Mitsubishi Heavy Industries, Ltd.
Mitsubishi Heavy Industries, Ltd. Fundamental Analysis
Mitsubishi Heavy Industries, Ltd. (7011.T) shows weak financial fundamentals with a PE ratio of 56.07, profit margin of 5.92%, and ROE of 11.53%. The company generates $4806.4B in annual revenue with moderate year-over-year growth of 7.95%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 61.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze 7011.T's fundamental strength across five key dimensions:
Efficiency Score
Weak7011.T struggles to generate sufficient returns from assets.
Valuation Score
Weak7011.T trades at a premium to fair value.
Growth Score
Excellent7011.T delivers strong and consistent growth momentum.
Financial Health Score
Excellent7011.T maintains a strong and stable balance sheet.
Profitability Score
Weak7011.T struggles to sustain strong margins.
Key Financial Metrics
Is 7011.T Expensive or Cheap?
P/E Ratio
7011.T trades at 56.07 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 7011.T's PEG of 4.57 indicates potential overvaluation.
Price to Book
The market values Mitsubishi Heavy Industries, Ltd. at 6.01 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 25.77 times EBITDA. This signals the market has high growth expectations.
How Well Does 7011.T Make Money?
Net Profit Margin
For every $100 in sales, Mitsubishi Heavy Industries, Ltd. keeps $5.92 as profit after all expenses.
Operating Margin
Core operations generate 7.24 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.53 in profit for every $100 of shareholder equity.
ROA
Mitsubishi Heavy Industries, Ltd. generates $3.85 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Mitsubishi Heavy Industries, Ltd. produces operating cash flow of $802.99B, showing steady but balanced cash generation.
Free Cash Flow
Mitsubishi Heavy Industries, Ltd. generates strong free cash flow of $585.23B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $174.17 in free cash annually.
FCF Yield
7011.T converts 3.67% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
56.07
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.57
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.010
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.32
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.36
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.27
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How 7011.T Stacks Against Its Sector Peers
| Metric | 7011.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 56.07 | 25.83 | Worse (Expensive) |
| ROE | 11.53% | 1278.00% | Weak |
| Net Margin | 5.92% | -43774.00% (disorted) | Weak |
| Debt/Equity | 0.36 | 0.80 | Strong (Low Leverage) |
| Current Ratio | 1.27 | 10.63 | Neutral |
| ROA | 3.85% | -1539613.00% (disorted) | Weak |
7011.T outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Mitsubishi Heavy Industries, Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
24.36%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
181.65%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
17.18%
Industry Style: Cyclical, Value, Infrastructure
High Growth