Mitsubishi Heavy Industries (JP:7011)
OTHER OTC:7011
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Mitsubishi Heavy Industries
(OTC:7011)
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Rating:57Neutral
Price Target:
¥4,451.00
▲(1.83% Upside)
Action:Reiterated
Date:05/13/26
The score is primarily supported by improving fundamentals (stronger margins, improved leverage, and a sharp rebound in free cash flow), but is held back by weak current technical momentum and a stretched valuation (high P/E with a low dividend yield).
Positive Factors
Rebounded cash generation
A material rebound in operating and free cash flow improves the firm's ability to self-fund capex, service large project working-capital swings, and invest in higher-margin aftermarket services. Sustained cash generation strengthens resilience across multi-year projects and supports deleveraging or strategic investments.
Negative Factors
Uneven revenue trend
Revenue volatility, including a recent year-on-year dip, indicates susceptibility to project timing and cyclical capital spending. For a business reliant on large contracts, uneven top-line growth can strain margin recovery and make forward free-cash-flow visibility and planning for long-duration projects more challenging.
Read all positive and negative factors
Positive Factors
Negative Factors
Rebounded cash generation
A material rebound in operating and free cash flow improves the firm's ability to self-fund capex, service large project working-capital swings, and invest in higher-margin aftermarket services. Sustained cash generation strengthens resilience across multi-year projects and supports deleveraging or strategic investments.
Read all positive factors
Mitsubishi Heavy Industries (7011) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥13.71T
Dividend Yield0.62%
Average Volume (3M)21.54M
Price to Earnings (P/E)42.7
Beta (1Y)1.54
Revenue Growth-1.05%
EPS Growth35.33%
CountryJP
Employees77,697
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)98.86
Shares Outstanding3,373,647,700
10 Day Avg. Volume23,659,900
30 Day Avg. Volume21,539,246
Financial Highlights & Ratios
PEG Ratio1.21
Price to Book (P/B)4.59
Price to Sales (P/S)2.85
P/FCF Ratio18.63
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥5,474.29Price Target Upside25.24% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)115.26
Revenue Forecast (FY)¥5.42T
Mitsubishi Heavy Industries Business Overview & Revenue Model
Company Description
Mitsubishi Heavy Industries, Ltd. manufactures and sells heavy machinery worldwide. The company operates through Energy Systems; Plants & Infrastructure Systems; Logistics, Thermal & Drive Systems; and Aircraft, Defense & Space segments. It offers...
How the Company Makes Money
Mitsubishi Heavy Industries primarily generates revenue by (1) selling complex, high-value equipment and engineered systems and (2) providing ongoing services over the installed base of that equipment. Key revenue streams typically include: (a) En...
Mitsubishi Heavy Industries Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jul 31, 2026
Earnings Call Sentiment Positive
The earnings call demonstrates strong financial performance, particularly in revenue and order intake, alongside strategic challenges in specific segments such as Logistics Systems and one-time losses in SPC investments.Positive Updates
Record Order Intake
Order intake reached record highs, driven by significant increases in GTCC, Aero Engines, and Metals Machinery, while Defense decreased. The full-year forecast was increased from JPY6 trillion to JPY6.4 trillion.
Negative Updates
SPC Losses
JPY10 billion in losses booked in Q3 due to one-time expenses in international projects, impacting the overall profit margin.
Read all updates
Q3-2025 Updates
Positive
Negative
Record Order Intake
Order intake reached record highs, driven by significant increases in GTCC, Aero Engines, and Metals Machinery, while Defense decreased. The full-year forecast was increased from JPY6 trillion to JPY6.4 trillion.
Read all positive updates
Company Guidance
During the Mitsubishi Heavy Industries FY 2024 Financial Results briefing, CFO Hisato Kozawa highlighted key financial metrics and revised guidance for the year. The company increased its full-year order intake forecast from JPY6 trillion to JPY6.4 trillion, driven by significant increases in GTCC, Aero Engines, and Metals Machinery orders, despite a decrease in Defense. Revenue rose across all segments, boosting both business profit and net income year-on-year. Total assets increased by JPY568.9 billion to JPY6,825.2 billion, influenced by a JPY90 billion currency translation effect due to yen depreciation. Operating cash flow improved, leading to a revised free cash flow forecast from negative JPY100 billion to zero. Business profit increased from JPY191.6 billion in FY 2023 to JPY264.7 billion in FY 2024, aided by revenue growth and yen depreciation. Segment-wise, Energy Systems and Plants & Infrastructure Systems saw strong order intake and profit increases, with the former benefitting from robust GTCC demand. However, the Logistics, Thermal & Drive Systems segment faced challenges, including production disruptions in turbochargers and a decline in Logistics Systems revenue and profit. The Aircraft, Defense & Space segment experienced a decrease in order intake due to prior large Defense projects but exceeded revenue and profit forecasts due to backlog execution and yen depreciation. Additionally, the company addressed technical issues and strategic moves related to the Nakoso and Hirono power plants as part of the Fukushima revitalization project.Mitsubishi Heavy Industries Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
82
Very Positive
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.97T | 5.03T | 4.66T | 4.20T | 3.86T |
| Gross Profit | 1.08T | 1.00T | 906.33B | 740.40B | 633.61B |
| EBITDA | 661.08B | 557.52B | 482.05B | 351.72B | 307.43B |
| Net Income | 332.13B | 245.45B | 222.02B | 130.45B | 113.54B |
Balance Sheet | |||||
| Total Assets | 8.27T | 6.66T | 6.26T | 5.47T | 5.12T |
| Cash, Cash Equivalents and Short-Term Investments | 1.33T | 657.82B | 431.29B | 347.66B | 314.26B |
| Total Debt | 876.24B | 1.13T | 1.14T | 1.19T | 1.08T |
| Total Liabilities | 5.04T | 4.19T | 3.90T | 3.64T | 3.45T |
| Stockholders Equity | 3.09T | 2.35T | 2.24T | 1.74T | 1.58T |
Cash Flow | |||||
| Free Cash Flow | 761.55B | 289.77B | 170.70B | -51.02B | 156.31B |
| Operating Cash Flow | 942.62B | 530.46B | 331.19B | 80.89B | 285.56B |
| Investing Cash Flow | -49.17B | -189.52B | -131.05B | -45.58B | 16.31B |
| Financing Cash Flow | -274.55B | -112.32B | -158.90B | -18.90B | -255.77B |
Mitsubishi Heavy Industries Technical Analysis
Negative
4371.00
Price Trends
4603.39
Negative
4553.19
Negative
4244.92
Negative
Market Momentum
-126.92
Positive
34.49
Neutral
10.49
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7011, the sentiment is Negative. The current price of 4371 is below the 20-day moving average (MA) of 4484.45, below the 50-day MA of 4603.39, and above the 200-day MA of 4244.92, indicating a bearish trend. The MACD of -126.92 indicates Positive momentum. The RSI at 34.49 is Neutral, neither overbought nor oversold. The STOCH value of 10.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7011.
Mitsubishi Heavy Industries Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | ¥2.45T | 26.50 | 16.00% | 1.38% | 12.02% | 9.75% | |
69 Neutral | ¥2.90T | 18.60 | 10.09% | 0.97% | 5.08% | 25.55% | |
66 Neutral | ¥2.42T | 14.31 | 14.59% | 1.40% | 8.54% | 23.14% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | ¥647.18B | 21.78 | 4.83% | 2.95% | 2.18% | 5504.89% | |
57 Neutral | ¥13.71T | 42.72 | 12.52% | 0.62% | -1.05% | 35.33% | |
57 Neutral | ¥2.88T | 20.66 | 23.30% | 0.71% | 1.02% | 42.74% |
* Industrials Sector Average
JP:7011
Mitsubishi Heavy Industries
4,126.00
1,222.71
42.11%
JP:6361
Ebara
5,153.00
2,756.07
114.98%
JP:7013
IHI
2,561.00
749.21
41.35%
JP:7012
Kawasaki Heavy Industries
2,849.00
1,126.45
65.39%
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Nidec
2,675.00
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-3.31%
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Sumitomo Heavy Industries
5,300.00
2,451.91
86.09%
Mitsubishi Heavy Industries Corporate Events
Mitsubishi Heavy Industries Separates Logisnext Operations in FY2025 Results
May 12, 2026
Mitsubishi Heavy Industries reported its FY2025 financial results under IFRS, emphasizing that businesses related to the former Mitsubishi Logisnext have been classified as discontinued operations. The company now presents order intake, revenue, a...
Mitsubishi Heavy Industries Lifts Year-End Dividend, Targets Higher Shareholder Returns
May 12, 2026
Mitsubishi Heavy Industries’ board has approved a year-end dividend of 13 yen per share for shareholders of record as of March 31, 2026, up from the previously forecast 12 yen and the prior year’s 12 yen. This raises the total annual d...
Mitsubishi Heavy Industries Posts Robust FY2025 Earnings and Raises Dividend Outlook
May 12, 2026
Mitsubishi Heavy Industries reported strong FY2025 results, with revenue rising 14.1% to ¥4.97 trillion and profit from business activities up 21.8%, supported by improved margins and a swing to positive equity-method contributions. Profit at...
Mitsubishi Heavy Industries Bolsters Loss-Making Indian Power Unit With Capital Injection
Mar 13, 2026
Mitsubishi Heavy Industries has retroactively disclosed that it significantly increased the capital of its consolidated subsidiary, Mitsubishi Power India Private Limited, in August 2025, raising the unit’s share capital above 10% of the par...
Mitsubishi Heavy Industries Completes Liquidation of Danish Subsidiary
Mar 11, 2026
Mitsubishi Heavy Industries has completed the liquidation of its wholly owned subsidiary MHI Holding Denmark ApS, a Copenhagen-based entity that managed renewable energy investments and had share capital of 315.7 million euros. The wind-down, firs...
Mitsubishi Heavy Industries Finalizes Exit from Mitsubishi Logisnext After Successful Tender Offer
Feb 19, 2026
Mitsubishi Heavy Industries has confirmed the successful completion of LVJ Holdings 2 LLC’s tender offer for shares and stock acquisition rights of its consolidated subsidiary Mitsubishi Logisnext, which ran from January 21 to February 18, 2...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.