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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Asahi-Seiki Manufacturing Co., Ltd.

Mitsubishi Heavy Industries, Ltd.

Miroku Corp.

Hosoya Pyro-Engineering Co., Ltd.

ACSL Ltd.

ispace, Inc.

JAMCO Corp.

Why is Mitsubishi Heavy Industries, Ltd. ?

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)

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)

Flat results in Jun 25

INTEREST(Q) At JPY 13,254 MM has Grown at 102.35%

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 79.48%, its profits have risen by 7.6%

Market Beating Performance

The stock has generated a return of 79.48% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How 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?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Mitsubishi Heavy Industries, Ltd.

79.48%

199.91

50.16%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality 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)

1.37

Tax Ratio

29.83%

Dividend Payout Ratio

31.49%

Pledged Shares

Institutional Holding

0.04%

ROCE (avg)

6.55%

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

4.79

EV to EBIT

37.30

EV to EBITDA

24.69

EV to Capital Employed

4.16

EV to Sales

2.33

PEG Ratio

Dividend Yield

ROCE (Latest)

11.14%

ROE (Latest)

11.16%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

No Trend

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 687,948 MM

RAW MATERIAL COST(Y)

Fallen by -3.2% (YoY

CASH AND EQV(HY)

Highest at JPY 1,329,692 MM

DEBT-EQUITY RATIO (HY)

Lowest at 19.97 %

DEBTORS TURNOVER RATIO(HY)

Highest at 3.05%

OPERATING PROFIT(Q)

Highest at JPY 129,219 MM

OPERATING PROFIT MARGIN(Q)

Highest at 10.83 %

-6What is not working for the Company

INTEREST(Q)

At JPY 13,254 MM has Grown at 102.35%

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

Operating Cash Flow

Highest at JPY 687,948 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

Highest at JPY 129,219 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 10.83 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at JPY 1,329,692 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 19.97 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 3.05%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -3.2% (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 13,254 MM has Grown at 102.35%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)