Mitsubishi Heavy Industries
Market Cap
JP¥747.7b
Last Updated
2020/10/21 14:40 UTC
Data Sources
Company Financials +
Executive Summary
Mitsubishi Heavy Industries, Ltd. manufactures and sells heavy machinery worldwide. More Details
Rewards
Risk Analysis
Snowflake Analysis
Moderate growth potential with mediocre balance sheet.
Similar Companies
Share Price & News
How has Mitsubishi Heavy Industries's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 7011 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-1.1%
7011
-0.5%
JP Machinery
-0.9%
JP Market
1 Year Return
-50.1%
7011
1.8%
JP Machinery
0.4%
JP Market
Return vs Industry: 7011 underperformed the JP Machinery industry which returned 2.4% over the past year.
Return vs Market: 7011 underperformed the JP Market which returned 1.3% over the past year.
Shareholder returns
| 7011 | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.1% | -0.5% | -0.9% |
| 30 Day | -12.6% | 0.4% | -0.2% |
| 90 Day | -17.5% | 5.5% | 4.5% |
| 1 Year | -48.8%-50.1% | 3.6%1.8% | 2.8%0.4% |
| 3 Year | -47.3%-51.8% | -9.7%-15.3% | 1.9%-5.2% |
| 5 Year | -59.0%-64.5% | 24.4%11.9% | 23.0%9.4% |
Price Volatility Vs. Market
How volatile is Mitsubishi Heavy Industries's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is Mitsubishi Heavy Industries undervalued compared to its fair value and its price relative to the market?
57.31x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 7011 (¥2192) is trading above our estimate of fair value (¥1228.94)
Significantly Below Fair Value: 7011 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 7011 is poor value based on its PE Ratio (57.3x) compared to the JP Machinery industry average (14.2x).
PE vs Market: 7011 is poor value based on its PE Ratio (57.3x) compared to the JP market (16.7x).
Price to Earnings Growth Ratio
PEG Ratio: 7011 is poor value based on its PEG Ratio (1.2x)
Price to Book Ratio
PB vs Industry: 7011's PB Ratio (0.6x) is in line with the JP Machinery industry average.
Next Steps
Future Growth
How is Mitsubishi Heavy Industries forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
47.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 7011's forecast earnings growth (47.3% per year) is above the savings rate (0.05%).
Earnings vs Market: 7011's earnings (47.3% per year) are forecast to grow faster than the JP market (17.4% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: 7011's revenue (0.1% per year) is forecast to grow slower than the JP market (5.2% per year).
High Growth Revenue: 7011's revenue (0.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 7011's Return on Equity is forecast to be low in 3 years time (6.7%).
Next Steps
Past Performance
How has Mitsubishi Heavy Industries performed over the past 5 years?
4.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 7011 has a large one-off loss of ¥201.6B impacting its June 30 2020 financial results.
Growing Profit Margin: 7011's current net profit margins (0.3%) are lower than last year (2.5%).
Past Earnings Growth Analysis
Earnings Trend: 7011's earnings have grown by 4.7% per year over the past 5 years.
Accelerating Growth: 7011's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 7011 had negative earnings growth (-87.5%) over the past year, making it difficult to compare to the Machinery industry average (-20.5%).
Return on Equity
High ROE: 7011's Return on Equity (2.2%) is considered low.
Next Steps
Financial Health
How is Mitsubishi Heavy Industries's financial position?
Financial Position Analysis
Short Term Liabilities: 7011's short term assets (¥2,872.6B) do not cover its short term liabilities (¥2,982.6B).
Long Term Liabilities: 7011's short term assets (¥2,872.6B) exceed its long term liabilities (¥882.0B).
Debt to Equity History and Analysis
Debt Level: 7011's debt to equity ratio (139.6%) is considered high.
Reducing Debt: 7011's debt to equity ratio has increased from 47% to 139.6% over the past 5 years.
Debt Coverage: 7011's debt is well covered by operating cash flow (20.7%).
Interest Coverage: 7011 earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is Mitsubishi Heavy Industries's current dividend yield, its reliability and sustainability?
3.42%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 7011's dividend (3.42%) is higher than the bottom 25% of dividend payers in the JP market (1.33%).
High Dividend: 7011's dividend (3.42%) is in the top 25% of dividend payers in the JP market (3.19%)
Stability and Growth of Payments
Stable Dividend: 7011's dividend payments have been volatile in the past 10 years.
Growing Dividend: 7011's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (392.2%), 7011'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?
1.8yrs
Average management tenure
CEO
Seiji Izumisawa (63 yo)
1.5yrs
Tenure
Mr. Seiji Izumisawa has been President and Chief Executive Officer of Mitsubishi Heavy Industries Ltd., since April 1, 2019 and serves as its Chief Strategy Officer since June 2018. Mr. Izumisawa served as ...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1.5yrs | no data | 0.0012% ¥ 8.7m | |
| Senior VP | 0.33yr | no data | 0.00033% ¥ 2.5m | |
| Executive VP | 0.75yr | no data | no data | |
| Executive VP | 1.33yrs | no data | 0.0016% ¥ 11.8m | |
| Senior VP | 1.75yrs | no data | no data | |
| EVP, CEO of Integrated Defense & Space Systems & President of Integrated Defense & Space Systems | 7.5yrs | JP¥104.00m | no data | |
| Executive VP & President and CEO of Logistics | 0.75yr | no data | no data | |
| Executive Vice President | 1.75yrs | no data | no data | |
| Senior VP and Head of Commercial Aviation Systems & Head of Nagoya Aerospace Systems Works | no data | no data | no data | |
| Executive VP | 1.75yrs | no data | no data | |
| Director | 0.33yr | no data | 0.00080% ¥ 6.0m | |
| Senior Vice President | 3.42yrs | no data | no data |
1.8yrs
Average Tenure
64yo
Average Age
Experienced Management: 7011's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1.5yrs | no data | 0.0012% ¥ 8.7m | |
| Senior VP | 0.33yr | no data | 0.00033% ¥ 2.5m | |
| Executive VP | 1.33yrs | no data | 0.0016% ¥ 11.8m | |
| Director | 0.33yr | no data | 0.00080% ¥ 6.0m | |
| Independent Outside Director | 1.33yrs | no data | 0.00071% ¥ 5.3m | |
| Independent Outside Director | 1.33yrs | no data | 0.00018% ¥ 1.3m | |
| Independent Outside Director | 4.33yrs | no data | 0.00030% ¥ 2.2m | |
| Independent Outside Director | 8.33yrs | no data | 0.00098% ¥ 7.3m | |
| Chairman of the Board | 1.5yrs | JP¥157.00m | 0.0099% ¥ 74.3m | |
| Independent Outside Director | 0.33yr | no data | no data | |
| Independent Outside Director | 5.33yrs | no data | 0.00033% ¥ 2.5m | |
| Director | 3.33yrs | no data | 0.00045% ¥ 3.4m |
1.4yrs
Average Tenure
65.5yo
Average Age
Experienced Board: 7011's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.
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
Mitsubishi Heavy Industries, Ltd.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Mitsubishi Heavy Industries, Ltd.
- Ticker: 7011
- Exchange: TSE
- Founded: 1884
- Industry: Industrial Machinery
- Sector: Capital Goods
- Market Cap: JP¥747.693b
- Shares outstanding: 336.04m
- Website: https://www.mhi.com
Number of Employees
Location
- Mitsubishi Heavy Industries, Ltd.
- 2-3, Marunouchi 3-chome
- Chiyoda-ku
- Tokyo
- 100-8332
- Japan
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MHVY.F | OTCPK (Pink Sheets LLC) | Yes | Common Stock | US | USD | Jan 1992 |
| 7011 | TSE (The Tokyo Stock Exchange) | Yes | Common Stock | JP | JPY | Jan 1992 |
| MIH | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1992 |
Biography
Mitsubishi Heavy Industries, Ltd. manufactures and sells heavy machinery worldwide. It operates through Power Systems; Industry & Infrastructure; and Aircraft, Defense & Space segments. It offers thermal, ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/21 14:40 |
| End of Day Share Price | 2020/10/20 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2020/03/31 |
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.