Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Hitachi Construction Machinery Co., Ltd. (6305.T)

Company Dividend Discount ModelIndustry: Agricultural - MachinerySector: Industrials

Valuation Snapshot

Stable Growth$34,830.95 - $81,742.14$76,604.35
Multi-Stage$12,103.50 - $13,245.26$12,663.90
Blended Fair Value$44,634.13
Current Price$4,734.00
Upside842.84%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS6.94%9.00%129.94144.87114.9454.9834.1992.9191.9644.0114.1359.91
YoY Growth---10.31%26.04%109.06%60.80%-63.20%1.03%108.97%211.51%-76.42%9.14%
Dividend Yield--3.02%3.29%2.85%1.83%1.01%3.12%3.17%1.22%0.50%4.04%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)87,431.00
(-) Cash Dividends Paid (M)37,256.00
(=) Cash Retained (M)50,175.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)17,486.2010,928.886,557.33
Cash Retained (M)50,175.0050,175.0050,175.00
(-) Cash Required (M)-17,486.20-10,928.88-6,557.33
(=) Excess Retained (M)32,688.8039,246.1343,617.68
(/) Shares Outstanding (M)212.72212.72212.72
(=) Excess Retained per Share153.67184.50205.05
LTM Dividend per Share175.14175.14175.14
(+) Excess Retained per Share153.67184.50205.05
(=) Adjusted Dividend328.82359.64380.20
WACC / Discount Rate6.50%6.50%6.50%
Growth Rate5.50%6.50%7.50%
Fair Value$34,830.95$76,604.35$81,742.14
Upside / Downside635.76%1,518.17%1,626.70%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)87,431.0093,114.0299,166.43105,612.24112,477.04119,788.05123,381.69
Payout Ratio42.61%52.09%61.57%71.04%80.52%90.00%92.50%
Projected Dividends (M)37,256.0048,502.6361,053.9375,031.9690,569.19107,809.24114,128.06

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.50%6.50%6.50%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)45,116.4645,544.1145,971.75
Year 2 PV (M)52,826.6453,832.8454,848.53
Year 3 PV (M)60,388.6662,122.2163,888.61
Year 4 PV (M)67,804.6270,412.2073,094.27
Year 5 PV (M)75,076.5978,702.8282,467.83
PV of Terminal Value (M)2,273,391.592,383,197.252,497,205.44
Equity Value (M)2,574,604.572,693,811.422,817,476.43
Shares Outstanding (M)212.72212.72212.72
Fair Value$12,103.50$12,663.90$13,245.26
Upside / Downside155.67%167.51%179.79%

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