7013

IHITSE:7013 Stock Report

Market Cap

JP¥381.5b

7D

-5.9%

1Y

73.1%

Updated

22 Sep, 2021

Data

Company Financials +
7013 fundamental analysis
Snowflake Score
Valuation5/6
Future Growth2/6
Past Performance4/6
Financial Health3/6
Dividends3/6

7013 Overview

IHI Corporation operates in resources, energy, and environment; social infrastructure and offshore facilities; industrial systems and general-purpose machinery; aero engine, space, and defense; and other business areas.

IHI Competitors

Mitsubishi Heavy Industries

TSE:7011

JP¥1.0t

Kawasaki Heavy Industries

TSE:7012

JP¥410.6b

Continental

XTRA:CON

€18.2b

Korea Gas

KOSE:A036460

₩3.6t

Price History & Performance

Summary of all time highs, changes and price drops for IHI
Historical stock prices
Current Share PriceJP¥2,537.00
52 Week HighJP¥1,222.00
52 Week LowJP¥3,050.00
Beta1.89
1 Month Change6.91%
3 Month Change-4.41%
1 Year Change73.06%
3 Year Change-42.08%
5 Year Change-12.82%
Change since IPO-57.29%

Recent News & Updates

Shareholder Returns

7013JP MachineryJP Market
7D-5.9%-2.8%-1.5%
1Y73.1%26.4%23.5%

Return vs Industry: 7013 exceeded the JP Machinery industry which returned 26.4% over the past year.

Return vs Market: 7013 exceeded the JP Market which returned 23.5% over the past year.

Price Volatility

Is 7013's price volatile compared to industry and market?
7013 volatility
7013 Beta1.89
Industry Beta1.13
Market Beta1

Stable Share Price: 7013 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 7013's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
185329,149Hiroshi Idehttps://www.ihi.co.jp

IHI Corporation operates in resources, energy, and environment; social infrastructure and offshore facilities; industrial systems and general-purpose machinery; aero engine, space, and defense; and other business areas. It provides boilers that combust various fuels to supply steam for power generation and production processes; and supplies gas turbines, gas engines, and diesel engines for land use, as well as small to large engines for large vessels and high-speed boats. The company also offers design, procurement, construction, and maintenance services for projects in power generation, petroleum, chemicals, and steelmaking fields; engineers, fabricates, constructs, and maintains bridges and expressways; build water gates for controlling water flow of dams and rivers; provides machines with rotating cutters that excavate tunnels for subways, roads, and other engineering works, as well as supplies automatic assembly systems for tunnel interior segments.

IHI Fundamentals Summary

How do IHI's earnings and revenue compare to its market cap?
7013 fundamental statistics
Market CapJP¥381.54b
Earnings (TTM)JP¥33.44b
Revenue (TTM)JP¥1.14t

11.3x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
7013 income statement (TTM)
RevenueJP¥1.14t
Cost of RevenueJP¥950.72b
Gross ProfitJP¥189.85b
ExpensesJP¥156.41b
EarningsJP¥33.44b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 09, 2021

Earnings per share (EPS)225.13
Gross Margin16.65%
Net Profit Margin2.93%
Debt/Equity Ratio124.1%

How did 7013 perform over the long term?

See historical performance and comparison

Dividends

2.4%

Current Dividend Yield

9%

Payout Ratio

Valuation

Is IHI undervalued compared to its fair value and its price relative to the market?

44.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 7013 (¥2537) is trading below our estimate of fair value (¥4566.7)

Significantly Below Fair Value: 7013 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 7013 is good value based on its PE Ratio (11.3x) compared to the JP Machinery industry average (14.3x).

PE vs Market: 7013 is good value based on its PE Ratio (11.3x) compared to the JP market (14.9x).


Price to Earnings Growth Ratio

PEG Ratio: 7013 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: 7013 is overvalued based on its PB Ratio (1.2x) compared to the JP Machinery industry average (0.9x).


Future Growth

How is IHI forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

13.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 7013's forecast earnings growth (13.9% per year) is above the savings rate (0%).

Earnings vs Market: 7013's earnings (13.9% per year) are forecast to grow faster than the JP market (10.3% per year).

High Growth Earnings: 7013's earnings are forecast to grow, but not significantly.

Revenue vs Market: 7013's revenue (3% per year) is forecast to grow slower than the JP market (4.8% per year).

High Growth Revenue: 7013's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 7013's Return on Equity is forecast to be low in 3 years time (13.4%).


Past Performance

How has IHI performed over the past 5 years?

6.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 7013 has a large one-off gain of ¥21.7B impacting its June 30 2021 financial results.

Growing Profit Margin: 7013's current net profit margins (2.9%) are higher than last year (0.7%).


Past Earnings Growth Analysis

Earnings Trend: 7013's earnings have grown by 6.5% per year over the past 5 years.

Accelerating Growth: 7013's earnings growth over the past year (255.4%) exceeds its 5-year average (6.5% per year).

Earnings vs Industry: 7013 earnings growth over the past year (255.4%) exceeded the Machinery industry 12.3%.


Return on Equity

High ROE: 7013's Return on Equity (11.1%) is considered low.


Financial Health

How is IHI's financial position?


Financial Position Analysis

Short Term Liabilities: 7013's short term assets (¥892.8B) exceed its short term liabilities (¥687.9B).

Long Term Liabilities: 7013's short term assets (¥892.8B) exceed its long term liabilities (¥742.4B).


Debt to Equity History and Analysis

Debt Level: 7013's debt to equity ratio (124.1%) is considered high.

Reducing Debt: 7013's debt to equity ratio has increased from 103.3% to 124.1% over the past 5 years.

Debt Coverage: 7013's debt is not well covered by operating cash flow (15.3%).

Interest Coverage: 7013 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is IHI current dividend yield, its reliability and sustainability?

2.36%

Current Dividend Yield


Upcoming Dividend Payment

TodaySep 22 2021Ex Dividend DateSep 29 2021Dividend Pay DateJan 01 197018899 days from Ex DividendBuy in the next 6 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: 7013's dividend (2.36%) is higher than the bottom 25% of dividend payers in the JP market (1.3%).

High Dividend: 7013's dividend (2.36%) is low compared to the top 25% of dividend payers in the JP market (2.98%).


Stability and Growth of Payments

Stable Dividend: 7013's dividend payments have been volatile in the past 10 years.

Growing Dividend: 7013's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (8.9%), 7013's dividend payments are thoroughly 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?

0.9yrs

Average management tenure


CEO

Hiroshi Ide (60 yo)

0.42

Tenure

Mr. Hiroshi Ide has been the Chief Executive Officer at IHI Corporation since April 01, 2021 and serves as its President since June 2020. He serves as General Manager of Corporate Strategic Planning at IHI...


Leadership Team

Experienced Management: 7013's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: 7013'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

IHI Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: IHI Corporation
  • Ticker: 7013
  • Exchange: TSE
  • Founded: 1853
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: JP¥381.543b
  • Shares outstanding: 148.52m
  • Website: https://www.ihi.co.jp

Number of Employees


Location

  • IHI Corporation
  • Toyosu IHI Building
  • 3-1-1 Toyosu
  • Tokyo
  • 135-8710
  • Japan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/22 08:03
End of Day Share Price2021/09/22 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.