Kawasaki Heavy Industries, Ltd. (7012.T) stock analysis
In our weekly check, Kawasaki Heavy Industries, Ltd. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 5, red flags: 3.
About Kawasaki Heavy Industries, Ltd.
Kawasaki Heavy Industries, Ltd. is an Industrials company (Conglomerates) based in Japan, listed on JPX as 7012.T.
What our checks show for 7012.T
Red flags
- The price swings a lot: 52.7% annual volatility. Expect large ups and downs.
- The stock has fallen as much as 81% from a peak. Would you have held through that?
- Recovering from its deepest fall took about 3.5 years.
Warning signs
- Net debt is 3.1x a year of EBITDA (debt/equity 1). That limits room in a downturn and raises refinancing risk.
- The net margin is only 5.1%: little room if costs rise.
- Free cash flow is only 0.3% of revenue.
- Free cash flow covers the dividend only 0.3 times.
- Return on capital (ROCE) is only 9.9%.
Strengths
- The net margin rose by 3.6 points over 5 years, to 5.1%.
- The gross margin is 20% and has risen by 2.9 points: pricing power is holding.
- Earnings per share grew 31.2% a year over the last 3 years.
- Net profit grew 31.1% a year over the last 3 years.
- The price is 14.8 times earnings (P/E), reasonable for its growth.
- A large company: market value $11.72 billion.
Next earnings report: 2026-11-10
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Questions
What grade does Kawasaki Heavy Industries, Ltd. (7012.T) have?
In our weekly check, Kawasaki Heavy Industries, Ltd. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 5, red flags: 3. The grade is a risk check, not a buy or sell recommendation.
What are the main risks of 7012.T stock?
This week's biggest flags for Kawasaki Heavy Industries, Ltd.: Very volatile, Deep past fall, Slow recovery after falls. In total 8 of 25 checks show a warning or a red flag.
What does Kawasaki Heavy Industries, Ltd. do?
Kawasaki Heavy Industries, Ltd. is an Industrials company (Conglomerates) based in Japan, listed on JPX as 7012.T.
When does Kawasaki Heavy Industries, Ltd. report earnings next?
The next earnings report is expected on 2026-11-10. We re-run the checks every week, so the grade can change after it.
The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.
Updated 2026-10-31
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