Mitsubishi Heavy Industries (7011) AI Stock Analysis

• Market Cap: $13.04T
• Dividend Yield: 0.6%
• Average Volume (3M): 22.44M
• Price to Earnings (P/E): 51.8
• Beta (1Y): 1.73
• Revenue Growth: 6.78%
• EPS Growth: 8.83%
• Country: JP
• Employees: 77,697
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 20.32
• Shares Outstanding: 3,373,647,700
• 10 Day Avg. Volume: 17,697,509
• 30 Day Avg. Volume: 22,444,950
• PEG Ratio: 3.28
• Price to Book (P/B): 3.62
• Price to Sales (P/S): 1.69
• P/FCF Ratio: 29.29
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 2.49
• Enterprise Value/Gross Profit: 12.04
• Enterprise Value/Ebitda: 22.08
• 1Y Price Target: $4,056.32
• Price Target Upside: 5.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 60 Neutral
• Price Target: ¥3,716.00 ▼(-3.71% Downside)

Mitsubishi Heavy Industries' strong financial performance is the most significant factor, showcasing robust growth and efficient operations. However, technical analysis indicates bearish momentum, and the valuation suggests the stock is overvalued, which tempers the overall score.

Positive Factors

Negative Factors

Mitsubishi Heavy Industries Business Overview & Revenue Model

Company Description

Mitsubishi Heavy Industries, Ltd. manufactures and sells heavy machinery worldwide. The company operates through Energy Systems; Plants & Infrastructure Systems; Logistics, Thermal & Drive Systems; and Aircraft, Defense & Space segments. It offers thermal, renewable energy, nuclear, engine, nuclear power generation, and chemical power plants, lithium-ion battery products, and oil and gas production plants, as well as fuel cells; civil aircrafts and engines, aviation equipment, and maintenance, repair, and overhaul of aircrafts; and launch vehicles and services, rocket engines, reaction control systems, space stations, rocket launchers, rocket engine combustion test facilities, and electronic parts. The company also provides passenger and commercial ships, LNG and LPG carriers, special purpose vessels, and IT services and systems; marine machineries, boilers, turbines, engines, and structures; and intelligent transport systems products and solutions, such as electronic toll collection system, road user charging system, highway traffic management system, EV management system, and development system. In addition, it offers organic solvent exhaust gas treatment system, waste-to-energy system, sludge treatment system, air quality control system, and bio-treatment system; turbochargers, car air-conditioning and refrigeration systems, rubber and tire machinery, and testing equipment; forklift trucks; and printing, paper converting, and metals, and food & packaging machinery, pumps, compressors & mechanical turbines, hydraulic components. Further, the company provides gas holders, vibration control systems, water pipes, tunnel excavation machinery, and cybersecurity solutions for industrial control systems; special vehicles, naval ship & maritime systems, defense aircrafts, helicopters, defense aeroengines, and guided weapon systems; and CO2 capture plants, as well as provides after-sales services. The company was founded in 1884 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Mitsubishi Heavy Industries generates revenue through its diversified business portfolio, which spans multiple sectors. The company's primary revenue streams include the sale of machinery and equipment for power generation, including turbines and engines, which are used in both traditional and renewable energy sectors. MHI also earns significant income from its aerospace and defense division, which provides products such as aircraft, space systems, and defense equipment. Additionally, the company engages in the design and manufacture of shipbuilding and ocean development projects. MHI's transportation systems, which include rail and automotive components, further contribute to its earnings. The company also benefits from long-term service agreements and maintenance contracts across its sectors, ensuring a steady flow of revenue. Strategic partnerships and joint ventures, particularly in the energy and transportation sectors, play a crucial role in expanding MHI's market reach and enhancing its technological capabilities.

Mitsubishi Heavy Industries Financial Statement Overview

Summary

Mitsubishi Heavy Industries demonstrates strong financial performance with robust revenue and profit growth, efficient operations, and effective cash management. The company maintains a solid financial position with manageable debt levels and strong cash flow generation.

Income Statement

Mitsubishi Heavy Industries shows strong revenue growth with a TTM increase of 1.63% and consistent improvement in gross and net profit margins over the years. The EBIT and EBITDA margins are healthy, indicating efficient operations. The company's ability to maintain steady growth in a competitive industry is commendable.

Balance Sheet

The balance sheet reflects a solid financial position with a manageable debt-to-equity ratio of 0.48 in the TTM period, showing improvement from previous years. Return on equity is robust at 10.79%, suggesting effective use of shareholder capital. The equity ratio indicates a stable asset base, though there is room for reducing leverage further.

Cash Flow

Cash flow analysis reveals significant improvement in free cash flow growth at 70.46% TTM, showcasing strong cash generation capabilities. The operating cash flow to net income ratio is healthy, supporting operational sustainability. The free cash flow to net income ratio of 0.72 indicates efficient conversion of profits into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.11T	5.03T	4.66T	4.20T	3.86T	3.70T
Gross Profit	1.06T	1.00T	906.33B	740.40B	633.61B	549.60B
EBITDA	576.33B	557.52B	482.05B	351.72B	307.43B	284.02B
Net Income	251.39B	245.45B	222.02B	130.45B	113.54B	40.64B
Balance Sheet
Total Assets	6.75T	6.66T	6.26T	5.47T	5.12T	4.81T
Cash, Cash Equivalents and Short-Term Investments	671.88B	657.82B	431.29B	347.66B	314.26B	245.42B
Total Debt	1.15T	1.13T	1.14T	1.19T	1.08T	1.24T
Total Liabilities	4.25T	4.19T	3.90T	3.64T	3.45T	3.37T
Stockholders Equity	2.38T	2.35T	2.24T	1.74T	1.58T	1.37T
Cash Flow
Free Cash Flow	493.93B	289.77B	170.70B	-51.02B	156.31B	-241.16B
Operating Cash Flow	687.95B	530.46B	331.19B	80.89B	285.56B	-94.95B
Investing Cash Flow	-156.41B	-189.52B	-131.05B	-45.58B	16.31B	-182.25B
Financing Cash Flow	-411.36B	-112.32B	-158.90B	-18.90B	-255.77B	221.74B

Mitsubishi Heavy Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3859.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7011, the sentiment is Positive. The current price of 3859 is above the 20-day moving average (MA) of 3731.60, above the 50-day MA of 3699.54, and above the 200-day MA of 2912.43, indicating a bullish trend. The MACD of 27.02 indicates Negative momentum. The RSI at 58.09 is Neutral, neither overbought nor oversold. The STOCH value of 82.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7011.

Mitsubishi Heavy Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6954	76 Outperform	3.97T	25.99	8.56%	2.20%	1.24%	20.57%
7013	67 Neutral	2.68T	23.11	23.40%	0.68%	17.79%	―
7012	66 Neutral	1.64T	21.38	10.45%	1.44%	15.11%	142.87%
6594	64 Neutral	3.12T	19.26	9.75%	1.50%	6.82%	34.60%
7011	60 Neutral	$13.04T	51.82	10.85%	0.60%	6.78%	8.83%
6302	57 Neutral	425.21B	-123.57	1.21%	3.59%	-4.25%	-110.18%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Mitsubishi Heavy Industries Corporate Events

Mitsubishi Logisnext Revises Earnings Forecast for FY2026

Mitsubishi Heavy Industries announced a revision of the consolidated earnings forecast for its subsidiary, Mitsubishi Logisnext Co., Ltd., for the fiscal year ending March 31, 2026. The revised forecast shows a decrease in expected net sales and profits, but it is not anticipated to significantly impact the parent company’s overall financial results.

Mitsubishi Heavy Industries Reports Mixed Q1 FY2025 Results

Mitsubishi Heavy Industries reported a mixed financial performance for the first quarter of FY2025, with a 7.4% increase in revenue and a 24.7% rise in profit from business activities compared to the same period last year. However, the order intake decreased by 4.3%, and profit before income taxes fell by 6.3%. The company’s financial position remains stable, with a slight increase in total assets and equity, and it maintained its dividend forecast for the fiscal year. These results indicate a strong operational performance despite challenges in order intake, reflecting the company’s resilience and strategic focus on profitability.