tax rate +4.3 %, residual (interest, one-offs) −0.3 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Hitachi Construction Machinery Co Ltd
How large is the market capitalisation of Hitachi Construction Machinery Co Ltd (HTCMY)?
The market capitalisation of Hitachi Construction Machinery Co Ltd is $6.9B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Hitachi Construction Machinery Co Ltd (HTCMY)?
The price-to-sales ratio of Hitachi Construction Machinery Co Ltd is 0.62 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Hitachi Construction Machinery Co Ltd (HTCMY)?
Earnings per share at Hitachi Construction Machinery Co Ltd are $5.48 (price ÷ EPS = P/E 11.9). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Hitachi Construction Machinery Co Ltd (HTCMY)?
The dividend yield of Hitachi Construction Machinery Co Ltd is 3.3% (payout 38.9%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Hitachi Construction Machinery Co Ltd (HTCMY)?
The net margin of Hitachi Construction Machinery Co Ltd is 5.2% (fiscal year 2026). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Hitachi Construction Machinery Co Ltd (HTCMY)?
The return on equity (ROE) of Hitachi Construction Machinery Co Ltd is 10.9% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Hitachi Construction Machinery Co Ltd (HTCMY)?
On an EBIT basis the return on assets of Hitachi Construction Machinery Co Ltd is 8.0% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Hitachi Construction Machinery Co Ltd (HTCMY)?
The operating margin of Hitachi Construction Machinery Co Ltd is 13.7% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Hitachi Construction Machinery Co Ltd (HTCMY)?
Revenue at Hitachi Construction Machinery Co Ltd is growing +7.5% versus a year earlier (3y avg +5.2%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Hitachi Construction Machinery Co Ltd (HTCMY)?
Earnings per share at Hitachi Construction Machinery Co Ltd are growing +149% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Hitachi Construction Machinery Co Ltd (HTCMY) carry?
The net debt of Hitachi Construction Machinery Co Ltd is ¥429B (fiscal year 2026, ≈ 3.3 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 8, 2026