IHI (7013) AI Stock Analysis

• Market Cap: $3.40T
• Dividend Yield: 0.63%
• Average Volume (3M): 32.90M
• Price to Earnings (P/E): 31.5
• Beta (1Y): 1.47
• Revenue Growth: -1.66%
• EPS Growth: 19.02%
• Country: JP
• Employees: 28,237
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 41.81
• Shares Outstanding: 1,082,759,600
• 10 Day Avg. Volume: 44,762,279
• 30 Day Avg. Volume: 32,899,911
• PEG Ratio: -0.05
• Price to Book (P/B): 3.24
• Price to Sales (P/S): 0.96
• P/FCF Ratio: 13.31
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 1.74
• Enterprise Value/Gross Profit: 7.50
• Enterprise Value/Ebitda: 12.03
• 1Y Price Target: $3,287.63
• Price Target Upside: 20.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ¥2,936.00 ▲(7.55% Upside)

The overall stock score of 62 reflects strong profitability and efficient operations, but is tempered by declining revenue and cash flow challenges. Technical indicators suggest potential short-term weakness, and the valuation indicates the stock may be relatively expensive. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Profitability

Strong EBIT and EBITDA margins, along with a robust return on equity, indicate efficient operations and effective use of capital, supporting long-term financial health.

Business Model Diversification

Diversified revenue streams across sectors like energy and aerospace provide resilience against sector-specific downturns, enhancing stability and growth potential.

Technological Innovation

Focus on technological innovation positions IHI to meet evolving market demands and regulatory standards, ensuring competitive advantage and long-term relevance.

Negative Factors

Negative Revenue Growth

Negative revenue growth suggests challenges in market demand or competitive positioning, potentially impacting future profitability and market share.

Declining Free Cash Flow

Declining free cash flow limits the company's ability to reinvest in growth opportunities, pay down debt, or return capital to shareholders, affecting financial flexibility.

Moderate Leverage

Moderate leverage may constrain financial flexibility and increase risk, especially if revenue growth does not improve to support debt servicing.

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 generates revenue through multiple streams, including the manufacturing and sale of high-value products such as gas turbines and other machinery used in power generation and industrial applications. The company also earns income from its aerospace segment, which supplies components to aircraft manufacturers and offers maintenance services. Additionally, IHI benefits from long-term contracts and partnerships with various industries, including energy and defense, which provide a steady revenue flow. The company’s focus on engineering solutions and technological advancements further enhances its capacity to secure projects and collaborations, contributing to its overall financial performance.

IHI Financial Statement Overview

Summary

IHI shows strong profitability with healthy EBIT and EBITDA margins, and a robust return on equity. However, challenges include negative revenue growth and declining free cash flow, which pose potential risks.

Income Statement

IHI's income statement shows strong profitability with a gross profit margin of 23.18% and a net profit margin of 6.54% for TTM. However, the revenue growth rate is negative at -0.64%, indicating a decline in revenue. The EBIT and EBITDA margins are healthy at 9.64% and 14.44% respectively, suggesting efficient operations despite the revenue drop.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.04, indicating moderate leverage. The return on equity is robust at 23.15%, showcasing effective use of equity. However, the equity ratio is not provided, which limits a full assessment of asset financing.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth at -19.32%, which is concerning. The operating cash flow to net income ratio is 0.15, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is 0.56, suggesting a reasonable conversion of profits to cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.62T	1.63T	1.32T	1.35T	1.17T	1.11T
Gross Profit	374.68B	374.51B	144.85B	282.00B	209.41B	179.97B
EBITDA	233.46B	224.01B	8.84B	149.11B	175.27B	114.47B
Net Income	105.76B	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	93.58B	136.81B	142.56B	129.12B	148.68B	122.16B
Total Debt	508.17B	514.72B	574.38B	519.49B	505.55B	605.93B
Total Liabilities	1.72T	1.73T	1.70T	1.49T	1.47T	1.51T
Stockholders Equity	490.52B	481.73B	375.99B	431.25B	382.13B	300.77B
Cash Flow
Free Cash Flow	94.71B	117.39B	1.12B	-8.46B	68.58B	-21.08B
Operating Cash Flow	167.84B	177.63B	62.12B	54.12B	114.16B	36.38B
Investing Cash Flow	-62.03B	-58.59B	-51.70B	-52.35B	27.93B	-40.48B
Financing Cash Flow	-123.53B	-116.45B	-2.57B	-24.04B	-121.49B	-23.71B

IHI Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2730.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7013, the sentiment is Negative. The current price of 2730 is below the 20-day moving average (MA) of 2903.02, below the 50-day MA of 2820.38, and above the 200-day MA of 2121.76, indicating a neutral trend. The MACD of -44.99 indicates Positive momentum. The RSI at 43.82 is Neutral, neither overbought nor oversold. The STOCH value of 40.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7013.

IHI Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6383	79 Outperform	¥1.89T	27.08	16.30%	1.28%	―	―
6361	69 Neutral	$1.74T	23.19	16.00%	1.31%	13.96%	12.97%
7012	67 Neutral	¥1.65T	17.10	13.25%	1.47%	14.12%	54.64%
6594	65 Neutral	$2.32T	14.68	6.88%	1.00%	5.35%	26.51%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7013	62 Neutral	$3.40T	31.53	26.54%	0.63%	-1.66%	19.02%
6302	59 Neutral	¥513.17B	151.48	0.59%	2.94%	-2.67%	-85.21%

IHI Corporate Events

IHI Corporation Reports Q2 2025 Earnings Decline

IHI Corporation, a prominent player in the industrial sector, is known for its diverse operations spanning aero engines, space, defense, and industrial machinery. The company is listed on the Tokyo Stock Exchange and is recognized for its strategic focus on growth and development in various high-demand sectors.

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.