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

• Market Cap: ¥16.77B
• Dividend Yield: 3.83%
• Average Volume (3M): 71.15K
• Price to Earnings (P/E): 5.3
• Beta (1Y): 0.86
• Revenue Growth: 202.83%
• EPS Growth: 77.02%
• Country: JP
• Employees: 490
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): N/A
• 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: 80 Outperform
• Price Target: ¥2,317.00 ▲(10.81% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is driven primarily by strong financial performance fundamentals (especially revenue growth and balance-sheet stability) and supported by attractive valuation (low P/E and solid dividend). Technicals are also constructive with a clear uptrend, though momentum looks somewhat extended; the main offset is weak cash-flow quality with negative operating and free cash flows.

Positive Factors

Revenue Growth

Sustained high revenue growth signals expanding market share and stronger customer demand in electronics trading. Over 2-6 months this trend supports scale economies, greater supplier leverage and potential to convert volume into durable contracts or broader distribution reach that underpin long-term earnings.

Balance Sheet Strength

Conservative leverage and a solid equity base provide financial flexibility to fund working capital, absorb shocks, and pursue opportunistic investments. This structural balance-sheet resiliency reduces refinancing risk and supports supplier/customer credit needs over multiple business cycles.

Business Model & Services

A trading/intermediary model combined with value-added services creates multiple revenue channels and embedded margins. Durable demand from industrial and technology clients for sourcing, logistics and inventory solutions supports recurring transactional flows and long-term customer relationships.

Negative Factors

Cash Flow Quality

Persistent negative operating and free cash flows signal inefficiencies converting earnings into cash, pressuring liquidity and limiting reinvestment or shareholder returns. Over months this can force higher working capital needs, reliance on external funding, or constrain strategic initiatives.

Thin Profit Margins

Low gross and net margins are typical in trading but make earnings highly sensitive to procurement costs, price competition and volume swings. Margins this slim require constant scale or service premiuming to generate durable net income and leave limited buffer versus adverse cost shocks.

Limited Differentiation / Concentration Info

Absence of disclosed proprietary products or major recurring-contract detail suggests reliance on transactional intermediation. This raises structural exposure to competitive pressure, customer concentration and commodity cycles, potentially increasing revenue volatility over the medium term.

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 generates revenue mainly through trading activities: it purchases products (e.g., electronic components, devices, and/or production-related equipment) from suppliers and sells them to corporate customers, earning a gross margin on the spread between procurement cost and sales price. Additional earnings may come from value-added functions commonly associated with electronics trading firms—such as sourcing support, logistics/fulfillment, inventory management, and coordination between makers and end users—where service fees or embedded margins can be captured in the overall transaction. Specific revenue breakdowns by segment, major customer/supplier partnerships, recurring service contracts, or the contribution of any proprietary products are null.

Mitachi Co., Ltd. Financial Statement Overview

Summary

Strong revenue growth (67.08%) and a stable balance sheet (debt-to-equity 0.76, ROE 10.83%) support the score, but negative operating/free cash flow and weak cash conversion meaningfully reduce financial quality.

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	10.18B	11.99B	579.44M	1.71B	1.86B	813.13M
Total Liabilities	23.82B	24.32B	5.64B	7.71B	8.58B	6.65B
Stockholders Equity	15.87B	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: Negative
• 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:3321, the sentiment is Positive. The current price of 2091 is below the 20-day moving average (MA) of 2208.30, below the 50-day MA of 2196.40, and above the 200-day MA of 1667.57, indicating a neutral trend. The MACD of -46.71 indicates Positive momentum. The RSI at 45.81 is Neutral, neither overbought nor oversold. The STOCH value of 35.33 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	80 Outperform	¥16.77B	5.31	―	3.83%	202.83%	77.02%
7745	80 Outperform	¥73.54B	8.26	―	2.31%	6.50%	30.54%
6866	79 Outperform	¥104.26B	10.89	―	3.23%	7.28%	4.16%
6859	75 Outperform	¥75.84B	12.98	―	3.12%	2.78%	-5.32%
6626	73 Outperform	¥31.09B	7.34	―	1.78%	4.47%	12.28%
6853	73 Outperform	¥19.70B	13.63	―	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.