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Kawasaki Heavy Industries Ltd. (JP:7012)
:7012
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Kawasaki Heavy Industries
(OTC:7012)
69Neutral
Kawasaki Heavy Industries (7012) vs. S&P 500 (SPY)
Market Cap
$1.30T
Dividend Yield1.66%
Average Volume (3M)18.62M
Price to Earnings (P/E)15.7
Beta (1Y)1.85
Revenue Growth15.31%
EPS GrowthN/A
CountryJP
Employees39,689
SectorIndustrials
Sector Strength66
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)495.62
Shares Outstanding167,921,800
10 Day Avg. Volume22,914,709
30 Day Avg. Volume18,621,416
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
Price to Cash Flow (P/CF)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$10,683.49Price Target Upside34.05% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Kawasaki Heavy Industries Business Overview & Revenue Model
Company DescriptionKawasaki Heavy Industries, Ltd. (7012) is a diversified multinational corporation headquartered in Japan. The company operates across several key sectors, including aerospace, shipbuilding, rolling stock, energy systems, and industrial equipment. Kawasaki is renowned for its production of motorcycles and engines, as well as its involvement in the development of advanced technology solutions for robotics and infrastructure development. With a commitment to innovation and sustainability, Kawasaki serves a global clientele, providing a wide range of products and services designed to enhance mobility and industrial efficiency.
How the Company Makes MoneyKawasaki Heavy Industries generates revenue through a diversified business model that includes key revenue streams from its various sectors. In the aerospace division, the company earns by manufacturing aircraft components and systems for commercial and defense aviation. The shipbuilding sector contributes through the design and construction of vessels such as submarines, bulk carriers, and LNG carriers. Its rolling stock business provides income from the production of high-speed trains and commuter rail systems. The energy systems and industrial equipment division generates revenue by delivering power generation systems, gas turbines, and other industrial machinery. Additionally, Kawasaki's motorcycle and engine segment is a significant contributor, with sales from its popular range of motorcycles, personal watercraft, and general-purpose engines. The company also benefits from strategic partnerships and collaborations, enhancing its technological capabilities and market reach.
Kawasaki Heavy Industries Financial Statement Overview
Summary
Income Statement
Balance Sheet
Cash Flow
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.03T | 1.85T | 1.73T | 1.50T | 1.49T | 1.64T | Gross Profit |
| 415.33B | 312.24B | 333.82B | 256.58B | 191.16B | 270.53B | EBIT |
| 41.62B | 36.19B | 82.36B | 45.80B | -5.30B | 62.06B | EBITDA |
| 193.16B | 130.22B | 157.46B | 124.33B | 50.36B | 123.35B | Net Income Common Stockholders |
| 83.02B | 25.38B | 53.03B | 21.80B | -19.33B | 18.66B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 145.31B | 84.15B | 149.16B | 114.47B | 126.70B | 106.11B | Total Assets |
| 3.05T | 2.68T | 2.46T | 2.02T | 1.96T | 1.96T | Total Debt |
| 1.09T | 845.23B | 785.26B | 501.48B | 571.35B | 537.46B | Net Debt |
| 960.94B | 761.08B | 646.84B | 387.01B | 444.65B | 431.35B | Total Liabilities |
| 2.36T | 2.03T | 1.86T | 1.52T | 1.48T | 1.49T | Stockholders Equity |
| 667.78B | 634.09B | 576.20B | 479.18B | 465.33B | 455.63B |
| Cash Flow | Free Cash Flow | ||||
| -32.06B | -64.88B | -46.33B | 82.03B | -17.09B | -87.41B | Operating Cash Flow |
| 51.39B | 31.66B | 23.62B | 144.43B | 34.60B | -15.46B | Investing Cash Flow |
| -88.62B | -89.81B | -77.46B | -52.54B | -37.39B | -69.40B | Financing Cash Flow |
| 70.33B | 12.91B | 85.31B | -102.34B | 23.09B | 115.80B |
Kawasaki Heavy Industries Technical Analysis
Negative
7970.00
Price Trends
8172.50
Negative
7378.05
Positive
6472.49
Positive
Market Momentum
-177.52
Negative
47.29
Neutral
77.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7012, the sentiment is Negative. The current price of 7970 is below the 20-day moving average (MA) of 7988.01, below the 50-day MA of 8172.50, and above the 200-day MA of 6472.49, indicating a neutral trend. The MACD of -177.52 indicates Negative momentum. The RSI at 47.29 is Neutral, neither overbought nor oversold. The STOCH value of 77.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7012.
Kawasaki Heavy Industries Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ¥3.58T | 9.08 | 4.30% | 5.86% | 1.40% | ||
74 Outperform | ¥8.50T | 33.19 | 11.89% | 0.80% | 9.25% | 26.69% | |
69 Neutral | $1.30T | 15.66 | 13.26% | 1.66% | 15.31% | ― | |
67 Neutral | ¥144.60B | 7.84 | 2.73% | 11.87% | -3.06% | ||
63 Neutral | $4.14B | 11.23 | 5.47% | 215.40% | 4.10% | -8.63% | |
52 Neutral | ¥269.24B | 36.97 | 5.83% | -3.42% | -35.09% |
* Industrials Sector Average
Performance Comparison
JP:7012
Kawasaki Heavy Industries
7,760.00
3,030.10
64.06%
JP:6301
Komatsu Ltd.
3,970.00
-382.58
-8.79%
JP:6471
NSK Ltd.
583.30
-254.45
-30.37%
JP:7004
Hitachi Zosen Corporation
876.00
-349.15
-28.50%
JP:7011
Mitsubishi Heavy Industries
2,643.00
1,297.71
96.46%
Kawasaki Heavy Industries Earnings Call Summary
Earnings Call Date: Feb 7, 2025 | % Change Since: 14.30% | Next Earnings Date: May 9, 2025
Earnings Call Sentiment Negative
The earnings call presents a mixed picture with improvements in specific segments such as Aerospace and Energy Solutions, and achievements in the hydrogen business. However, significant losses, challenges in Powersports & Engine, and foreign exchange losses contribute to a negative financial outlook.Highlights
Improved Full-Year Profit Forecast
Business profit is expected to reach JPY 43 billion, an increase of JPY 3 billion from the previous forecast due to improved profitability in Aerospace Systems, Energy Solutions & Marine Engineering, and a weaker yen.
Energy Solution & Marine Engineering Growth
This segment reported an increase of JPY 7.3 billion year-on-year due to significant contributions from the ship and offshore structure and Energy Marine machinery businesses.
Operating Cash Flow Improvement
Operating cash flow improved by JPY 15.1 billion from the same period last year mainly due to progress in collection of receivables in Powersports & Engine.
Hydrogen Business Achievements
The company participated in the Dakar rally with hydrogen-fueled engine vehicles, finishing in fourth place in the Mission 1000 category, and won the prestigious Masuda Award for a 100% hydrogen-fueled dry combustion gas turbine.
Lowlights
Significant Losses and Decrease in Business Profit
Loss before income taxes was JPY 17.9 billion, and loss attributable to owners of the parent company was JPY 13.4 billion. Business profit decreased by JPY 80.1 billion to JPY 0.7 billion compared to the same period last year.
Powersports & Engine and Precision Machinery Challenges
Significant year-on-year decrease in profit in Powersports & Engine due to increased sales promotion expenses and recall expenses in the U.S., and in Precision Machinery & Robot due to stagnant inventory and decreased demand in China.
Foreign Exchange Losses
Foreign exchange losses of JPY 10.8 billion were recorded in the third quarter due to the valuation of hedges of foreign exchange contracts.
Free Cash Flow Deterioration
Free cash flow worsened by JPY 12.6 billion year-on-year due to increased expenditures for the acquisition of fixed assets and a JPY 27.8 billion outflow increase in overall cash flow from investing activities.
Company Guidance
During the earnings call for the third quarter of fiscal year 2023, the company reported a 9-month cumulative business profit of JPY 700 million, marking a significant improvement from the previous quarter's losses due to operational issues with the PW1100G-JM engine. For the full year, the business profit forecast was raised to JPY 43 billion, up by JPY 3 billion from the previous forecast, driven by improved profitability in Aerospace Systems, Energy Solutions & Marine Engineering, and a weaker yen. Despite these gains, income before taxes and net income were unchanged from previous forecasts due to expected losses on valuation of hedges by forward exchange contracts, resulting in a loss before income taxes of JPY 17.9 billion and a net loss attributable to owners of the parent of JPY 13.4 billion. Orders for the third quarter reached JPY 1,290.1 billion, with revenue at JPY 1,229 billion. The company also experienced a JPY 21.2 billion improvement from yen depreciation, offset by a JPY 25.6 billion decrease due to sales composition changes and increased recall-related expenses. Additionally, operating cash flow improved by JPY 15.1 billion, while free cash flow worsened by JPY 12.6 billion year-on-year. The company maintained its dividend forecast, emphasizing efforts to enhance asset efficiency and achieve its fiscal targets.Kawasaki Heavy Industries Corporate Events
Kawasaki Heavy Industries Pays ¥1 Billion Following Tax Investigation
Apr 10, 2025
Kawasaki Heavy Industries has completed a tax investigation by the Osaka Regional Taxation Bureau, resulting in an amended tax return and an additional payment of approximately ¥1 billion. The investigation revealed unreported income related to inappropriate expenses in the submarine repairs business and an error under Japan’s controlled foreign corporation rules affecting a North American joint-stock venture. The company is committed to improving its tax accounting practices.
Kawasaki Heavy Introduces New Incentive Plan to Boost Corporate Value
Feb 7, 2025
Kawasaki Heavy Industries has announced the introduction of a managerial-level employee incentive plan called the RS Trust, aimed at enhancing corporate value in line with its Group Vision 2030. This plan involves granting company shares to managerial employees, fostering ownership awareness, and incentivizing long-term commitment to corporate value enhancement. The plan includes fixed and performance-based points, with a focus on ESG efforts and share price improvement, and restricts share transfer until resignation or retirement to maintain continuous engagement.
Kawasaki Heavy Industries Updates Stock Compensation Plan
Feb 7, 2025
Kawasaki Heavy Industries has announced an update to its performance-based stock compensation plan, approved by the Board of Directors. The plan involves entrusting additional funds to a trust for acquiring company shares, aimed at incentivizing executives. This move reflects the company’s commitment to aligning leadership incentives with shareholder interests, potentially impacting its market positioning and stakeholder relationships positively.
Kawasaki Heavy Industries Reports Strong Financial Recovery
Feb 7, 2025
Kawasaki Heavy Industries reported improved financial results for the nine months ending December 31, 2024, with a significant increase in revenue and profit compared to the previous year. This performance suggests a strong recovery and potential growth in profitability, reflecting positively on its market position and stakeholder interests.
Kawasaki Heavy Industries Reports Q3 Foreign Exchange Gain Amid Ongoing Losses
Feb 7, 2025
Kawasaki Heavy Industries reported a foreign exchange gain of ¥13,633 million for the third quarter of the fiscal year ending March 31, 2025, due to currency fluctuations. Despite this gain, the company experienced a total foreign exchange loss of ¥2,114 million for the first nine months of the fiscal year, indicating ongoing financial challenges related to exchange rate volatility.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.