Wednesday, March 16, 2022

An International Equity holding: Hitachi (HTHIY, $91.91): “Ahead of the Curve” By: Margaret Diedrich, AIM Student at Marquette University


Hitachi (HTHIY, $91.91): “Ahead of the Curve”

By: Margaret Diedrich, AIM Student at Marquette University


Disclosure: The AIM International Equity Fund currently holds this position. This article was written by myself, and it expresses my own opinions. I am not receiving compensation for it, and I have no business relationship with any company whose stock is mentioned in this article.


  • Hitachi Ltd. (OTCMKTS: HTHIY) is a Japanese conglomerate that offers a range of services to their customers including energy facilities, water distribution, and information technologies.
  • HTHIY is in a position to continue to grow. Their sales growth has transitioned into their digital and green business.
  • Management has announced a new organizational structure. Their new structure will revolve around renewable energy, digital systems, and connective industries. The transition is meant to improve overall efficiency and help meet new client demands.

Key points:

Hitachi Ltd. has a strategic focus on sustainable business practices. They are committed to becoming a global leader in renewable energy technology. They will accomplish this through focusing on environmental improvement, resilience, and security and safety. These attributes are evident in Hitachi’s newfound focus on green and technological business initiatives.

Hitachi’s renewable energy business is an exciting position for growth. The Japanese economic environment is primed for expansion in this area. The company sees 47.6% of revenue come from Japan. According to the International Trade Administration, 36-38% of Japan’s energy will come from renewables by 230. This provides an enormous growth opportunity for the company.

In addition to the company positioning itself as a leader in green technology, other segments will transition to focus more heavily on digital solutions. The company announced the formation of Hitachi Automation, a new business segment focused on robotic structures. It is this constant innovation that continues to add value to shareholders.

What has the stock done lately?

The stock has experienced a substantial dip since mid-November. The stock price fell from $128.57 to the current price of $92.94. Despite this recent dip, Hitachi Ltd. is in a position to continue to grow. Their transition to digital and renewable technology is an encouraging signal to shareholders. The stock was pitched in the Spring of 2020 at a price of $80.79.

Past Year Performance: HTHIY has a 52-week range of $89.00 – 128.56. Currently the stock is trading at $91.59.

Source: FactSet

My Takeaway

Hitachi Ltd. provides services to a multitude of industries worldwide. The company is known for being an innovative leader in each industry they operate in. My takeaway is that Hitachi is an established company that has potential to grow in their technology and green businesses. I recommend we hold Hitachi. Their diversified businesses and new innovative initiatives will prove to be a stable bet, especially in this time of global political instability.

Source: FactSet