$Hitachi (6501.JP)$The business is very mixed. In addition t...

There has been a slight increase in revenue fluctuations over the past 5 years, with an average growth rate of 3%, and a slight contraction due to fluctuations in operating profit. Net profit declined sharply for two years in 2019 and 2020 due to other non-operating expenses. Growth resumed in the past 3 years, and the growth rate fell to 4.9% in 2023.

Revenue shrank 11% in the first 3 quarters of 2024. Operating profit shrank by only 0.3% due to increased gross margin, while net profit increased by 42.7% due to a sharp increase in equity income and other non-operating income

Currently, the price-earnings ratio is 17.8, and the price-earnings ratio is TTM14.2. Since recent net profit improvements are not a reflection of core profitability, the current valuation needs to be supported by better growth data.