Kawasaki Heavy Industries, Ltd.
Kawasaki Heavy Industries, Ltd. Fundamental Analysis
Kawasaki Heavy Industries, Ltd. (KWHIY) shows moderate financial fundamentals with a PE ratio of 27.43, profit margin of 4.81%, and ROE of 14.73%. The company generates $2302.4B in annual revenue with moderate year-over-year growth of 7.17%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.2/100 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 KWHIY's fundamental strength across five key dimensions:
Efficiency Score
WeakKWHIY struggles to generate sufficient returns from assets.
Valuation Score
ModerateKWHIY shows balanced valuation metrics.
Growth Score
ModerateKWHIY shows steady but slowing expansion.
Financial Health Score
ModerateKWHIY shows balanced financial health with some risks.
Profitability Score
WeakKWHIY struggles to sustain strong margins.
Key Financial Metrics
Is KWHIY Expensive or Cheap?
P/E Ratio
KWHIY trades at 27.43 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, KWHIY's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Kawasaki Heavy Industries, Ltd. at 3.76 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 8.95 times EBITDA. This is generally considered low.
How Well Does KWHIY Make Money?
Net Profit Margin
For every $100 in sales, Kawasaki Heavy Industries, Ltd. keeps $4.81 as profit after all expenses.
Operating Margin
Core operations generate 8.38 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.73 in profit for every $100 of shareholder equity.
ROA
Kawasaki Heavy Industries, Ltd. generates $3.37 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Kawasaki Heavy Industries, Ltd. generates limited operating cash flow of $143.04B, signaling weaker underlying cash strength.
Free Cash Flow
Kawasaki Heavy Industries, Ltd. generates weak or negative free cash flow of $24.16B, restricting financial flexibility.
FCF Per Share
Each share generates $57.81 in free cash annually.
FCF Yield
KWHIY converts 0.80% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
27.43
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.76
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.32
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.29
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.12
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How KWHIY Stacks Against Its Sector Peers
| Metric | KWHIY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 27.43 | 26.76 | Neutral |
| ROE | 14.73% | 1300.00% | Weak |
| Net Margin | 4.81% | -29570.00% (disorted) | Weak |
| Debt/Equity | 1.29 | 0.79 | Weak (High Leverage) |
| Current Ratio | 1.12 | 10.68 | Neutral |
| ROA | 3.37% | -1545134.00% (disorted) | Weak |
KWHIY outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Kawasaki 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
15.65%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-7.81%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-71.23%
Industry Style: Cyclical, Value, Infrastructure
Declining