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Mitsubishi Heavy Industries
(OTC:7011)
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Rating:69Neutral
Price Target:
¥4,480.00
▲(13.56% Upside)
Action:Reiterated
Date:08/05/26
The score is driven primarily by improving financial performance (stronger margins, deleveraging, and significantly better free cash flow). This is tempered by expensive valuation (high P/E and low yield) and only moderately supportive technicals, with the stock still below its 100- and 200-day averages.
Positive Factors
Margin Improvement
Sustained margin expansion to ~6.7% net and ~9.6% EBIT reflects improved pricing, cost control and operating leverage. This durable profitability boost strengthens cash generation, funds reinvestment into high-margin service lines, and raises resilience to cyclical revenue dips.
Negative Factors
Slowing Revenue Growth
Top-line expansion slowing to ~1.1% TTM limits the firm's ability to further leverage fixed costs and sustain margin momentum. In an asset-heavy, project-driven business, weak equipment sales or delayed orders can constrain revenue visibility and dampen long-term return improvements.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Improvement
Sustained margin expansion to ~6.7% net and ~9.6% EBIT reflects improved pricing, cost control and operating leverage. This durable profitability boost strengthens cash generation, funds reinvestment into high-margin service lines, and raises resilience to cyclical revenue dips.
Read all positive factors
Mitsubishi Heavy Industries (7011) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥14.29T
Dividend Yield0.59%
Average Volume (3M)19.08M
Price to Earnings (P/E)35.9
Beta (1Y)1.63
Revenue Growth-2.63%
EPS Growth58.50%
CountryJP
Employees78,793
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)118.62
Shares Outstanding3,373,647,700
10 Day Avg. Volume14,973,110
30 Day Avg. Volume19,078,020
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
¥5,375.00Price Target Upside36.25% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)125.13
Revenue Forecast (FY)¥5.54T
Mitsubishi Heavy Industries Business Overview & Revenue Model
Company Description
Mitsubishi Heavy Industries, Ltd. operates globally as a prominent manufacturer and distributor of a diverse range of heavy industrial machinery and infrastructure solutions. The company's vast operations are structured into distinct segments: Ene...
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:Nov 11, 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
82
Very Positive
Balance Sheet
78
Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.97T | 4.97T | 5.03T | 4.66T | 4.20T | 3.86T |
| Gross Profit | 1.10T | 1.08T | 1.00T | 906.33B | 740.40B | 633.61B |
| EBITDA | 697.97B | 702.89B | 557.52B | 482.05B | 351.72B | 307.43B |
| Net Income | 398.58B | 332.13B | 245.45B | 222.02B | 130.45B | 113.54B |
Balance Sheet | ||||||
| Total Assets | 8.15T | 8.27T | 6.66T | 6.26T | 5.47T | 5.12T |
| Cash, Cash Equivalents and Short-Term Investments | 1.68T | 1.33T | 657.82B | 431.29B | 347.66B | 314.26B |
| Total Debt | 853.82B | 876.24B | 1.13T | 1.14T | 1.19T | 1.08T |
| Total Liabilities | 4.91T | 5.04T | 4.19T | 3.90T | 3.64T | 3.45T |
| Stockholders Equity | 3.17T | 3.09T | 2.35T | 2.24T | 1.74T | 1.58T |
Cash Flow | ||||||
| Free Cash Flow | 966.14B | 761.55B | 289.77B | 170.70B | -51.02B | 156.31B |
| Operating Cash Flow | 1.14T | 942.62B | 530.46B | 331.19B | 80.89B | 285.56B |
| Investing Cash Flow | 83.05B | -49.17B | -189.52B | -131.05B | -45.58B | 16.31B |
| Financing Cash Flow | -308.82B | -274.55B | -112.32B | -158.90B | -18.90B | -255.77B |
Mitsubishi Heavy Industries Technical Analysis
Positive
3945.00
Price Trends
3827.02
Positive
4107.10
Positive
4265.19
Negative
Market Momentum
90.63
Negative
66.36
Neutral
92.47
Negative
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 3945 is above the 20-day moving average (MA) of 3929.95, above the 50-day MA of 3827.02, and below the 200-day MA of 4265.19, indicating a neutral trend. The MACD of 90.63 indicates Negative momentum. The RSI at 66.36 is Neutral, neither overbought nor oversold. The STOCH value of 92.47 is Negative, 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | ¥14.29T | 35.86 | 12.52% | 0.63% | -2.63% | 58.50% | |
69 Neutral | ¥3.18T | 26.60 | 6.76% | 0.78% | 5.35% | 26.51% | |
69 Neutral | ¥734.77B | 18.36 | 4.72% | 2.56% | 7.75% | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | ¥2.68T | 34.02 | 15.94% | 1.13% | 8.62% | 8.06% | |
59 Neutral | ¥3.27T | 15.82 | 28.66% | 0.69% | 3.94% | 91.76% | |
56 Neutral | ¥2.50T | 19.92 | 13.59% | 1.23% | 8.87% | 55.83% |
* Industrials Sector Average
JP:7011
Mitsubishi Heavy Industries
4,254.00
323.63
8.23%
JP:6361
Ebara
5,860.00
2,613.06
80.48%
JP:7013
IHI
3,028.00
598.32
24.63%
JP:7012
Kawasaki Heavy Industries
2,849.50
847.22
42.31%
JP:6594
Nidec
2,772.00
-214.00
-7.17%
JP:6302
Sumitomo Heavy Industries
5,998.00
2,739.21
84.06%
Mitsubishi Heavy Industries Corporate Events
Mitsubishi Heavy Industries Updates Q1 FY2026 Results and Segment Structure
Aug 4, 2026
Mitsubishi Heavy Industries has released its Q1 FY2026 financial results and earnings forecast, outlining performance, segment breakdowns, and forward guidance for the current fiscal year. The disclosure covers an overview of profitability and fin...
Mitsubishi Heavy Industries Delivers Strong Q1 and Plans Higher FY2026 Dividend
Aug 4, 2026
Mitsubishi Heavy Industries reported a strong start to FY2026, with first-quarter revenue rising 15.5% year on year to ¥1.19 trillion and profit from business activities jumping 65.1% to ¥159.6 billion. Profit attributable to owners of t...
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...
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.