Hitachi Construction EBITDA vs. Cash Per Share

HCM Stock  EUR 21.40  0.20  0.94%   
Considering Hitachi Construction's profitability and operating efficiency indicators, Hitachi Construction Machinery may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Hitachi Construction's ability to earn profits and add value for shareholders.
For Hitachi Construction profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Hitachi Construction to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Hitachi Construction Machinery utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Hitachi Construction's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Hitachi Construction Machinery over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Hitachi Construction's value and its price as these two are different measures arrived at by different means. Investors typically determine if Hitachi Construction is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hitachi Construction's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Hitachi Construction Cash Per Share vs. EBITDA Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Hitachi Construction's current stock value. Our valuation model uses many indicators to compare Hitachi Construction value to that of its competitors to determine the firm's financial worth.
Hitachi Construction Machinery is one of the top stocks in ebitda category among its peers. It also is one of the top stocks in cash per share category among its peers . The ratio of EBITDA to Cash Per Share for Hitachi Construction Machinery is about  64,220,446,097 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Hitachi Construction's earnings, one of the primary drivers of an investment's value.

Hitachi Cash Per Share vs. EBITDA

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Hitachi Construction

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
172.75 B
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Cash per Share is a ratio of current cash on hands or in the banks of the company to a total number of shares outstanding. It is used to determine a firm's liquidity and is a good indicator of the overall financial health of a company. Value investors often compare this ratio to the current stock quote, and if it exceeds the stock price they would invest in it.

Hitachi Construction

Cash Per Share

 = 

Total Cash

Average Shares

 = 
2.69 X
Companies with high Cash per Share ratio will be considered as an attractive investment by most investors. In most industries if you can single out an equity instrument trading below its cash per share value, you have a bargain and should consider buying it. Finding the stocks traded below their cash value, therefore, can be a good starting point for investors using strategies based on fundamentals.

Hitachi Cash Per Share Comparison

Hitachi Construction is currently under evaluation in cash per share category among its peers.

Hitachi Construction Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Hitachi Construction, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Hitachi Construction will eventually generate negative long term returns. The profitability progress is the general direction of Hitachi Construction's change in net profit over the period of time. It can combine multiple indicators of Hitachi Construction, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Hitachi Construction Machinery Co., Ltd., together with its subsidiaries, manufactures, sells, services, and rents construction machinery worldwide. Hitachi Construction Machinery Co., Ltd. is a subsidiary of Hitachi Ltd. HITACHI CONSTR operates under Farm Construction Equipment classification in Germany and is traded on Frankfurt Stock Exchange. It employs 24591 people.

Hitachi Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Hitachi Construction. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Hitachi Construction position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Hitachi Construction's important profitability drivers and their relationship over time.

Use Hitachi Construction in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Hitachi Construction position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hitachi Construction will appreciate offsetting losses from the drop in the long position's value.

Hitachi Construction Pair Trading

Hitachi Construction Machinery Pair Trading Analysis

The ability to find closely correlated positions to Hitachi Construction could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Hitachi Construction when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Hitachi Construction - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Hitachi Construction Machinery to buy it.
The correlation of Hitachi Construction is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Hitachi Construction moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Hitachi Construction moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Hitachi Construction can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Hitachi Construction position

In addition to having Hitachi Construction in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Beer and Liquor
Beer and Liquor Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Beer and Liquor theme has 32 constituents at this time.
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Other Information on Investing in Hitachi Stock

To fully project Hitachi Construction's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Hitachi Construction at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Hitachi Construction's income statement, its balance sheet, and the statement of cash flows.
Potential Hitachi Construction investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Hitachi Construction investors may work on each financial statement separately, they are all related. The changes in Hitachi Construction's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Hitachi Construction's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.