Mitsubishi Research Institute (3636) AI Stock Analysis

• Market Cap: ¥70.21B
• Dividend Yield: 3.63%
• Average Volume (3M): 33.85K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 0.81
• Revenue Growth: -0.93%
• EPS Growth: -37.97%
• Country: JP
• Employees: 4,573
• Sector: Technology
• Sector Strength: 77
• Industry: Information Technology Services
• EPS (TTM): 247.06
• Shares Outstanding: 16,044,000
• 10 Day Avg. Volume: 35,480
• 30 Day Avg. Volume: 33,846
• PEG Ratio: -0.82
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 64 Neutral
• Price Target: ―

The overall score reflects a solid financial foundation with operational efficiency and a strong balance sheet. However, challenges such as revenue growth inconsistency and cash flow volatility weigh on performance. Technical analysis indicates potential downward pressure, while valuation metrics show moderate attractiveness. Addressing revenue and cash flow issues could improve the stock's appeal.

Mitsubishi Research Institute Business Overview & Revenue Model

Company Description

Mitsubishi Research Institute (MRI) is a leading Japanese think tank and consulting firm that operates primarily in the sectors of research, consulting, and information technology services. The institute provides comprehensive solutions to a wide range of industries, including finance, government, healthcare, and energy. MRI's core services include strategic consulting, policy analysis, technology implementation, and data analysis. Their offerings are designed to help clients navigate complex challenges and optimize their operations through innovative and informed decision-making.

How the Company Makes Money

Mitsubishi Research Institute generates revenue primarily through its consulting and research services. The company earns money by providing expert advice and insights to businesses and governmental organizations, assisting them in strategy development, policy formulation, and effective decision-making. MRI also profits from its technology solutions, which include IT system design, implementation, and data management services. These services are often tailored to meet the specific needs of each client, allowing MRI to cultivate long-term partnerships and secure recurring revenue streams. Additionally, the institute may engage in collaborative projects or partnerships with other research entities and corporations, enhancing its service offerings and expanding its market reach.

Mitsubishi Research Institute Financial Statement Overview

Summary

Mitsubishi Research Institute shows strong operational efficiency and a robust balance sheet with low leverage. However, inconsistent revenue growth and cash flow volatility present challenges. Continued focus on cash flow management and improving revenue consistency could bolster financial health.

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
115.40B	115.36B	122.13B	116.62B	103.03B	92.02B
	Gross Profit
25.91B	25.42B	25.98B	26.58B	23.45B	21.24B
	EBIT
6.50B	7.06B	8.69B	9.16B	6.85B	8.49B
	EBITDA
10.82B	11.75B	13.40B	15.80B	11.48B	14.35B
	Net Income Common Stockholders
4.82B	5.00B	6.29B	7.71B	5.01B	7.10B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
21.31B	30.93B	25.23B	33.16B	29.40B	32.74B
	Total Assets
117.90B	119.73B	118.01B	114.65B	99.70B	96.25B
	Total Debt
852.00M	1.11B	2.09B	3.53B	4.93B	4.89B
	Net Debt
-20.46B	-29.82B	-23.14B	-24.63B	-24.47B	-27.85B
	Total Liabilities
41.74B	43.36B	43.63B	43.50B	35.87B	34.71B
	Stockholders Equity
67.38B	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: Negative
• Last Price: 4405.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 4405 is below the 20-day moving average (MA) of 4623.75, below the 50-day MA of 4658.17, and below the 200-day MA of 4434.98, indicating a neutral trend. The MACD of -58.00 indicates Positive momentum. The RSI at 42.13 is Neutral, neither overbought nor oversold. The STOCH value of 48.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥96.60B	18.73		2.42%	5.92%	34.68%
4722	73 Outperform	¥179.97B	17.79		2.06%	19.53%	9.84%
9682	73 Outperform	¥175.18B	18.91	17.46%	2.84%	8.80%	50.65%
2317	70 Outperform	¥141.33B	16.84		3.12%	3.92%	18.80%
9715	67 Neutral	$123.66B	10.91	9.87%	3.04%	3.77%	12.41%
3636	64 Neutral	¥70.21B	19.02		3.63%	-0.93%	-37.97%
Sector *	61 Neutral	$11.29B	10.07	-7.05%	2.96%	7.47%	-10.75%

Mitsubishi Research Institute Corporate Events

Mitsubishi Research Institute Reports Decline in Semi-Annual Financial Results

Mitsubishi Research Institute reported a decrease in its consolidated financial results for the six months ended March 31, 2025, with net sales dropping by 1.6% and operating profit declining by 20.7% compared to the previous year. Despite these challenges, the company maintains a strong equity-to-asset ratio and has revised its earnings forecasts, indicating strategic adjustments to navigate the current market conditions.