Mitsubishi Heavy Industries (7011) AI Stock Analysis

• Market Cap: $14.85T
• Dividend Yield: 0.52%
• Average Volume (3M): 31.00M
• Price to Earnings (P/E): 59.0
• Beta (1Y): 1.68
• Revenue Growth: 6.78%
• EPS Growth: 8.83%
• Country: JP
• Employees: 77,697
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 20.32
• Shares Outstanding: 3,373,647,700
• 10 Day Avg. Volume: 36,461,409
• 30 Day Avg. Volume: 31,001,996
• PEG Ratio: 3.28
• Price to Book (P/B): 3.62
• Price to Sales (P/S): 1.69
• P/FCF Ratio: 29.29
• Enterprise Value/Market Cap: 0.86
• Enterprise Value/Revenue: 2.49
• Enterprise Value/Gross Profit: 12.04
• Enterprise Value/Ebitda: 22.08
• 1Y Price Target: $4,141.31
• Price Target Upside: -6.90% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 70 Outperform
• Price Target: ¥4,512.00 ▲(1.44% Upside)

Mitsubishi Heavy Industries scores well due to its strong financial performance and positive technical indicators. However, the high P/E ratio suggests potential overvaluation, which tempers the overall score. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates the company's ability to expand its market presence and adapt to industry demands, ensuring long-term sustainability.

Cash Generation

Strong cash generation capabilities enhance financial flexibility, allowing for reinvestment in growth opportunities and debt reduction, supporting long-term stability.

Operational Efficiency

Efficient operations, as reflected by healthy margins, suggest effective cost management and operational excellence, which are crucial for maintaining competitive advantage.

Negative Factors

Debt Levels

While debt levels are manageable, further reduction is necessary to enhance financial stability and reduce interest burden, which could impact long-term growth.

Valuation Concerns

High valuation metrics may limit investor interest and impact stock performance, potentially affecting capital raising and strategic investments.

Dividend Yield

A low dividend yield might deter income-focused investors, potentially impacting stock attractiveness and limiting shareholder returns in the long term.

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 thermal, renewable energy, nuclear, engine, nuclear power generation, and chemical power plants, lithium-ion battery products, and oil and gas production plants, as well as fuel cells; civil aircrafts and engines, aviation equipment, and maintenance, repair, and overhaul of aircrafts; and launch vehicles and services, rocket engines, reaction control systems, space stations, rocket launchers, rocket engine combustion test facilities, and electronic parts. The company also provides passenger and commercial ships, LNG and LPG carriers, special purpose vessels, and IT services and systems; marine machineries, boilers, turbines, engines, and structures; and intelligent transport systems products and solutions, such as electronic toll collection system, road user charging system, highway traffic management system, EV management system, and development system. In addition, it offers organic solvent exhaust gas treatment system, waste-to-energy system, sludge treatment system, air quality control system, and bio-treatment system; turbochargers, car air-conditioning and refrigeration systems, rubber and tire machinery, and testing equipment; forklift trucks; and printing, paper converting, and metals, and food & packaging machinery, pumps, compressors & mechanical turbines, hydraulic components. Further, the company provides gas holders, vibration control systems, water pipes, tunnel excavation machinery, and cybersecurity solutions for industrial control systems; special vehicles, naval ship & maritime systems, defense aircrafts, helicopters, defense aeroengines, and guided weapon systems; and CO2 capture plants, as well as provides after-sales services. The company was founded in 1884 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Mitsubishi Heavy Industries generates revenue through multiple key streams, primarily by manufacturing and selling advanced industrial products and systems. The company's core revenue sources include the Aerospace segment, which involves the production of commercial and military aircraft; the Energy segment, focusing on power generation solutions like gas turbines and nuclear energy; and the Machinery and Infrastructure segment, which provides heavy machinery and industrial solutions. MHI also benefits from long-term contracts and partnerships with various governments and corporations, enhancing its revenue stability. Additionally, the company engages in maintenance and service agreements, contributing to ongoing revenue after initial sales. Factors such as advancements in technology, global energy demands, and defense spending significantly influence MHI's earnings potential.

Mitsubishi Heavy Industries Financial Statement Overview

Summary

Mitsubishi Heavy Industries demonstrates strong financial performance with robust revenue and profit growth, efficient operations, and effective cash management. The company maintains a solid financial position with manageable debt levels and strong cash flow generation.

Income Statement

Mitsubishi Heavy Industries shows strong revenue growth with a TTM increase of 1.63% and consistent improvement in gross and net profit margins over the years. The EBIT and EBITDA margins are healthy, indicating efficient operations. The company's ability to maintain steady growth in a competitive industry is commendable.

Balance Sheet

The balance sheet reflects a solid financial position with a manageable debt-to-equity ratio of 0.48 in the TTM period, showing improvement from previous years. Return on equity is robust at 10.79%, suggesting effective use of shareholder capital. The equity ratio indicates a stable asset base, though there is room for reducing leverage further.

Cash Flow

Cash flow analysis reveals significant improvement in free cash flow growth at 70.46% TTM, showcasing strong cash generation capabilities. The operating cash flow to net income ratio is healthy, supporting operational sustainability. The free cash flow to net income ratio of 0.72 indicates efficient conversion of profits into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.11T	5.03T	4.66T	4.20T	3.86T	3.70T
Gross Profit	1.06T	1.00T	906.33B	740.40B	633.61B	549.60B
EBITDA	576.33B	557.52B	482.05B	351.72B	307.43B	284.02B
Net Income	251.39B	245.45B	222.02B	130.45B	113.54B	40.64B
Balance Sheet
Total Assets	6.75T	6.66T	6.26T	5.47T	5.12T	4.81T
Cash, Cash Equivalents and Short-Term Investments	671.88B	657.82B	431.29B	347.66B	314.26B	245.42B
Total Debt	1.15T	1.13T	1.14T	1.19T	1.08T	1.24T
Total Liabilities	4.25T	4.19T	3.90T	3.64T	3.45T	3.37T
Stockholders Equity	2.38T	2.35T	2.24T	1.74T	1.58T	1.37T
Cash Flow
Free Cash Flow	493.93B	289.77B	170.70B	-51.02B	156.31B	-241.16B
Operating Cash Flow	687.95B	530.46B	331.19B	80.89B	285.56B	-94.95B
Investing Cash Flow	-156.41B	-189.52B	-131.05B	-45.58B	16.31B	-182.25B
Financing Cash Flow	-411.36B	-112.32B	-158.90B	-18.90B	-255.77B	221.74B

Mitsubishi Heavy Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4448.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7011, the sentiment is Positive. The current price of 4448 is above the 20-day moving average (MA) of 4183.65, above the 50-day MA of 3928.43, and above the 200-day MA of 3111.62, indicating a bullish trend. The MACD of 165.92 indicates Negative momentum. The RSI at 63.95 is Neutral, neither overbought nor oversold. The STOCH value of 67.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7011.

Mitsubishi Heavy Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6954	―	¥4.12T	26.58	―	2.02%	1.24%	20.57%
7011	―	$14.85T	59.01	10.85%	0.52%	6.78%	8.83%
7013	―	$2.97T	27.57	23.85%	0.65%	17.79%	―
6594	―	$3.02T	18.61	―	1.93%	6.85%	31.48%
7012	―	$1.94T	25.24	11.02%	1.29%	15.11%	142.87%
6302	―	$543.30B	-157.30	-0.47%	3.12%	-4.25%	-110.18%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Mitsubishi Heavy Industries Corporate Events

Mitsubishi Heavy Industries Revises FY2025 Earnings Forecast

Mitsubishi Heavy Industries announced a revision to its consolidated earnings forecast for FY2025, reflecting the impact of taking its subsidiary, Mitsubishi Logisnext Co., Ltd., private. This move has led to the classification of Logisnext’s business as discontinued operations, resulting in a significant loss on business reorganization, which has negatively affected the company’s overall financial projections.

The most recent analyst rating on (JP:7011) stock is a Hold with a Yen3716.00 price target. To see the full list of analyst forecasts on Mitsubishi Heavy Industries stock, see the JP:7011 Stock Forecast page.

Mitsubishi Heavy Industries to Privatize Subsidiary Mitsubishi Logisnext

Mitsubishi Heavy Industries announced its decision to take its subsidiary, Mitsubishi Logisnext Co., Ltd., private through a series of transactions involving a tender offer and share consolidation. This move is part of Mitsubishi Heavy Industries’ strategy to streamline operations and focus on core business areas, potentially impacting stakeholders by altering the company’s market positioning and operational dynamics.

The most recent analyst rating on (JP:7011) stock is a Hold with a Yen3716.00 price target. To see the full list of analyst forecasts on Mitsubishi Heavy Industries stock, see the JP:7011 Stock Forecast page.

Mitsubishi Heavy Industries Reports Mixed Q1 Results

Mitsubishi Heavy Industries, Ltd. is a diversified Japanese company operating in sectors such as energy systems, plants and infrastructure, logistics, and aerospace, known for its engineering and manufacturing capabilities across a wide range of industries.

Mitsubishi Logisnext Revises Earnings Forecast for FY2026

Mitsubishi Heavy Industries announced a revision of the consolidated earnings forecast for its subsidiary, Mitsubishi Logisnext Co., Ltd., for the fiscal year ending March 31, 2026. The revised forecast shows a decrease in expected net sales and profits, but it is not anticipated to significantly impact the parent company’s overall financial results.

The most recent analyst rating on (JP:7011) stock is a Buy with a Yen2700.00 price target. To see the full list of analyst forecasts on Mitsubishi Heavy Industries stock, see the JP:7011 Stock Forecast page.

Mitsubishi Heavy Industries Reports Mixed Q1 FY2025 Results

Mitsubishi Heavy Industries reported a mixed financial performance for the first quarter of FY2025, with a 7.4% increase in revenue and a 24.7% rise in profit from business activities compared to the same period last year. However, the order intake decreased by 4.3%, and profit before income taxes fell by 6.3%. The company’s financial position remains stable, with a slight increase in total assets and equity, and it maintained its dividend forecast for the fiscal year. These results indicate a strong operational performance despite challenges in order intake, reflecting the company’s resilience and strategic focus on profitability.

The most recent analyst rating on (JP:7011) stock is a Buy with a Yen2700.00 price target. To see the full list of analyst forecasts on Mitsubishi Heavy Industries stock, see the JP:7011 Stock Forecast page.