Mitachi Co., Ltd. (3321) AI Stock Analysis

• Market Cap: ¥10.97B
• Dividend Yield: 4.36%
• Average Volume (3M): 29.59K
• Price to Earnings (P/E): 6.5
• Beta (1Y): 0.74
• Revenue Growth: 152.38%
• EPS Growth: 38.72%
• Country: JP
• Employees: 490
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 58.93
• Shares Outstanding: 7,969,594
• 10 Day Avg. Volume: 29,130
• 30 Day Avg. Volume: 29,590
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,528.00
• Price Target Upside: 10.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ¥1,528.00 ▲(10.80% Upside)

Mitachi Co., Ltd. benefits from strong financial performance and attractive valuation, making it a compelling investment. However, technical indicators suggest caution due to potential overbought conditions. Addressing cash flow and operational efficiency will be key to sustaining growth.

Mitachi Co., Ltd. Business Overview & Revenue Model

Company Description

Mitachi Co., Ltd., together with its subsidiaries, operates as an electronics trading company in Japan and internationally. The company sells electronics devices, such as semiconductors, LCDs, etc., as well as electronics components and motors for car electronics, amusement equipment, industrial equipment, consumer equipment, communication equipment, and other industries. It also manufactures and sells electronic devices and modules; and sells assembly equipment for SMT lines, inspection systems, etc. The company was founded in 1972 and is headquartered in Nagoya, Japan.

How the Company Makes Money

Mitachi Co., Ltd. generates revenue primarily through the sale of its electronic components and systems to various industries, with a significant focus on automotive and industrial clients. The company's revenue model is driven by the high demand for advanced electronics in vehicles, particularly as the automotive industry shifts towards electric and autonomous technologies. Key revenue streams include direct sales to manufacturers, long-term supply contracts, and partnerships with technology firms for collaborative development of innovative products. Additionally, Mitachi engages in research and development to create cutting-edge solutions, which can lead to licensing agreements and additional revenue opportunities.

Mitachi Co., Ltd. Financial Statement Overview

Summary

Mitachi Co., Ltd. shows strong revenue growth and a stable balance sheet, indicating a solid market position. However, cash flow challenges and operational inefficiencies need addressing to ensure long-term success.

Income Statement

Mitachi Co., Ltd. has demonstrated impressive revenue growth with a 67.08% increase in the latest year, indicating strong market demand and expansion. The company maintains healthy profitability with a gross profit margin of 5.38% and a net profit margin of 1.73%. However, the EBIT and EBITDA margins suggest room for improvement in operational efficiency.

Balance Sheet

The balance sheet shows a solid equity base with a debt-to-equity ratio of 0.76, reflecting a conservative leverage strategy. The return on equity of 10.83% indicates effective use of shareholder funds, although there is potential for higher returns. The equity ratio of 39.15% suggests a stable financial structure.

Cash Flow

The cash flow statement reveals challenges, with negative operating and free cash flows indicating potential liquidity issues. The free cash flow growth rate is concerning, and the operating cash flow to net income ratio suggests inefficiencies in converting earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	78.11B	98.18B	38.90B	43.27B	42.52B	33.88B
Gross Profit	4.90B	5.29B	4.30B	5.34B	4.50B	3.20B
EBITDA	2.32B	2.62B	1.97B	2.71B	2.33B	1.20B
Net Income	1.52B	1.70B	1.22B	1.69B	1.47B	665.21M
Balance Sheet
Total Assets	41.40B	40.03B	20.13B	20.80B	20.21B	16.62B
Cash, Cash Equivalents and Short-Term Investments	4.34B	4.39B	3.12B	4.00B	2.64B	1.99B
Total Debt	12.95B	11.96B	579.44M	1.71B	1.86B	813.13M
Total Liabilities	25.79B	24.32B	5.64B	7.71B	8.58B	6.65B
Stockholders Equity	15.57B	15.68B	14.47B	13.09B	11.63B	9.96B
Cash Flow
Free Cash Flow	0.00	-9.44B	801.79M	2.01B	-246.30M	515.04M
Operating Cash Flow	0.00	-9.22B	951.28M	2.12B	-156.98M	594.63M
Investing Cash Flow	0.00	-214.30M	-272.26M	-81.44M	-14.26M	-21.63M
Financing Cash Flow	0.00	10.77B	-1.64B	-653.72M	805.58M	-331.93M

Mitachi Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1379.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3321, the sentiment is Positive. The current price of 1379 is above the 20-day moving average (MA) of 1306.35, above the 50-day MA of 1275.42, and above the 200-day MA of 1165.53, indicating a bullish trend. The MACD of 28.93 indicates Negative momentum. The RSI at 80.36 is Negative, neither overbought nor oversold. The STOCH value of 93.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3321.

Mitachi Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3321	74 Outperform	¥10.97B	6.46		4.36%	152.38%	38.72%
Sector *	61 Neutral	$35.45B	8.20	-10.60%	1.91%	8.56%	-9.51%
UM3	―	€49.62M	5.22	-17.13%	―	―	―
6919	75 Outperform	¥10.47B	57.09		5.55%	-2.65%	-74.99%
6772	68 Neutral	¥12.86B	21.01		1.73%	1.49%	-26.82%
6928	64 Neutral	¥11.23B	16.29		4.26%	8.68%	859.21%
6864	61 Neutral	¥9.25B	25.48		2.50%	4.03%	-2.88%

Mitachi Co., Ltd. Corporate Events

Mitachi Co., Ltd. Reports Strong Financial Growth for Fiscal Year 2025

Mitachi Co., Ltd. reported significant growth in its consolidated financial results for the fiscal year ending May 31, 2025, with net sales increasing by 152.4% and operating profit rising by 35%. This growth reflects a strong recovery from the previous fiscal year, enhancing the company’s market position. Despite the increase in net assets and a higher dividend payout, the capital adequacy ratio decreased, indicating a potential area of concern for stakeholders.