Mitsui Chemicals (4183) AI Stock Analysis

• Market Cap: ¥754.98B
• Dividend Yield: 3.82%
• Average Volume (3M): 752.31K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 1.23
• Revenue Growth: -4.63%
• EPS Growth: -65.11%
• Country: JP
• Employees: 19,861
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 39.19
• Shares Outstanding: 401,687,620
• 10 Day Avg. Volume: 656,460
• 30 Day Avg. Volume: 752,313
• PEG Ratio: -0.56
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.35
• P/FCF Ratio: 7.97
• 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: ¥2,436.25
• Price Target Upside: 19.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 120.57
• Revenue Forecast (FY): ¥1.68T

• Rating: 61 Neutral
• Price Target: ¥2,037.00 ▼(-0.42% Downside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is driven primarily by pressured financial performance (weak TTM revenue and very thin profitability with volatile free cash flow) and a demanding valuation (high P/E). These are partially offset by strong technical momentum with price above key moving averages and positive MACD.

Positive Factors

Diversified end-markets

A broad end-market mix (automotive, packaging, electronics, healthcare, industrial) reduces exposure to any single cyclical industry. This structural diversification supports steadier revenue streams and demand resilience across business cycles, aiding medium-term cash predictability.

Higher-value specialty portfolio

A significant focus on specialty and functional materials implies higher technical content, longer qualification cycles, and stronger customer lock-in. These attributes tend to support more durable margins and repeatable revenue from tailored solutions versus commodity chemical sales.

Reasonable balance-sheet leverage

Debt-to-equity near the mid-single-digit range indicates a structurally serviceable capital structure, giving management flexibility to fund capex or invest in specialty R&D. A sizable equity base reduces refinancing stress during cyclical downturns.

Negative Factors

Revenue decline and thin profitability

Recent top-line contraction and a compressed net margin (~1%) weaken earnings power and reduce retained earnings capacity. If pricing or demand pressure persists, it will limit the company's ability to restore profitability and fund strategic initiatives without relying on external financing.

Volatile free cash flow

Irregular FCF and past negative free cash flow signal weaker cash conversion and higher sensitivity to capex or working capital swings. This constrains the firm's ability to deleverage, sustain dividends, or invest steadily in higher-margin specialty projects over the medium term.

Sharply falling return on equity

A collapse in ROE to near 2% indicates the business is currently generating very low returns on equity capital. Persistently low ROE can limit shareholder value creation, reduce reinvestment efficacy, and make it harder to justify continued capital allocation to lower-return segments.

Mitsui Chemicals Business Overview & Revenue Model

Company Description

Mitsui Chemicals, Inc. engages in the mobility, health care, food and packaging, basic materials, and other businesses. The company's Mobility segment develops elastomers, performance compounds, functional polymers, polypropylene compounds, and performance polymers; and offers services related to the development of automotive and industrial products. Its Health Care segment offers vision care materials, nonwoven fabrics, dental materials, and personal care materials. The Food & Packaging segment provides coating and engineering materials, performance films and sheets, and agrochemical products. The Basic Materials segment provides ethylene, propylene, polyethylene, polypropylene, catalysts, phenols, purified terephthalic acid, PET, polyurethane materials, and industrial chemical products. The company also offers civil engineering and construction materials; cosmetics; wood adhesives, paper resins, foliar activator, and other chemical products; polyolefin, urethanes, and synthetic resins and resin films; injection molds and presses; phosphoric acid and fertilizers; spunbonded nonwoven fabrics and synthetic fibers; monomers for optical lenses; and fine chemical products and inorganic chemicals. In addition, it is involved in performance analysis, physical property measurements, and safety tests on chemicals; and placements, temporary works, and insurance and travel services, and consignments, as well as the sale of electronics and information materials. The company sells its products in Japan, China, Asia, the Americas, Europe, and internationally. Mitsui Chemicals, Inc. was founded in 1892 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Mitsui Chemicals makes money primarily by manufacturing and selling chemical products and materials to industrial customers, with revenue recognized through product shipments under supply contracts and spot sales. Its revenue model spans (1) commodity/petrochemical-type products, where earnings depend heavily on production volume, plant utilization, and the spread between selling prices and feedstock/energy costs (with profitability influenced by market supply-demand cycles and raw-material price pass-through), and (2) specialty and functional materials, where the company seeks higher margins by selling differentiated polymers, compounds, films, and performance materials tailored to customer specifications and end-use requirements (often involving long-term customer relationships, technical service, and qualification cycles). Additional earnings are generated through value-added services tied to materials commercialization (e.g., application development and technical support that help embed its materials in customer products) and, where applicable, licensing/royalties or equity income from affiliates and joint ventures; specific details on material partnerships, the magnitude of non-product income, or segment-by-segment revenue shares are null.

Mitsui Chemicals Financial Statement Overview

Summary

Financials are mixed: TTM revenue declined (-2.5%) and net margin is thin (~1%), showing pressured earnings versus FY2022–FY2023. The balance sheet is reasonably structured with manageable leverage (debt-to-equity ~0.84–0.94), but ROE has fallen sharply (TTM ~2%). Operating cash flow is solid, yet free cash flow is volatile and recently weakened (TTM FCF growth ~-20%), indicating weaker cash conversion.

Income Statement

TTM (Trailing-Twelve-Months) revenue declined (-2.5%) and profitability is currently thin (about 1.0% net margin), indicating a weaker earnings environment versus prior years. While gross margin is relatively steady around the low-20% range and EBITDA margin remains near ~9–13% historically, net income has compressed materially from the stronger FY2022–FY2023 period (when net margins were meaningfully higher). Overall, the income statement shows acceptable operating profitability but elevated earnings volatility and a weaker recent demand/pricing backdrop.

Balance Sheet

Leverage appears manageable with debt-to-equity consistently around ~0.84–0.94, supported by a sizable equity base. That said, returns on equity have fallen sharply in the most recent periods (TTM around ~2% versus double-digit levels in FY2022–FY2023), signaling that the balance sheet is not currently generating strong shareholder returns. In short: balance sheet structure is reasonable, but profitability deterioration increases risk if conditions remain soft.

Cash Flow

Operating cash flow is solid and improved versus some prior years (TTM roughly ¥200B), but free cash flow has been inconsistent, including negative free cash flow in FY2022–FY2023 and a TTM decline (free cash flow growth about -20%). Cash conversion looks weaker in the latest period, with free cash flow only modestly exceeding net income (roughly ~0.33x), suggesting heavier reinvestment/capex needs and less cash retained for debt reduction or shareholder returns.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	1.69T	1.81T	1.75T	1.88T	1.61T	1.21T
Gross Profit	372.42B	370.51B	370.80B	381.49B	378.74B	293.84B
EBITDA	182.85B	192.92B	180.62B	181.19B	216.29B	155.92B
Net Income	17.11B	32.24B	50.00B	82.94B	109.99B	57.87B
Balance Sheet
Total Assets	2.21T	2.15T	2.22T	2.07T	1.93T	1.56T
Cash, Cash Equivalents and Short-Term Investments	192.23B	170.62B	210.29B	186.31B	181.15B	195.99B
Total Debt	758.45B	791.74B	811.46B	794.70B	715.06B	563.79B
Total Liabilities	1.20T	1.18T	1.23T	1.18T	1.13T	875.97B
Stockholders Equity	877.42B	848.28B	862.85B	786.83B	712.65B	607.92B
Cash Flow
Free Cash Flow	66.11B	79.29B	17.27B	-31.11B	-14.48B	99.42B
Operating Cash Flow	200.11B	200.50B	161.34B	101.24B	92.58B	174.32B
Investing Cash Flow	-183.59B	-165.01B	-123.93B	-121.93B	-214.49B	-74.75B
Financing Cash Flow	-12.53B	-74.44B	-26.03B	18.13B	98.48B	-71.76B

Mitsui Chemicals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2045.50
• 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:4183, the sentiment is Negative. The current price of 2045.5 is below the 20-day moving average (MA) of 2131.25, below the 50-day MA of 2202.09, and above the 200-day MA of 1894.79, indicating a neutral trend. The MACD of -88.55 indicates Positive momentum. The RSI at 33.66 is Neutral, neither overbought nor oversold. The STOCH value of 27.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4183.

Mitsui Chemicals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4202	80 Outperform	¥359.37B	5.46	9.34%	4.27%	-0.48%	-35.29%
4118	74 Outperform	¥301.27B	9.05	5.47%	3.41%	2.60%	9.50%
4182	67 Neutral	¥770.74B	77.75	-2.50%	3.49%	-6.83%	-123.67%
4631	65 Neutral	¥363.86B	10.69	8.14%	2.61%	-1.45%	―
5201	62 Neutral	¥1.18T	15.92	3.63%	3.98%	-1.17%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4183	61 Neutral	¥754.98B	12.79	2.01%	3.82%	-4.63%	-65.11%

Mitsui Chemicals Corporate Events

Mitsui Chemicals Advances ¥30 Billion Share Buyback Program

Mitsui Chemicals has reported progress on a share buyback program authorized by its board on February 5, 2026, under Japan’s Companies Act. Between February 6 and February 28, the company repurchased 1,898,000 common shares for a total of about 4.45 billion yen through market purchases.

The buyback forms part of a larger authorization of up to 18.4 million shares, or 4.9% of shares outstanding excluding treasury stock, and up to 30 billion yen, with the repurchase period running until July 31, 2026. This capital management move signals an effort to enhance shareholder returns and optimize the company’s capital structure over the coming months.

The most recent analyst rating on (JP:4183) stock is a Buy with a Yen2700.00 price target. To see the full list of analyst forecasts on Mitsui Chemicals stock, see the JP:4183 Stock Forecast page.

Mitsui Chemicals to Launch Corporate Fellow System After Ending Advisor Roles

Mitsui Chemicals will introduce a new Corporate Fellow system from April 1, 2026, following its earlier decision to abolish the Senior Advisor and Advisor system as of March 31, 2025 to improve management transparency and effectiveness. Under the new framework, former directors and executives may be appointed as Corporate Fellows to undertake external activities—such as holding key roles in economic and industry organizations closely linked to the company—on an unpaid, part-time, fixed-term basis, with appointments and dismissals decided by the Board of Directors based on recommendations from a nomination committee dominated by independent outside directors. While Corporate Fellows will not participate in the company’s management or corporate governance, the system is intended to leverage retirees’ expertise and networks to enhance Mitsui Chemicals’ corporate value and external presence without compromising governance reforms.

The most recent analyst rating on (JP:4183) stock is a Hold with a Yen2422.00 price target. To see the full list of analyst forecasts on Mitsui Chemicals stock, see the JP:4183 Stock Forecast page.

Mitsui Chemicals Names New CEO and Boosts Outside Directors in Governance Overhaul

Mitsui Chemicals has announced a leadership reshuffle effective April 1, 2026, appointing current President & CEO Osamu Hashimoto as Representative Director and Chairman, while elevating Satoshi Ichimura from Managing Executive Officer and board member to Representative Director, President & CEO, in a move aimed at accelerating execution of its VISION 2030 strategy and driving sustainable growth. The company is simultaneously overhauling its board and audit structure, increasing the number of outside directors so that external board and audit members will constitute half of the total following the June 2026 shareholders’ meeting, a governance reform intended to strengthen oversight and align the organisation with global standards, while bringing in new managing executive officers to the board and planning the retirement of some long-serving directors.

The most recent analyst rating on (JP:4183) stock is a Hold with a Yen2422.00 price target. To see the full list of analyst forecasts on Mitsui Chemicals stock, see the JP:4183 Stock Forecast page.

Mitsui Chemicals Launches ¥30 Billion Share Buyback and Treasury Share Cancellation

Mitsui Chemicals’ board has approved a share buyback of up to 18.4 million common shares, representing about 4.9% of shares outstanding (excluding treasury shares), for a total of up to ¥30 billion, to be conducted through market purchases from February 6 to July 31, 2026. Following this repurchase, the company plans to cancel a portion of its treasury shares so that holdings will be reduced to approximately 5% of total shares in issue as of August 31, 2026, a move aimed at improving capital efficiency and reinforcing shareholder returns by reducing share count and potentially supporting earnings per share and return metrics over time.

The most recent analyst rating on (JP:4183) stock is a Hold with a Yen2422.00 price target. To see the full list of analyst forecasts on Mitsui Chemicals stock, see the JP:4183 Stock Forecast page.

Mitsui Chemicals Unveils 3Q FY2025 Results and Full-Year Outlook

Mitsui Chemicals has released its financial summary for the third quarter of fiscal 2025 and provided an updated outlook for the full year ending March 31, 2026. The document outlines consolidated financial highlights, cash flow trends and segment-level performance, including operating income before special items, as well as the impact of temporary factors and restructuring benefits in its Basic & Green Materials business. It also details major investment projects, non-recurring items and planned shareholder returns, giving investors and stakeholders a structured view of how each business segment is contributing to earnings and how the company expects its financial position and profitability to evolve over the remainder of the fiscal year.

The most recent analyst rating on (JP:4183) stock is a Hold with a Yen2422.00 price target. To see the full list of analyst forecasts on Mitsui Chemicals stock, see the JP:4183 Stock Forecast page.

Mitsui Chemicals Q3 FY2025 Profit Softens on Lower Sales, Maintains Outlook and Dividend After Stock Split

Mitsui Chemicals reported a decline in consolidated sales revenue to ¥1,218.7 billion for the third quarter of FY2025 from ¥1,338.8 billion a year earlier, as lower volumes and prices—particularly in Basic & Green Materials and Mobility Solutions—weighed on the top line. Operating income before special items also fell to ¥68.0 billion from ¥75.8 billion, though full-year operating income before special items is still forecast to edge up to ¥103.0 billion, reflecting expected improvement in higher-margin businesses such as ICT Solutions. Despite weaker revenue, the balance sheet remained solid, with total assets increasing to ¥2,209.1 billion and equity attributable to owners rising, while free cash flow turned negative in the quarter due to higher investment and financing outflows. The company executed a two-for-one stock split on January 1, 2026 and maintained its dividend policy in split-adjusted terms, signaling a continued focus on shareholder returns even as it navigates challenging market conditions in feedstock prices and key end markets.

The most recent analyst rating on (JP:4183) stock is a Hold with a Yen2422.00 price target. To see the full list of analyst forecasts on Mitsui Chemicals stock, see the JP:4183 Stock Forecast page.