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

• Market Cap: ¥18.80B
• Dividend Yield: 3.83%
• Average Volume (3M): 71.15K
• Price to Earnings (P/E): 8.5
• Beta (1Y): 0.80
• Revenue Growth: 202.83%
• EPS Growth: 77.02%
• Country: JP
• Employees: 490
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 70.65
• Shares Outstanding: 7,971,853
• 10 Day Avg. Volume: 77,450
• 30 Day Avg. Volume: 71,146
• PEG Ratio: 0.15
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.10
• P/FCF Ratio: -1.01
• 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: 82 Outperform
• Price Target: ¥2,706.00 ▲(29.41% Upside)

Mitachi Co., Ltd. scores highly due to its strong technical indicators and attractive valuation. While financial performance is solid, cash flow challenges need addressing. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Strong Revenue Growth

Mitachi's very high year-over-year revenue growth reflects sustained demand for its semiconductor and precision products. Durable top-line expansion supports scale, strengthens negotiating leverage with suppliers and customers, and funds continued R&D and capacity investments over the medium term.

Conservative Leverage and Solid Equity Base

A conservative leverage profile and double-digit ROE indicate disciplined capital structure and effective use of shareholder funds. This financial stability provides a buffer in downturns, supports access to financing for capex, and underpins multi-quarter strategic investments without undue balance-sheet risk.

Specialized Product Mix and Diversified End Markets

Focus on semiconductor-related products and precision machinery positions Mitachi in higher-technology niches with technical barriers to entry. Serving multiple sectors (auto, telecom, consumer electronics) diversifies demand sources and enables durable revenue streams through long-term supply relationships and product specialization.

Negative Factors

Negative Operating and Free Cash Flow

Persistent negative operating and free cash flows signal structural cash conversion issues. Even with strong revenues, weak cash generation constrains reinvestment, increases reliance on external funding for capex and working capital, and can limit the company's ability to sustain growth initiatives over several quarters.

Thin Profit Margins

Low gross and net margins indicate limited pricing power or high input and operating costs relative to revenue. Narrow margins reduce resilience to cost inflation, limit retained cash for R&D or capex, and imply the company must materially improve operational efficiency to convert revenue growth into durable earnings.

Exposure to Cyclical End Markets

Significant exposure to automotive and consumer electronics demand cycles creates structural revenue volatility across multi-quarter horizons. Cyclical downturns can rapidly reduce order visibility and utilization, pressuring margins and cash flows despite underlying product competitiveness and technical strengths.

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 materials to a diverse client base across multiple industries. The company’s key revenue streams include the manufacturing of semiconductors, which are integral to modern electronic devices, as well as precision machinery that supports the production processes of its clients. Additionally, Mitachi may engage in long-term contracts and partnerships with major technology firms, providing a stable source of income through ongoing supply agreements. The company also benefits from research and development collaborations, which not only enhance its product offerings but can lead to additional funding and investment opportunities.

Mitachi Co., Ltd. Financial Statement Overview

Summary

Mitachi Co., Ltd. shows strong revenue growth and a stable balance sheet, but faces challenges in cash flow management. Improving operational efficiency and cash conversion is crucial for 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	May 2024	May 2023	May 2022	May 2021	May 2020
Income Statement
Total Revenue	116.64B	98.18B	38.90B	43.27B	42.52B	33.88B
Gross Profit	5.80B	5.29B	4.30B	5.34B	4.50B	3.20B
EBITDA	2.99B	2.62B	1.97B	2.71B	2.33B	1.20B
Net Income	2.03B	1.70B	1.22B	1.69B	1.47B	665.21M
Balance Sheet
Total Assets	39.72B	40.03B	20.13B	20.80B	20.21B	16.62B
Cash, Cash Equivalents and Short-Term Investments	4.51B	4.39B	3.12B	4.00B	2.64B	1.99B
Total Debt	10.17B	11.96B	579.44M	1.71B	1.86B	813.13M
Total Liabilities	23.82B	24.32B	5.64B	7.71B	8.58B	6.65B
Stockholders Equity	15.86B	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: 2091.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 2091 is below the 20-day moving average (MA) of 2205.60, below the 50-day MA of 2117.92, and above the 200-day MA of 1571.55, indicating a bullish trend. The MACD of 60.95 indicates Negative momentum. The RSI at 64.11 is Neutral, neither overbought nor oversold. The STOCH value of 88.10 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	82 Outperform	¥18.80B	8.52	―	3.83%	202.83%	77.02%
7745	80 Outperform	¥75.12B	12.78	―	2.31%	6.50%	30.54%
6866	79 Outperform	¥99.21B	18.03	―	3.23%	7.28%	4.16%
6859	75 Outperform	¥85.01B	15.14	―	3.12%	2.78%	-5.32%
6626	73 Outperform	¥29.45B	8.91	―	1.78%	4.47%	12.28%
6853	73 Outperform	¥20.42B	20.36	―	2.93%	-1.58%	12.24%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Mitachi Co., Ltd. Corporate Events

Mitachi Delivers Strong First-Half Profit Growth and Raises Interim Dividend While Keeping Outlook Intact

Mitachi Co., Ltd. reported strong consolidated results for the six months ended November 30, 2025, with net sales surging 46.2% year on year to ¥58.3 billion and operating profit jumping 66.1% to ¥1.57 billion, driving a 70.8% increase in profit attributable to owners of the parent to ¥1.23 billion and boosting basic earnings per share to ¥154.00. The company’s financial position improved as total assets rose to ¥42.0 billion and net assets to ¥16.8 billion, lifting net assets per share to ¥2,098.01, while management kept its full-year forecast unchanged, targeting ¥110.0 billion in sales and ¥1.9 billion in profit attributable to owners, and signaled confidence through a higher interim dividend of ¥40.00 per share and a projected annual payout of ¥70.00 per share, underscoring stronger earnings and shareholder returns.

The most recent analyst rating on (JP:3321) stock is a Buy with a Yen2090.00 price target. To see the full list of analyst forecasts on Mitachi Co., Ltd. stock, see the JP:3321 Stock Forecast page.