DB:IWJ

Stock Analysis Report

Executive Summary

IHI Corporation, together with its subsidiaries, manufactures and sells machinery and equipment in Japan, the Americas, Europe, the Asia Pacific, and internationally.


Snowflake Analysis

Moderate growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has IHI's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IWJ has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.7%

IWJ

-1.5%

DE Machinery

-0.2%

DE Market


1 Year Return

-6.3%

IWJ

-10.4%

DE Machinery

13.7%

DE Market

Return vs Industry: IWJ exceeded the German Machinery industry which returned -10.4% over the past year.

Return vs Market: IWJ underperformed the German Market which returned 13.7% over the past year.


Shareholder returns

IWJIndustryMarket
7 Day-1.7%-1.5%-0.2%
30 Day-1.7%-2.4%0.3%
90 Day9.6%-1.1%3.7%
1 Year-3.7%-6.3%-7.6%-10.4%17.2%13.7%
3 Year-15.1%-19.4%-17.6%-23.5%15.4%5.3%
5 Year-40.1%-44.0%-0.5%-11.7%21.3%4.7%

Price Volatility Vs. Market

How volatile is IHI's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is IHI undervalued compared to its fair value and its price relative to the market?

2.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IWJ (€22.8) is trading below our estimate of fair value (€23.45)

Significantly Below Fair Value: IWJ is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: IWJ is poor value based on its PE Ratio (106.2x) compared to the Machinery industry average (15.2x).

PE vs Market: IWJ is poor value based on its PE Ratio (106.2x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: IWJ is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: IWJ is good value based on its PB Ratio (1.3x) compared to the DE Machinery industry average (1.5x).


Next Steps

Future Growth

How is IHI forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

28.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IWJ's forecast earnings growth (28.7% per year) is above the savings rate (-0.4%).

Earnings vs Market: IWJ's earnings (28.7% per year) are forecast to grow faster than the German market (13.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: IWJ's revenue (2% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: IWJ's revenue (2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IWJ's Return on Equity is forecast to be low in 3 years time (12.1%).


Next Steps

Past Performance

How has IHI performed over the past 5 years?

31.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IWJ has high quality earnings.

Growing Profit Margin: IWJ's current net profit margins (0.3%) are lower than last year (2.2%).


Past Earnings Growth Analysis

Earnings Trend: IWJ's earnings have grown significantly by 31.5% per year over the past 5 years.

Accelerating Growth: IWJ's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: IWJ had negative earnings growth (-87.9%) over the past year, making it difficult to compare to the Machinery industry average (-14.4%).


Return on Equity

High ROE: IWJ's Return on Equity (2.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is IHI's financial position?


Financial Position Analysis

Short Term Liabilities: IWJ's short term assets (¥1,020.6B) exceed its short term liabilities (¥863.0B).

Long Term Liabilities: IWJ's short term assets (¥1,020.6B) exceed its long term liabilities (¥485.2B).


Debt to Equity History and Analysis

Debt Level: IWJ's debt to equity ratio (122.2%) is considered high.

Reducing Debt: IWJ's debt to equity ratio has increased from 113.5% to 122.2% over the past 5 years.

Debt Coverage: IWJ's debt is not well covered by operating cash flow (3.7%).

Interest Coverage: IWJ's interest payments on its debt are well covered by EBIT (25x coverage).


Balance Sheet

Inventory Level: IWJ has a high level of physical assets or inventory.

Debt Coverage by Assets: IWJ's debt is covered by short term assets (assets are 2.4x debt).


Next Steps

Dividend

What is IHI's current dividend yield, its reliability and sustainability?

2.56%

Current Dividend Yield


Upcoming Dividend Payment

Purchase IHI before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.6%marketbottom25%1.3%markettop25%3.7%industryaverage2.2%forecastin3Years3.1%

Current dividend yield vs market & industry

Notable Dividend: IWJ's dividend (2.56%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: IWJ's dividend (2.56%) is low compared to the top 25% of dividend payers in the German market (3.65%).


Stability and Growth of Payments

Stable Dividend: IWJ's dividend payments have been volatile in the past 10 years.

Growing Dividend: IWJ's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (271.5%), IWJ's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Tsugio Mitsuoka (65yo)

0

Mr. Tsugio Mitsuoka has been the President at IHI Corporation since April 01, 2016 and has been its Chief Executive Officer and also served as its Chief Operating Officer since April 2017. Mr. Mitsuoka ser ...


Leadership Team

NamePositionTenureCompensationOwnership
Tamotsu Saito
Chairman & GM of Monozukuri System Strategy Planning Headquarters3.8yrsJP¥115.00m0.0092% ¥308.0k
Tsugio Mitsuoka
President0yrsno data0.0054% ¥183.5k
Seiji Maruyama
General Manager of Finance & Accounting Division0yrsno datano data
Kazuki Awai
Managing Executive Officer & GM of Administration Division0yrsno datano data
Takayoshi Shirai
General Manager of Public Relations Division0yrsno datano data
Hiroyuki Otani
Executive VP5.7yrsno data0.0034% ¥113.1k
Tomoharu Shikina
Managing Executive Officer & Director3.7yrsno data0.0026% ¥86.2k
Nobuko Mizumoto
Managing Executive Officer & Director0yrsno data0.0018% ¥58.9k
Masafumi Nagano
Managing Executive Officer & Director0yrsno data0.0024% ¥79.5k
Takeshi Yamada
Senior Executive Officer2.7yrsno data0.0010% ¥34.0k

3.8yrs

Average Tenure

62.5yo

Average Age

Experienced Management: IWJ's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Tamotsu Saito
Chairman & GM of Monozukuri System Strategy Planning Headquarters3.8yrsJP¥115.00m0.0092% ¥308.0k
Tsugio Mitsuoka
President0yrsno data0.0054% ¥183.5k
Hiroyuki Otani
Executive VP5.7yrsno data0.0034% ¥113.1k
Tomoharu Shikina
Managing Executive Officer & Director3.7yrsno data0.0026% ¥86.2k
Nobuko Mizumoto
Managing Executive Officer & Director0yrsno data0.0018% ¥58.9k
Masafumi Nagano
Managing Executive Officer & Director0yrsno data0.0024% ¥79.5k
Takeshi Yamada
Senior Executive Officer2.7yrsno data0.0010% ¥34.0k
Kouichi Murakami
Managing Executive Officer & Director0yrsno datano data
Hiroshi Kimura
Outside Director3.7yrsno data0.0014% ¥45.4k
Taketsugu Fujiwara
Outside Director4.7yrsno datano data

3.8yrs

Average Tenure

65yo

Average Age

Experienced Board: IWJ's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

IHI Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: IHI Corporation
  • Ticker: IWJ
  • Exchange: DB
  • Founded: 1853
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: JP¥406.713b
  • Listing Market Cap: JP¥3.367b
  • Shares outstanding: 148.60m
  • Website: https://www.ihi.co.jp

Number of Employees


Location

  • IHI Corporation
  • Toyosu IHI Building
  • 1-1, Toyosu 3-chome
  • Tokyo
  • 135-8710
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
7013TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
IHIC.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
IWJDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
IHIC.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDJan 2013

Biography

IHI Corporation, together with its subsidiaries, manufactures and sells machinery and equipment in Japan, the Americas, Europe, the Asia Pacific, and internationally. It offers boilers, environment responsive systems, components for nuclear power plants, and facilities for nuclear fuel cycle plants, as well as gas turbine/diesel engines/gas engines. The company also provides LNG receiving terminals and storage tanks; equipment for plants; and engineering, procurement, construction, and start-up services for process and pharmaceutical plants. In addition, it offers bridges, water gates, and steel structures; shield tunneling machines, concrete construction materials, and transportation systems; and security and environmental monitoring systems, as well as constructs and refurbishes offshore structures. Further, the company provides air and process gas compressors, separators, and cryogenic products; lubricating systems; turbochargers for vehicles and ships; parking and logistics systems; materials handling systems; steelmaking equipment, such as industrial furnaces and stepping cylinders; heat and surface treatment equipment, factory automation systems, slitters, rubber and film calender lines, pulp and paper machinery, and grid scale energy storage systems; and agricultural machines, motors, and lawn mowers. Additionally, it offers aero engines and air traffic control systems; and rockets, rocket and satellite propulsion systems, systems for satellites, space station-related equipment, ground test facilities, sample containers, etc., as well as engages in real estate rental and sales business. 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 22:14
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.