Hitachi Ltd. ADRHIT

Morningstar Rating

Stock Research and Analysis

by Anil Daka

Japanese behemoth Hitachi owns businesses that span diverse end markets and geographies. However, a severe decline in demand is a substantial headwind, and intense competition and undifferentiated products underscore the firm's lack of an economic moat. Read more

Bulls Say

There are some indications that the manufacturing output of Japan is showing signs of a rebound from multiyear lows.

Hitachi is ahead of the pack in developing commercially viable lithium ion battery technology, and it is planning to increase battery output 70-fold by 2015.

Hitachi Consulting increased revenue in 2009 and received three customer appreciation and partnership awards. Read more

Bears Say

Hitachi's size is a possible detriment in competing with rivals and expanding overseas. Large organizations are typically slower to change than smaller entities.

Hitachi's earnings outlook for 2010 is poor, and management expects the firm to post a loss. Read more

Strategy

Hitachi specializes in handling large-scale, complex information systems, and public works projects that demand significant engineering skills. The firm is now focusing on improving operational efficiency Read more

Management

CEO Takashi Kawamura joined the firm in 1962 and progressed through the ranks. His prior experience includes leading Hitachi Plant Technologies and Hitachi Maxell. Unlike U.S. corporations, a substantial portion of the board consists of directors who Read more

Profile

Hitachi is a $100 billion Japanese conglomerate organized under seven operating segments: information and telecommunication systems (23% of revenue), electronic devices Read more

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