IHI (7013) AI Stock Analysis

• Market Cap: ¥2.35T
• Dividend Yield: 0.74%
• Average Volume (3M): 5.95M
• Price to Earnings (P/E): 20.9
• Beta (1Y): 1.37
• Revenue Growth: 23.00%
• EPS Growth: N/A
• Country: JP
• Employees: 28,237
• Sector: Industrials
• Sector Strength: 92
• Industry: Industrial - Machinery
• EPS (TTM): 237.51
• Shares Outstanding: 154,679,950
• 10 Day Avg. Volume: 7,775,000
• 30 Day Avg. Volume: 5,949,970
• PEG Ratio: 1.83
• Price to Book (P/B): 4.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 43.31
• 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: ¥15,435.32
• Price Target Upside: -0.74% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 64 Neutral
• Price Target: ¥17,034.00 ▲(9.54%Upside)

IHI's strong financial recovery and improving profitability are significant positives. However, technical indicators suggest overbought conditions, and valuation metrics are fairly average. The lack of earnings call and corporate events data limits additional insights.

IHI Business Overview & Revenue Model

Company Description

IHI Corporation operates in resources, energy, and environment; social infrastructure and offshore facilities; industrial systems and general-purpose machinery; aero engine, space, and defense; and other business areas in Japan and internationally. It provides carbon reduction solutions; gas turbines and engines, and diesel engines for land use, and high-speed ships and other marine vessels; LNG receiving terminals and storage tanks; and equipment for various plants. The company also constructs natural gas liquefaction, oil refining, petrochemicals, LPG, and other process plants; develops and constructs nuclear fuel cycle systems; provides components for boiling and pressurized water reactors; and constructs bridges and steel structures. It offers water gates for rivers and dams; environmental monitoring products; concrete construction materials; 3D laser radars, X-ray inspection systems, monitoring and disaster prevention equipment, oil leak monitors, and vibration control and seismic isolation floor systems; shield tunneling machines and automatic segment assembling systems; transportation systems; LPG/LEG storage tanks; floating LNG/LPG production, storage, and offloading units; and semi-submersible rigs, mega-float, and others. The company also leases and sells real estate properties; develops houses; and provides compressors, cryogenic products, logistics systems, steelmaking equipment, machinery for ships, turbochargers for vehicles, separators, lubricating systems, pulp and paper machinery, materials handling systems, agricultural machinery, parking systems, boilers, and life associated equipment. It offers factory, heat treatment and surface engineering solutions; aero engines; air traffic control systems; and rocket systems and space exploration solutions. The company was formerly known as Ishikawajima-Harima Heavy Industries Co., Ltd and changed its name to IHI Corporation in 2007. IHI Corporation was founded in 1853 and is headquartered in Tokyo, Japan.

How the Company Makes Money

IHI Corporation generates revenue through multiple streams, primarily by manufacturing and selling its products in the aerospace, energy, and industrial machinery sectors. In aerospace, IHI earns money by producing and maintaining jet engines and components, collaborating with major global aircraft manufacturers. In the energy sector, the company provides power systems and operates in the renewable energy space, involving projects like wind power and biomass energy. Industrial machinery revenue comes from manufacturing equipment like compressors and turbochargers for automotive and industrial clients. Additionally, IHI engages in large-scale infrastructure projects, including bridge construction and plant engineering, contributing significantly to its earnings. Strategic partnerships with companies and government entities, along with investments in research and development, also play critical roles in driving IHI's financial performance.

IHI Financial Statement Overview

Summary

Overall, IHI demonstrates a solid financial performance with recovering margins and robust profitability in the TTM period. While the company effectively manages its equity to generate returns, the high debt levels warrant careful monitoring. Cash flow improvements further strengthen its financial health, although continued focus on increasing free cash flow is advisable to enhance liquidity resilience.

Income Statement

The income statement reflects a strong performance in the TTM with significant improvements in profitability. The Gross Profit Margin is 22.7%, and the Net Profit Margin stands at 7.4%, indicating efficient cost management and revenue generation. There is a notable recovery in EBIT and EBITDA margins to 8.8% and 13.7% respectively, from negative figures in the previous annual report. Revenue growth has shown resilience despite fluctuations, with a positive trajectory over the TTM.

Balance Sheet

The balance sheet indicates a stable financial position with a Debt-to-Equity Ratio of 1.47, which is relatively high but manageable for the industry. The Return on Equity (ROE) is 26.3%, showcasing effective use of equity to generate profits. The Equity Ratio is 19.4%, reflecting modest leverage, which could pose a risk if liabilities increase significantly.

Cash Flow

Cash flow analysis reveals a strong recovery in free cash flow, showing a significant growth rate from previous losses. The Operating Cash Flow to Net Income Ratio of 0.83 indicates a healthy cash generation relative to net income. The Free Cash Flow to Net Income Ratio is 0.37, suggesting room for improvement in converting net income into free cash flow.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
1.61T	1.32T	1.35T	1.17T	1.11T	1.39T
	Gross Profit
364.00B	144.85B	282.00B	209.41B	179.97B	254.73B
	EBIT
141.31B	-70.14B	81.98B	81.50B	27.96B	60.80B
	EBITDA
219.50B	8.84B	149.11B	175.27B	114.47B	124.38B
	Net Income Common Stockholders
118.17B	-68.21B	44.55B	66.06B	13.09B	12.81B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
94.93B	142.56B	129.12B	148.68B	122.16B	147.25B
	Total Assets
2.31T	2.10T	1.94T	1.88T	1.83T	1.74T
	Total Debt
660.69B	574.38B	519.49B	505.55B	605.93B	482.91B
	Net Debt
569.67B	435.57B	394.74B	360.06B	485.17B	335.68B
	Total Liabilities
1.84T	1.70T	1.49T	1.47T	1.51T	1.39T
	Stockholders Equity
448.97B	375.99B	431.25B	382.13B	300.77B	326.91B
Cash Flow		Free Cash Flow
43.67B	1.12B	-8.46B	68.58B	-21.08B	-51.84B
	Operating Cash Flow
97.62B	62.12B	54.12B	114.16B	36.38B	14.51B
	Investing Cash Flow
-46.12B	-51.70B	-52.35B	27.93B	-40.48B	-75.90B
	Financing Cash Flow
-83.92B	-2.57B	-24.04B	-121.49B	-23.71B	115.26B

IHI Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15550.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7013, the sentiment is Positive. The current price of 15550 is above the 20-day moving average (MA) of 13844.00, above the 50-day MA of 11871.87, and above the 200-day MA of 9150.92, indicating a bullish trend. The MACD of 1019.70 indicates Negative momentum. The RSI at 74.30 is Negative, neither overbought nor oversold. The STOCH value of 77.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7013.

IHI Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	$4.50B	12.28	5.32%	248.52%	4.13%	-12.36%
7013	64 Neutral	¥2.35T	20.88	25.94%	0.74%	23.00%	―
DAIUF		$9.90B	19.56	19.46%	2.43%	―	―
EBCOF		$7.11B	15.07	16.07%	2.31%	―	―
KWHIF		$12.03B	20.99	12.94%	1.37%	―	―
NNDNF		$22.04B	19.63	9.86%	1.41%	―	―
SOHVF		$2.54B	1,020.98	0.06%	3.88%	―	―

IHI Corporate Events

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.

IHI Corporation Strengthens Governance with New Director Nomination

IHI Corporation has announced the nomination of Ms. Yayoi Tanaka as an independent director, aiming to enhance its corporate governance. Ms. Tanaka’s extensive experience in fiscal oversight and corporate governance, including her previous role as an independent director at IHI, positions her to contribute significantly to the company’s management and value enhancement.

IHI Corporation Transfers Shares of Construction Subsidiary to Vertex

IHI Corporation has announced the transfer of its shares in IHI Construction Materials Co., Ltd. to Vertex Corporation. This strategic move is part of IHI’s mid-term management plan to optimize its business portfolio by reallocating resources from conventional businesses to growth-oriented sectors. The transfer aims to enhance competitiveness and ensure sustainable growth for IHI Construction Materials through synergies with Vertex, a leading company in the precast concrete industry. The transaction is expected to strengthen IHI’s industry positioning and adapt to the rapidly changing market environment.

IHI Corporation Addresses Antimonopoly Violation

IHI Corporation’s subsidiary, IHI Transport Machinery, was found to have violated Japan’s Antimonopoly Act, leading to cease and desist orders from the Japan Fair Trade Commission. The company has taken steps to address the issue, including applying for leniency, cooperating with the investigation, and implementing measures to prevent future violations. Executives have voluntarily returned a portion of their remuneration as a gesture of accountability.