IHI (7013) AI Stock Analysis

• Market Cap: ¥2.22T
• Dividend Yield: 0.95%
• Average Volume (3M): 6.14M
• Price to Earnings (P/E): 19.7
• Beta (1Y): 1.36
• Revenue Growth: 23.00%
• EPS Growth: N/A
• Country: JP
• Employees: 28,237
• Sector: Industrials
• Sector Strength: 86
• Industry: Industrial - Machinery
• EPS (TTM): 237.51
• Shares Outstanding: 154,679,950
• 10 Day Avg. Volume: 4,987,840
• 30 Day Avg. Volume: 6,137,590
• PEG Ratio: -0.34
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -59.36
• 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: ¥18,418.09
• Price Target Upside: 25.25% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 64 Neutral
• Price Target: ¥17,034.00 ▲(15.84%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

IHI shows a strong financial recovery with substantial revenue growth and improved profitability. Despite manageable debt levels, the high leverage requires careful management.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.63T	1.32T	1.35T	1.17T	1.11T
Gross Profit	374.51B	144.85B	282.00B	209.41B	179.97B
EBITDA	224.01B	8.84B	149.11B	175.27B	114.47B
Net Income	112.74B	-68.21B	44.55B	66.06B	13.09B
Balance Sheet
Total Assets	2.24T	2.10T	1.94T	1.88T	1.83T
Cash, Cash Equivalents and Short-Term Investments	136.81B	142.56B	129.12B	148.68B	122.16B
Total Debt	514.72B	574.38B	519.49B	505.55B	605.93B
Total Liabilities	1.73T	1.70T	1.49T	1.47T	1.51T
Stockholders Equity	481.73B	375.99B	431.25B	382.13B	300.77B
Cash Flow
Free Cash Flow	117.39B	1.12B	-8.46B	68.58B	-21.08B
Operating Cash Flow	177.63B	62.12B	54.12B	114.16B	36.38B
Investing Cash Flow	-58.59B	-51.70B	-52.35B	27.93B	-40.48B
Financing Cash Flow	-116.45B	-2.57B	-24.04B	-121.49B	-23.71B

IHI Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14705.00
• 50DMA: Positive
• 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 Positive. The current price of 14705 is below the 20-day moving average (MA) of 15396.75, above the 50-day MA of 13953.50, and above the 200-day MA of 10106.07, indicating a neutral trend. The MACD of 285.73 indicates Positive momentum. The RSI at 47.16 is Neutral, neither overbought nor oversold. The STOCH value of 9.38 is Positive, 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 *	65 Neutral	$10.77B	15.80	5.51%	1.90%	3.03%	-26.66%
7013	64 Neutral	¥2.22T	19.74	25.94%	0.95%	23.00%	―
DAIUF		$9.72B	18.99	19.46%	1.68%	―	―
EBCOF		$8.68B	16.25	16.07%	2.20%	―	―
KWHIF		$11.72B	20.80	12.94%	1.49%	―	―
NNDNF		$21.75B	19.69	9.86%	1.42%	―	―
SOHVF		$2.61B	1,039.02	0.06%	0.03%	―	―

IHI Corporate Events

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.

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.