IHI (7013) AI Stock Analysis

• Market Cap: ¥2.98T
• Dividend Yield: 0.72%
• Average Volume (3M): 32.90M
• Price to Earnings (P/E): 22.7
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥3,343.72
• Price Target Upside: 20.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥3,302.00 ▲(19.42% Upside)

IHI's strong technical indicators and solid financial performance are the primary drivers of its stock score. However, concerns about valuation and cash flow generation slightly offset these strengths. The lack of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Operational Efficiency

IHI's strong gross profit margin indicates efficient cost management, which is crucial for maintaining profitability in competitive markets.

Return on Equity

A high return on equity demonstrates IHI's ability to effectively utilize shareholder funds to generate profits, enhancing investor confidence.

Diverse Revenue Streams

Diverse revenue streams reduce dependency on a single market, providing stability and resilience against sector-specific downturns.

Negative Factors

Decline in Revenue Growth

A decline in revenue growth suggests challenges in expanding market share or product demand, potentially impacting future earnings.

Free Cash Flow Decline

Reduced free cash flow limits IHI's ability to invest in growth opportunities and return capital to shareholders, affecting long-term financial health.

Debt Levels

While manageable, the debt level requires careful monitoring to ensure it does not hinder financial flexibility or increase risk during downturns.

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: Neutral
• Last Price: 2765.00
• 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 2765 is below the 20-day moving average (MA) of 2857.20, below the 50-day MA of 2929.92, and above the 200-day MA of 2234.16, indicating a neutral trend. The MACD of -14.28 indicates Positive momentum. The RSI at 42.40 is Neutral, neither overbought nor oversold. The STOCH value of 8.28 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
6594	73 Outperform	$2.36T	19.12	6.88%	1.00%	5.35%	26.51%
6383	72 Outperform	¥1.84T	26.36	16.30%	1.32%	―	―
7013	70 Outperform	¥2.98T	22.65	26.54%	0.72%	-1.66%	19.02%
7012	70 Outperform	¥1.82T	18.90	13.25%	1.42%	14.12%	54.64%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6361	60 Neutral	¥1.66T	22.11	16.00%	1.42%	13.96%	12.97%
6302	59 Neutral	¥510.35B	150.65	0.59%	3.00%	-2.67%	-85.21%

IHI Corporate Events

IHI Corporation Reports Mixed Financial Results and Announces Stock Split

IHI Corporation reported its consolidated financial results for the six months ending September 30, 2025, showing a decline in revenue and operating profit compared to the previous year. Despite this, the company experienced significant growth in profit before tax and profit attributable to owners of the parent, indicating improved efficiency or cost management. The company also announced a 7-for-1 stock split, which affects dividend calculations and earnings per share forecasts, reflecting strategic financial adjustments to enhance shareholder value.