OTCPK:KWHI.F

Stock Analysis Report

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Executive Summary

Kawasaki Heavy Industries, Ltd. engages in ship and offshore structure, rolling stock, aerospace systems, energy system and plant engineering, motorcycle and engine, and precision machinery and robot businesses worldwide.


Snowflake Analysis

Good value with mediocre balance sheet.


Similar Companies

Share Price & News

How has Kawasaki Heavy Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

KWHI.F

-0.03%

US Machinery

2.3%

US Market


1 Year Return

n/a

KWHI.F

-5.8%

US Machinery

6.7%

US Market

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

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


Shareholder returns

KWHI.FIndustryMarket
7 Day0%-0.03%2.3%
30 Day-6.6%-9.7%-0.7%
90 Dayn/a9.3%17.1%
1 Yearn/a-3.9%-5.8%9.0%6.7%
3 Year425.4%425.4%9.2%2.0%36.7%27.8%
5 Year246.8%246.8%46.9%29.2%65.2%46.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Kawasaki Heavy Industries undervalued compared to its fair value and its price relative to the market?

13.95x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KWHI.F ($15.5) is trading above our estimate of fair value ($4.68)

Significantly Below Fair Value: KWHI.F is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: KWHI.F is good value based on its PE Ratio (14x) compared to the Machinery industry average (18.8x).

PE vs Market: KWHI.F is good value based on its PE Ratio (14x) compared to the US market (16.1x).


Price to Earnings Growth Ratio

PEG Ratio: KWHI.F is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: KWHI.F is good value based on its PB Ratio (0.6x) compared to the US Machinery industry average (1.9x).


Next Steps

Future Growth

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

20.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KWHI.F's forecast earnings growth (20.5% per year) is above the savings rate (2.2%).

Earnings vs Market: KWHI.F's earnings (20.5% per year) are forecast to grow slower than the US market (22.8% per year).

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

Revenue vs Market: KWHI.F's revenue (0.5% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: KWHI.F's revenue (0.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KWHI.F's Return on Equity is forecast to be low in 3 years time (4.2%).


Next Steps

Past Performance

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

-20.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KWHI.F has high quality earnings.

Growing Profit Margin: KWHI.F's current net profit margins (1.1%) are lower than last year (1.7%).


Past Earnings Growth Analysis

Earnings Trend: KWHI.F's earnings have declined by -20.7% per year over the past 5 years.

Accelerating Growth: KWHI.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: KWHI.F had negative earnings growth (-31.7%) over the past year, making it difficult to compare to the Machinery industry average (-5.4%).


Return on Equity

High ROE: KWHI.F's Return on Equity (4.3%) is considered low.


Next Steps

Financial Health

How is Kawasaki Heavy Industries's financial position?


Financial Position Analysis

Short Term Liabilities: KWHI.F's short term assets (¥1,258.8B) exceed its short term liabilities (¥947.7B).

Long Term Liabilities: KWHI.F's short term assets (¥1,258.8B) exceed its long term liabilities (¥538.6B).


Debt to Equity History and Analysis

Debt Level: KWHI.F's debt to equity ratio (113.5%) is considered high.

Reducing Debt: KWHI.F's debt to equity ratio has increased from 92% to 113.5% over the past 5 years.

Debt Coverage: KWHI.F's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: KWHI.F's interest payments on its debt are well covered by EBIT (23.6x coverage).


Balance Sheet


Next Steps

Dividend

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

2.80%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate KWHI.F's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate KWHI.F's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if KWHI.F's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if KWHI.F's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: KWHI.F is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of KWHI.F's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.9yrs

Average management tenure


CEO

Yasuhiko Hashimoto (63yo)

0.083

Tenure

Mr. Yasuhiko Hashimoto serves as Representative Director at Kawasaki Heavy Industries Ltd since April 2020 and serves as its President and Chief Executive Officer since June 2020. He served as Vice Preside ...


Leadership Team

NamePositionTenureCompensationOwnership
Yasuhiko Hashimoto
President0.083yrno data0.0048% ¥116.1k
Nobuhisa Kato
Executive Officer & GM of Finance & Control Divisionno datano datano data
Makoto Shiota
Executive Officer & GM of Marketing Division1.92yrsno datano data
Kouzou Tomiyama
Executive Officer & General Manager of Human Resources Division2.5yrsno datano data
Tatsuya Watanabe
Managing Executive Officer4.08yrsno data0.0037% ¥89.9k
Eiichi Harada
Executive Officer & Deputy GM of Corporate Technology Division5.25yrsno datano data
Sukeyuki Namiki
VP, Assistant to the President2.08yrsno data0.0056% ¥136.4k
Katsuya Yamamoto
VP, Senior Executive Officerno datano data0.0049% ¥119.0k
Kazutoshi Honkawa
Managing Executive Officer2.5yrsno datano data
Yuji Horiuchi
Managing Executive Officerno datano datano data

2.9yrs

Average Tenure

63yo

Average Age

Experienced Management: KWHI.F's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yasuhiko Hashimoto
President0.083yrno data0.0048% ¥116.1k
Sukeyuki Namiki
VP, Assistant to the President2.08yrsno data0.0056% ¥136.4k
Katsuya Yamamoto
VP, Senior Executive Officerno datano data0.0049% ¥119.0k
Hiroshi Nakatani
Managing Executive Officer0.083yrno data0.0018% ¥43.6k
Yoshinori Kanehana
Chairman of the Board0.083yrno data0.014% ¥329.3k
Michio Yoneda
Independent Outside Director4.08yrsno data0.00030% ¥7.3k
Satoru Kohdera
Outside Director0.083yrno data0.00072% ¥17.4k
Akio Nekoshima
Director0.083yrno data0.0031% ¥73.9k
Katsuyoshi Fukuma
Director0.083yrno data0.00066% ¥16.0k
Atsuko Ishii
Outside Director0.083yrno data0.00018% ¥4.4k

0.08yrs

Average Tenure

63yo

Average Age

Experienced Board: KWHI.F's board of directors are not considered experienced ( 0.1 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

Kawasaki Heavy Industries, Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kawasaki Heavy Industries, Ltd.
  • Ticker: KWHI.F
  • Exchange: OTCPK
  • Founded: 1878
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: JP¥260.421b
  • Listing Market Cap: JP¥2.423b
  • Shares outstanding: 167.04m
  • Website: https://global.kawasaki.com

Number of Employees


Location

  • Kawasaki Heavy Industries, Ltd.
  • 14-5, Kaigan 1-chome
  • Minato-ku
  • Tokyo
  • 105-8315
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KWHI.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
KHEDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
7012TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
KWHI.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDFeb 1998

Biography

Kawasaki Heavy Industries, Ltd. engages in ship and offshore structure, rolling stock, aerospace systems, energy system and plant engineering, motorcycle and engine, and precision machinery and robot businesses worldwide. It is involved in the development, construction, and maintenance of ships, such as submarines and LNG/LPG carriers. The company also manufactures railway cars; provides rolling stock, including electric cars, passenger coaches, freight cars, locomotives, diesel locomotives, and transit systems; develops and manufactures various aircraft for the Japan Ministry of Defense; and manufactures helicopters and payload fairings for rockets, as well as helicopter and jet engines. In addition, the company provides industrial plants to process cement, chemicals, nonferrous metals, and others, as well as environmental protection facilities, including municipal waste incinerators; and manufactures ultra-low temperature tanks for LNG and LPG, as well as shield machines for tunneling in underground construction projects. Further, it supplies industrial machines, including turbines and engines for marine, oil and gas industry, environmental protection, and power generation; and offers products, such as motorcycles, off-road four wheelers, watercrafts JET SKI, and general-purpose gasoline engines. Additionally, the company manufactures hydraulic machinery used in construction and agricultural machinery, industrial machinery, and ships; pumps, motors, valves, and various hydraulic machineries, as well as its assembled hydraulic systems; and manufactures industrial robots in the automotive and electronics industries, for use in welding, assembly, handling, painting, and palletization. Kawasaki Heavy Industries, Ltd. was founded in 1878 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 Analysis2020/07/09 00:28
End of Day Share Price2020/06/23 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.