Mitsubishi Heavy Industries, Ltd. (7011) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Mitsubishi Heavy Industries, Ltd.

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Why is Mitsubishi Heavy Industries, Ltd. ?

With a growth in Net Profit of 87.76%, the company declared Very Positive results in Jun 26

The company has declared positive results for the last 2 consecutive quarters
OPERATING CASH FLOW(Y) Highest at JPY 1,137,556 MM
ROCE(HY) Highest at 14.58%
RAW MATERIAL COST(Y) Fallen by -6.91% (YoY)

With ROCE of 11.86%, it has a attractive valuation with a 4.48 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 3.91%, its profits have risen by 12.1% ; the PEG ratio of the company is 3.5

Majority shareholders : Non Institution

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Mitsubishi 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 Mitsubishi Heavy Industries, Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Mitsubishi Heavy Industries, Ltd.

3.41%

232.15

43.13%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.88%

EBIT Growth (5y)

45.53%

EBIT to Interest (avg)

9.23

Debt to EBITDA (avg)

1.39

Net Debt to Equity (avg)

0.17

Sales to Capital Employed (avg)

1.33

Tax Ratio

25.39%

Dividend Payout Ratio

25.29%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

9.51%

ROE (avg)

8.49%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.84

EV to EBIT

37.76

EV to EBITDA

24.75

EV to Capital Employed

4.48

EV to Sales

2.73

PEG Ratio

3.46

Dividend Yield

ROCE (Latest)

11.86%

ROE (Latest)

11.54%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

18What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 1,137,556 MM

ROCE(HY)

Highest at 14.58%

RAW MATERIAL COST(Y)

Fallen by -6.91% (YoY

CASH AND EQV(HY)

Highest at JPY 3,018,958 MM

DEBT-EQUITY RATIO (HY)

Lowest at -26.18 %

PRE-TAX PROFIT(Q)

Highest at JPY 167,336 MM

NET PROFIT(Q)

Highest at JPY 128,101 MM

EPS(Q)

Highest at JPY 40.07

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Mitsubishi Heavy Industries, Ltd.

Operating Cash Flow

Highest at JPY 1,137,556 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Pre-Tax Profit

Highest at JPY 167,336 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 167,336 MM has Grown at 82.81%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 128,101 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

At JPY 128,101 MM has Grown at 87.76%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 40.07

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 3,018,958 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -26.18 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -6.91% (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