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7012

Kawasaki Heavy IndustriesTSE:7012 Stock Report

Market Cap

JP¥406.9b

7D

2.1%

1Y

75.1%

Updated

24 Sep, 2021

Data

Company Financials +
7012 fundamental analysis
Snowflake Score
Valuation0/6
Future Growth3/6
Past Performance0/6
Financial Health3/6
Dividends0/6

7012 Overview

Kawasaki Heavy Industries, Ltd. engages in aerospace systems, energy system and plant engineering, precision machinery and robot, ship and offshore structure, rolling stock, and motorcycle and engine businesses worldwide.

Kawasaki Heavy Industries Competitors

YASKAWA Electric

TSE:6506

JP¥1.5t

Mitsubishi Heavy Industries

TSE:7011

JP¥990.7b

IHI

TSE:7013

JP¥376.8b

Sumitomo Heavy Industries

TSE:6302

JP¥355.6b

Price History & Performance

Summary of all time highs, changes and price drops for Kawasaki Heavy Industries
Historical stock prices
Current Share PriceJP¥2,523.00
52 Week HighJP¥1,231.00
52 Week LowJP¥2,861.00
Beta1.68
1 Month Change6.23%
3 Month Change4.17%
1 Year Change75.09%
3 Year Change-21.28%
5 Year Change-18.61%
Change since IPO-55.74%

Recent News & Updates

Shareholder Returns

7012JP MachineryJP Market
7D2.1%-3.7%-2.2%
1Y75.1%26.4%23.6%

Return vs Industry: 7012 exceeded the JP Machinery industry which returned 26.4% over the past year.

Return vs Market: 7012 exceeded the JP Market which returned 23.6% over the past year.

Price Volatility

Is 7012's price volatile compared to industry and market?
7012 volatility
7012 Beta1.68
Industry Beta1.12
Market Beta1

Stable Share Price: 7012 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 7012's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
187836,691Yasuhiko Hashimotohttps://global.kawasaki.com

Kawasaki Heavy Industries, Ltd. engages in aerospace systems, energy system and plant engineering, precision machinery and robot, ship and offshore structure, rolling stock, and motorcycle and engine businesses worldwide. It manufactures aircraft for the Japan ministry of defense; parts for commercial aircraft; commercial helicopters; missiles/space equipment; jet engines; and aerospace gearboxes. The company also offers gas turbine cogeneration systems, gas and diesel engines for power generation, steam turbines, aerodynamic machinery, boiler plants, combined cycle power plants, industrial plants, LNG tanks, municipal waste incineration plants, material handling systems, tunnel boring machines, crushing machines, marine gas turbines/reduction gear, marine reciprocating engines, and marine propulsion systems.

Kawasaki Heavy Industries Fundamentals Summary

How do Kawasaki Heavy Industries's earnings and revenue compare to its market cap?
7012 fundamental statistics
Market CapJP¥406.95b
Earnings (TTM)JP¥2.31b
Revenue (TTM)JP¥1.54t

183.5x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
7012 income statement (TTM)
RevenueJP¥1.54t
Cost of RevenueJP¥1.31t
Gross ProfitJP¥230.94b
ExpensesJP¥228.64b
EarningsJP¥2.31b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)13.75
Gross Margin14.96%
Net Profit Margin0.15%
Debt/Equity Ratio114.8%

How did 7012 perform over the long term?

See historical performance and comparison

Dividends

1.2%

Current Dividend Yield

0%

Payout Ratio

Valuation

Is Kawasaki Heavy Industries undervalued compared to its fair value and its price relative to the market?

183.52x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 7012 (¥2523) is trading above our estimate of fair value (¥650.83)

Significantly Below Fair Value: 7012 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 7012 is poor value based on its PE Ratio (183.5x) compared to the JP Machinery industry average (14.2x).

PE vs Market: 7012 is poor value based on its PE Ratio (183.5x) compared to the JP market (14.7x).


Price to Earnings Growth Ratio

PEG Ratio: 7012 is poor value based on its PEG Ratio (6.2x)


Price to Book Ratio

PB vs Industry: 7012 is overvalued based on its PB Ratio (1x) compared to the JP Machinery industry average (0.9x).


Future Growth

How is Kawasaki Heavy Industries forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

29.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 7012's forecast earnings growth (29.6% per year) is above the savings rate (0%).

Earnings vs Market: 7012's earnings (29.6% per year) are forecast to grow faster than the JP market (10.3% per year).

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

Revenue vs Market: 7012's revenue (2.7% per year) is forecast to grow slower than the JP market (4.8% per year).

High Growth Revenue: 7012's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 7012's Return on Equity is forecast to be low in 3 years time (8.3%).


Past Performance

How has Kawasaki Heavy Industries performed over the past 5 years?

-33.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 7012 has a large one-off loss of ¥18.0B impacting its June 30 2021 financial results.

Growing Profit Margin: 7012's current net profit margins (0.1%) are lower than last year (1%).


Past Earnings Growth Analysis

Earnings Trend: 7012's earnings have declined by 33.9% per year over the past 5 years.

Accelerating Growth: 7012's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 7012 had negative earnings growth (-84.8%) over the past year, making it difficult to compare to the Machinery industry average (12.3%).


Return on Equity

High ROE: 7012's Return on Equity (1%) is considered low.


Financial Health

How is Kawasaki Heavy Industries's financial position?


Financial Position Analysis

Short Term Liabilities: 7012's short term assets (¥1,227.3B) exceed its short term liabilities (¥938.7B).

Long Term Liabilities: 7012's short term assets (¥1,227.3B) exceed its long term liabilities (¥559.0B).


Debt to Equity History and Analysis

Debt Level: 7012's debt to equity ratio (114.8%) is considered high.

Reducing Debt: 7012's debt to equity ratio has increased from 87.9% to 114.8% over the past 5 years.

Debt Coverage: 7012's debt is not well covered by operating cash flow (6.6%).

Interest Coverage: 7012's interest payments on its debt are well covered by EBIT (48.8x coverage).


Balance Sheet


Dividend

What is Kawasaki Heavy Industries's current dividend yield, its reliability and sustainability?

1.19%

Current Dividend Yield


Upcoming Dividend Payment

TodaySep 24 2021Ex Dividend DateSep 29 2021Dividend Pay DateJan 01 197018899 days from Ex DividendBuy in the next 4 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: 7012's dividend (1.19%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.31%).

High Dividend: 7012's dividend (1.19%) is low compared to the top 25% of dividend payers in the JP market (3.01%).


Stability and Growth of Payments

Stable Dividend: 7012's dividend payments have been volatile in the past 10 years.

Growing Dividend: 7012's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: Unable to calculate sustainability of dividends as 7012 has not reported any payouts.


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

Yasuhiko Hashimoto (64 yo)

1.25yrs

Tenure

Mr. Yasuhiko Hashimoto serves as Representative Director at Kawasaki Heavy Industries Ltd since April 2020 and serves as its President and Chief Executive Officer since June 2020. He served as Vice Preside...


Leadership Team

Experienced Management: 7012's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: 7012's board of directors are not considered experienced ( 1.3 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

Kawasaki Heavy Industries, Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Kawasaki Heavy Industries, Ltd.
  • Ticker: 7012
  • Exchange: TSE
  • Founded: 1878
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: JP¥406.949b
  • Shares outstanding: 167.88m
  • Website: https://global.kawasaki.com

Number of Employees


Location

  • Kawasaki Heavy Industries, Ltd.
  • 1-14-5, Kaigan
  • Minato-ku
  • Tokyo
  • 105-8315
  • Japan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/24 08:03
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
Annual Earnings2021/03/31


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.