Mitsubishi Research Institute (3636) AI Stock Analysis

• Market Cap: ¥79.16B
• Dividend Yield: 3.29%
• Average Volume (3M): 24.09K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.87
• Revenue Growth: 5.28%
• EPS Growth: 28.90%
• Country: JP
• Employees: 4,573
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 88.82
• Shares Outstanding: 16,044,000
• 10 Day Avg. Volume: 29,230
• 30 Day Avg. Volume: 24,093
• PEG Ratio: -0.68
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 0.57
• P/FCF Ratio: 6.99
• 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): 60,613.6
• Revenue Forecast (FY): ¥19.74T

• Rating: 71 Outperform
• Price Target: ¥5,536.00 ▲(11.95% Upside)

The stock's overall score is driven by a solid financial foundation and fair valuation. While technical indicators are neutral, the main risks stem from revenue growth challenges and cash flow volatility. The dividend yield adds a positive aspect to the valuation.

Mitsubishi Research Institute Business Overview & Revenue Model

Company Description

Mitsubishi Research Institute, Inc. provides think tank, consulting, and IT services to government agencies, financial institutions, and private companies in Japan. Its service solutions include management consulting, digital innovation, financial innovation, environment/energy, healthcare/wellness, regional revitalization, next-generation infrastructure, science/safety, nuclear safety, economy/society/R&D, project case, and public sector orders. Mitsubishi Research Institute, Inc. has a partnership with ForePaaS SAS to deliver cloud-native data intensive solutions in Japan. The company was founded in 1970 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Mitsubishi Research Institute generates revenue through various streams, primarily by offering consulting services, research and analysis, and strategic planning to government agencies and corporations. The company charges fees for its expert consulting services, which are tailored to meet the specific needs of clients in diverse sectors such as energy, transportation, and urban development. Additionally, MRI conducts commissioned research projects funded by public institutions and private enterprises, providing valuable insights and data that drive decision-making processes. Key partnerships with governmental bodies, academic institutions, and industry leaders further enhance its service offerings and contribute to its earnings. The firm's ability to leverage its expertise in emerging technologies and sustainable practices also plays a crucial role in attracting clients and generating revenue.

Mitsubishi Research Institute Financial Statement Overview

Summary

The company shows strong balance sheet metrics with low leverage and a healthy equity base. However, challenges in revenue growth and cash flow volatility are notable risks. Operational efficiency is evident, but improvements in cash flow management are needed.

Income Statement

The income statement reflects moderate performance. The TTM gross profit margin is approximately 22.45%, while the net profit margin is 4.17%. Both margins indicate effective cost control but could benefit from improvement. Revenue growth has been inconsistent, with a decline in recent periods, suggesting challenges in maintaining top-line growth. EBIT and EBITDA margins are healthy at 5.64% and 9.38% respectively, indicating operational efficiency.

Balance Sheet

The balance sheet is strong, with low leverage and a healthy equity base. The debt-to-equity ratio is conservative at approximately 0.01, reflecting minimal financial risk. The return on equity is satisfactory at 7.15%, indicating efficient use of equity capital. With an equity ratio of 57.15%, the company maintains a robust capital structure, ensuring financial stability.

Cash Flow

Cash flow analysis shows mixed results. While free cash flow has shown volatility, the operating cash flow to net income ratio was not calculable due to missing data for the latest TTM period. Historical cash flow performance suggests room for improvement in cash flow management, especially in converting net income to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	116.73B	115.36B	122.13B	116.62B	103.03B	92.02B
Gross Profit	26.73B	25.42B	25.98B	26.58B	23.45B	21.24B
EBITDA	10.82B	11.75B	13.40B	15.80B	11.48B	14.35B
Net Income	5.14B	5.00B	6.29B	7.71B	5.01B	7.10B
Balance Sheet
Total Assets	122.96B	119.73B	118.01B	114.65B	99.70B	96.25B
Cash, Cash Equivalents and Short-Term Investments	34.59B	30.93B	25.23B	33.16B	29.40B	32.74B
Total Debt	879.00M	1.11B	2.09B	3.53B	4.93B	4.89B
Total Liabilities	43.68B	43.36B	43.63B	43.50B	35.87B	34.71B
Stockholders Equity	70.34B	67.63B	65.80B	63.05B	56.28B	53.86B
Cash Flow
Free Cash Flow	0.00	9.41B	219.00M	6.07B	636.00M	5.98B
Operating Cash Flow	0.00	13.54B	5.70B	9.26B	3.25B	8.64B
Investing Cash Flow	0.00	-2.91B	-2.41B	-6.65B	-1.97B	-749.00M
Financing Cash Flow	0.00	-4.94B	-6.20B	-3.85B	-4.62B	-1.11B

Mitsubishi Research Institute Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4945.00
• 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:3636, the sentiment is Positive. The current price of 4945 is above the 20-day moving average (MA) of 4934.50, below the 50-day MA of 4967.31, and above the 200-day MA of 4693.70, indicating a bullish trend. The MACD of -13.91 indicates Negative momentum. The RSI at 54.80 is Neutral, neither overbought nor oversold. The STOCH value of 80.03 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3636.

Mitsubishi Research Institute Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9889	76 Outperform	¥89.85B	16.74	―	3.13%	5.09%	26.12%
2317	76 Outperform	¥193.15B	18.58	―	2.36%	13.82%	37.07%
9715	75 Outperform	$139.40B	10.17	11.52%	2.90%	4.00%	38.72%
4722	73 Outperform	¥188.65B	18.46	―	2.08%	9.29%	1.18%
3636	71 Outperform	¥79.16B	12.33	―	3.29%	5.28%	28.90%
9682	66 Neutral	¥187.88B	16.55	18.89%	2.63%	11.90%	60.66%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Mitsubishi Research Institute Corporate Events

Mitsubishi Research Institute Reports Strong Fiscal Year 2025 Financial Results

Mitsubishi Research Institute reported a strong financial performance for the fiscal year ended September 30, 2025, with significant increases in net sales, operating profit, and profit attributable to owners of the parent. The company experienced a notable improvement in comprehensive income, reflecting a robust recovery from the previous fiscal year. This financial growth positions Mitsubishi Research Institute favorably within its industry, potentially enhancing its market competitiveness and stakeholder confidence.

The most recent analyst rating on (JP:3636) stock is a Buy with a Yen5491.00 price target. To see the full list of analyst forecasts on Mitsubishi Research Institute stock, see the JP:3636 Stock Forecast page.