IHI (7013) AI Stock Analysis

• Market Cap: $2.29T
• Dividend Yield: 0.82%
• Average Volume (3M): 3.76M
• Price to Earnings (P/E): 21.6
• Beta (1Y): 1.33
• Revenue Growth: 17.79%
• EPS Growth: N/A
• Country: JP
• Employees: 28,237
• Sector: Industrials
• Sector Strength: 73
• Industry: Industrial - Machinery
• EPS (TTM): 76.64
• Shares Outstanding: 154,679,950
• 10 Day Avg. Volume: 2,409,470
• 30 Day Avg. Volume: 3,759,963
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 1.73
• Enterprise Value/Gross Profit: 7.50
• Enterprise Value/Ebitda: 13.32
• 1Y Price Target: $19,214.81
• Price Target Upside: 26.96% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 60 Neutral
• Price Target: ¥15,976.00 ▲(5.56% Upside)

IHI's overall stock score is driven by strong financial performance, with significant revenue growth and profitability improvements. However, technical analysis indicates bearish momentum, and the valuation suggests potential overvaluation. These factors balance out to a moderate overall score.

IHI Business Overview & Revenue Model

Company Description

IHI Corporation, headquartered in Japan, is a comprehensive heavy industry manufacturer. The company operates across various sectors including aerospace, energy, resources & environment, social infrastructure, and industrial systems & general-purpose machinery. IHI is renowned for its engineering expertise and offers a wide range of products and services such as aero engines, compressors, power systems, bridges, and logistics systems.

How the Company Makes Money

IHI Corporation generates revenue through the manufacturing and sale of its diverse range of products and services across multiple sectors. In the aerospace sector, the company earns by producing and selling commercial airplane jet engines and components. The energy and resources sector contributes to revenue through the provision of power generation systems, including gas turbines and boilers. The social infrastructure sector brings in revenue through the construction and maintenance of bridges, tunnels, and other public works. The industrial systems sector adds to the company's earnings by delivering logistics systems and machinery for a variety of industries. Additionally, IHI benefits from strategic partnerships and collaborations that enable it to leverage advanced technologies and expand its market reach. Service contracts for maintenance and operational support also represent a significant source of recurring revenue.

IHI Financial Statement Overview

Summary

IHI's financial performance is strong, with significant revenue growth and improved profitability. The income statement shows a notable recovery in margins, while the balance sheet indicates a stable financial position despite leverage risks. Cash flow is robust, with strong cash generation and conversion ratios.

Income Statement

IHI's income statement reflects strong revenue growth and improving profitability. The revenue growth rate from 2024 to 2025 was significant at 23%, supported by a strong recovery in both EBIT and EBITDA margins to 9.3% and 13.8%, respectively. The net profit margin increased to 6.9%. These metrics indicate a positive turnaround from previous years' losses, showcasing robust recovery and operational efficiency improvements.

Balance Sheet

The balance sheet shows a stable financial position with a manageable debt-to-equity ratio of 1.07 and an equity ratio of 21.5%. The return on equity (ROE) improved significantly to 23.4%, indicating effective utilization of shareholder funds. However, the high level of total liabilities relative to assets suggests potential leverage risks, requiring careful management.

Cash Flow

Cash flows display a positive trend, with free cash flow reaching 117.4 billion JPY in 2025, a substantial improvement from previous years. The operating cash flow to net income ratio is 1.6, indicating strong cash generation relative to net income. The free cash flow to net income ratio is also positive at 1.04, suggesting healthy cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.63T	1.63T	1.32T	1.35T	1.17T	1.11T
Gross Profit	374.51B	374.51B	144.85B	282.00B	209.41B	179.97B
EBITDA	210.94B	224.01B	8.84B	149.11B	175.27B	114.47B
Net Income	112.74B	112.74B	-68.21B	44.55B	66.06B	13.09B
Balance Sheet
Total Assets	2.24T	2.24T	2.10T	1.94T	1.88T	1.83T
Cash, Cash Equivalents and Short-Term Investments	136.81B	136.81B	142.56B	129.12B	148.68B	122.16B
Total Debt	514.72B	514.72B	574.38B	519.49B	505.55B	605.93B
Total Liabilities	1.73T	1.73T	1.70T	1.49T	1.47T	1.51T
Stockholders Equity	481.73B	481.73B	375.99B	431.25B	382.13B	300.77B
Cash Flow
Free Cash Flow	117.39B	117.39B	1.12B	-8.46B	68.58B	-21.08B
Operating Cash Flow	177.63B	177.63B	62.12B	54.12B	114.16B	36.38B
Investing Cash Flow	-58.59B	-58.59B	-51.70B	-52.35B	27.93B	-40.48B
Financing Cash Flow	-116.45B	-116.45B	-2.57B	-24.04B	-121.49B	-23.71B

IHI Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 15135.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7013, the sentiment is Neutral. The current price of 15135 is below the 20-day moving average (MA) of 15996.25, below the 50-day MA of 15820.90, and above the 200-day MA of 11839.51, indicating a neutral trend. The MACD of -291.30 indicates Positive momentum. The RSI at 40.38 is Neutral, neither overbought nor oversold. The STOCH value of 19.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7013.

IHI Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$10.73B	15.65	7.61%	2.01%	2.80%	-14.92%
7013	60 Neutral	$2.29T	21.65	23.85%	0.82%	17.79%	―
DAIUF	―	$12.23B	19.16	21.24%	1.55%	―	―
EBCOF	―	$9.53B	15.77	16.02%	5.00%	―	―
KWHIF	―	$9.99B	19.55	11.02%	2.26%	―	―
NNDNF	―	$25.31B	23.24	9.86%	1.87%	―	―
SOHVF	―	$2.77B	1,101.46	-0.47%	4.96%	―	―

IHI Corporate Events

IHI Corporation Addresses Misconduct in Snowplow Deliveries

IHI Corporation has concluded an investigation into misconduct by its subsidiary, Niigata Transys, regarding the delivery of rotary snowplows with specifications different from those promised to customers. The investigation revealed modifications made to enhance snow removal performance, leading to a series of corrective actions, including retesting and component replacement for affected models. IHI is implementing measures to prevent recurrence and improve quality compliance, while executives are returning a portion of their remuneration as a gesture of accountability. The overall impact on IHI’s financial results is minor.

The most recent analyst rating on (JP:7013) stock is a Buy with a Yen13800.00 price target. To see the full list of analyst forecasts on IHI stock, see the JP:7013 Stock Forecast page.

IHI Corporation Considers Investment Unit Reduction

IHI Corporation has announced its consideration of reducing its investment unit to enhance stock liquidity and attract a broader range of investors. The company plans to evaluate this move by examining stock price trends and associated implementation costs, which could impact its market positioning and investor engagement.

The most recent analyst rating on (JP:7013) stock is a Buy with a Yen13800.00 price target. To see the full list of analyst forecasts on IHI stock, see the JP:7013 Stock Forecast page.

IHI Corporation Introduces New Stock Remuneration Plan for Directors

IHI Corporation announced the introduction of a Restricted Stock Remuneration Plan for its directors, aimed at encouraging shareholding and aligning directors’ interests with those of shareholders. This plan, separate from the existing Performance-Linked Stock Remuneration, is designed to enhance medium- to long-term corporate value and performance, with implications for improved stakeholder engagement and corporate governance.

The most recent analyst rating on (JP:7013) stock is a Buy with a Yen13800.00 price target. To see the full list of analyst forecasts on IHI stock, see the JP:7013 Stock Forecast page.

IHI Corporation Reports Strong Financial Recovery in FY2025

IHI Corporation reported significant financial improvement for the fiscal year ended March 31, 2025, with a 23% increase in revenue and a return to profitability. This positive performance reflects a strong recovery from the previous fiscal year’s losses, enhancing the company’s market position and potentially benefiting stakeholders.

IHI Corporation Reports Significant Foreign Exchange Losses

IHI Corporation has reported foreign exchange losses amounting to 16.5 billion yen for the three months ending March 31, 2025, contributing to a total of 6.6 billion yen in losses for the fiscal year. These financial costs have been incorporated into the company’s consolidated financial performance, potentially affecting its financial stability and market perception.