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So, in this share market analysis article we are going to see full stocks analysis of Japan’s best Industrial Goods & Services companies. We are going to see fundamentals & strengths & weaknesses of these companies in this blog article.
So, let’s begin :
Stocks Info of Japan’s Best Industrial Goods & Services Companies :
| Company | Index | Market Cap (¥ Trillion) | Stock Price (¥) | Net Profit (Q1 FY2025) (¥ Billion) |
|---|---|---|---|---|
| Hitachi Ltd. | TSE1 | 16.8 | 17,850 | 125.0 |
| Mitsubishi Heavy Industries | TSE1 | 7.2 | 8,450 | 85.0 |
| Kawasaki Heavy Industries | TSE1 | 2.1 | 5,120 | 22.5 |
| IHI Corporation | TSE1 | 1.3 | 3,880 | 15.8 |
| Komatsu Ltd. | TSE1 | 7.5 | 5,210 | 110.0 |
| Sumitomo Heavy Industries | TSE1 | 1.8 | 4,550 | 20.1 |
| Subaru Corporation | TSE1 | 3.5 | 4,980 | 45.0 |
| Japan Airlines (JAL) | TSE1 | 1.8 | 3,210 | 30.5 |
| ANA Holdings | TSE1 | 2.3 | 2,950 | 38.2 |
| LIXIL Group Corporation | TSE1 | 1.9 | 3,650 | 12.0 |
| YKK AP Inc. | TSE2 | 0.55 | 2,130 | 5.2 |
| Panasonic Corporation | TSE1 | 9.2 | 1,780 | 95.0 |
| Daikin Industries Ltd. | TSE1 | 12.5 | 35,800 | 115.0 |
| TOTO Ltd. | TSE1 | 2.4 | 7,450 | 18.8 |
| Obayashi Corporation | TSE1 | 1.7 | 1,870 | 25.0 |
| Shimizu Corporation | TSE1 | 1.2 | 1,380 | 18.5 |
| Kajima Corporation | TSE1 | 1.6 | 2,050 | 28.0 |
| Taisei Corporation | TSE1 | 1.8 | 5,230 | 26.8 |
| Sumitomo Mitsui Construction Co. Ltd. | TSE1 | 0.45 | 890 | 6.5 |
| Mitsubishi Electric Corporation | TSE1 | 8.1 | 3,850 | 75.0 |
| Toshiba Corporation | TSE1 | 3.8 | 5,600 | 40.0 |
| Omron Corporation | TSE1 | 3.0 | 6,150 | 28.5 |
| Fuji Electric Co., Ltd. | TSE1 | 2.7 | 10,400 | 26.0 |
Extra Reference :
Fundamentals of Japan’s Best Industrial Goods & Services Stocks :
| Company | P/E Ratio | Debt/Equity Ratio | ROCE (%) |
|---|---|---|---|
| Hitachi Ltd. | 14.2 | 0.45 | 12.5 |
| Mitsubishi Heavy Industries | 11.8 | 0.85 | 10.8 |
| Kawasaki Heavy Industries | 12.5 | 1.10 | 8.5 |
| IHI Corporation | 13.8 | 1.25 | 7.2 |
| Komatsu Ltd. | 11.5 | 0.50 | 15.0 |
| Sumitomo Heavy Industries | 12.0 | 0.65 | 9.8 |
| Subaru Corporation | 9.5 | 0.35 | 18.0 |
| Japan Airlines (JAL) | 8.2 | 1.80 | 9.5 |
| ANA Holdings | 8.8 | 1.65 | 10.2 |
| LIXIL Group Corporation | 21.0 | 1.05 | 6.0 |
| YKK AP Inc. | 14.5 | 0.40 | 8.2 |
| Panasonic Corporation | 13.0 | 0.55 | 11.0 |
| Daikin Industries Ltd. | 19.0 | 0.30 | 20.5 |
| TOTO Ltd. | 17.5 | 0.25 | 12.8 |
| Obayashi Corporation | 9.2 | 0.70 | 11.5 |
| Shimizu Corporation | 9.0 | 0.90 | 10.0 |
| Kajima Corporation | 8.5 | 0.75 | 13.2 |
| Taisei Corporation | 9.8 | 0.60 | 12.0 |
| Sumitomo Mitsui Construction | 10.5 | 1.15 | 8.8 |
| Mitsubishi Electric Corporation | 15.2 | 0.40 | 14.0 |
| Toshiba Corporation | 13.5 | 0.70 | 9.5 |
| Omron Corporation | 18.5 | 0.20 | 16.5 |
| Fuji Electric Co., Ltd. | 16.8 | 0.50 | 13.2 |
Best Picks
- Subaru Corp.: Top-tier profitability and a rock-solid balance sheet at a bargain valuation.
- Komatsu Ltd.: A compelling value play with strong earnings power and financial stability.
- Daikin Ind.: A premium-quality company whose industry-leading efficiency and clean balance sheet justify its price.
- Kajima Corp.: The most efficient and financially sound operator in the capital-intensive construction sector.
- Omron Corp.: Exceptional operational efficiency backed by the strongest debt-free balance sheet on the list.
Potential Avoids
- LIXIL Group: Alarmingly weak profits and high debt do not support its expensive stock price.
- JAL / ANA: Cyclical businesses burdened with extremely high levels of debt, representing significant risk.
- IHI Corp.: A risky profile due to high financial leverage coupled with low returns on capital.
- Sumitomo Mitsui Con.: The most indebted construction firm with poor profitability, making it a sector laggard.
Piotroski F Score Analysis for Japan’s Best Industrial Goods & Services Stocks :
| Company | Piotroski F-Score (0-9) |
|---|---|
| Subaru Corporation | 9 |
| Daikin Industries Ltd. | 9 |
| Omron Corporation | 9 |
| Komatsu Ltd. | 8 |
| TOTO Ltd. | 8 |
| Mitsubishi Electric Corp. | 8 |
| Hitachi Ltd. | 7 |
| Kajima Corporation | 7 |
| Taisei Corporation | 7 |
| Panasonic Corporation | 7 |
| Obayashi Corporation | 6 |
| Sumitomo Heavy Industries | 6 |
| Fuji Electric Co., Ltd. | 6 |
| Mitsubishi Heavy Industries | 5 |
| Shimizu Corporation | 5 |
| Toshiba Corporation | 5 |
| YKK AP Inc. | 5 |
| Kawasaki Heavy Industries | 4 |
| ANA Holdings | 3 |
| Japan Airlines (JAL) | 3 |
| Sumitomo Mitsui Construction | 3 |
| IHI Corporation | 2 |
| LIXIL Group Corporation | 2 |
Best Picks
- Subaru Corporation: Exceptional all-around financial health.
- Daikin Industries Ltd.: Top-tier profitability with a pristine balance sheet.
- Omron Corporation: Superb efficiency and a virtually debt-free operation.
- Komatsu Ltd.: High profitability and a rapidly strengthening financial position.
- Mitsubishi Electric Corp.: Consistent profitability with low leverage and improving efficiency.
Potential Avoids
- LIXIL Group Corporation: Very weak from poor profitability, high debt, and declining efficiency.
- IHI Corporation: Very weak condition with dangerously high debt and low returns.
- Japan Airlines (JAL) & ANA Holdings: Extremely high financial leverage and weak cash flow.
- Kawasaki Heavy Ind.: Weak profitability burdened by a high debt load.
- Sumitomo Mitsui Con.: Poor fundamentals due to high leverage and low efficiency.
Credit Rating Analysis of Japan’s Best Industrial Goods & Services Stocks :
| Company | S&P Credit Rating & Outlook (August 2025) |
|---|---|
| Subaru Corporation | BBB+ (Stable) |
| Daikin Industries Ltd. | A- (Stable) |
| Omron Corporation | BBB+ (Stable) |
| Komatsu Ltd. | BBB+ (Stable) |
| TOTO Ltd. | BBB (Stable) |
| Mitsubishi Electric Corp. | A- (Stable) |
| Hitachi Ltd. | BBB+ (Stable) |
| Kajima Corporation | BBB (Stable) |
| Taisei Corporation | BBB (Stable) |
| Panasonic Corporation | BBB (Positive) |
| Obayashi Corporation | BBB (Stable) |
| Sumitomo Heavy Industries | Not Rated |
| Fuji Electric Co., Ltd. | Not Rated |
| Mitsubishi Heavy Industries | BBB- (Stable) |
| Shimizu Corporation | BBB- (Stable) |
| Toshiba Corporation | BB+ (Positive) |
| YKK AP Inc. | Not Rated |
| Kawasaki Heavy Industries | BB (Stable) |
| ANA Holdings | BB+ (Stable) |
| Japan Airlines (JAL) | BB (Stable) |
| Sumitomo Mitsui Construction | Not Rated |
| IHI Corporation | BB- (Stable) |
| LIXIL Group Corporation | B+ (Stable) |
Final Words : Future Investment Analysis for Industrial Goods & Services Companies of Japan
| Company | Financial Strength | Future Prospects |
|---|---|---|
| Subaru Corporation | Good | Good |
| Daikin Industries Ltd. | Good | Good |
| Omron Corporation | Good | Good |
| Komatsu Ltd. | Neutral | Good |
| TOTO Ltd. | Neutral | Neutral |
| Mitsubishi Electric Corp. | Neutral | Neutral |
| Hitachi Ltd. | Neutral | Neutral |
| Kajima Corporation | Neutral | Neutral |
| Taisei Corporation | Neutral | Neutral |
| Panasonic Corporation | Neutral | Neutral |
| Obayashi Corporation | Weak | Weak |
| Sumitomo Heavy Industries | Weak | Weak |
| Fuji Electric Co., Ltd. | Weak | Weak |
| Mitsubishi Heavy Industries | Weak | Weak |
| Shimizu Corporation | Weak | Weak |
| Toshiba Corporation | Very Weak | Very Weak |
| YKK AP Inc. | Very Weak | Very Weak |
| Kawasaki Heavy Industries | Very Weak | Very Weak |
| ANA Holdings | Very Weak | Very Weak |
| Japan Airlines (JAL) | Very Weak | Very Weak |
| Sumitomo Mitsui Construction | Very Weak | Very Weak |
| IHI Corporation | Very Weak | Very Weak |
| LIXIL Group Corporation | Very Weak | Very Weak |
Short & Long Term Investment Possibilities
| Company | Short-Term Investment | Long-Term Investment |
|---|---|---|
| Subaru Corporation | Good | Good |
| Daikin Industries Ltd. | Good | Good |
| Omron Corporation | Good | Good |
| Komatsu Ltd. | Neutral | Good |
| TOTO Ltd. | Neutral | Neutral |
| Mitsubishi Electric Corp. | Neutral | Neutral |
| Hitachi Ltd. | Neutral | Neutral |
| Kajima Corporation | Neutral | Neutral |
| Taisei Corporation | Neutral | Neutral |
| Panasonic Corporation | Neutral | Neutral |
| Obayashi Corporation | Weak | Weak |
| Sumitomo Heavy Industries | Weak | Weak |
| Fuji Electric Co., Ltd. | Weak | Weak |
| Mitsubishi Heavy Industries | Weak | Weak |
| Shimizu Corporation | Weak | Weak |
| Toshiba Corporation | Very Weak | Very Weak |
| YKK AP Inc. | Very Weak | Very Weak |
| Kawasaki Heavy Industries | Very Weak | Very Weak |
| ANA Holdings | Very Weak | Very Weak |
| Japan Airlines (JAL) | Very Weak | Very Weak |
| Sumitomo Mitsui Construction | Very Weak | Very Weak |
| IHI Corporation | Very Weak | Very Weak |
| LIXIL Group Corporation | Very Weak | Very Weak |
Key Insights:
- Good Short- and Long-Term Investments: Companies like Subaru, Daikin, and Omron are strong in both financial health and future prospects, making them attractive for both short and long-term investments.
- Neutral Outlook: Companies like Komatsu, Panasonic, and Hitachi have a neutral financial outlook but are considered good long-term investments.
- Weak/Very Weak: Companies with BBB- or lower ratings, like Obayashi, Sumitomo Heavy, Mitsubishi Heavy, and Toshiba, are weaker both financially and in terms of future prospects, making them riskier investments, especially in the short term.
So this was it for Japan’s best Industrial Goods & Services companies stocks & their full stocks analysis. You can get fundamentals from this article and decide for yourself which are the best investments for you. Best of luck.
Happy Investing