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Mitsubishi Heavy Industries, Ltd.

  • Market Cap: Large Cap
  • Industry: Aerospace & Defense
  • ISIN: JP3900000005
JPY
3,567.00
-51 (-1.41%)

Jun 26

TKS

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
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  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
ShinMaywa Industries, Ltd.
Nippon Avionics Co., Ltd.
Mitsubishi Heavy Industries, Ltd.
Kawasaki Heavy Industries Ltd.
ACSL Ltd.
Tokyo Keiki, Inc.
Asahi-Seiki Manufacturing Co., Ltd.
Hosoya Pyro-Engineering Co., Ltd.
Miroku Corp.
ispace, Inc.
JAMCO Corp.

Why is Mitsubishi Heavy Industries, Ltd. ?

1
Poor Management Efficiency with a low ROCE of 6.55%
  • The company has been able to generate a Return on Capital Employed (avg) of 6.55% 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 4.88% and Operating profit at 45.53% over the last 5 years
  • The company is Net-Debt Free
  • The company has been able to generate a Return on Capital Employed (avg) of 6.55% signifying low profitability per unit of total capital (equity and debt)
3
With a growth in Net Profit of 69.29%, the company declared Very Positive results in Mar 26
  • OPERATING CASH FLOW(Y) Highest at JPY 942,619 MM
  • ROCE(HY) Highest at 12.68%
  • OPERATING PROFIT MARGIN(Q) Highest at 15.31 %
4
With ROCE of 11.86%, it has a expensive valuation with a 5.85 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 0.54%, its profits have risen by 12.1% ; the PEG ratio of the company is 4.5
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Mitsubishi Heavy Industries, Ltd. should be less than 10%
  2. 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.
0.54%
207.87
42.43%
Japan Nikkei 225
85.83%
3.09
27.80%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
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)
5.29
Debt to EBITDA (avg)
1.86
Net Debt to Equity (avg)
0.17
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%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
55
Industry P/E
Price to Book Value
6.36
EV to EBIT
49.30
EV to EBITDA
32.32
EV to Capital Employed
5.84
EV to Sales
3.57
PEG Ratio
4.54
Dividend Yield
NA
ROCE (Latest)
11.86%
ROE (Latest)
11.54%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Mildly Bearish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

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

19What is working for the Company
OPERATING CASH FLOW(Y)

Highest at JPY 942,619 MM

ROCE(HY)

Highest at 12.68%

OPERATING PROFIT MARGIN(Q)

Highest at 15.31 %

RAW MATERIAL COST(Y)

Fallen by -18.74% (YoY

CASH AND EQV(HY)

Highest at JPY 2,021,618 MM

DEBT-EQUITY RATIO (HY)

Lowest at -14.85 %

DIVIDEND PER SHARE(HY)

Highest at JPY 2.55

NET SALES(Q)

Highest at JPY 1,647,192 MM

OPERATING PROFIT(Q)

Highest at JPY 252,227 MM

PRE-TAX PROFIT(Q)

At JPY 148,556 MM has Grown at 61.32%

NET PROFIT(Q)

Highest at JPY 121,807 MM

EPS(Q)

Highest at JPY 36.05

-7What is not working for the Company
INTEREST(Q)

At JPY 4,666 MM has Grown at 28.01%

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.55 times

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

Operating Cash Flow
Highest at JPY 942,619 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)

Operating Profit Margin
Highest at 15.31 % and Grown
In each period in the last five periods
MOJO Watch
Company's profit margin has improved

Operating Profit to Sales

Net Sales
Highest at JPY 1,647,192 MM
in the last five periods
MOJO Watch
Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit
Highest at JPY 252,227 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit
At JPY 148,556 MM has Grown at 61.32%
Year on Year (YoY)
MOJO Watch
Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit
Highest at JPY 121,807 MM
in the last five periods
MOJO Watch
Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS
Highest at JPY 36.05
in the last five periods
MOJO Watch
Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv
Highest at JPY 2,021,618 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio
Lowest at -14.85 %
in the last five Semi-Annual periods
MOJO Watch
The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share
Highest at JPY 2.55
in the last five years
MOJO Watch
Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost
Fallen by -18.74% (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

Depreciation
Highest at JPY 70,980 MM
in the last five periods
MOJO Watch
The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Depreciation
At JPY 70,980 MM has Grown at 51.56%
period on period (QoQ)
MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

Here's what is not working for Mitsubishi Heavy Industries, Ltd.

Interest
At JPY 4,666 MM has Grown at 28.01%
period on period (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio
Lowest at 2.55 times
in the last five Semi-Annual periods
MOJO Watch
Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

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