OTCPK:IHIC.F

Stock Analysis Report

Executive Summary

IHI Corporation, together with its subsidiaries, manufactures and sells machinery and equipment in Japan, the Americas, Europe, the Asia Pacific, and internationally.


Snowflake Analysis

Adequate balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has IHI's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IHIC.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

IHIC.F

13.3%

US Machinery

9.9%

US Market


1 Year Return

n/a

IHIC.F

-22.8%

US Machinery

-11.9%

US Market

Return vs Industry: Insufficient data to determine how IHIC.F performed against the US Machinery industry.

Return vs Market: Insufficient data to determine how IHIC.F performed against the US Market.


Shareholder returns

IHIC.FIndustryMarket
7 Day0%13.3%9.9%
30 Day0%-22.1%-15.0%
90 Day0%-31.3%-21.5%
1 Yearn/a-20.7%-22.8%-10.0%-11.9%
3 Year611.3%611.3%-3.3%-10.2%12.3%5.1%
5 Year292.2%292.2%18.9%3.9%32.5%18.1%

Price Volatility Vs. Market

How volatile is IHI's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

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

8.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IHIC.F ($20.2) is trading below our estimate of fair value ($22.03)

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


Price To Earnings Ratio

PE vs Industry: IHIC.F is poor value based on its PE Ratio (60.4x) compared to the Machinery industry average (23.4x).

PE vs Market: IHIC.F is poor value based on its PE Ratio (60.4x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: IHIC.F is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: IHIC.F is good value based on its PB Ratio (1.2x) compared to the US Machinery industry average (2.5x).


Next Steps

Future Growth

How is IHI forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

26.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IHIC.F's forecast earnings growth (26% per year) is above the savings rate (2.7%).

Earnings vs Market: IHIC.F's earnings (26% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: IHIC.F's revenue (2.1% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: IHIC.F's revenue (2.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IHIC.F's Return on Equity is forecast to be low in 3 years time (12.6%).


Next Steps

Past Performance

How has IHI performed over the past 5 years?

22.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IHIC.F has high quality earnings.

Growing Profit Margin: IHIC.F's current net profit margins (0.5%) are lower than last year (2%).


Past Earnings Growth Analysis

Earnings Trend: IHIC.F's earnings have grown significantly by 22% per year over the past 5 years.

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

Earnings vs Industry: IHIC.F had negative earnings growth (-77.9%) over the past year, making it difficult to compare to the Machinery industry average (9.6%).


Return on Equity

High ROE: IHIC.F's Return on Equity (3.1%) is considered low.


Next Steps

Financial Health

How is IHI's financial position?


Financial Position Analysis

Short Term Liabilities: IHIC.F's short term assets (¥960.8B) exceed its short term liabilities (¥843.4B).

Long Term Liabilities: IHIC.F's short term assets (¥960.8B) exceed its long term liabilities (¥439.1B).


Debt to Equity History and Analysis

Debt Level: IHIC.F's debt to equity ratio (101.7%) is considered high.

Reducing Debt: IHIC.F's debt to equity ratio has reduced from 106.1% to 101.7% over the past 5 years.

Debt Coverage: IHIC.F's debt is not well covered by operating cash flow (4.4%).

Interest Coverage: IHIC.F's interest payments on its debt are well covered by EBIT (25.3x coverage).


Balance Sheet

Inventory Level: IHIC.F has a high level of physical assets or inventory.

Debt Coverage by Assets: IHIC.F's debt is covered by short term assets (assets are 2.6x debt).


Next Steps

Dividend

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

2.71%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IHIC.F's dividend (2.71%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: IHIC.F's dividend (2.71%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (163.9%), IHIC.F'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?

3.7yrs

Average management tenure


CEO

Tsugio Mitsuoka (65yo)

no data

Tenure

Mr. Tsugio Mitsuoka has been the President at IHI Corporation since April 01, 2016 and has been its Chief Executive Officer and also served as its Chief Operating Officer since April 2017. Mr. Mitsuoka ser ...


Leadership Team

NamePositionTenureCompensationOwnership
Tamotsu Saito
Chairman & GM of Monozukuri System Strategy Planning Headquarters3.67yrsJP¥115.00m0.0092% ¥323.1k
Tsugio Mitsuoka
Presidentno datano data0.0054% ¥192.5k
Seiji Maruyama
General Manager of Finance & Accounting Divisionno datano datano data
Kazuki Awai
Managing Executive Officer & GM of Administration Divisionno datano datano data
Takayoshi Shirai
General Manager of Public Relations Divisionno datano datano data
Hiroyuki Otani
Executive VP5.5yrsno data0.0034% ¥118.7k
Tomoharu Shikina
Managing Executive Officer & Director3.5yrsno data0.0026% ¥90.4k
Takeshi Yamada
Senior Executive Officer2.5yrsno data0.0010% ¥35.7k
Yoshinori Kawasaki
Managing Executive Officer and VP of Industrial Systems & General-Purpose Machinery Business Area0.67yrno datano data
Hiroshi Ide
Managing Executive Officer and President of Resources0.67yrno datano data

3.7yrs

Average Tenure

62.5yo

Average Age

Experienced Management: IHIC.F's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Tamotsu Saito
Chairman & GM of Monozukuri System Strategy Planning Headquarters3.67yrsJP¥115.00m0.0092% ¥323.1k
Tsugio Mitsuoka
Presidentno datano data0.0054% ¥192.5k
Hiroyuki Otani
Executive VP5.5yrsno data0.0034% ¥118.7k
Tomoharu Shikina
Managing Executive Officer & Director3.5yrsno data0.0026% ¥90.4k
Takeshi Yamada
Senior Executive Officer2.5yrsno data0.0010% ¥35.7k
Nobuko Mizumoto
Managing Executive Officer & Directorno datano data0.0018% ¥61.8k
Masafumi Nagano
Managing Executive Officer & Directorno datano data0.0024% ¥83.3k
Kouichi Murakami
Managing Executive Officer & Directorno datano datano data
Hiroshi Kimura
Outside Director3.5yrsno data0.0014% ¥47.7k
Taketsugu Fujiwara
Outside Director4.5yrsno datano data

3.7yrs

Average Tenure

65yo

Average Age

Experienced Board: IHIC.F's board of directors are considered experienced (3.7 years average tenure).


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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: IHI Corporation
  • Ticker: IHIC.F
  • Exchange: OTCPK
  • Founded: 1853
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: JP¥383.227b
  • Listing Market Cap: JP¥3.532b
  • Shares outstanding: 148.60m
  • Website: https://www.ihi.co.jp

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
7013TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
IHIC.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
IWJDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
IHIC.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDJan 2013

Biography

IHI Corporation, together with its subsidiaries, manufactures and sells machinery and equipment in Japan, the Americas, Europe, the Asia Pacific, and internationally. It offers boilers, environment responsive systems, components for nuclear power plants, and facilities for nuclear fuel cycle plants, as well as gas turbine/diesel engines/gas engines. The company also provides LNG receiving terminals and storage tanks; equipment for plants; and engineering, procurement, construction, and start-up services for process and pharmaceutical plants. In addition, it offers bridges, water gates, and steel structures; shield tunneling machines, concrete construction materials, and transportation systems; and security and environmental monitoring systems, as well as constructs and refurbishes offshore structures. Further, the company provides air and process gas compressors, separators, and cryogenic products; lubricating systems; turbochargers for vehicles and ships; parking and logistics systems; materials handling systems; steelmaking equipment, such as industrial furnaces and stepping cylinders; heat and surface treatment equipment, factory automation systems, slitters, rubber and film calender lines, pulp and paper machinery, and grid scale energy storage systems; and agricultural machines, motors, and lawn mowers. Additionally, it offers aero engines and air traffic control systems; and rockets, rocket and satellite propulsion systems, systems for satellites, space station-related equipment, ground test facilities, sample containers, etc., as well as engages in real estate rental and sales business. The company was formerly known as Ishikawajima-Harima Heavy Industries Co., Ltd. and changed its name to IHI Corporation in 2007. IHI Corporation was founded in 1853 and is headquartered in Tokyo, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/04 00:12
End of Day Share Price2019/09/05 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.