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

• Market Cap: ¥10.04B
• Dividend Yield: 5.47%
• Average Volume (3M): 55.17K
• Price to Earnings (P/E): 6.6
• Beta (1Y): 0.82
• Revenue Growth: 99.02%
• EPS Growth: 36.07%
• Country: JP
• Employees: 490
• Sector: Technology
• Sector Strength: 84
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 190.82
• Shares Outstanding: 7,969,594
• 10 Day Avg. Volume: 59,450
• 30 Day Avg. Volume: 55,173
• PEG Ratio: 0.40
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.15
• 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

• Rating: 75 Outperform
• Price Target: ¥1,361.00 ▲(6.41%Upside)

Mitachi Co., Ltd. achieves a strong overall score driven primarily by its robust technical analysis and attractive valuation. The stock's positive trend and low P/E ratio, coupled with a high dividend yield, enhance its appeal. Financial performance is stable but slightly impacted by declining revenue and cash flow challenges, which are secondary to the valuation and technical indicators.

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 through the wholesale distribution of electronic components and devices. Its primary revenue stream is the sale of semiconductors and electronic components to manufacturers in the automotive, telecommunications, and consumer electronics industries. The company sources these components from various suppliers and provides value-added services such as inventory management, technical support, and customized solutions to its clients. Significant partnerships with major electronics manufacturers and a robust supply chain network play a crucial role in supporting its revenue model. Additionally, Mitachi Co., Ltd. leverages its expertise and industry knowledge to maintain strong relationships with its clients, ensuring repeat business and sustained earnings.

Mitachi Co., Ltd. Financial Statement Overview

Summary

Mitachi Co., Ltd. demonstrates financial stability with a strong balance sheet, highlighted by a low Debt-to-Equity Ratio and high Equity Ratio. However, the company faces challenges with declining revenue and moderate profitability margins. Cash flow performance is adequate, but a significant drop in free cash flow raises potential liquidity concerns.

Income Statement

Mitachi Co., Ltd. exhibited a decrease in revenue over the recent year, with Total Revenue declining by approximately 10%. The Gross Profit Margin is approximately 11.06%, showing a moderate level of efficiency in managing production costs. The Net Profit Margin stands at 3.14%, which indicates room for improvement in converting sales into net income. The EBIT and EBITDA margins are at 4.09% and 5.07%, respectively, indicating moderate operational efficiency.

Balance Sheet

The company maintains a strong balance sheet characterized by a low Debt-to-Equity Ratio of 0.04, suggesting conservative leverage. The Return on Equity is 8.45%, reflecting a reasonable return for shareholders. Additionally, the Equity Ratio is high at 71.87%, indicating a solid equity base supporting its assets.

Cash Flow

Mitachi Co., Ltd.'s Free Cash Flow decreased by approximately 60.10% compared to the previous year. The Operating Cash Flow to Net Income Ratio is 0.78, which suggests that the operating cash flow adequately supports the net income. The Free Cash Flow to Net Income Ratio is 0.66, reflecting a reasonable conversion of profits into free cash.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
58.76B	38.90B	43.27B	42.52B	33.88B	33.86B
	Gross Profit
4.48B	4.30B	5.34B	4.50B	3.20B	3.20B
	EBIT
1.60B	1.59B	2.49B	2.02B	924.31M	759.16M
	EBITDA
1.92B	1.97B	2.71B	2.33B	1.20B	1.01B
	Net Income Common Stockholders
1.24B	1.22B	1.69B	1.47B	665.21M	496.52M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.62B	3.12B	4.00B	2.64B	1.99B	1.69B
	Total Assets
39.88B	20.13B	20.80B	20.21B	16.62B	14.32B
	Total Debt
13.17B	579.44M	1.71B	1.86B	813.13M	1.01B
	Net Debt
9.54B	-2.54B	-2.29B	-783.29M	-1.18B	-675.05M
	Total Liabilities
25.10B	5.64B	7.71B	8.58B	6.65B	5.03B
	Stockholders Equity
14.77B	14.47B	13.09B	11.63B	9.96B	9.28B
Cash Flow		Free Cash Flow
0.00	801.79M	2.01B	-246.30M	515.04M	1.58B
	Operating Cash Flow
0.00	951.28M	2.12B	-156.98M	594.63M	1.71B
	Investing Cash Flow
0.00	-272.26M	-81.44M	-14.26M	-21.63M	-197.06M
	Financing Cash Flow
0.00	-1.64B	-653.72M	805.58M	-331.93M	-1.10B

Mitachi Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1279.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 1279 is above the 20-day moving average (MA) of 1226.65, above the 50-day MA of 1141.55, and above the 200-day MA of 1116.83, indicating a bullish trend. The MACD of 37.65 indicates Negative momentum. The RSI at 65.74 is Neutral, neither overbought nor oversold. The STOCH value of 57.94 is Neutral, 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	75 Outperform	¥10.04B	6.60		5.47%	99.02%	36.07%
Sector *	62 Neutral	$11.96B	10.09	-7.50%	3.10%	7.33%	-8.11%
UM3		€53.37M	5.22	-15.14%	3.30%	―	―
6864	73 Outperform	¥10.01B	22.21		2.24%	-3.36%	39.15%
6919	69 Neutral	¥9.50B	23.68		6.12%	-2.94%	-52.90%
6772	68 Neutral	¥13.17B	17.72		1.72%	0.69%	-25.68%
6928	67 Neutral	¥9.12B	19.78		5.31%	6.48%	277.27%

Mitachi Co., Ltd. Corporate Events

Mitachi Co., Ltd. Reports Strong Financial Growth for Nine Months Ending February 2025

Mitachi Co., Ltd. reported a significant increase in its financial performance for the nine months ending February 28, 2025, with net sales rising by 132% year-on-year. The company also saw improvements in operating and ordinary profits, indicating a strong recovery from the previous year’s downturn. This growth positions Mitachi favorably in the electronics industry, potentially enhancing its market competitiveness and stakeholder confidence.