Mitsubishi Heavy Industries 7011.T
Mitsubishi Heavy Industries is a Japanese industrial conglomerate that manufactures everything from power plants and marine propulsion systems to industrial machinery and robots, with a growing focus on energy and defense solutions. Mitsubishi Heavy Industries combines solid financial health (net cash, ND/EBITDA -1.20) with exceptional earnings growth of 97.30%, driven by a record 35 GW gas turbine backlog. However, valuation is demanding (P/E 55.71) and revenue growth is flat, requiring flawless backlog execution to justify the multiple.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Mitsubishi Heavy Industries is a Japanese industrial conglomerate that manufactures everything from power plants and marine propulsion systems to industrial machinery and robots, with a growing focus on energy and defense solutions. Mitsubishi Heavy Industries combines solid financial health (net cash, ND/EBITDA -1.20) with exceptional earnings growth of 97.30%, driven by a record 35 GW gas turbine backlog. However, valuation is demanding (P/E 55.71) and revenue growth is flat, requiring flawless backlog execution to justify the multiple.
Score by category
| Category | Score |
|---|---|
| Financial health | 7.6 |
| Quality / Moat | 6.1 |
| Valuation | 4.1 |
| Growth | 7.1 |
| Dividend | 5.4 |
| Momentum | 5.0 |
| Risk & Context | 8.4 |
OVERALL SCORE: 6.2/10
Context and risks
Japan presents moderate governance risk. Additionally, exposure to defense and projects in the Middle East (Al Maktoum) adds geopolitical sensitivity, though it is not a dominant risk.
News considered in the analysis
- Gas Turbine Prices Are on Track to Nearly Triple. These Stocks Are Cashing In. — El fuerte repunte de los precios de las turbinas de gas y la demanda impulsada por el ciclo de IA y la electrificación benefician directamente a MHI, cuyo backlog de turbinas de gran formato alcanza 35 GW.
- Mitsubishi’s large-frame gas turbine backlog reaches 35 GW — Un backlog récord de 35 GW proporciona visibilidad de ingresos y márgenes a medio plazo, un hecho material ya ocurrido y parcialmente reflejado en el precio.
- L&T and MHI to build 50km people mover system at Al Maktoum Airport — Contrato relevante de infraestructura de transporte que refuerza la cartera de pedidos, aunque es de menor magnitud relativa para el conglomerado.
- European Indexes Higher as Oil Falls Back — Ruido de mercado sin información específica sobre MHI.
- European Indexes Edge Lower as Inflation Concerns Loom — Ruido de mercado sin información específica sobre MHI.
Verdict: Hold; backlog visibility and earnings growth are attractive, but the P/E of 55.71 already discounts much of the good news.
Main risk: The demanding valuation (P/E 55.71) leaves little room for error: any delay in executing the 35 GW backlog or a cooling of gas turbine demand could trigger a significant correction.
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