ScoreWhy is Kawasaki Heavy Industries Ltd. ?
1
Poor Management Efficiency with a low ROCE of 4.54%
- The company has been able to generate a Return on Capital Employed (avg) of 4.54% signifying low profitability per unit of total capital (equity and debt)
2
The company is Net-Debt Free
- Poor long term growth as Net Sales has grown by an annual rate of 8.22% over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 5.79% signifying low profitability per unit of shareholders funds
3
Positive results in Mar 26
- RAW MATERIAL COST(Y) Fallen by -8.08% (YoY)
- NET PROFIT(9M) Higher at JPY 103,913 MM
- DEBT-EQUITY RATIO (HY) Lowest at 84.93 %
4
With ROCE of 7.13%, it has a fair valuation with a 2.17 Enterprise value to Capital Employed
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 56.97%, its profits have risen by 33.7% ; the PEG ratio of the company is 0.7
- At the current price, the company has a high dividend yield of 0
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Kawasaki Heavy Industries Ltd. should be less than 10%
- Overall Portfolio exposure to Aerospace & Defense should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Aerospace & Defense)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Kawasaki Heavy Industries Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Kawasaki Heavy Industries Ltd.
56.97%
148.95
97.14%
Japan Nikkei 225
88.41%
3.25
27.24%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
8.22%
EBIT Growth (5y)
35.40%
EBIT to Interest (avg)
4.54
Debt to EBITDA (avg)
5.11
Net Debt to Equity (avg)
1.01
Sales to Capital Employed (avg)
1.26
Tax Ratio
20.38%
Dividend Payout Ratio
28.55%
Pledged Shares
0
Institutional Holding
0.00%
ROCE (avg)
4.54%
ROE (avg)
5.79%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
25
Industry P/E
Price to Book Value
3.52
EV to EBIT
30.37
EV to EBITDA
16.48
EV to Capital Employed
2.17
EV to Sales
1.66
PEG Ratio
0.74
Dividend Yield
NA
ROCE (Latest)
7.13%
ROE (Latest)
14.14%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -8.08% (YoY
NET PROFIT(9M)
Higher at JPY 103,913 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 84.93 %
INVENTORY TURNOVER RATIO(HY)
Highest at 2.32 times
DIVIDEND PER SHARE(HY)
Highest at JPY 2.29
NET SALES(Q)
Highest at JPY 749,864 MM
OPERATING PROFIT(Q)
Highest at JPY 85,669 MM
PRE-TAX PROFIT(Q)
Highest at JPY 49,749 MM
-3What is not working for the Company
INTEREST(Q)
At JPY 6,857 MM has Grown at 28.65%
DEBTORS TURNOVER RATIO(HY)
Lowest at 2.29 times
Here's what is working for Kawasaki Heavy Industries Ltd.
Net Sales
Highest at JPY 749,864 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 85,669 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Pre-Tax Profit
Highest at JPY 49,749 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Debt-Equity Ratio
Lowest at 84.93 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 2.32 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Dividend per share
Highest at JPY 2.29
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (JPY)
Net Profit
Higher at JPY 103,913 MM
than preceding 12 month period ended Mar 2026MOJO Watch
In the nine month period the company has already crossed sales of the previous twelve months
Net Profit (JPY MM)
Raw Material Cost
Fallen by -8.08% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Kawasaki Heavy Industries Ltd.
Interest
At JPY 6,857 MM has Grown at 28.65%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Debtors Turnover Ratio
Lowest at 2.29 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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