Kawasaki Heavy Industries Ltd
TSE:7012

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Kawasaki Heavy Industries Ltd
TSE:7012
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Price: 3 151 JPY -2.05% Market Closed
Market Cap: ¥2.7T

EV/GP

6.7
Current
99%
More Expensive
vs 3-y average of 3.4

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
6.7
=
Enterprise Value
¥2.9T
/
Gross Profit
¥438.7B

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
6.7
=
Enterprise Value
¥2.9T
/
Gross Profit
¥438.7B

Valuation Scenarios

Kawasaki Heavy Industries Ltd is trading above its 3-year average

If EV/GP returns to its 3-Year Average (3.4), the stock would be worth ¥1 582.4 (50% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-56%
Maximum Upside
No Upside Scenarios
Average Downside
48%
Scenario EV/GP Value Implied Price Upside/Downside
Current Multiple 6.7 ¥3 151
0%
3-Year Average 3.4 ¥1 582.4
-50%
5-Year Average 2.9 ¥1 376.39
-56%
Industry Average 3.8 ¥1 802.13
-43%
Country Average 3.7 ¥1 762.26
-44%

Forward EV/GP
Today’s price vs future gross profit

Not enough data available to calculate forward EV/GP

Peer Comparison

All Multiples
EV/GP
P/E
All Countries
Close
Market Cap EV/GP P/E
JP
Kawasaki Heavy Industries Ltd
TSE:7012
2.6T JPY 6.7 24
JP
Fujitec Co Ltd
TSE:6406
2 720 795.8T JPY 5.6 0
JP
Ishii Iron Works Co Ltd
TSE:6362
304.2T JPY 101 236.7 363 670.8
JP
Star Micronics Co Ltd
TSE:7718
48T JPY 2.6 29.8
US
Parker-Hannifin Corp
NYSE:PH
114.8B USD 15.5 31.5
JP
Freund Corp
TSE:6312
16.9T JPY 1 767.7 8 494.3
JP
Mitsubishi Heavy Industries Ltd
TSE:7011
15.4T JPY 15.4 54.9
SE
Atlas Copco AB
STO:ATCO A
848.5B SEK 11.9 32.1
US
Illinois Tool Works Inc
NYSE:ITW
74.5B USD 11.3 24
US
Barnes Group Inc
NYSE:B
65.9B USD 7.2 13
SE
Sandvik AB
STO:SAND
480.6B SEK 10.4 32.4

Market Distribution

Higher than 75% of companies in Japan
Percentile
75th
Based on 4 798 companies
75th percentile
6.7
Low
0.1 — 2.6
Typical Range
2.6 — 5.9
High
5.9 —
Distribution Statistics
Japan
Min 0.1
30th Percentile 2.6
Median 3.7
70th Percentile 5.9
Max 45 735 393.8

Kawasaki Heavy Industries Ltd
Glance View

Market Cap
2.7T JPY
Industry
Machinery

Kawasaki Heavy Industries Ltd. (KHI) is a sprawling conglomerate that has been intricately weaving its industrial expertise into global markets since its inception in 1896. Rooted in Japan, KHI's operations stretch across diverse sectors, translating innovation into practical solutions for modern-day challenges. The company's reputation was built upon its prowess in shipbuilding, which later expanded into a multifaceted empire encompassing aerospace, energy, and rolling stock sectors. Through a combination of engineering prowess and technological advancement, Kawasaki has become synonymous with robust machinery and infrastructure solutions—its portfolio including everything from motorcycles and jet skis to gas turbines and bullet trains. KHI derives its revenue by operating through a segmented structure, each division strategically focused on different aspects of industrial and consumer machinery. The Aerospace Systems Division, for instance, designs and manufactures aircraft and satellite components, contributing a substantial share of the company's income through contracts with both commercial entities and governmental bodies. Meanwhile, the Motorcycle & Engine division caters directly to consumer markets, offering high-performance machines that fuel the brand's global presence. Adding to this tapestry is the Precision Machinery & Robot division, which is at the forefront of automation technology, essential for industries transitioning toward more advanced manufacturing processes. Despite the challenges imposed by fluctuating global economic conditions, Kawasaki Heavy Industries deftly balances its traditional engineering strengths with future-forward innovations, sustaining its financial momentum across varied verticals.

Intrinsic Value
2 218.5 JPY
Overvaluation 30%
Intrinsic Value
Price ¥3 151
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