Mitsuchi Corporation (3439) AI Stock Analysis

• Market Cap: ¥3.17B
• Dividend Yield: 3.21%
• Average Volume (3M): 1.99K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.52
• Revenue Growth: -6.06%
• EPS Growth: -116.98%
• Country: JP
• Employees: 494
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 14.24
• Shares Outstanding: 5,304,040
• 10 Day Avg. Volume: 2,180
• 30 Day Avg. Volume: 1,986
• PEG Ratio: 0.26
• Price to Book (P/B): 0.32
• Price to Sales (P/S): 0.25
• P/FCF Ratio: 4.35
• 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: 52 Neutral
• Price Target: ¥636.00 ▲(1.27% Upside)

Mitsuchi Corporation's overall stock score is primarily impacted by its financial performance challenges, particularly in profitability and cash flow stability. Technical analysis provides a neutral outlook with stable price trends but potential bearish momentum. The negative valuation due to a negative P/E ratio is a significant concern, although the dividend yield offers some compensation.

Positive Factors

Market Position

Mitsuchi's strong market position in electronic components, driven by quality and innovation, ensures competitive advantage and long-term growth potential.

Business Model Strength

Mitsuchi's focus on essential components for automotive and industrial sectors provides a stable and recurring revenue base, supporting long-term sustainability.

Partnerships

Strategic partnerships with major manufacturers enhance Mitsuchi's market reach and ensure steady demand, contributing to sustained revenue and growth.

Negative Factors

Profitability Challenges

Declining profitability and negative net profit margins indicate operational challenges, which could impact long-term financial health and investment capacity.

Revenue Decline

A decline in revenue suggests potential market or operational challenges, which could affect Mitsuchi's ability to grow and maintain its competitive position.

Cash Flow Instability

Inconsistent cash flow growth limits Mitsuchi's ability to invest in new opportunities and manage debt, potentially affecting long-term strategic initiatives.

Mitsuchi Corporation Business Overview & Revenue Model

Company Description

Mitsuchi Corporation manufactures, delivers, and sells custom fasteners for automotive components in Japan. The company offers engines, seats, powertrains, steering, rear-door locks, airbags, brakes, window regulators, undercarriage, and suspension systems; cold-forged products, including deformation, hole machining, gear processing, hole and gear processing, and forming and forging products. It also provides assembled products for window regulators and rear-door locks; and sun quick nuts, all quick nutters, and quick joints. The company was formerly known as Mitsuchi Byora Co., Ltd. and changed its name to Mitsuchi Corporation in February 1975. Mitsuchi Corporation was incorporated in 1963 and is headquartered in Kasugai, Japan.

How the Company Makes Money

Mitsuchi Corporation generates revenue through the sale of its wide range of electrical and electronic components to various industries. The company's primary revenue streams include the production and distribution of connectors and sensors, which are essential in automotive and industrial applications. Additionally, Mitsuchi has established significant partnerships with major manufacturers in the automotive and telecommunications sectors, enhancing its market reach and ensuring a steady demand for its products. The company's focus on innovation and quality control also helps maintain customer loyalty and facilitates long-term contracts, contributing to its overall earnings.

Mitsuchi Corporation Financial Statement Overview

Summary

Mitsuchi Corporation faces challenges in profitability and cash flow stability. The income statement shows declining profitability with a negative net profit margin, while the balance sheet indicates manageable leverage but inconsistent returns. Cash flow analysis reveals declining free cash flow growth, posing risks for future investments.

Income Statement

Mitsuchi Corporation's income statement reveals challenges with profitability and growth. The gross profit margin has decreased over the years, indicating pressure on cost management. The net profit margin turned negative in the latest period, reflecting a loss, and revenue has declined slightly. However, the company has maintained a positive EBIT margin, suggesting some operational efficiency.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, indicating manageable leverage. However, the return on equity has been inconsistent, with recent periods showing negative returns. The equity ratio is stable, suggesting a solid capital structure, but the declining equity value is a concern.

Cash Flow

Cash flow analysis indicates a decline in free cash flow growth, which is concerning for future investments and debt servicing. The operating cash flow to net income ratio is healthy, suggesting good cash generation relative to earnings. However, the free cash flow to net income ratio has been volatile, reflecting inconsistent cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.41B	12.41B	13.15B	12.56B	12.45B	13.78B
Gross Profit	1.55B	2.01B	2.27B	1.76B	2.24B	2.22B
EBITDA	482.61M	688.30M	1.37B	833.65M	1.32B	1.34B
Net Income	-94.65M	-95.70M	419.31M	-32.24M	395.41M	415.92M
Balance Sheet
Total Assets	15.86B	15.86B	16.45B	16.68B	16.41B	17.01B
Cash, Cash Equivalents and Short-Term Investments	4.95B	4.95B	4.51B	4.06B	4.09B	4.32B
Total Debt	3.61B	3.61B	3.55B	4.47B	4.52B	5.09B
Total Liabilities	6.19B	6.19B	6.47B	7.45B	7.34B	8.38B
Stockholders Equity	9.67B	9.67B	9.98B	9.23B	9.07B	8.63B
Cash Flow
Free Cash Flow	0.00	709.71M	1.13B	-76.19M	441.43M	1.04B
Operating Cash Flow	0.00	885.79M	1.32B	700.34M	841.87M	1.46B
Investing Cash Flow	0.00	-521.59M	-511.67M	-516.73M	-365.92M	-991.19M
Financing Cash Flow	0.00	-356.84M	-989.91M	-145.33M	-798.80M	-61.35M

Mitsuchi Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 628.00
• 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:3439, the sentiment is Positive. The current price of 628 is above the 20-day moving average (MA) of 621.40, above the 50-day MA of 610.91, and above the 200-day MA of 608.83, indicating a bullish trend. The MACD of 4.69 indicates Negative momentum. The RSI at 62.74 is Neutral, neither overbought nor oversold. The STOCH value of 55.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3439.

Mitsuchi Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7284	71 Outperform	¥4.30B	6.94	―	4.08%	3.46%	―
7219	70 Neutral	¥3.17B	10.26	―	2.92%	-0.31%	3.93%
7217	68 Neutral	¥3.92B	13.59	―	4.39%	9.38%	0.07%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7215	59 Neutral	¥3.53B	11.37	―	―	-9.58%	―
3439	52 Neutral	¥3.17B	-42.70	―	3.21%	-6.06%	-116.98%
7256	51 Neutral	¥5.84B	-1.02	―	―	-9.54%	21.21%