The historical rank and industry rank for Hitachi Construction Machinery Co's Net Margin % or its related term are showing as below:
FRA:HCM'
s Net Margin % Range Over the Past 10 Years
Min: 1.06 Med: 5.75 Max: 7.4
Current: 5.21
FRA:HCM's Net Margin % is ranked better than 50.71% of 211
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 5.14
vs FRA:HCM: 5.21
Hitachi Construction Machinery Co (FRA:HCM) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Hitachi Construction Machinery Co Net Margin % Related Terms
Hitachi Construction Machinery Co Net Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Hitachi Construction Machinery Co Net Margin % Chart
For the Farm & Heavy Construction Machinery subindustry, Hitachi Construction Machinery Co's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Hitachi Construction Machinery Co Net Margin % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Hitachi Construction Machinery Co's Net Margin % distribution charts can be found below:
* The bar in red indicates where Hitachi Construction Machinery Co's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Hitachi Construction Machinery Co (FRA:HCM) has a Net Margin % of 2.35% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Hitachi Construction Machinery Co and its competitors. This is 59% below median its historical median of 5.75. Over the past decade, Hitachi Construction Machinery Co's Net Margin % has ranged from 1.06 to 7.40. According to the industry distribution chart, Hitachi Construction Machinery Co ranks #104 out of 211 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 49.3%.
Is Hitachi Construction Machinery Co's Net Margin % too high?
Hitachi Construction Machinery Co's current Net Margin % of 2.35% is 59% below median its 10-year median of 5.75. Over the past 10 years, this metric has ranged from a low of 1.06 to a high of 7.40. The Farm & Heavy Construction Machinery industry median Net Margin % is 5.14. Hitachi Construction Machinery Co's value of 2.35% is 54.3% below this industry median. Based on the distribution chart, Hitachi Construction Machinery Co ranks #104 out of 211 companies in the Farm & Heavy Construction Machinery industry, which is above the industry midpoint. Overall, Hitachi Construction Machinery Co has a GF Score™ of 86/100, reflecting its overall financial health beyond just this single metric.
How does Hitachi Construction Machinery Co's Net Margin % compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Hitachi Construction Machinery Co ranks #104 out of 211 companies for Net Margin %. This puts Hitachi Construction Machinery Co in the upper half of its industry. The industry median Net Margin % is 5.14. Hitachi Construction Machinery Co's value of 2.35% is 54.3% below this benchmark. Historically, Hitachi Construction Machinery Co's own Net Margin % has ranged from 1.06 to 7.40 over the past decade. While the company's 10-year median is 5.75 vs. the industry median of 5.14, Hitachi Construction Machinery Co has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Farm & Heavy Construction Machinery company?
The median Net Margin % among Farm & Heavy Construction Machinery companies is 5.14, based on 211 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hitachi Construction Machinery Co's current Net Margin % of 2.35% is 54.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Hitachi Construction Machinery Co and its competitors. For the Farm & Heavy Construction Machinery industry, the median Net Margin % is 5.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hitachi Construction Machinery Co's current Net Margin % is 2.35%, which is 59% below median its own 10-year median of 5.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hitachi Construction Machinery Co stock overvalued right now?
Hitachi Construction Machinery Co (FRA:HCM) has a current Net Margin % of 2.35%. The stock's GF Value™ is €23.89, compared to a current price of €28.38 — trading 18.8% above its estimated fair value. The current Net Margin % is 2.35%, which is 59% below median its 10-year median of 5.75 and 54.3% below the Farm & Heavy Construction Machinery industry median of 5.14. Hitachi Construction Machinery Co's overall GF Score™ is 86/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Hitachi Construction Machinery Co (FRA:HCM), the current Net Margin % is 2.35% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Hitachi Construction Machinery Co (FRA:HCM) Overvalued in 2026?
Based on GuruFocus' analysis, Hitachi Construction Machinery Co stock appears to be overvalued.
The current stock price of €28.38 is trading 18.8% above its estimated GF Value™ of €23.89.
Key valuation signals for FRA:HCM:
Net Margin %: 2.35% (59% below median its 10-year median of 5.75)
GF Value™: €23.89 vs. price of €28.38 (18.8% above fair value)
Industry Position: 54.3% below the Farm & Heavy Construction Machinery median (#104 of 211)
No single metric tells the full story. See the FRA:HCM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hitachi Construction Machinery Co Business Description
Hitachi Construction Machinery manufactures and sells construction and mining machinery, and provides related services such as parts supply, rentals, and others. HCM was established in 1970 as a subsidiary of Hitachi, but its origins date back to 1949 when it introduced Japan's first mechanical excavator. The company's main products include hydraulic excavators for mining and construction, rigid dump trucks, and wheel loaders. As of August 2022, Hitachi is no longer the parent company of HCM, after selling 26% of its stake to HCJI Holdings, a joint venture between Itochu and Japan Industrial Partners. Currently, Hitachi has a 25.42% stake in Hitachi Construction Machinery as an equity-method affiliate. HCM is based in Tokyo.
86GF Score
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Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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