Mitsui Matsushima Holdings Co., Ltd. (1518) AI Stock Analysis

• Market Cap: ¥58.66B
• Dividend Yield: 2.8%
• Average Volume (3M): 303.53K
• Price to Earnings (P/E): 7.0
• Beta (1Y): 1.22
• Revenue Growth: -5.73%
• EPS Growth: 102.36%
• Country: JP
• Employees: 1,772
• Sector: Energy
• Sector Strength: 52
• Industry: Coal
• EPS (TTM): 51.11
• Shares Outstanding: 65,322,000
• 10 Day Avg. Volume: 262,560
• 30 Day Avg. Volume: 303,530
• PEG Ratio: -0.14
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.76
• P/FCF Ratio: 14.31
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ¥1,642.00 ▲(16.29% Upside)
• Action: Reiterated Date: 10/30/25
• Date: Action: Reiterated 10/30/25

The overall stock score is primarily driven by the company's solid financial performance and attractive valuation. Despite a recent decline in revenue, the company maintains strong profitability and financial stability. Technical indicators present a mixed picture, with short-term bearish trends but longer-term support. The high dividend yield and low P/E ratio enhance the stock's appeal, particularly for value and income investors.

Positive Factors

Strong profitability and margins

Healthy gross and net margins and solid EBIT/EBITDA indicate the group runs retail operations with effective cost control. Margin resiliency supports sustained cash generation, funds reinvestment and dividends, and provides a durable buffer versus cyclical retail revenue swings.

Robust balance sheet

A strong equity base and moderate leverage give the company financial flexibility to weather retail downturns, fund strategic initiatives or acquisitions, and maintain payout policies. Consistent ROE suggests efficient capital use and supports long-term stability.

Positive cash conversion

A positive FCF-to-net-income ratio shows the firm converts accounting profits into cash, underpinning sustainable dividends and the ability to fund capex or inventory. Reliable cash conversion is a durable fundamental that supports operational continuity and strategic options.

Negative Factors

Recent revenue decline

A year-over-year revenue decline, even if modest, signals challenges in top-line momentum for a retail-focused firm. Sustained or widening revenue weakness can erode operating leverage, constrain reinvestment, and pressure margins and long-term growth prospects.

Decreasing operating cash flow

A drop in operating cash flow reduces free cash flow growth and limits liquidity available for capex, inventory, or dividends. Over several quarters this can force tougher operating decisions, hamper expansion, and weaken resilience to retail demand shocks.

Retail concentration and consumer exposure

Heavy reliance on apparel retail and consumer footfall exposes the company to structural retail headwinds, changing consumer preferences and e-commerce competition. Concentration in consumer retail increases vulnerability to prolonged weakness in discretionary spending.

Mitsui Matsushima Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Mitsui Matsushima Holdings Co., Ltd. engages in the production and sale of coal products in Japan and internationally. It also produces and markets coal to steel mills, power utilities, and general industries; and operates, generates, and sells solar power to electric power companies. In addition, the company provides coal mine development/operation and coal preparation technologies; shredders, office security products, pouches, and window guidance systems; mask blanks to photomask manufacturers for various applications; straw products for dairy and beverage companies; paper and PET beverage cup and food package products for various customers; custom-made suits, as well as manufactures and sells facilities and measuring equipment for the production of crystal devices. Further, it engages in the provision of nursing care services for the elderly, in-home, and outpatient; operation of coal storage and transportation equipment, sample testing of coal, inspection of conveyors used to transport ash and gypsum, and deployment and recovery of marine oil fences; operation of an LPG filling station in Saikai city, as well as the convenience store; provision of investment and lending services to coal mines; and port and harbor businesses. Additionally, the company sells food containers; manages elderly housing; produces and sells men's and women's clothing and dress shirts; and provides mining instruction, ventilation analysis, safety and security, and rescue and relief training services. The company was formerly known as Mitsui Matsushima Co., Ltd. and changed its name to Mitsui Matsushima Holdings Co., Ltd. in 2018. Mitsui Matsushima Holdings Co., Ltd. was founded in 1913 and is headquartered in Fukuoka, Japan.

How the Company Makes Money

Mitsui Matsushima generates revenue primarily through the sale of coal and related products. The company operates coal mines in Japan and overseas, which produce thermal coal used for electricity generation and coking coal essential for steel production. Revenue is driven by both domestic sales and exports to international markets, with pricing influenced by global coal market trends. Additionally, Mitsui Matsushima has diversified its income through investments in renewable energy projects and real estate management, which provide supplementary revenue streams. Strategic partnerships with other energy companies and participation in joint ventures also contribute to its financial performance, enabling access to new technologies and markets.

Mitsui Matsushima Holdings Co., Ltd. Financial Statement Overview

Summary

Mitsui Matsushima Holdings Co., Ltd. displays a solid financial foundation with strong profitability and efficient operations. Despite a recent dip in revenue, the company maintains financial stability with a strong equity position and adequate cash flow management. Continued focus on revenue growth and cash flow improvement will be crucial for sustaining long-term financial health.

Income Statement

The company exhibits strong gross profit and net profit margins, indicating efficient cost management and profitability. However, there is a noticeable decline in revenue from the previous year, which may impact future profitability. The EBIT and EBITDA margins are healthy, supporting operational efficiency.

Balance Sheet

The balance sheet is well-positioned with a strong equity base and moderate debt levels, resulting in a favorable debt-to-equity ratio. The equity ratio is robust, indicating financial stability. The company has demonstrated consistent ROE, reflecting effective use of equity to generate profits.

Cash Flow

The cash flow statement shows a decrease in operating cash flow, impacting free cash flow growth. However, the company maintains a positive free cash flow to net income ratio, indicating efficient cash conversion. The operating cash flow to net income ratio suggests a need for improved cash management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	62.41B	60.57B	77.47B	80.02B	46.59B	57.38B
Gross Profit	22.95B	20.76B	36.30B	45.30B	16.41B	9.98B
EBITDA	15.74B	14.51B	26.10B	36.82B	9.88B	841.00M
Net Income	10.14B	8.65B	15.12B	22.98B	5.40B	-3.04B
Balance Sheet
Total Assets	118.61B	117.63B	99.74B	95.03B	67.84B	70.62B
Cash, Cash Equivalents and Short-Term Investments	10.60B	8.97B	34.34B	39.47B	21.56B	23.85B
Total Debt	31.80B	33.21B	8.67B	13.43B	12.71B	23.59B
Total Liabilities	51.37B	52.14B	35.72B	38.42B	32.30B	40.33B
Stockholders Equity	67.08B	65.34B	63.45B	55.78B	35.43B	30.21B
Cash Flow
Free Cash Flow	0.00	3.20B	19.88B	25.50B	7.51B	5.72B
Operating Cash Flow	0.00	4.57B	21.29B	26.20B	8.91B	6.81B
Investing Cash Flow	0.00	-11.92B	-11.69B	-1.34B	2.57B	-2.57B
Financing Cash Flow	0.00	-10.21B	-22.75B	-6.48B	-11.75B	4.26B

Mitsui Matsushima Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1412.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1518, the sentiment is Positive. The current price of 1412 is below the 20-day moving average (MA) of 1500.85, below the 50-day MA of 1456.56, and above the 200-day MA of 1258.76, indicating a bullish trend. The MACD of 12.02 indicates Positive momentum. The RSI at 55.35 is Neutral, neither overbought nor oversold. The STOCH value of 62.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1518.

Mitsui Matsushima Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8131	74 Outperform	¥131.32B	11.31	―	2.57%	7.46%	153.98%
5021	73 Outperform	¥810.71B	16.12	―	3.93%	2.57%	-4.79%
1518	67 Neutral	¥58.66B	6.96	―	2.80%	-5.73%	102.36%
1514	67 Neutral	¥58.11B	17.04	―	5.78%	-30.85%	-38.79%
8132	67 Neutral	¥70.55B	25.58	―	1.37%	-5.02%	186.97%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
8133	63 Neutral	¥237.73B	16.46	―	3.45%	-4.87%	26.27%

Mitsui Matsushima Holdings Co., Ltd. Corporate Events

Mitsui Matsushima Lifts Nine-Month Profit, Confirms Outlook and Higher Payout

Mitsui Matsushima Holdings reported consolidated net sales of ¥49.2 billion for the nine months to Dec. 31, 2025, up 8.6% year on year, with operating profit jumping 32.0% to ¥8.2 billion and profit attributable to owners of parent surging 40.8% to ¥7.2 billion. While equity declined and the equity-to-asset ratio fell to 42.9% amid increased treasury stock, the company kept its full-year forecast unchanged and plans sharply higher dividends after a 5-for-1 stock split, signaling confidence in earnings and a continued focus on shareholder returns.

The most recent analyst rating on (JP:1518) stock is a Hold with a Yen1674.00 price target. To see the full list of analyst forecasts on Mitsui Matsushima Holdings Co., Ltd. stock, see the JP:1518 Stock Forecast page.

Mitsui Matsushima Overhauls Board and Executive Lineup to Strengthen Governance

Mitsui Matsushima Holdings has announced a broad reshuffle of its leadership, including the planned retirement of Representative Director and Chairman Shinichiro Kushima, who will become an advisor, as the group moves to strengthen governance under a refreshed management team. Representative Director and President Taishi Yoshioka will be reappointed, while Senior Executive Officer Mikiko Abe is slated to join the board as Director and Senior Executive Officer, alongside the reappointment of external directors Shota Wakiyama and Ayako Kanamaru.

The company will also maintain continuity in oversight by reappointing Audit & Supervisory Committee members Toshihiro Nomoto and Yuka Mitsue and adding external director Masanori Kobayashi, a managing partner at G-FAS Tax Accountants Corporation, to bolster audit and supervisory functions. Executive officers, including Senior Executive Officer Takeshi Nagano and four other incumbents, will be reappointed, while Executive Officer Toshiya Kobayashi will retire, signaling a controlled transition aimed at reinforcing management stability and corporate value from June 19, 2026.

The most recent analyst rating on (JP:1518) stock is a Hold with a Yen1674.00 price target. To see the full list of analyst forecasts on Mitsui Matsushima Holdings Co., Ltd. stock, see the JP:1518 Stock Forecast page.

Mitsui Matsushima Accelerates Share Buyback Under ¥35 Billion Repurchase Program

Mitsui Matsushima Holdings has disclosed that it repurchased 167,300 of its common shares on the Tokyo Stock Exchange between December 1 and December 31, 2025, for a total of ¥224.5 million, as part of a broader share buyback program authorized under its Articles of Incorporation and Japan’s Companies Act. This transaction forms one portion of a much larger board-approved buyback framework, which allows purchases of up to 3.5 million shares or ¥35 billion through June 1, 2026; as of December 31, 2025, the company had cumulatively acquired 936,000 shares for about ¥1.22 billion (figures adjusted for a 5-for-1 stock split), underscoring an ongoing effort to return capital to shareholders and optimize its equity base, potentially supporting its share price and capital efficiency metrics.

The most recent analyst rating on (JP:1518) stock is a Hold with a Yen1396.00 price target. To see the full list of analyst forecasts on Mitsui Matsushima Holdings Co., Ltd. stock, see the JP:1518 Stock Forecast page.

Mitsui Matsushima Holdings Acquires Own Shares to Enhance Shareholder Value

Mitsui Matsushima Holdings Co., Ltd. announced the acquisition of its own shares, purchasing 359,800 common shares at a total cost of 470,110,300 yen through market transactions on the Tokyo Stock Exchange. This move is part of a broader strategy authorized by the Board of Directors to acquire up to 3,500,000 shares, with an upper limit of 35 billion yen, aimed at enhancing shareholder value and optimizing capital structure.

The most recent analyst rating on (JP:1518) stock is a Hold with a Yen1396.00 price target. To see the full list of analyst forecasts on Mitsui Matsushima Holdings Co., Ltd. stock, see the JP:1518 Stock Forecast page.