Kawasaki Heavy Industries, Ltd.

TSE:7012 Stock Report

Market Cap: JP¥1.0t

Kawasaki Heavy Industries Valuation

Is 7012 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 7012 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 7012 (¥6229) is trading below our estimate of fair value (¥8838.02)

Significantly Below Fair Value: 7012 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 7012?

Key metric: As 7012 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 7012. This is calculated by dividing 7012's market cap by their current earnings.
What is 7012's PE Ratio?
PE Ratio16.7x
EarningsJP¥62.39b
Market CapJP¥1.04t

Price to Earnings Ratio vs Peers

How does 7012's PE Ratio compare to its peers?

The above table shows the PE ratio for 7012 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.2x
6506 YASKAWA Electric
24.8x8.3%JP¥1.1t
6361 Ebara
15.3x7.0%JP¥1.1t
6383 Daifuku
19.8x4.4%JP¥1.2t
6479 MINEBEA MITSUMI
16.7x2.0%JP¥995.9b
7012 Kawasaki Heavy Industries
16.7x16.6%JP¥1.0t

Price-To-Earnings vs Peers: 7012 is good value based on its Price-To-Earnings Ratio (16.7x) compared to the peer average (19.2x).

Price to Earnings Ratio vs Industry

How does 7012's PE Ratio compare vs other companies in the JP Machinery Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
7012 16.7xIndustry Avg. 12.1xNo. of Companies39PE0816243240+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 7012 is expensive based on its Price-To-Earnings Ratio (16.7x) compared to the JP Machinery industry average (12.1x).

Price to Earnings Ratio vs Fair Ratio

What is 7012's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

7012 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio16.7x
Fair PE Ratio21.6x

Price-To-Earnings vs Fair Ratio: 7012 is good value based on its Price-To-Earnings Ratio (16.7x) compared to the estimated Fair Price-To-Earnings Ratio (21.6x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 7012 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥6,229.00
JP¥6,566.67
+5.4%
17.4%JP¥8,400.00JP¥5,000.00n/a12
Nov ’25JP¥5,726.00
JP¥6,358.33
+11.0%
15.6%JP¥8,400.00JP¥5,000.00n/a12
Oct ’25JP¥6,287.00
JP¥6,325.00
+0.6%
15.8%JP¥8,400.00JP¥5,000.00n/a12
Sep ’25JP¥5,151.00
JP¥6,196.36
+20.3%
19.3%JP¥8,400.00JP¥3,600.00n/a11
Aug ’25JP¥5,239.00
JP¥6,096.36
+16.4%
18.1%JP¥8,400.00JP¥3,600.00n/a11
Jul ’25JP¥6,091.00
JP¥5,960.00
-2.2%
19.8%JP¥8,400.00JP¥3,600.00n/a11
Jun ’25JP¥5,970.00
JP¥5,660.00
-5.2%
22.8%JP¥8,400.00JP¥3,600.00n/a11
May ’25JP¥4,822.00
JP¥4,918.18
+2.0%
17.1%JP¥6,600.00JP¥3,600.00n/a11
Apr ’25JP¥4,773.00
JP¥4,618.18
-3.2%
20.5%JP¥6,600.00JP¥3,000.00n/a11
Mar ’25JP¥4,223.00
JP¥4,081.82
-3.3%
18.1%JP¥6,000.00JP¥3,000.00n/a11
Feb ’25JP¥3,289.00
JP¥3,909.09
+18.9%
19.9%JP¥6,000.00JP¥3,000.00n/a11
Jan ’25JP¥3,119.00
JP¥3,918.18
+25.6%
19.6%JP¥6,000.00JP¥3,100.00n/a11
Dec ’24JP¥3,346.00
JP¥4,045.45
+20.9%
18.4%JP¥6,000.00JP¥3,100.00n/a11
Nov ’24JP¥3,310.00
JP¥4,090.91
+23.6%
19.2%JP¥6,000.00JP¥3,100.00JP¥5,726.0011
Oct ’24JP¥3,620.00
JP¥4,063.64
+12.3%
19.7%JP¥6,000.00JP¥3,100.00JP¥6,287.0011
Sep ’24JP¥3,760.00
JP¥3,972.73
+5.7%
19.0%JP¥6,000.00JP¥3,100.00JP¥5,151.0011
Aug ’24JP¥3,690.00
JP¥3,685.00
-0.1%
10.8%JP¥4,500.00JP¥3,100.00JP¥5,239.0010
Jul ’24JP¥3,674.00
JP¥3,530.00
-3.9%
16.4%JP¥4,500.00JP¥2,400.00JP¥6,091.0010
Jun ’24JP¥2,914.00
JP¥3,320.00
+13.9%
17.5%JP¥4,500.00JP¥2,400.00JP¥5,970.0010
May ’24JP¥2,990.00
JP¥3,200.00
+7.0%
13.4%JP¥4,000.00JP¥2,400.00JP¥4,822.0010
Apr ’24JP¥2,894.00
JP¥3,120.00
+7.8%
16.3%JP¥4,000.00JP¥2,300.00JP¥4,773.0010
Mar ’24JP¥3,010.00
JP¥3,130.00
+4.0%
16.2%JP¥4,000.00JP¥2,300.00JP¥4,223.0010
Feb ’24JP¥2,972.00
JP¥3,055.00
+2.8%
16.2%JP¥4,000.00JP¥2,200.00JP¥3,289.0010
Jan ’24JP¥3,090.00
JP¥2,950.00
-4.5%
13.7%JP¥3,500.00JP¥2,200.00JP¥3,119.009
Dec ’23JP¥2,911.00
JP¥2,905.56
-0.2%
13.2%JP¥3,500.00JP¥2,200.00JP¥3,346.009
Nov ’23JP¥2,571.00
JP¥2,738.89
+6.5%
10.0%JP¥3,100.00JP¥2,200.00JP¥3,310.009

Analyst Forecast: Target price is less than 20% higher than the current share price.

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