# Ihi (7013.JP)

Canonical: https://gigainvestors.com/s/7013.JP

Analysis as of: 2026-10-15T07:11:11.647Z. Financial observations: FY2013–FY2026.

Listing currency: JPY. Reporting currency: JPY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: JPY 2,406.00 per share; close as of 2026-10-15.

Estimated value: low JPY 1,092.07 per share, central JPY 1,249.60 per share, high JPY 1,434.05 per share. Buy at or below the central value JPY 1,249.60 per share. Valuation as of 2026-10-15T07:11:11.647Z; scenarios are not confidence intervals.

Expected annual return: 6.4% at the stated quote. About 6.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; JP 10-year bond 2.9% + 4 points).

## Checklist

### understandable: fail

- 5 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 1

- Operating margin variation: 0.87×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.03×

- FY2018: 0.05×

- FY2019: 0.06×

- FY2020: 0.04×

- FY2021: 0.03×

- FY2022: 0.07×

- FY2023: 0.06×

- FY2024: -0.05×

- FY2025: 0.09×

- FY2026: 0.10×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 8.3%

- ROIC, second-lowest year: 2.9%

- Typical minus recent gross margin: -4.9 pp

- Typical gross margin (annual median): 18.1%

- Recent gross margin (lower of latest and 3-year median): 23.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.4%

- ROIC including acquisitions, ten-year median: 3.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 5.8%

- FY2018: 10.1%

- FY2019: 7.7%

- FY2020: 5.3%

- FY2021: 2.9%

- FY2022: 10.6%

- FY2023: 8.8%

- FY2024: -8.1%

- FY2025: 14.2%

- FY2026: 15.0%

### economics: fail

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 0.81×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: JPY 256B

- Net income, five-year total: JPY 316B

- Return on incremental invested capital: 154.4%

- Working capital / revenue, annual change: 1.5 pp

- Working capital / revenue, change between three-year averages: 12.4 pp

- Working capital / revenue, final three-year average: 42.9%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.31×

- FY2023: 0.74×

- FY2024: 1.25×

- FY2025: 0.82×

- FY2026: 0.80×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 7.7% vs 14.2%

- Per-share earnings: 4.85 to 106.41 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.2%

- Ordinary dilution, 5-year annual growth: 0.4%

- Market cap gain: JPY 2.78T

- Cumulative retained earnings: JPY 292B

- Diluted shares, 10-year annual growth: -0.2%

- Diluted shares, 5-year annual growth: 0.4%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 47.1%

- Per-share value change: JPY 101.56

- Per-share value, starting three-year median: JPY 4.85

- Per-share value, ending three-year median: JPY 106.41

- Buybacks concentrated in cheaper years (correlation): -0.43

- Average buyback yield: 1.1%

- Buyback history: 7 years

- Debt-funded buybacks: No

- Acquisition spending: JPY 144B

- Cumulative net income, 10 years: JPY 391B

- ROIC, first three-year median: 7.7%

- ROIC, last three-year median: 14.2%

Chart: Earnings per share; fiscal year observations.

- FY2017: JPY 4.85

- FY2018: JPY 7.67

- FY2019: JPY 36.93

- FY2020: JPY 7.70

- FY2021: JPY 12.59

- FY2022: JPY 62.82

- FY2023: JPY 42.07

- FY2024: JPY -64.40

- FY2025: JPY 106.41

- FY2026: JPY 151.88

### accounting: pass

- Sloan accruals: 1.6%

- Receivables to sales index (DSRI): 1.13×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.75×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.22×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -3.6%

- FY2018: -5.6%

- FY2019: -0.4%

- FY2020: -1.8%

- FY2021: -1.3%

- FY2022: -2.6%

- FY2023: -0.5%

- FY2024: -6.2%

- FY2025: -2.9%

- FY2026: 1.6%

## Holders

## Price story

Down 44% since Feb 2026 · sales +1%

Story as of 2026-10-16T10:00:14.576Z; price observation 2026-10-15.

Price needs cash profits to grow 10.2% a year for ten years

### Sales · FY2025–2026

sales +1%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YENT.pdf; observed 2026-06-22.

- FY2017: JPY 1.49T 

- FY2018: JPY 1.59T 

- FY2019: JPY 1.48T 

- FY2020: JPY 1.26T 

- FY2021: JPY 1.11T 

- FY2022: JPY 1.17T 

- FY2023: JPY 1.35T 

- FY2024: JPY 1.32T 

- FY2025: JPY 1.63T 

- FY2026: JPY 1.64T 

### Gross margin · FY2026

gross margin 23.1%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YENT.pdf; observed 2026-06-22.

- FY2017: 16.3% 

- FY2018: 17.2% 

- FY2019: 18.7% 

- FY2020: 18.4% 

- FY2021: 16.2% 

- FY2022: 17.9% 

- FY2023: 20.8% 

- FY2024: 11.0% 

- FY2025: 23.0% 

- FY2026: 23.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in specialty industrial machinery; annual sales are JPY 1.6 trillion.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YENT.pdf (filed 2026-06-22); FY2026: revenue 1643402000000; grossProfit 379511000000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 11% to 23.1% during 2024–26; it earns 8.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); FY2024: grossProfit / revenue = 11%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); FY2025: grossProfit / revenue = 23%.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YENT.pdf (filed 2026-06-22); FY2026: grossProfit / revenue = 23.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); 10-year return on capital observations [[2017,0.05760837039502968],[2018,0.10066206082196164],[2019,0.07699640471954022],[2020,0.05265221460766011],[2021,0.02852093170694198],[2022,0.1063286020227359],[2023,0.08815207663572748],[2024,-0.0814839727705482],[2025,0.14244145000745598],[2026,0.1501325437345505]]; median 0.08257424067763386. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 2.1% of cash earnings on expansion; earns over 100% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); FY2017: growth capex 0; upkeep 54262000000; owner earnings 2126000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); FY2018: growth capex 2884000000; upkeep 56522000000; owner earnings 2572000000. Growth capex / owner earnings = 1.1213063763608087.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); FY2019: growth capex 0; upkeep 64195000000; owner earnings 22185000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); FY2021: growth capex 0; upkeep 48300000000; owner earnings 25734000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); FY2022: growth capex 0; upkeep 43300000000; owner earnings 86405000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); FY2023: growth capex 0; upkeep 61100000000; owner earnings 32874000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); FY2025: growth capex 20635000000; upkeep 76765000000; owner earnings 91977000000. Growth capex / owner earnings = 0.22434956565228265.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YENT.pdf (filed 2026-06-22); FY2026: growth capex 2772296008.7069244; upkeep 94827703991.29308; owner earnings 129532296008.70692. Growth capex / owner earnings = 0.02140235365333581.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); Incremental return on capital 1.5435891212516826, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); Dividend observations: [[2017,16000000],[2018,4620000000],[2019,9241000000],[2020,10791000000],[2021,2983000000],[2022,4541000000],[2023,12110000000],[2024,15145000000],[2025,15155000000],[2026,21228000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YENT.pdf (filed 2026-06-22); FY2026: cash repurchases 883000000 JPY.

### What the price says

The price assumes cash profits grow 10.2% yearly over ten years; actual growth was 45.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); Ten-year compound average after fade. Initial solved rate 0.13433998293291072. Price 2406; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 2.810071942446043 → FY2026 122.20088649002687. Closing-price date 2026-10-15.

## Monthly share-price history (JPY per share)

- 2016-11: JPY 452.86 per share

- 2016-12: JPY 434.29 per share

- 2017-01: JPY 435.71 per share

- 2017-02: JPY 500.00 per share

- 2017-03: JPY 501.43 per share

- 2017-04: JPY 540.00 per share

- 2017-05: JPY 594.29 per share

- 2017-06: JPY 545.71 per share

- 2017-07: JPY 520.00 per share

- 2017-08: JPY 520.00 per share

- 2017-09: JPY 558.57 per share

- 2017-10: JPY 580.71 per share

- 2017-11: JPY 495.00 per share

- 2017-12: JPY 535.71 per share

- 2018-01: JPY 521.43 per share

- 2018-02: JPY 522.86 per share

- 2018-03: JPY 472.14 per share

- 2018-04: JPY 512.86 per share

- 2018-05: JPY 585.00 per share

- 2018-06: JPY 551.43 per share

- 2018-07: JPY 557.86 per share

- 2018-08: JPY 554.29 per share

- 2018-09: JPY 615.00 per share

- 2018-10: JPY 590.00 per share

- 2018-11: JPY 493.57 per share

- 2018-12: JPY 432.86 per share

- 2019-01: JPY 490.71 per share

- 2019-02: JPY 419.43 per share

- 2019-03: JPY 379.86 per share

- 2019-04: JPY 376.71 per share

- 2019-05: JPY 346.14 per share

- 2019-06: JPY 371.00 per share

- 2019-07: JPY 372.29 per share

- 2019-08: JPY 295.57 per share

- 2019-09: JPY 335.43 per share

- 2019-10: JPY 385.86 per share

- 2019-11: JPY 364.71 per share

- 2019-12: JPY 367.71 per share

- 2020-01: JPY 375.57 per share

- 2020-02: JPY 324.14 per share

- 2020-03: JPY 180.29 per share

- 2020-04: JPY 193.00 per share

- 2020-05: JPY 221.29 per share

- 2020-06: JPY 222.57 per share

- 2020-07: JPY 186.86 per share

- 2020-08: JPY 225.00 per share

- 2020-09: JPY 199.29 per share

- 2020-10: JPY 179.29 per share

- 2020-11: JPY 221.57 per share

- 2020-12: JPY 292.43 per share

- 2021-01: JPY 260.71 per share

- 2021-02: JPY 279.71 per share

- 2021-03: JPY 320.71 per share

- 2021-04: JPY 313.71 per share

- 2021-05: JPY 380.29 per share

- 2021-06: JPY 376.57 per share

- 2021-07: JPY 359.43 per share

- 2021-08: JPY 349.43 per share

- 2021-09: JPY 410.14 per share

- 2021-10: JPY 379.14 per share

- 2021-11: JPY 305.86 per share

- 2021-12: JPY 330.86 per share

- 2022-01: JPY 326.86 per share

- 2022-02: JPY 379.71 per share

- 2022-03: JPY 421.43 per share

- 2022-04: JPY 423.43 per share

- 2022-05: JPY 517.86 per share

- 2022-06: JPY 518.57 per share

- 2022-07: JPY 498.57 per share

- 2022-08: JPY 533.57 per share

- 2022-09: JPY 442.86 per share

- 2022-10: JPY 474.29 per share

- 2022-11: JPY 537.14 per share

- 2022-12: JPY 549.29 per share

- 2023-01: JPY 561.43 per share

- 2023-02: JPY 505.00 per share

- 2023-03: JPY 474.29 per share

- 2023-04: JPY 486.43 per share

- 2023-05: JPY 460.71 per share

- 2023-06: JPY 555.43 per share

- 2023-07: JPY 498.86 per share

- 2023-08: JPY 518.71 per share

- 2023-09: JPY 447.86 per share

- 2023-10: JPY 409.14 per share

- 2023-11: JPY 408.00 per share

- 2023-12: JPY 394.43 per share

- 2024-01: JPY 406.43 per share

- 2024-02: JPY 470.86 per share

- 2024-03: JPY 582.86 per share

- 2024-04: JPY 541.00 per share

- 2024-05: JPY 578.29 per share

- 2024-06: JPY 686.43 per share

- 2024-07: JPY 792.86 per share

- 2024-08: JPY 905.43 per share

- 2024-09: JPY 1,063.29 per share

- 2024-10: JPY 1,179.29 per share

- 2024-11: JPY 1,102.43 per share

- 2024-12: JPY 1,330.14 per share

- 2025-01: JPY 1,339.29 per share

- 2025-02: JPY 1,247.29 per share

- 2025-03: JPY 1,474.29 per share

- 2025-04: JPY 1,592.86 per share

- 2025-05: JPY 1,997.86 per share

- 2025-06: JPY 2,234.29 per share

- 2025-07: JPY 2,426.43 per share

- 2025-08: JPY 2,210.00 per share

- 2025-09: JPY 2,760.00 per share

- 2025-10: JPY 3,215.00 per share

- 2025-11: JPY 2,785.50 per share

- 2025-12: JPY 2,754.50 per share

- 2026-01: JPY 3,568.00 per share

- 2026-02: JPY 4,303.00 per share

- 2026-03: JPY 3,138.00 per share

- 2026-04: JPY 2,853.00 per share

- 2026-05: JPY 2,766.50 per share

- 2026-06: JPY 2,711.50 per share

- 2026-07: JPY 2,827.50 per share

- 2026-08: JPY 2,682.00 per share

- 2026-09: JPY 2,692.50 per share

- 2026-10: JPY 2,552.00 per share

## Annual estimated value (JPY per share)

- FY2020: low JPY 135.52 per share, central JPY 138.42 per share, high JPY 142.26 per share

- FY2021: low JPY 113.64 per share, central JPY 116.25 per share, high JPY 119.72 per share

- FY2022: low JPY 298.35 per share, central JPY 323.48 per share, high JPY 356.94 per share

- FY2023: low JPY 418.89 per share, central JPY 468.40 per share, high JPY 529.36 per share

- FY2024: low JPY 421.66 per share, central JPY 465.17 per share, high JPY 523.09 per share

- FY2025: low JPY 521.15 per share, central JPY 598.00 per share, high JPY 679.78 per share

- FY2026: low JPY 1,092.07 per share, central JPY 1,249.60 per share, high JPY 1,434.05 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original EDINET filing](https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YENT.pdf); period 2026-03-31, filed 2026-06-22.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations