Hitachi Construction Machinery Co (FRA:HCM) ROCE %: 11.15% (As of Mar. 2026)


FRA:HCM Hitachi Construction Machinery Co Ltd FRA:HCM
86 GF Score
Price €28.38
GF Value €23.89
! 2 Warning Signs
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What is Hitachi Construction Machinery Co ROCE %?

Hitachi Construction Machinery Co FRA:HCM -1.01% 86 ROCE % is 11.15% as of Mar. 2026. GuruFocus rates FRA:HCM with a GF Score™ of 86/100 and a GF Value™ of €23.89. The stock has 2 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Hitachi Construction Machinery Co's annualized ROCE % for the quarter that ended in Mar. 2026 was 11.15%.

Hitachi Construction Machinery Co  (FRA:HCM) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Hitachi Construction Machinery Co ROCE % Related Terms

Hitachi Construction Machinery Co ROCE % Historical Data

* Premium members only.

The historical data trend for Hitachi Construction Machinery Co's ROCE % can be seen below:

* 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 ROCE % Chart

Hitachi Construction Machinery Co Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 12.96 13.13 15.73 14.44 10.82

Hitachi Construction Machinery Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.92 8.28 15.92 10.48 11.15
FRA:HCM
86GF Score
Hitachi Construction Machinery Co Ltd FRA:HCM
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Hitachi Construction Machinery Co ROCE % Calculation

Hitachi Construction Machinery Co's annualized ROCE % for the fiscal year that ended in Mar. 2026 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Mar. 2026 )  (A: Mar. 2025 )(A: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Mar. 2026 )  (A: Mar. 2025 )(A: Mar. 2026 )
=763.943/( ( (11114.365 - 3805.655) + (10124.498 - 3317.89) )/ 2 )
=763.943/( (7308.71+6806.608)/ 2 )
=763.943/7057.659
=10.82 %

Hitachi Construction Machinery Co's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=759.648/( ( (10154.699 - 3339.58) + (10124.498 - 3317.89) )/ 2 )
=759.648/( ( 6815.119 + 6806.608 )/ 2 )
=759.648/6810.8635
=11.15 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 11.15% mean?
Hitachi Construction Machinery Co (FRA:HCM) has a ROCE % of 11.15% as of Mar. 2026.
Is Hitachi Construction Machinery Co's ROCE % too high?
Hitachi Construction Machinery Co's current ROCE % is 11.15%. The Farm & Heavy Construction Machinery industry median ROCE % is 9.18. Hitachi Construction Machinery Co's value of 11.15% is 21.5% above this industry median. 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 ROCE % compare to CAT and DE?
Hitachi Construction Machinery Co's ROCE % of 11.15% can be compared against companies in the Farm & Heavy Construction Machinery industry. The industry median ROCE % is 9.18. Hitachi Construction Machinery Co's value of 11.15% is 21.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Farm & Heavy Construction Machinery company?
The median ROCE % among Farm & Heavy Construction Machinery companies is 9.18, based on 205 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hitachi Construction Machinery Co's current ROCE % of 11.15% is 21.5% above 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Farm & Heavy Construction Machinery industry, the median ROCE % is 9.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hitachi Construction Machinery Co's current ROCE % is 11.15%. 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 ROCE % of 11.15%. 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 ROCE % is 11.15% and 21.5% above the Farm & Heavy Construction Machinery industry median of 9.18. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Hitachi Construction Machinery Co (FRA:HCM), the current ROCE % is 11.15% 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:

  • ROCE %: 11.15%
  • GF Value™: €23.89 vs. price of €28.38 (18.8% above fair value)
  • GF Score™: 86/100 with 2 warning signs
  • Industry Position: 21.5% above the Farm & Heavy Construction Machinery median

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

Address 16-1, Higashiueno 2-chome, Taito-ku, Tokyo, JPN, 110-0015
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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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€28.38
Price
€23.89
GF Value