Kawasaki Heavy Industries Ltd. (JP:7012)
:7012
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Kawasaki Heavy Industries
(7012)
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Rating:64Neutral
Price Target:
¥3,371.00
▲(0.78% Upside)
Action:ReiteratedDate:02/11/26
The score is driven primarily by improving fundamentals (strong revenue and earnings recovery), tempered by leverage and inconsistent cash-flow conversion. Technically, the stock is in a strong uptrend but appears overbought, raising near-term volatility risk. Valuation is only fair with a modest dividend yield.
Positive Factors
Diversified business & aftermarket
Kawasaki’s broad mix of engineered products plus recurring aftermarket services creates durable, multi-year revenue streams. High-value project sales combined with lifecycle maintenance and spares reduce single-cycle exposure, supporting steadier cash flows and margin capture across cycles.
Negative Factors
Elevated leverage
Meaningful leverage raises structural risk: debt amplifies earnings volatility and reduces financial flexibility during downturns. High debt-to-equity constrains capacity for organic investment or opportunistic M&A and increases sensitivity to interest-rate or project-timing shocks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified business & aftermarket
Kawasaki’s broad mix of engineered products plus recurring aftermarket services creates durable, multi-year revenue streams. High-value project sales combined with lifecycle maintenance and spares reduce single-cycle exposure, supporting steadier cash flows and margin capture across cycles.
Read all positive factors
Kawasaki Heavy Industries (7012) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.81T
Dividend Yield1.4%
Average Volume (3M)5.36M
Price to Earnings (P/E)9.9
Beta (1Y)2.16
Revenue Growth14.12%
EPS Growth54.64%
CountryJP
Employees39,689
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)N/A
Shares Outstanding839,609,000
10 Day Avg. Volume5,883,960
30 Day Avg. Volume5,358,010
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)2.13
Price to Sales (P/S)0.70
P/FCF Ratio29.75
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥12,564.00Price Target Upside275.61% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Kawasaki Heavy Industries Business Overview & Revenue Model
Company Description
Kawasaki Heavy Industries, Ltd. engages in aerospace systems, energy solution and marine engineering, precision machinery and robot, rolling stock, and motorcycle and engine businesses in Japan and internationally. It manufactures aircraft for the...
How the Company Makes Money
Kawasaki Heavy Industries makes money primarily by selling engineered products and systems across its multiple industrial segments and by providing aftermarket services over the life of those assets. Key revenue streams typically include: (1) Proj...
Kawasaki Heavy Industries Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
62
Positive
Cash Flow
56
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.28T | 2.13T | 1.85T | 1.73T | 1.50T | 1.49T |
| Gross Profit | 438.66B | 431.54B | 312.24B | 333.82B | 256.58B | 191.16B |
| EBITDA | 245.69B | 214.33B | 117.88B | 157.46B | 106.66B | 55.95B |
| Net Income | 109.69B | 88.00B | 25.38B | 53.03B | 21.80B | -19.33B |
Balance Sheet | ||||||
| Total Assets | 3.29T | 3.02T | 2.68T | 2.46T | 2.17T | 1.96T |
| Cash, Cash Equivalents and Short-Term Investments | 108.75B | 132.78B | 84.15B | 138.42B | 108.51B | 126.70B |
| Total Debt | 1.05T | 889.51B | 845.23B | 785.26B | 666.84B | 593.35B |
| Total Liabilities | 2.41T | 2.29T | 2.03T | 1.86T | 1.65T | 1.48T |
| Stockholders Equity | 807.69B | 702.91B | 634.09B | 576.20B | 505.48B | 465.33B |
Cash Flow | ||||||
| Free Cash Flow | 46.94B | 50.26B | -48.40B | -35.33B | 97.95B | -17.09B |
| Operating Cash Flow | 146.54B | 148.94B | 31.66B | 23.62B | 156.89B | 34.60B |
| Investing Cash Flow | -127.76B | -111.20B | -89.81B | -77.46B | -58.40B | -37.39B |
| Financing Cash Flow | -42.85B | 9.61B | 12.91B | 85.31B | -108.90B | 23.09B |
Kawasaki Heavy Industries Technical Analysis
Positive
3345.00
Price Trends
3203.79
Positive
2746.81
Positive
2386.64
Positive
Market Momentum
32.54
Negative
57.73
Neutral
87.69
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7012, the sentiment is Positive. The current price of 3345 is above the 20-day moving average (MA) of 3151.21, above the 50-day MA of 3203.79, and above the 200-day MA of 2386.64, indicating a bullish trend. The MACD of 32.54 indicates Negative momentum. The RSI at 57.73 is Neutral, neither overbought nor oversold. The STOCH value of 87.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7012.
Kawasaki Heavy Industries Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥1.43T | 20.64 | 12.13% | 1.21% | 4.63% | 12.32% | |
69 Neutral | ¥2.57T | 18.60 | 10.09% | 0.97% | 5.35% | 26.51% | |
67 Neutral | ¥3.54T | 25.09 | 23.30% | 0.71% | -1.66% | 19.02% | |
66 Neutral | ¥2.33T | 13.24 | 16.00% | 1.38% | 13.96% | 12.97% | |
64 Neutral | ¥2.81T | 9.91 | 14.59% | 1.40% | 14.12% | 54.64% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | ¥636.53B | 18.29 | 4.83% | 2.95% | -2.67% | -85.21% |
* Industrials Sector Average
JP:7012
Kawasaki Heavy Industries
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Kawasaki Heavy Industries Corporate Events
Furukawa Takes Control of EarthTechnica From Kawasaki to Drive Crusher and Recycling Growth
Apr 1, 2026
Furukawa Co. has completed the acquisition of a 60% stake in EarthTechnica from Kawasaki Heavy Industries for ¥7.02 billion, with the remaining 40% to be purchased in April 2027, making EarthTechnica a consolidated subsidiary. The move paves ...
Furukawa to Acquire Kawasaki Heavy Industries’ EarthTechnica Unit in Two-Stage Share Transfer
Feb 9, 2026
Kawasaki Heavy Industries and Furukawa have signed a definitive share transfer agreement for EarthTechnica Co., Ltd., a Kawasaki subsidiary specializing in crushing, grinding, and sorting equipment. The transaction will occur in two stages, with F...
Kawasaki Heavy Industries Sets Five-for-One Stock Split and Expands Authorized Shares
Feb 9, 2026
Kawasaki Heavy Industries has approved a five-for-one stock split of its common shares, effective April 1, 2026, for shareholders of record on March 31, 2026. The move is designed to lower the per-share price and create a more investor-friendly tr...
Kawasaki Heavy Industries Lifts Dividend as It Adopts DOE-Based Payout Policy
Feb 9, 2026
Kawasaki Heavy Industries has revised its shareholder return policy, shifting from a 30% consolidated payout ratio to a new framework based on a 4% dividend on equity ratio. The change is intended to make dividends less sensitive to single-year pe...
Kawasaki Heavy Industries Lifts FY2025 Profit Outlook on FX Gains, Confirms Record Guidance
Feb 9, 2026
Kawasaki Heavy Industries reported third-quarter FY2025 business profit of 82.4 billion yen, up year on year and already achieving 57% of its full-year target, driven by strong results in Aerospace Systems and Energy Solution Marine segments that...
Kawasaki Heavy Industries Lifts Profit, Forecasts and Dividends on Strong Nine-Month Results
Feb 9, 2026
Kawasaki Heavy Industries reported strong consolidated results for the nine months to December 31, 2025, with revenue rising 14.5% year on year to ¥1.41 trillion and profit attributable to owners of the parent jumping 51.6% to ¥70.1 bill...
Kawasaki and WMATA Settle 7000-Series Railcar Disputes After NTSB Report
Feb 6, 2026
Kawasaki Heavy Industries’ U.S. railcar subsidiary, Kawasaki Rail Car, Inc., and its parent Kawasaki Railcar Manufacturing Co., Ltd. have resolved contractual disputes with WMATA related to the 7000-series railcars that were involved in a 20...
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.