ScoreWhy is Mitsubishi Heavy Industries, Ltd. ?
1
Poor Management Efficiency with a low ROCE of 6.49%
- The company has been able to generate a Return on Capital Employed (avg) of 6.49% signifying low profitability per unit of total capital (equity and debt)
2
High Debt Company with a Debt to Equity ratio (avg) at times
- Poor long term growth as Net Sales has grown by an annual rate of 4.46% and Operating profit at 20.03% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
- The company has been able to generate a Return on Capital Employed (avg) of 6.49% signifying low profitability per unit of total capital (equity and debt)
3
Positive results in Dec 25
- OPERATING CASH FLOW(Y) Highest at JPY 802,991 MM
- RAW MATERIAL COST(Y) Fallen by -11.63% (YoY)
- CASH AND EQV(HY) Highest at JPY 1,402,840 MM
4
With ROCE of 11.14%, it has a attractive valuation with a 4.16 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 57.57%, its profits have risen by 7.6%
Real-Time Research ReportHow much should you hold?
- 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.
57.57%
232.53
47.21%
Japan Nikkei 225
38.94%
1.30
28.24%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.46%
EBIT Growth (5y)
20.03%
EBIT to Interest (avg)
5.29
Debt to EBITDA (avg)
1.86
Net Debt to Equity (avg)
0.20
Sales to Capital Employed (avg)
1.36
Tax Ratio
29.83%
Dividend Payout Ratio
31.49%
Pledged Shares
0
Institutional Holding
0.00%
ROCE (avg)
6.55%
ROE (avg)
8.49%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
43
Industry P/E
Price to Book Value
4.79
EV to EBIT
37.30
EV to EBITDA
24.69
EV to Capital Employed
4.16
EV to Sales
2.33
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
11.14%
ROE (Latest)
11.16%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend11What is working for the Company
OPERATING CASH FLOW(Y)
Highest at JPY 802,991 MM
RAW MATERIAL COST(Y)
Fallen by -11.63% (YoY
CASH AND EQV(HY)
Highest at JPY 1,402,840 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 10.59 %
OPERATING PROFIT(Q)
Highest at JPY 168,370 MM
OPERATING PROFIT MARGIN(Q)
Highest at 13.88 %
PRE-TAX PROFIT(Q)
Highest at JPY 150,717 MM
NET PROFIT(Q)
Highest at JPY 97,787 MM
EPS(Q)
Highest at JPY 28.59
-6What is not working for the Company
NET SALES(HY)
At JPY 2,133,324 MM has Grown at -12.43%
INTEREST(Q)
At JPY 3,645 MM has Grown at inf%
INVENTORY TURNOVER RATIO(HY)
Lowest at 3.33 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 2.54 times
Here's what is working for Mitsubishi Heavy Industries, Ltd.
Operating Cash Flow
Highest at JPY 802,991 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (JPY MM)
Operating Profit
Highest at JPY 168,370 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 13.88 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at JPY 150,717 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 97,787 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 28.59
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Cash and Eqv
Highest at JPY 1,402,840 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at 10.59 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -11.63% (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 Mitsubishi Heavy Industries, Ltd.
Interest
At JPY 3,645 MM has Grown at inf%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Net Sales
At JPY 2,133,324 MM has Grown at -12.43%
Year on Year (YoY)MOJO Watch
Near term sales trend is negative
Net Sales (JPY MM)
Inventory Turnover Ratio
Lowest at 3.33 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 2.54 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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