Mitsubishi Heavy Industries (7011) AI Stock Analysis

• Market Cap: $11.44T
• Dividend Yield: 0.64%
• Average Volume (3M): 60.29M
• Price to Earnings (P/E): 46.6
• Beta (1Y): 1.66
• Revenue Growth: 7.95%
• EPS Growth: 10.56%
• Country: JP
• Employees: 77,697
• Sector: Industrials
• Sector Strength: 90
• Industry: Industrial - Machinery
• EPS (TTM): 21.83
• Shares Outstanding: 3,373,647,700
• 10 Day Avg. Volume: 55,574,189
• 30 Day Avg. Volume: 60,293,649
• PEG Ratio: 0.85
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -32.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $3,310.12
• Price Target Upside: -2.73% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 70 Outperform
• Price Target: ¥3,817.00 ▲(12.17%Upside)

Mitsubishi Heavy Industries scores 70 overall, primarily driven by strong financial performance and a bullish technical outlook. The high P/E ratio and overbought technical indicators suggest caution, as valuation concerns may limit upside potential in the short term. The absence of notable earnings call insights or corporate events leaves the financial and technical aspects as the primary drivers of this score.

Positive Factors

Financial Performance

There are strong prospects for Mitsubishi Heavy Industries to achieve stronger sales and profit growth compared to the sector, with particularly robust fundamentals in the machinery sector.

Leadership

The next CEO's current position as the Chief Technology Officer implies MHI's expectation on the growth potential from a collaboration of digital innovation and its existing product lineup.

Market Sentiment

Analyst upgrades the stock rating of Mitsubishi Heavy Industries to Buy from Neutral due to its favorable sector-relative risk/reward profile.

Negative Factors

Project Management

MHI's participation in large-scale projects with insufficient preparation and its employees' strong sense of responsibility to fulfill customers' requests could have been a major factor behind the cost overrun in past years.

Strategic Actions

Tepid share price move even after press reports on a potential stake sale of forklift business illustrated that investors want a more influential action plan by MHI.

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 its diverse portfolio of products and services across multiple sectors. The energy systems division, which includes power generation equipment and solutions, contributes significantly to its earnings, especially with the global demand for energy-efficient and sustainable solutions. The industrial machinery segment provides machinery for various industries, including logistics, automotive, and chemical, generating substantial income through sales and maintenance services. The aerospace and defense sector is also a crucial revenue stream, with contracts for manufacturing aircraft, spacecraft, and defense equipment. Additionally, the shipbuilding and ocean development segment offers commercial and military vessels. MHI's extensive global partnerships and strategic collaborations further enhance its sales and market reach, allowing it to tap into new markets and drive growth.

Mitsubishi Heavy Industries Financial Statement Overview

Summary

Mitsubishi Heavy Industries shows strong financial performance with consistent revenue and profit growth, efficient operations, and robust cash flow generation. The balance sheet reflects a balanced leverage position and effective resource utilization. Key strengths include improved profit margins and significant cash flow generation, though maintaining leverage levels is essential.

Income Statement

Mitsubishi Heavy Industries shows strong performance in its income statement with consistent revenue growth over the years, reaching ¥5,027 billion in 2025 from ¥3,700 billion in 2021. The gross profit margin improved to approximately 20.5% from 15.8%, reflecting effective cost management. The net profit margin also increased, indicating improved profitability. The EBIT and EBITDA margins have shown upward trends, indicating efficient operations. Overall, the income statement reflects a robust growth trajectory and profitability improvement.

Balance Sheet

The balance sheet of Mitsubishi Heavy Industries is stable with a debt-to-equity ratio around 0.48, suggesting a balanced leverage position. The return on equity improved to approximately 10.5% in 2025, indicating effective utilization of equity capital. The equity ratio stands at about 35.2%, reflecting a relatively stable financial structure. Overall, the balance sheet shows a good mix of stability and efficient use of resources, though leverage remains a point to monitor.

Cash Flow

The company demonstrates strong cash flow generation with a notable increase in operating cash flow from ¥80.89 billion in 2023 to ¥530.46 billion in 2025. Free cash flow turned positive and grew significantly, indicating strong cash generation capability. The operating cash flow to net income ratio is solid, suggesting effective conversion of income to cash. Overall, the cash flow statement reflects a healthy liquidity position and improved cash management.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
5.03T	4.66T	4.20T	3.86T	3.70T
	Gross Profit
1.03T	930.11B	765.02B	655.91B	583.48B
	EBIT
314.30B	282.54B	193.32B	160.24B	54.08B
	EBITDA
560.24B	488.38B	370.86B	307.43B	284.02B
	Net Income Common Stockholders
245.45B	222.02B	130.45B	113.54B	40.64B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
657.82B	471.06B	383.05B	385.21B	276.10B
	Total Assets
6.66T	6.26T	5.47T	5.12T	4.81T
	Total Debt
1.13T	1.14T	1.19T	1.08T	1.24T
	Net Debt
473.46B	711.68B	844.77B	764.02B	990.59B
	Total Liabilities
4.19T	3.90T	3.64T	3.45T	3.37T
	Stockholders Equity
2.35T	2.24T	1.74T	1.58T	1.37T
Cash Flow		Free Cash Flow
289.77B	170.70B	-51.02B	156.31B	-241.16B
	Operating Cash Flow
530.46B	331.19B	80.89B	285.56B	-94.95B
	Investing Cash Flow
-189.52B	-131.05B	-45.58B	16.31B	-182.25B
	Financing Cash Flow
-112.32B	-158.90B	-18.90B	-255.77B	221.74B

Mitsubishi Heavy Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3403.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 3403 is above the 20-day moving average (MA) of 3176.72, above the 50-day MA of 2828.53, and above the 200-day MA of 2337.92, indicating a bullish trend. The MACD of 182.65 indicates Negative momentum. The RSI at 68.27 is Neutral, neither overbought nor oversold. The STOCH value of 85.68 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7011	70 Outperform	$11.44T	46.59	10.53%	0.64%	7.95%	10.56%
Sector *	66 Neutral	$4.49B	12.34	5.40%	248.65%	4.13%	-12.33%
IHICF		$16.20B	21.94	25.94%	0.73%	―	―
KWHIF		$12.37B	21.65	12.94%	1.32%	―	―
NNDNF		$23.14B	20.51	9.86%	1.40%	―	―
SOHVF		$2.45B	981.22	0.06%	3.88%	―	―
6954	73 Outperform	¥3.45T	23.68		2.51%	0.23%	12.16%

Mitsubishi Heavy Industries Corporate Events

Mitsubishi Logisnext Reports Significant Financial Improvement

Mitsubishi Heavy Industries announced a significant improvement in the financial performance of its subsidiary, Mitsubishi Logisnext Co., Ltd., for the fiscal year ended March 31, 2025, compared to the previous year. The subsidiary reported a notable increase in ordinary and net profits, reflecting a positive impact on the company’s operations and potentially enhancing its market positioning.

Mitsubishi Heavy Industries Increases Year-End Dividend

Mitsubishi Heavy Industries announced a decision to increase its year-end dividend for the fiscal year ending March 2025 to 12 yen per share, up from the most recent forecast of 11 yen. This move aligns with the company’s policy of providing progressive dividends in line with profit growth, aiming for a Dividend on Equity of 4% or higher, reflecting a commitment to balancing business growth with financial stability.

Mitsubishi Heavy Industries Reports Strong FY2024 Financial Performance

Mitsubishi Heavy Industries reported a 7.9% increase in revenue for FY2024, reaching 5,027,176 million yen, with significant growth in profit from business activities and profit before income taxes. The company executed a ten-for-one stock split and announced a forecasted revenue of 5,400,000 million yen for FY2025, indicating a continued positive outlook for its financial performance.

Mitsubishi Heavy Industries Adjusts Subsidiary Liquidation Timeline

Mitsubishi Heavy Industries has announced a change in the expected completion date for the liquidation of its subsidiary, MHI Holding Denmark ApS, due to the time required to complete necessary procedures under Danish law. This change is not expected to impact the company’s consolidated financial results.