MIRAI Corporation (3476) AI Stock Analysis

• Market Cap: ¥82.78B
• Dividend Yield: 5.55%
• Average Volume (3M): 4.42K
• Price to Earnings (P/E): 17.8
• Beta (1Y): 0.18
• Revenue Growth: -35.89%
• EPS Growth: -5.78%
• Country: JP
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 60
• Industry: REIT - Diversified
• EPS (TTM): 2447.21
• Shares Outstanding: 1,907,440
• 10 Day Avg. Volume: 3,766
• 30 Day Avg. Volume: 4,423
• PEG Ratio: 10.33
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.15
• 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: ―

MIRAI Corporation's strong financial health and positive stock trends contribute significantly to its score. The company's robust revenue growth and solid balance sheet are major strengths, while cash flow volatility and high debt levels are key risk areas. The technical indicators suggest a bullish trend, though valuation metrics indicate the stock is fairly valued relative to its peers. The attractive dividend yield adds to its appeal for income-focused investors.

MIRAI Corporation Business Overview & Revenue Model

Company Description

MIRAI Corporation (3476) is a diversified Japanese company operating primarily in the technology and innovation sectors. The company focuses on developing cutting-edge solutions and services in fields such as artificial intelligence, robotics, and advanced manufacturing. MIRAI is committed to driving technological advancements that enhance productivity and efficiency across various industries, offering a range of products and services tailored to meet the evolving needs of its clients.

How the Company Makes Money

MIRAI Corporation generates revenue through multiple streams, including the sale of proprietary technology products, licensing of intellectual property, and providing consulting and integration services. The company collaborates with a network of partners and stakeholders to leverage synergies and expand its market reach. Revenue is also driven by its investment in research and development, which allows MIRAI to stay at the forefront of innovation and maintain a competitive edge in the technology sector. Key factors contributing to its earnings include strategic partnerships with industry leaders, government contracts, and its ability to adapt to emerging trends and client demands.

MIRAI Corporation Financial Statement Overview

Summary

MIRAI Corporation exhibits strong financial health with robust revenue and profit growth, supported by efficient operations and a solid balance sheet. However, the volatility in free cash flow and high debt levels suggest potential risk areas that need careful management.

Income Statement

MIRAI Corporation has demonstrated robust revenue growth with a consistent increase in total revenue over the years, including a 5.8% growth from 2023 to 2024. The gross profit margin in 2024 is 54.6%, indicating efficient cost management. The company maintains healthy profitability metrics with a net profit margin of 38.4% and an EBIT margin of 45.0% in 2024. EBITDA margin also remains strong at 56.8%. These metrics reflect strong operational performance, although a slight decrease in gross profit margin compared to 2022 suggests room for improvement.

Balance Sheet

MIRAI Corporation's balance sheet is solid with a debt-to-equity ratio of 1.05, indicating a balanced approach to leveraging. The equity ratio stands at 46.3%, showing a strong equity base relative to total assets. Return on equity is impressive at 53.2%, demonstrating efficient use of shareholder funds to generate profits. However, the high level of total debt poses potential risks if economic conditions were to worsen, necessitating cautious monitoring.

Cash Flow

The cash flow situation presents a mixed picture. The free cash flow has shown volatility, with a significant decline in 2024 resulting in negative free cash flow of -7.37 billion. Despite this, the operating cash flow to net income ratio remains positive at 1.38, highlighting strong cash generation relative to net income. The free cash flow to net income ratio is concerning at -1.59, indicating potential issues with liquidity if this trend continues.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
12.09B	11.43B	10.94B	10.09B	10.82B
	Gross Profit
6.60B	5.08B	6.24B	5.76B	6.53B
	EBIT
5.44B	5.29B	5.16B	4.72B	5.49B
	EBITDA
6.86B	6.68B	6.46B	5.96B	6.69B
	Net Income Common Stockholders
4.64B	4.60B	4.57B	4.22B	4.97B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.39B	3.00B	4.51B	2.54B	3.26B
	Total Assets
188.23B	174.75B	172.79B	161.23B	159.22B
	Total Debt
91.90B	85.50B	84.00B	78.70B	75.70B
	Net Debt
88.51B	82.50B	79.49B	76.16B	72.44B
	Total Liabilities
100.98B	93.35B	91.76B	85.92B	83.79B
	Stockholders Equity
87.25B	81.39B	81.03B	75.31B	75.43B
Cash Flow		Free Cash Flow
-7.37B	1.56B	-3.95B	966.43M	-2.55B
	Operating Cash Flow
6.39B	12.78B	7.84B	11.67B	12.04B
	Investing Cash Flow
-13.28B	-11.13B	-11.44B	-10.97B	-14.21B
	Financing Cash Flow
7.58B	-3.14B	5.86B	-1.47B	337.73M

MIRAI Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 43400.00
• 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:3476, the sentiment is Positive. The current price of 43400 is above the 20-day moving average (MA) of 42597.50, above the 50-day MA of 41742.52, and above the 200-day MA of 40391.56, indicating a bullish trend. The MACD of 441.32 indicates Negative momentum. The RSI at 60.10 is Neutral, neither overbought nor oversold. The STOCH value of 77.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3476.

MIRAI Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3451	75 Outperform	¥48.94B	17.33		5.72%	3.37%	1.38%
3476	75 Outperform	¥82.78B	17.83		5.55%	-35.89%	-5.78%
Sector *	61 Neutral	$2.83B	10.92	0.41%	8438.90%	5.75%	-21.03%

MIRAI Corporation Corporate Events

MIRAI Corporation Announces Strategic Asset Replacement to Boost Profitability

MIRAI Corporation announced a strategic initiative focused on asset replacement to enhance portfolio profitability and internal growth. The company plans to dispose of assets with low growth potential and acquire ones with a higher distribution per unit (DPU) contribution, alongside expected rent and future potential increases, aiming for improved profitability and stakeholder returns. This asset replacement strategy is anticipated to improve MIRAI’s market positioning by contributing to mid-to-long-term growth and profitability, with a projected 7.4% upward revision in DPU. Stakeholders can expect a 20 yen increase per unit in the upcoming financial period.

MIRAI Corporation Boosts Financial Forecasts Amid Strategic Asset Replacements

MIRAI Corporation has revised its financial forecasts for the fiscal period ending April 30, 2025, showing increased revenue and profit expectations due to strategic asset replacement. The company aims to enhance profitability and leverage market conditions by acquiring new assets while maintaining a focus on optimizing cash flow and portfolio strength amid economic pressures.

MIRAI Corporation Expands Portfolio with Strategic Real Estate Acquisitions

MIRAI Corporation announced the acquisition and leasing of three real estate assets in Japan, namely ‘MI Terrace Yokohama Nishiguchi,’ ‘MI Terrace Nagoya Aoi,’ and ‘NPC Toyamaeki-Mae Square (land).’ This decision is part of their asset replacement strategy aimed at improving profitability through both external and internal growth. The acquisitions are aligned with MIRAI’s Mid-Term Management Plan 2025, ‘Smart Defense & Offense with Aligned Interest,’ which focuses on maximizing asset returns in light of rising interest expenses and inflation. These assets, located in regions with stable demand, are expected to provide stable cash flows and potential rental income increases, enhancing MIRAI’s portfolio’s profitability and growth potential.

MIRAI Corporation Enhances Portfolio Strategy with Key Property Disposition

MIRAI Corporation has announced the disposition and lease cancellation of two properties, Shibuya World East Building and Mi-Nara, as part of its asset replacement strategy to enhance distributions per unit according to its Mid-Term Management Plan 2025. The proceeds from this disposition will be used to acquire more profitable properties, reflecting a strategic shift towards improving profitability amidst market fluctuations and challenges faced during the COVID-19 pandemic. This move is expected to align MIRAI’s assets with its growth strategy while addressing challenges in the profitability of existing properties.