TSE:7011

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Mitsubishi Heavy Industries

Executive Summary

Mitsubishi Heavy Industries, Ltd. manufactures and sells heavy machinery worldwide. More Details


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

7011IndustryMarket
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

NamePositionTenureCompensationOwnership
Seiji Izumisawa
President1.5yrsno data0.0012%
¥ 8.7m
Hisato Kozawa
Senior VP0.33yrno data0.00033%
¥ 2.5m
Eisaku Ito
Executive VP0.75yrno datano data
Masahiko Mishima
Executive VP1.33yrsno data0.0016%
¥ 11.8m
Junichiro Kakihara
Senior VP1.75yrsno datano data
Hisakazu Mizutani
EVP, CEO of Integrated Defense & Space Systems & President of Integrated Defense & Space Systems7.5yrsJP¥104.00mno data
Takashi Mikogami
Executive VP & President and CEO of Logistics0.75yrno datano data
Yoshihiro Shiraiwa
Executive Vice President1.75yrsno datano data
Keisuke Hirose
Senior VP and Head of Commercial Aviation Systems & Head of Nagoya Aerospace Systems Worksno datano datano data
Yoshiyuki Hanasawa
Executive VP1.75yrsno datano data
Koji Okura
Director0.33yrno data0.00080%
¥ 6.0m
Akira Shiki
Senior Vice President3.42yrsno datano 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

NamePositionTenureCompensationOwnership
Seiji Izumisawa
President1.5yrsno data0.0012%
¥ 8.7m
Hisato Kozawa
Senior VP0.33yrno data0.00033%
¥ 2.5m
Masahiko Mishima
Executive VP1.33yrsno data0.0016%
¥ 11.8m
Koji Okura
Director0.33yrno data0.00080%
¥ 6.0m
Hiroo Unoura
Independent Outside Director1.33yrsno data0.00071%
¥ 5.3m
Nobuyuki Hirano
Independent Outside Director1.33yrsno data0.00018%
¥ 1.3m
Ken Kobayashi
Independent Outside Director4.33yrsno data0.00030%
¥ 2.2m
Christina L. Ahmadjian
Independent Outside Director8.33yrsno data0.00098%
¥ 7.3m
Shunichi Miyanaga
Chairman of the Board1.5yrsJP¥157.00m0.0099%
¥ 74.3m
Noriko Morikawa
Independent Outside Director0.33yrno datano data
Naoyuki Shinohara
Independent Outside Director5.33yrsno data0.00033%
¥ 2.5m
Toshifumi Goto
Director3.33yrsno data0.00045%
¥ 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MHVY.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
7011TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
MIHDB (Deutsche Boerse AG)YesCommon StockDEEURJan 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 14:40
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


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.