Mitsubishi Research Institute (3636) AI Stock Analysis

• Market Cap: ¥79.63B
• Dividend Yield: 3.28%
• Average Volume (3M): 24.01K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.86
• Revenue Growth: 5.28%
• EPS Growth: 28.90%
• Country: JP
• Employees: 4,573
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 167.27
• Shares Outstanding: 16,044,000
• 10 Day Avg. Volume: 20,130
• 30 Day Avg. Volume: 24,010
• PEG Ratio: 0.45
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 0.67
• P/FCF Ratio: 29.06
• 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): 358.2
• Revenue Forecast (FY): ¥124.64B

• Rating: 77 Outperform
• Price Target: ¥5,902.00 ▲(21.44% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is driven primarily by strong financial performance (profitability and a very low-leverage balance sheet) and an attractive valuation (low P/E with a solid dividend). Technicals are supportive but less decisive due to mixed momentum signals, and declining free cash flow trends temper the otherwise solid fundamentals.

Positive Factors

Low leverage / strong balance sheet

A very low debt-to-equity ratio (0.014) and a robust equity base provide durable financial flexibility. Minimal leverage reduces solvency risk, supports investment or dividend policy through cycles, and makes the firm less vulnerable to interest-rate shocks over months.

Consistent revenue growth with improving margins

Steady revenue growth and improving gross margin indicate persistent demand and better cost control. Sustained margin improvement supports long-term profitability and operational resilience, enabling reinvestment into services and IT capabilities across multiple reporting periods.

Fee-based, recurring client model with public-sector exposure

A core business of fee-based consulting plus recurring engagements—including work for government and public-sector clients—creates stable, contract-driven revenue streams. This structural client stickiness supports predictability and follow-on implementation work over months.

Negative Factors

Declining free cash flow conversion

A notable drop in free cash flow growth and a lower FCF-to-net-income ratio indicate weaker cash conversion. Over a 2-6 month horizon this constrains funds for capex, strategic investment or cushioning against downturns, reducing financial optionality.

Softening return on equity

A decline in ROE signals the company is generating less profit per unit of shareholder equity. Persistently softer ROE can reflect lower capital efficiency or margin pressure and may limit long-term shareholder value creation if not arrested.

Modest net margin limits reinvestment

A mid-single-digit net margin constrains the internal cash available for growth investments, R&D or larger IT projects. In a services-heavy model this limits the pace of scaling or making strategic acquisitions without altering financing, impacting medium-term growth options.

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

Strong overall fundamentals: revenue grew 4.05% with improved gross margin (24.91%) and solid profitability (net margin 5.26%). Balance sheet strength is a key positive with very low leverage (debt-to-equity 0.014), though ROE has softened. Main risk area is cash conversion, as free cash flow growth and FCF-to-net-income have declined despite healthy operating cash flow.

Income Statement

Mitsubishi Research Institute has demonstrated consistent revenue growth with a 4.05% increase in the latest year, following a recovery from a slight dip the previous year. The gross profit margin has improved to 24.91%, indicating efficient cost management. Net profit margin stands at 5.26%, reflecting solid profitability. The EBIT and EBITDA margins have also shown positive trends, enhancing operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.014, indicating minimal leverage and financial stability. The equity ratio is robust, highlighting a strong equity base. However, the return on equity has slightly decreased, suggesting room for improvement in generating returns from shareholders' equity.

Cash Flow

Operating cash flow remains healthy, but there has been a significant decline in free cash flow growth, which could impact future investments. The operating cash flow to net income ratio is stable, indicating good cash generation relative to net income. However, the free cash flow to net income ratio has decreased, suggesting potential challenges in converting profits into free cash flow.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	121.46B	115.36B	122.13B	116.62B	103.03B
Gross Profit	30.26B	25.42B	25.98B	26.58B	23.45B
EBITDA	13.72B	11.75B	13.40B	15.80B	11.48B
Net Income	6.39B	5.00B	6.29B	7.71B	5.01B
Balance Sheet
Total Assets	128.11B	119.73B	118.01B	114.65B	99.70B
Cash, Cash Equivalents and Short-Term Investments	30.31B	30.93B	25.23B	33.16B	29.40B
Total Debt	1.04B	1.11B	2.09B	3.53B	4.93B
Total Liabilities	46.77B	43.36B	43.63B	43.50B	35.87B
Stockholders Equity	71.92B	67.63B	65.80B	63.05B	56.28B
Cash Flow
Free Cash Flow	2.81B	9.41B	219.00M	6.07B	636.00M
Operating Cash Flow	6.42B	13.54B	5.70B	9.26B	3.25B
Investing Cash Flow	-4.00B	-2.91B	-2.41B	-6.65B	-1.97B
Financing Cash Flow	-3.01B	-4.94B	-6.20B	-3.85B	-4.62B

Mitsubishi Research Institute Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4860.00
• 50DMA: Positive
• 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:3636, the sentiment is Positive. The current price of 4860 is below the 20-day moving average (MA) of 5014.50, below the 50-day MA of 4991.30, and above the 200-day MA of 4819.83, indicating a bullish trend. The MACD of -15.04 indicates Positive momentum. The RSI at 52.33 is Neutral, neither overbought nor oversold. The STOCH value of 58.48 is Neutral, 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
3636	77 Outperform	¥79.63B	9.87	―	3.28%	5.28%	28.90%
2317	76 Outperform	¥160.18B	14.15	―	2.30%	13.82%	37.07%
9715	75 Outperform	¥153.08B	10.80	11.52%	2.76%	4.00%	38.72%
3655	70 Outperform	¥58.97B	606.48	―	0.28%	8.64%	-23.20%
9682	66 Neutral	¥181.68B	15.39	18.89%	2.78%	11.90%	60.66%
4725	65 Neutral	¥32.65B	10.11	10.34%	4.82%	-3.03%	38.83%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Mitsubishi Research Institute Corporate Events

Mitsubishi Research Institute Posts Profit Surge but Keeps Cautious Full-Year Outlook

Mitsubishi Research Institute reported a strong rebound in earnings for the quarter ended December 31, 2025, with net sales rising 11.5% year on year to ¥30.9 billion and profit attributable to owners of parent surging 165.6% to ¥2.63 billion, driving basic earnings per share up to ¥167.27. The company also strengthened its financial position, as the equity-to-asset ratio improved to 59.0%, while it kept its full-year forecasts for the fiscal year ending September 30, 2026 unchanged, projecting essentially flat net sales and a modest decline in profits, and reaffirmed plans to maintain the annual dividend at ¥165 per share, signaling stability for shareholders despite expectations of lower profitability ahead.

The most recent analyst rating on (JP:3636) stock is a Buy with a Yen5341.00 price target. To see the full list of analyst forecasts on Mitsubishi Research Institute stock, see the JP:3636 Stock Forecast page.