IHI Corporation (7013.T) stock analysis

In our weekly check, IHI Corporation is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 2, red flags: 6.

About IHI Corporation

IHI Corporation is an Industrials company (Industrial - Machinery) based in Japan, listed on JPX as 7013.T.

What our checks show for 7013.T

Red flags

• Operating cash flow is only 0.41x net profit: part of the reported profit does not arrive as cash.
• Analysts expect the net margin to shrink by 3.8 points from today's 12.1%.
• Free cash flow is negative (-0.1% of revenue): the business spends more cash than it brings in.
• The stock has fallen as much as 84% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 4.7 years.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Analysts expect earnings per share to shrink about 5% a year.
• The price swings a lot: 49.9% annual volatility. Expect large ups and downs.

Strengths

• Operating profit covers interest 27.9 times over.
• The net margin rose by 6.4 points over 5 years, to 12.1%.
• The gross margin is 23.4% and has risen by 5.6 points: pricing power is holding.
• Earnings per share grew 65.7% a year over the last 3 years.
• Net profit grew 65.8% a year over the last 3 years.
• The dividend takes 10% of profit: there is a cushion.

Next earnings report: 2026-11-04

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Questions

What grade does IHI Corporation (7013.T) have?

In our weekly check, IHI Corporation is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 2, red flags: 6. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 7013.T stock?

This week's biggest flags for IHI Corporation: Profits not backed by cash, Margins expected to shrink, Weak free cash flow. In total 8 of 25 checks show a warning or a red flag.

What does IHI Corporation do?

IHI Corporation is an Industrials company (Industrial - Machinery) based in Japan, listed on JPX as 7013.T.

When does IHI Corporation report earnings next?

The next earnings report is expected on 2026-11-04. 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 2026-10-24

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