IHI (7013) AI Stock Analysis

• Market Cap: $2.65T
• Dividend Yield: 4.8%
• Average Volume (3M): 3.02M
• Price to Earnings (P/E): 25.0
• Beta (1Y): 1.46
• Revenue Growth: 17.79%
• EPS Growth: N/A
• Country: JP
• Employees: 28,237
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 10.95
• Shares Outstanding: 154,679,950
• 10 Day Avg. Volume: 3,307,520
• 30 Day Avg. Volume: 3,016,740
• 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: 1.06
• Enterprise Value/Revenue: 1.73
• Enterprise Value/Gross Profit: 7.50
• Enterprise Value/Ebitda: 13.32
• 1Y Price Target: $20,140.11
• Price Target Upside: 15.12% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 67 Neutral
• Price Target: ¥19,251.00 ▲(10.04% Upside)

IHI's overall stock score is driven by strong financial performance and positive technical indicators, despite valuation concerns. The company's robust revenue growth and operational improvements are key strengths, while the technical analysis suggests potential for short-term volatility.

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 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: Positive
• Last Price: 17495.00
• 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:7013, the sentiment is Positive. The current price of 17495 is above the 20-day moving average (MA) of 15944.50, above the 50-day MA of 16144.80, and above the 200-day MA of 12382.65, indicating a bullish trend. The MACD of 338.98 indicates Negative momentum. The RSI at 64.62 is Neutral, neither overbought nor oversold. The STOCH value of 88.00 is Negative, 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
6361	78 Outperform	¥1.45T	19.71	15.33%	1.63%	16.57%	6.63%
6383	78 Outperform	¥1.79T	21.27	19.12%	1.35%	―	―
7013	67 Neutral	$2.65T	25.04	23.85%	4.80%	17.79%	―
7012	66 Neutral	¥1.63T	21.18	10.45%	1.54%	15.11%	142.87%
6594	64 Neutral	¥3.12T	19.68	9.75%	1.52%	6.85%	31.48%
6302	57 Neutral	¥434.89B	-125.91	1.21%	3.52%	-4.25%	-110.18%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

IHI Corporate Events

IHI Corporation Introduces Restricted Stock Remuneration Plan

IHI Corporation has announced the disposal of treasury shares as part of a new restricted stock remuneration plan aimed at rewarding its Directors and Executive Officers. This initiative, involving the allocation of 78,000 common shares, is designed to enhance executive compensation and align their interests with the company’s long-term performance, reflecting IHI’s strategic focus on strengthening its leadership and operational efficiency.

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 Finalizes Transfer of Materials Handling Business

IHI Corporation has completed the transfer of its Materials Handling System Business from its subsidiary, IHI Transport Machinery Co., Ltd., to a newly established company, which was then sold to Tadano Ltd. This transaction, finalized on July 1, 2025, is expected to generate significant financial gains for IHI, including approximately 16.0 billion yen in other income and 14.0 billion yen in extraordinary income in their financial statements for the fiscal year ending March 31, 2026.

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 Transfers Meisei Electric to Nohmi Bosai for Strategic Growth

IHI Corporation has announced the transfer of all shares of its subsidiary, Meisei Electric Co., Ltd., to Nohmi Bosai Ltd. This strategic move aims to leverage synergies between the companies to enhance the growth and competitiveness of Meisei in the expanding disaster prevention market. The transfer is expected to strengthen Meisei’s capabilities in developing next-generation disaster prevention systems and expanding its market reach, particularly overseas.

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 Transfers Niigata Transys to JKF Co., Ltd.

IHI Corporation has decided to transfer all shares of its subsidiary, Niigata Transys Co., Ltd., to JKF Co., Ltd., which is managed by J-Will Partners Co., Ltd. This strategic move aims to leverage JWP’s expertise to enhance Niigata Transys’s competitiveness and expand its market presence both domestically and internationally, particularly in the growing rolling stock and snowplow markets. The transaction is expected to contribute to Niigata Transys’s sustainable growth and align with IHI’s broader strategy of focusing on high-growth domains.

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 Announces Stock Split and Dividend Forecast Revision

IHI Corporation has announced a stock split, amending its Articles of Incorporation and revising its year-end dividend forecast. The stock split aims to lower the stock price per investment unit to attract more investors, increasing the total number of issued shares significantly. The amendment in the Articles of Incorporation reflects this change, increasing the total authorized shares to 2.1 billion. The dividend forecast is adjusted to reflect the stock split ratio, with no substantive change in the actual dividend amount, indicating a strategic move to enhance shareholder value and market presence.

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 Decline in Q1 2025 Financials and Announces Stock Split

IHI Corporation reported a decline in its financial performance for the three months ending June 30, 2025, with revenue and profits showing significant decreases compared to the previous year. The company announced a 7-for-1 stock split effective October 1, 2025, which impacts the dividend per share forecast for the fiscal year ending March 31, 2026. This move is part of IHI’s strategy to enhance stock liquidity and attract a broader range of investors.

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.