IHI Corp (7013) Earnings: Forecast Misses Estimates but First Quarter Income Surges

IHI Corp on Smartkarma

Top independent analyst Scott Foster on Smartkarma recently provided insightful coverage on IHI Corp, a defense contractor with promising growth prospects. In his report titled “IHI (7013 JP): 30% Upside Potential as Aerospace and Defense Rebound,” Foster highlighted the company’s attractive valuation and its potential to benefit from Japan’s increasing defense budget. He anticipates IHI’s sales and profits to bounce back this year and continue on an upward trajectory in the following year, potentially offering a 30% upside for investors.

Foster emphasized that defense is the primary growth driver for IHI, but other divisions are also expected to perform well due to the ongoing operational streamlining. He foresees profits rebounding in the current year and further escalating in FY Mar-26, which could lead to a decrease in the P/E ratio to 9X or less. Additionally, the favorable impact of the weak yen adds to the company’s positive outlook in the eyes of this bullish analyst.

A look at IHI Corp Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Analysts at Smartkarma have provided insights into the long-term outlook for IHI Corp, a company that manufactures heavy machinery, including aircraft jet engines, rocket propulsion systems, ships, petroleum refineries, and nuclear power plants. With a high Momentum score of 5, IHI Corp is seen as having strong positive market momentum. Additionally, the company has received moderate scores for both Value and Dividend factors at 3 each, indicating a fair valuation and dividend payout.

However, IHI Corp scored lower on Growth and Resilience factors, with scores of 2 for both. This suggests that the company may face challenges in terms of growth opportunities and resilience against market fluctuations. Investors considering IHI Corp should weigh the positive momentum against the lower growth and resilience scores to make informed decisions about the company’s long-term prospects.

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