Kawasaki Heavy Industries, Ltd.

TSE:7012 Stock Report

Market Cap: JP¥1.1t

Kawasaki Heavy Industries Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • 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 (¥6441) is trading below our estimate of fair value (¥7652.87)

Significantly Below Fair Value: 7012 is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

7012 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1x
Enterprise Value/EBITDA15.3x
PEG Ratio1.5x

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 Average19.9x
6506 YASKAWA Electric
25.9x8.5%JP¥1.1t
6383 Daifuku
20.1x8.0%JP¥1.0t
6361 Ebara
16.1x7.0%JP¥1.1t
6479 MINEBEA MITSUMI
17.7x2.0%JP¥1.1t
7012 Kawasaki Heavy Industries
34.1x22.1%JP¥1.1t

Price-To-Earnings vs Peers: 7012 is expensive based on its Price-To-Earnings Ratio (34.1x) compared to the peer average (19.9x).

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
Industry Avg.n/a10.2%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a10.2%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: 7012 is expensive based on its Price-To-Earnings Ratio (34.1x) compared to the JP Machinery industry average (11.9x).

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 Ratio34.1x
Fair PE Ratio24.6x

Price-To-Earnings vs Fair Ratio: 7012 is expensive based on its Price-To-Earnings Ratio (34.1x) compared to the estimated Fair Price-To-Earnings Ratio (24.6x).

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¥6,441.00
JP¥6,325.00
-1.8%
15.8%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¥3,100.00n/a11
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
Oct ’23JP¥2,187.00
JP¥2,738.89
+25.2%
10.0%JP¥3,100.00JP¥2,200.00JP¥3,620.009

Analyst Forecast: Target price is lower than the current share price.

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