MIT Holdings Co., Ltd. (4016) AI Stock Analysis

• Market Cap: ¥2.06B
• Dividend Yield: 3.07%
• Average Volume (3M): 20.94K
• Price to Earnings (P/E): 20.3
• Beta (1Y): 0.54
• Revenue Growth: 2.07%
• EPS Growth: 11.34%
• Country: JP
• Employees: 398
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -12.87
• Shares Outstanding: 2,126,800
• 10 Day Avg. Volume: 24,330
• 30 Day Avg. Volume: 20,940
• PEG Ratio: -0.88
• Price to Book (P/B): 2.81
• Price to Sales (P/S): 0.40
• P/FCF Ratio: 6.61
• 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: 57 Neutral
• Price Target: ¥1,005.00 ▲(3.08% Upside)

The score is driven primarily by moderately improving fundamentals (better leverage and strong recent free cash flow) but capped by slowing top-line momentum and thin profitability. Technical indicators are a meaningful drag due to bearish trend signals, while valuation is neutral-to-slightly supportive given a moderate P/E and ~3% dividend yield.

Positive Factors

Improving Leverage

Debt reduction to roughly 1.0x debt-to-equity materially reduces balance-sheet risk and increases financial flexibility. This improves capacity to fund capex or absorb cyclical downturns, supporting longer-term investment in manufacturing and client contracts.

Strong Recent Free Cash Flow

High cash-conversion quality and FCF nearly matching net income in 2025 bolster internal funding for R&D, capex and debt repayment. Consistent positive FCF over the latest cycle strengthens resilience and supports shareholder returns and strategic reinvestment.

Diversified Manufacturing & Partnerships

A diversified product mix (PCBs, assemblies, custom solutions) plus long-term technology partnerships and R&D investment provide durable revenue streams and technical differentiation, lowering client concentration risk and supporting premium pricing over time.

Negative Factors

Slowing Top-line Momentum

A recent revenue decline signals weakening demand or competitive pressure that can persist across cycles. Slower top-line growth limits operating leverage and constrains capacity to expand margins or fund new product investments without external financing.

Thin Net Profitability

Very low net margins leave minimal buffer for cost shocks and reduce retained earnings for reinvestment. Structural margin thinness limits ability to absorb raw material or pricing pressure and makes returns sensitive to small revenue swings.

Historic Cash-Flow Volatility

Past episodes of negative or weak cash flow highlight inconsistency in cash generation despite recent improvements. This volatility raises execution risk for sustaining investments, dividends or continued debt reduction during adverse cycles.

MIT Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

MIT Holdings Co., Ltd. provides system integration solutions. It also offers security solutions that ensure customers' security and security, including face authentication, fingerprint authentication, vein authentication, card authentication, and surveillance camera system. In addition, it provides CAD, digital catalog, drone ministerium, and system solutions, as well as is involved in content, welfare, and education businesses. MIT Holdings Co., Ltd. was founded in 2009 and is based in Chiba, Japan.

How the Company Makes Money

MIT Holdings generates revenue through multiple streams, primarily from the sale of its electronic components and assembly services. The company benefits from a robust client base in both domestic and international markets, allowing it to secure substantial contracts for the production of PCBs and related electronic products. Additionally, MIT Holdings engages in long-term partnerships with leading technology firms, providing them with specialized manufacturing capabilities. The company's focus on innovation and quality assurance further enhances its competitive edge, enabling it to command premium pricing for its products. Furthermore, MIT Holdings invests in research and development to expand its product offerings, which contributes to consistent revenue growth.

MIT Holdings Co., Ltd. Financial Statement Overview

Summary

Financials are improving but mixed: leverage has trended down to about ~1.0x debt-to-equity, and free cash flow was strong in 2024–2025 with good cash conversion. Offsetting this, 2025 revenue declined (-3.7%) and net margins remain thin (~1.9%), with a historically uneven cash flow record.

Income Statement

Revenue has expanded over the long run (2020–2024), but the latest year (2025) shows a decline (-3.7%), indicating slowing momentum. Profitability is positive but thin: gross margin has been steady around ~21%–22%, while net margin remains low (about 1.9% in 2025 vs. 2.4% in 2024). Operating profitability improved versus earlier years, but the step-down in 2025 profit levels suggests limited pricing power and sensitivity to cost pressure.

Balance Sheet

Leverage is meaningful but trending better: debt relative to equity improved from elevated levels in 2023–2024 (above 1.6x and peaking above 2.0x) to about ~1.0x in 2025, which reduces balance-sheet risk. Equity has grown in recent years, supporting the capital base. Returns on equity are decent (mid-teens in 2025), though the company still carries enough debt that earnings volatility could matter.

Cash Flow

Cash generation looks solid recently: operating cash flow is positive and free cash flow is strong in 2024–2025, with 2025 free cash flow nearly matching net income (high cash-conversion quality). However, cash flow has been volatile historically (notably negative operating and free cash flow in 2020 and very weak free cash flow in 2022), so consistency remains a key watch item.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.31B	5.12B	5.24B	4.79B	4.36B	3.87B
Gross Profit	1.18B	1.10B	1.18B	1.06B	962.11M	801.46M
EBITDA	345.57M	269.70M	317.24M	259.04M	227.83M	127.71M
Net Income	143.40M	94.86M	124.64M	47.52M	45.42M	28.68M
Balance Sheet
Total Assets	2.30B	2.11B	2.44B	2.27B	1.79B	1.56B
Cash, Cash Equivalents and Short-Term Investments	1.06B	817.51M	988.59M	766.98M	513.75M	381.29M
Total Debt	918.25M	726.25M	1.11B	1.16B	822.74M	585.00M
Total Liabilities	1.59B	1.38B	1.78B	1.72B	1.28B	982.57M
Stockholders Equity	707.09M	723.29M	663.90M	551.81M	516.03M	574.31M
Cash Flow
Free Cash Flow	0.00	307.64M	287.03M	86.74M	2.88M	18.59M
Operating Cash Flow	0.00	308.16M	354.77M	234.72M	177.38M	128.74M
Investing Cash Flow	0.00	-56.38M	-70.77M	-62.73M	-123.09M	-144.45M
Financing Cash Flow	0.00	-423.46M	-63.00M	78.74M	78.17M	50.55M

MIT Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 975.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4016, the sentiment is Negative. The current price of 975 is below the 20-day moving average (MA) of 975.95, below the 50-day MA of 1003.44, and above the 200-day MA of 973.61, indicating a bearish trend. The MACD of -9.25 indicates Negative momentum. The RSI at 38.86 is Neutral, neither overbought nor oversold. The STOCH value of 18.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4016.

MIT Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3974	73 Outperform	¥2.82B	14.35	―	2.35%	0.40%	21.21%
3908	68 Neutral	¥1.91B	13.40	―	―	-10.98%	―
3670	67 Neutral	¥2.56B	8.98	―	2.76%	-9.03%	53.70%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4016	57 Neutral	¥2.06B	20.30	―	3.07%	2.07%	11.34%
4444	56 Neutral	¥1.84B	-34.79	―	―	5.17%	-148.66%
9240	51 Neutral	¥2.59B	27.54	―	―	6.61%	12.06%