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Kawasaki Heavy Industries

OTCPK:KWHI.F
Snowflake Description

Adequate balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
KWHI.F
OTCPK
¥443B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

Kawasaki Heavy Industries, Ltd., together with its subsidiaries, engages in the ship and offshore structure, rolling stock, aerospace, gas turbine and machinery, plant and infrastructure, motorcycle and engine, and precision machinery businesses. The last earnings update was 46 days ago. More info.


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KWHI.F Share Price and Events
7 Day Returns
0%
OTCPK:KWHI.F
-2.1%
US Machinery
-1.1%
US Market
1 Year Returns
-
OTCPK:KWHI.F
-4.3%
US Machinery
5.8%
US Market
KWHI.F Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Kawasaki Heavy Industries (KWHI.F) 0% 0% - - 617.7% 434%
US Machinery -2.1% -4.1% 19.3% -4.3% 45.9% 24.4%
US Market -1.1% -0.2% 19.7% 5.8% 37.9% 41.7%
1 Year Return vs Industry and Market
  • No trading data on KWHI.F.
  • No trading data on KWHI.F.
Price Volatility
KWHI.F
Industry
5yr Volatility vs Market

Value

 Is Kawasaki Heavy Industries undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Kawasaki Heavy Industries to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Kawasaki Heavy Industries.

OTCPK:KWHI.F Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 10 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 12.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for OTCPK:KWHI.F
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.05
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.053 (1 + (1- 30.86%) (124.17%))
1.642
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.64
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.642 * 5.96%)
12.51%

Discounted Cash Flow Calculation for OTCPK:KWHI.F using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Kawasaki Heavy Industries is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

OTCPK:KWHI.F DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (JPY, Millions) Source Present Value
Discounted (@ 12.51%)
2019 -1,580.00 Analyst x5 -1,404.28
2020 24,702.00 Analyst x5 19,512.95
2021 35,732.40 Analyst x5 25,086.97
2022 35,600.00 Analyst x1 22,214.24
2023 38,184.00 Analyst x1 21,176.70
2024 40,370.12 Est @ 5.73% 19,899.04
2025 42,318.64 Est @ 4.83% 18,539.55
2026 44,095.03 Est @ 4.2% 17,169.30
2027 45,751.84 Est @ 3.76% 15,833.13
2028 47,329.89 Est @ 3.45% 14,557.58
Present value of next 10 years cash flows ¥172,585.18
OTCPK:KWHI.F DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ¥47,329.89 × (1 + 2.73%) ÷ (12.51% – 2.73%)
¥496,979.51
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ¥496,979.51 ÷ (1 + 12.51%)10
¥152,859.38
OTCPK:KWHI.F Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ¥172,585.18 + ¥152,859.38
¥325,444.56
Equity Value per Share
(JPY)
= Total value / Shares Outstanding
= ¥325,444.56 / 167.05
¥1948.23
OTCPK:KWHI.F Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in OTCPK:KWHI.F represents 0.00755x of TSE:7012
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.00755x
Value per Share
(Listing Adjusted, USD)
= Value per Share (JPY) x Listing Adjustment Factor
= ¥ 1,948.23 x 0.00755
$14.71
Value per share (USD) From above. $14.71
Current discount Discount to share price of $20.02
= -1 x ($20.02 - $14.71) / $14.71
-36.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Kawasaki Heavy Industries is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Kawasaki Heavy Industries's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Kawasaki Heavy Industries's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OTCPK:KWHI.F PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in JPY ¥154.33
TSE:7012 Share Price ** TSE (2018-12-26) in JPY ¥2652
United States of America Machinery Industry PE Ratio Median Figure of 103 Publicly-Listed Machinery Companies 19.74x
United States of America Market PE Ratio Median Figure of 3,061 Publicly-Listed Companies 17.17x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Kawasaki Heavy Industries.

OTCPK:KWHI.F PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSE:7012 Share Price ÷ EPS (both in JPY)

= 2652 ÷ 154.33

17.18x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kawasaki Heavy Industries is good value based on earnings compared to the US Machinery industry average.
  • Kawasaki Heavy Industries is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Kawasaki Heavy Industries's expected growth come at a high price?
Raw Data
OTCPK:KWHI.F PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 17.18x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
19.5%per year
United States of America Machinery Industry PEG Ratio Median Figure of 85 Publicly-Listed Machinery Companies 1.48x
United States of America Market PEG Ratio Median Figure of 2,104 Publicly-Listed Companies 1.45x

*Line of best fit is calculated by linear regression .

OTCPK:KWHI.F PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 17.18x ÷ 19.5%

0.88x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kawasaki Heavy Industries is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Kawasaki Heavy Industries's assets?
Raw Data
OTCPK:KWHI.F PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in JPY ¥2,781.36
TSE:7012 Share Price * TSE (2018-12-26) in JPY ¥2652
United States of America Machinery Industry PB Ratio Median Figure of 129 Publicly-Listed Machinery Companies 2.27x
United States of America Market PB Ratio Median Figure of 5,166 Publicly-Listed Companies 1.85x
OTCPK:KWHI.F PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSE:7012 Share Price ÷ Book Value per Share (both in JPY)

= 2652 ÷ 2,781.36

0.95x

* Primary Listing of Kawasaki Heavy Industries.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kawasaki Heavy Industries is good value based on assets compared to the US Machinery industry average.
X
Value checks
We assess Kawasaki Heavy Industries's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. Kawasaki Heavy Industries has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
19.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Kawasaki Heavy Industries expected to grow at an attractive rate?
  • Kawasaki Heavy Industries's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Kawasaki Heavy Industries's earnings growth is expected to exceed the United States of America market average.
  • Kawasaki Heavy Industries's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
OTCPK:KWHI.F Future Growth Rates Data Sources
Data Point Source Value (per year)
OTCPK:KWHI.F Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 19.5%
OTCPK:KWHI.F Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 2.7%
United States of America Machinery Industry Earnings Growth Rate Market Cap Weighted Average 11%
United States of America Machinery Industry Revenue Growth Rate Market Cap Weighted Average 3.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
OTCPK:KWHI.F Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in JPY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OTCPK:KWHI.F Future Estimates Data
Date (Data in JPY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-03-31 1,789,550 112,184 64,900 2
2022-03-31 1,760,200 109,600 60,150 2
2021-03-31 1,724,950 107,693 50,491 10
2020-03-31 1,682,140 96,671 45,096 10
2019-03-31 1,622,511 79,026 30,847 9
OTCPK:KWHI.F Past Financials Data
Date (Data in JPY Millions) Revenue Cash Flow Net Income *
2018-12-31 1,576,456 25,780
2018-09-30 1,552,628 65,962 14,470
2018-06-30 1,582,698 28,198
2018-03-31 1,574,242 56,050 28,915
2017-12-31 1,568,147 22,750
2017-09-30 1,531,252 87,428 37,299
2017-06-30 1,514,300 24,685
2017-03-31 1,518,830 93,514 26,204
2016-12-31 1,518,592 34,443
2016-09-30 1,530,201 69,705 18,923
2016-06-30 1,540,913 43,348
2016-03-31 1,541,096 86,059 46,043

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Kawasaki Heavy Industries's earnings are expected to grow by 19.5% yearly, however this is not considered high growth (20% yearly).
  • Kawasaki Heavy Industries's revenue is expected to grow by 2.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
OTCPK:KWHI.F Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from Kawasaki Heavy Industries Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:KWHI.F Future Estimates Data
Date (Data in JPY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-03-31 378.34 378.34 378.34 1.00
2022-03-31 359.78 359.78 359.78 1.00
2021-03-31 305.14 341.21 269.40 11.00
2020-03-31 270.28 305.30 239.50 11.00
2019-03-31 184.07 219.10 159.80 11.00
OTCPK:KWHI.F Past Financials Data
Date (Data in JPY Millions) EPS *
2018-12-31 154.33
2018-09-30 86.62
2018-06-30 168.80
2018-03-31 173.09
2017-12-31 136.18
2017-09-30 223.27
2017-06-30 147.76
2017-03-31 156.86
2016-12-31 206.25
2016-09-30 113.31
2016-06-30 259.48
2016-03-31 275.71

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Kawasaki Heavy Industries is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Kawasaki Heavy Industries's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Kawasaki Heavy Industries has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Kawasaki Heavy Industries's growth in the last year to its industry (Machinery).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Kawasaki Heavy Industries's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Kawasaki Heavy Industries's 1-year earnings growth exceeds its 5-year average (13.3% vs -14.9%)
  • Kawasaki Heavy Industries's earnings growth has not exceeded the US Machinery industry average in the past year (13.3% vs 28.6%).
Earnings and Revenue History
Kawasaki Heavy Industries's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Kawasaki Heavy Industries Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:KWHI.F Past Revenue, Cash Flow and Net Income Data
Date (Data in JPY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 1,576,456.00 25,780.00 154,995.00 47,792.00
2018-09-30 1,552,628.00 14,470.00 156,191.00 46,015.00
2018-06-30 1,582,698.00 28,198.00 154,668.00 46,302.00
2018-03-31 1,574,242.00 28,915.00 153,168.00 45,434.00
2017-12-31 1,568,147.00 22,750.00 151,153.00 43,836.00
2017-09-30 1,531,252.00 37,299.00 150,885.00 43,615.00
2017-06-30 1,514,300.00 24,685.00 154,073.00 43,668.00
2017-03-31 1,518,830.00 26,204.00 150,336.00 43,627.00
2016-12-31 1,518,592.00 34,443.00 194,802.00 2,084.00
2016-09-30 1,530,201.00 18,923.00 192,813.00 1,463.00
2016-06-30 1,540,913.00 43,348.00 145,495.00 44,405.00
2016-03-31 1,541,096.00 46,043.00 191,409.00
2015-12-31 1,535,232.00 36,285.00 147,430.00 43,236.00
2015-09-30 1,560,895.00 60,332.00 146,365.00 42,798.00
2015-06-30 1,522,011.00 53,715.00 143,888.00 42,212.00
2015-03-31 1,486,123.00 51,639.00 182,184.00
2014-12-31 1,481,077.00 60,237.00 137,213.00 40,166.00
2014-09-30 1,423,827.00 43,785.00 134,980.00 40,227.00
2014-06-30 1,407,127.00 39,521.00 133,634.00 40,336.00
2014-03-31 1,385,482.00 38,601.00 172,838.00
2013-12-31 1,323,837.00 34,813.00 170,501.00 120.00
2013-09-30 1,308,959.00 31,436.00 166,675.00 -16.00
2013-06-30 1,287,860.00 29,330.00 163,718.00 -114.00
2013-03-31 1,288,881.00 30,864.00 161,350.00
2012-12-31 1,283,360.00 8,987.00 120,218.00 41,976.00
2012-09-30 1,293,787.00 17,939.00 118,934.00 41,915.00
2012-06-30 1,295,729.00 19,795.00 118,104.00 41,121.00
2012-03-31 1,303,778.00 23,323.00 157,376.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Kawasaki Heavy Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Kawasaki Heavy Industries used its assets less efficiently than the US Machinery industry average last year based on Return on Assets.
  • Kawasaki Heavy Industries's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Kawasaki Heavy Industries's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Kawasaki Heavy Industries has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Kawasaki Heavy Industries's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Kawasaki Heavy Industries's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Kawasaki Heavy Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Kawasaki Heavy Industries's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Kawasaki Heavy Industries's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Kawasaki Heavy Industries Company Filings, last reported 2 months ago.

OTCPK:KWHI.F Past Debt and Equity Data
Date (Data in JPY Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 481,257.00 550,089.00 50,161.00
2018-09-30 472,569.00 441,901.00 57,414.00
2018-06-30 477,549.00 433,175.00 58,055.00
2018-03-31 481,385.00 446,643.00 70,632.00
2017-12-31 466,523.00 506,204.00 50,406.00
2017-09-30 456,250.00 448,383.00 45,442.00
2017-06-30 450,750.00 406,068.00 48,261.00
2017-03-31 451,327.00 400,690.00 55,388.00
2016-12-31 426,076.00 461,632.00 53,451.00
2016-09-30 401,695.00 388,815.00 39,473.00
2016-06-30 424,680.00 374,828.00 39,131.00
2016-03-31 445,625.00 398,424.00 42,157.00
2015-12-31 458,221.00 496,062.00 44,456.00
2015-09-30 462,048.00 411,104.00 45,873.00
2015-06-30 444,768.00 415,417.00 46,744.00
2015-03-31 447,957.00 414,376.00 51,645.00
2014-12-31 424,271.00 460,244.00 45,585.00
2014-09-30 382,542.00 439,805.00 37,187.00
2014-06-30 370,760.00 412,266.00 43,312.00
2014-03-31
2013-12-31 352,244.00 509,359.00 32,975.00
2013-09-30 339,135.00 475,660.00 32,103.00
2013-06-30 325,762.00 493,617.00 38,824.00
2013-03-31 349,881.00 484,653.00 38,525.00
2012-12-31 322,365.00 467,326.00 30,839.00
2012-09-30 317,037.00 426,410.00 28,798.00
2012-06-30 315,811.00 415,059.00 33,439.00
2012-03-31 315,922.00 407,167.00 34,316.00
  • Kawasaki Heavy Industries's level of debt (114.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (144.4% vs 114.3% today).
  • Debt is not well covered by operating cash flow (12%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 22.4x coverage).
X
Financial health checks
We assess Kawasaki Heavy Industries's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Kawasaki Heavy Industries has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.64%
Current annual income from Kawasaki Heavy Industries dividends. Estimated to be 3.05% next year.
If you bought $2,000 of Kawasaki Heavy Industries shares you are expected to receive $53 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Kawasaki Heavy Industries's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).
  • Kawasaki Heavy Industries's dividend is below the markets top 25% of dividend payers in United States of America (3.72%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
OTCPK:KWHI.F Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
United States of America Machinery Industry Average Dividend Yield Market Cap Weighted Average of 78 Stocks 2.1%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2003 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.9%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

OTCPK:KWHI.F Future Dividends Estimate Data
Date (Data in ¥) Dividend per Share (annual) Avg. No. Analysts
2023-03-31 120.00 1.00
2022-03-31 120.00 1.00
2021-03-31 87.00 10.00
2020-03-31 78.80 10.00
2019-03-31 70.00 11.00
OTCPK:KWHI.F Past Annualized Dividends Data
Date (Data in ¥) Dividend per share (annual) Avg. Yield (%)
2018-06-27 70.000 2.460
2018-04-26 70.000 2.033
2017-06-28 60.000 1.635
2017-04-27 60.000 1.827
2017-01-31 60.000 1.735
2016-10-28 60.000 1.703
2016-07-29 100.000 3.337
2016-06-24 120.000 4.274
2016-04-27 100.000 3.127
2015-06-25 120.000 2.921
2015-04-28 120.000 1.952
2015-02-12 100.000 1.686
2015-01-29 100.000 1.786
2014-11-10 100.000 1.885
2014-10-29 100.000 2.274
2014-07-30 70.000 1.738
2014-06-26 70.000 1.759
2014-04-25 70.000 1.821
2013-04-24 50.000 1.314
2012-08-09 50.000 2.363
2012-07-31 50.000 2.805
2012-07-02 50.000 2.531
2012-04-26 50.000 2.366
2012-01-31 40.000 1.671
2011-08-11 30.000 1.455
2011-06-28 40.000 1.355
2011-04-28 40.000 1.324
2011-01-31 30.000 0.901
2010-06-25 30.000 1.242
2010-04-27 30.000 1.169
2010-01-29 30.000 1.218
2009-11-02 30.000 1.314
2009-06-25 30.000 1.257
2009-04-28 30.000 1.329
2009-03-26 50.000 2.411

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Kawasaki Heavy Industries's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.4x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Kawasaki Heavy Industries's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Kawasaki Heavy Industries afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Kawasaki Heavy Industries has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Kawasaki Heavy Industries's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Yoshinori Kanehana
AGE 64
TENURE AS CEO 2.8 years
CEO Bio

Mr. Yoshinori Kanehana has been President and Chief Executive Officer at Kawasaki Heavy Industries Ltd. since June 2016 and 2018 respectively. Mr. Kanehana served as Senior Executive Vice President at Kawasaki Heavy Industries Ltd. since April 1, 2016 until June 2016. Mr. Kanehana served as the President of Rolling Stock Company from June 2013 to April 1, 2016. He served as Senior Vice President from June 2012 to April 1, 2016. Mr. Kanehana served as the President of Kawasaki Rail Car, Inc. He served as a Vice President of Rolling Stock Company, General Manager of Marketing Division and Managing Executive Officer of Kawasaki Heavy Industries Ltd. He has been a Representative Director of Kawasaki Heavy Industries Ltd since June 2010.

CEO Compensation
  • Insufficient data for Yoshinori to compare compensation growth.
  • Insufficient data for Yoshinori to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Kawasaki Heavy Industries management team in years:

2.9
Average Tenure
63
Average Age
  • The tenure for the Kawasaki Heavy Industries management team is about average.
Management Team

Yoshinori Kanehana

TITLE
President
AGE
64
TENURE
2.8 yrs

Nobuhisa Kato

TITLE
Executive Officer and GM of Finance & Accounting Division

Makoto Shiota

TITLE
Executive Officer & GM of Marketing Division
TENURE
0.6 yrs

Kouzou Tomiyama

TITLE
Executive Officer & GM of Personnel & Labor Administration Division
TENURE
1.2 yrs

Munenori Ishikawa

TITLE
Senior Executive Officer
AGE
65
TENURE
6.9 yrs

Kenji Tomida

TITLE
VP, Assistant to the President
AGE
63
TENURE
6.9 yrs

Kazuo Ota

TITLE
Managing Executive Officer & Director
AGE
63
TENURE
5.9 yrs

Koji Kadota

TITLE
Managing Executive Officer & GM of Corporate Technology Division
TENURE
3.9 yrs

Yasuhiko Hashimoto

TITLE
Managing Executive Officer & Director
AGE
61
TENURE
2.9 yrs

Tatsuya Watanabe

TITLE
Managing Executive Officer & Director
AGE
61
TENURE
2.8 yrs
Board of Directors Tenure

Average tenure and age of the Kawasaki Heavy Industries board of directors in years:

2.8
Average Tenure
63
Average Age
  • The average tenure for the Kawasaki Heavy Industries board of directors is less than 3 years, this suggests a new board.
Board of Directors

Shigeru Murayama

TITLE
Chairman
COMPENSATION
¥126M
AGE
68
TENURE
2.8 yrs

Yoshinori Kanehana

TITLE
President
AGE
64
TENURE
8.8 yrs

Munenori Ishikawa

TITLE
Senior Executive Officer
AGE
65
TENURE
4.8 yrs

Kenji Tomida

TITLE
VP, Assistant to the President
AGE
63
TENURE
3.9 yrs

Kazuo Ota

TITLE
Managing Executive Officer & Director
AGE
63
TENURE
3.8 yrs

Yasuhiko Hashimoto

TITLE
Managing Executive Officer & Director
AGE
61
TENURE
0.8 yrs

Tatsuya Watanabe

TITLE
Managing Executive Officer & Director
AGE
61
TENURE
2.8 yrs

Sukeyuki Namiki

TITLE
Managing Executive Officer & Director
AGE
63
TENURE
0.8 yrs

Katsuya Yamamoto

TITLE
Managing Executive Officer
AGE
61

Michio Yoneda

TITLE
Outside Director
AGE
69
TENURE
2.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Kawasaki Heavy Industries's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Kawasaki Heavy Industries has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Kawasaki Heavy Industries, Ltd., together with its subsidiaries, engages in the ship and offshore structure, rolling stock, aerospace, gas turbine and machinery, plant and infrastructure, motorcycle and engine, and precision machinery businesses. The Ship & Offshore Structure segment offers liquid natural gas carriers, LPG carriers, bulk carriers, and submarines. The Rolling Stock segment provides electric train cars, including bullet trains; and electric and diesel locomotives, passenger coaches, and bogies. The Aerospace segment offers aircrafts for the Japan Ministry of Defense; component parts for commercial aircraft; commercial helicopters; and missiles/space equipment. The Gas Turbine & Machinery segment provides jet engines, industrial-use gas turbines/cogeneration systems, gas engines, diesel engines, steam turbines for marine and land, and aerodynamic machineries/marine propulsion systems. The Plant & Infrastructure segment offers cement, fertilizer, and other industrial plants; and power plants, liquid natural gas tanks, municipal waste incineration plants, tunnel boring machines, and crushing machines. The Motorcycle & Engine segment provides motorcycles, utility vehicles, all-terrain vehicles, personal watercrafts, and general-purpose gasoline engines. The Precision Machinery segment offers hydraulic components for construction machineries; hydraulic components and systems for industrial machineries; marine steering gears; hydraulic deck machineries; industrial robots; and medical and pharmaceutical robots. The company sells its products in Japan, the United States, Europe, Asia, and internationally. Kawasaki Heavy Industries, Ltd. was founded in 1878 and is headquartered in Tokyo, Japan.

Details
Name: Kawasaki Heavy Industries, Ltd.
KWHI.F
Exchange: OTCPK
Founded: 1878
¥4,023,307,557
167,046,152
Website: http://global.kawasaki.com
Address: Kawasaki Heavy Industries, Ltd.
14-5, Kaigan 1-chome,
Minato-ku,
Tokyo,
105-8315,
Japan
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSE 7012 Common Stock The Tokyo Stock Exchange JP JPY 06. Jan 1992
OTCPK KWHI.F Common Stock Pink Sheets LLC US USD 06. Jan 1992
DB KHE Common Stock Deutsche Boerse AG DE EUR 06. Jan 1992
OTCPK KWHI.Y SPONSORED ADR Pink Sheets LLC US USD 25. Feb 1998
Number of employees
Current staff
Staff numbers
35,805
Kawasaki Heavy Industries employees.
Industry
Industrial Machinery
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/25 23:52
End of day share price update: 2018/12/26 00:00
Last estimates confirmation: 2019/03/20
Last earnings filing: 2019/02/07
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.