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Mitsui Chemicals (JP:4183)
:4183

Mitsui Chemicals (4183) AI Stock Analysis

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Mitsui Chemicals

(OTC:4183)

Rating:68Neutral
Price Target:
¥3,461.00
▲(7.48%Upside)
Mitsui Chemicals' overall stock score reflects a stable financial foundation with strong cash flow and moderate leverage. However, pressures on profitability and operational efficiency, coupled with a challenging earnings outlook, weigh on the score. While technical indicators are mixed, the valuation remains reasonable, supported by a solid dividend yield.

Mitsui Chemicals (4183) vs. iShares MSCI Japan ETF (EWJ)

Mitsui Chemicals Business Overview & Revenue Model

Company DescriptionMitsui Chemicals, Inc. (4183) is a leading Japanese chemical company engaged in the production and sale of a wide range of chemical products. The company's operations are divided into several sectors, including petrochemicals, basic chemicals, functional polymeric materials, and functional chemicals. Mitsui Chemicals provides innovative solutions across various industries, including automotive, healthcare, packaging, and electronics, through its diverse portfolio of high-performance materials and specialty chemicals.
How the Company Makes MoneyMitsui Chemicals generates revenue primarily through the manufacturing and sale of its extensive product line, which includes petrochemicals, basic chemicals, and high-performance materials. The petrochemicals segment, which involves the production of olefins and aromatics, forms a significant part of the company's revenue. Additionally, the company earns from its functional polymeric segment, delivering value-added plastics and elastomers used in automotive and packaging applications. The functional chemicals segment provides specialty chemicals for various applications, including healthcare and electronics, contributing to Mitsui's revenue. Strategic partnerships and collaborations with other companies in the industry, as well as a focus on research and development, further enhance its competitive position and revenue streams.

Mitsui Chemicals Earnings Call Summary

Earnings Call Date:May 13, 2025
(Q3-2024)
|
% Change Since: -2.07%|
Next Earnings Date:Aug 01, 2025
Earnings Call Sentiment Negative
The earnings call highlighted some positive aspects such as growth in the Mobility Solutions segment and improvements in terms of trade. However, these were overshadowed by significant declines in overall sales and profits, challenges in key segments such as Basic & Green Materials and ICT Solutions, and a downward revision of the full-year forecast.
Q3-2024 Updates
Positive Updates
Mobility Solutions Growth
Mobility Solutions reported an operating income before special items of JPY 41.0 billion, an increase of JPY 2.1 billion compared to the same period last year. This was driven by growth in solar cell encapsulation materials and the recovery in automotive applications. The terms of trade were also positive, reflecting exchange rate differences and a shift to high value-added products.
Improvement in Terms of Trade
Terms of trade improved by JPY 4.2 billion in Life & Healthcare Solutions, JPY 4.6 billion in Mobility Solutions, and JPY 4.4 billion in ICT Solutions due to price hikes, yen depreciation, and lower raw material prices.
Positive Free Cash Flow
For the full year 2023, cash flows from operating activities are expected to be positive JPY 130.0 billion, resulting in a positive free cash flow of JPY 24.0 billion.
Negative Updates
Overall Decline in Sales and Profits
Sales revenue for the April to December period was JPY 1.2745 trillion, a decrease of JPY 154.4 billion compared to the same period last year. Operating income before special items was JPY 72.4 billion, a decrease of JPY 37.9 billion, and net income was JPY 37.3 billion, a decrease of JPY 27.6 billion.
Significant Decline in Basic & Green Materials
Basic & Green Materials posted an operating income before special items of negative JPY 3.9 billion, a significant decrease of JPY 33.7 billion compared to the same period last year, due to lower sales and the elimination of inventory valuation gains.
Challenges in ICT Solutions
ICT Solutions experienced a decrease in operating income before special items by JPY 4.9 billion due to the slowdown in demand in the semiconductor and smartphone markets.
Adjusted Downward Forecast for FY 2023
The forecast for FY 2023 operating income before special items was revised downward from JPY 112.0 billion to JPY 93.0 billion due to sluggish demand recovery, lower cracker utilization rates, and business restructuring losses.
Company Guidance
During the third quarter earnings call for Mitsui Chemicals, CFO Nakajima detailed a challenging financial period marked by sluggish demand and declining raw material prices, leading to a year-on-year decrease in both sales and profits. Operating income before special items was revised downward from JPY 112.0 billion to JPY 93.0 billion, attributed to slower-than-expected demand recovery and lower cracker utilization rates. Net income forecast was also reduced to JPY 50.0 billion, factoring in business restructuring losses. Despite these setbacks, the annual dividend forecast remains at JPY 140 per share. In terms of business segments, Life & Healthcare Solutions saw a decrease in operating income to JPY 18.5 billion, while Mobility Solutions experienced a slight increase to JPY 41.0 billion. ICT Solutions faced a drop to JPY 18.1 billion, and Basic & Green Materials posted a negative JPY 3.9 billion. The financial outlook for FY 2023 expects sales revenue to decrease to JPY 1.741 trillion, with an anticipated operating income of JPY 93.0 billion. The exchange rate assumption is set at JPY 144 to the U.S. dollar, with domestic naphtha prices projected at JPY 71,900 per kiloliter in the second half. Despite these challenges, the company anticipates profit growth in the Mobility segment, driven by solar cell encapsulation materials and recovery in automobile production.

Mitsui Chemicals Financial Statement Overview

Summary
Mitsui Chemicals exhibits a solid financial foundation with strong cash flow dynamics, moderate leverage, and stable revenue growth. However, profitability margins face pressure, and return on equity has declined, presenting opportunities for operational efficiency improvements.
Income Statement
68
Positive
Mitsui Chemicals showed a mixed performance in recent years. The gross profit margin for 2025 was approximately 21.5%, indicating a reasonable level of profitability. However, the net profit margin decreased to 1.8% from the previous year, reflecting challenges in converting revenues into profits. Revenue growth in 2025 was about 3.4%, which is moderate. The EBIT margin was approximately 5.1%, and the EBITDA margin was 9.6%, both suggesting some pressure on operational efficiency. Overall, while profitability ratios are under pressure, the company maintains a stable revenue base.
Balance Sheet
72
Positive
The balance sheet reflects moderate financial leverage with a debt-to-equity ratio of approximately 0.87 in 2025. The equity ratio was about 39.4%, indicating a healthy proportion of equity financing. However, the return on equity decreased to 3.8%, suggesting diminished efficiency in generating returns for shareholders. Overall, the company's balance sheet remains stable with manageable debt levels, though profitability on equity could improve.
Cash Flow
75
Positive
Mitsui Chemicals demonstrated strong cash flow management with an operating cash flow to net income ratio of 6.22 in 2025, indicating robust operational cash generation relative to net income. The free cash flow grew significantly by over 900% compared to 2024, reflecting improved cash reserves after capital expenditures. The free cash flow to net income ratio was 2.46, showcasing effective cash retention post-investment activities. Overall, cash flow performance is a strong point for the company.
Breakdown
Mar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
1.81T1.75T1.88T1.61T1.21T
Gross Profit
388.29B370.80B381.49B378.74B293.84B
EBIT
92.94B74.12B129.00B147.31B78.07B
EBITDA
173.69B181.15B182.81B216.99B157.75B
Net Income Common Stockholders
32.24B50.00B82.94B109.99B57.87B
Balance SheetCash, Cash Equivalents and Short-Term Investments
170.62B210.29B262.72B224.65B223.16B
Total Assets
2.15T2.22T2.07T1.93T1.56T
Total Debt
737.98B756.76B738.25B666.09B510.22B
Net Debt
567.36B546.47B551.94B484.93B314.23B
Total Liabilities
1.18T1.23T1.18T1.13T875.97B
Stockholders Equity
848.28B862.85B786.83B712.65B607.92B
Cash FlowFree Cash Flow
79.29B7.35B-36.62B-23.63B97.74B
Operating Cash Flow
200.50B161.34B101.24B92.58B174.32B
Investing Cash Flow
-165.01B-123.94B-106.34B-205.23B-77.56B
Financing Cash Flow
-74.44B-26.02B2.54B89.22B-68.96B

Mitsui Chemicals Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3220.00
Price Trends
50DMA
3127.64
Positive
100DMA
3225.99
Negative
200DMA
3362.36
Negative
Market Momentum
MACD
26.83
Negative
RSI
55.24
Neutral
STOCH
48.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4183, the sentiment is Neutral. The current price of 3220 is above the 20-day moving average (MA) of 3158.65, above the 50-day MA of 3127.64, and below the 200-day MA of 3362.36, indicating a neutral trend. The MACD of 26.83 indicates Negative momentum. The RSI at 55.24 is Neutral, neither overbought nor oversold. The STOCH value of 48.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4183.

Mitsui Chemicals Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥321.11B6.6613.58%4.80%5.10%-8.07%
78
Outperform
¥638.76B17.5813.21%2.03%7.23%8.93%
73
Outperform
$244.55B9.655.38%3.20%5.89%11.92%
71
Outperform
¥418.93B9.436.78%4.32%-4.90%20.59%
68
Neutral
¥612.23B18.883.69%4.46%3.40%-35.14%
63
Neutral
$909.03B-4.41%4.59%1.96%-399.31%
51
Neutral
$2.04B-1.15-21.37%3.64%2.88%-30.57%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4183
Mitsui Chemicals
3,220.00
-1,051.73
-24.62%
JP:4403
NOF
2,705.50
693.39
34.46%
JP:4182
Mitsubishi Gas Chemical Company
2,159.50
-679.47
-23.93%
JP:4202
Daicel
1,208.50
-266.04
-18.04%
JP:5201
AGC
4,286.00
-846.20
-16.49%
JP:4118
Kaneka
3,867.00
-217.26
-5.32%

Mitsui Chemicals Corporate Events

Mitsui Chemicals Plans Strategic Split to Boost Green Initiatives
May 30, 2025

Mitsui Chemicals is considering splitting off its Basic & Green Materials business to enhance its business structure and promote green initiatives. This strategic move aims to foster collaboration with other companies, improve competitiveness, and support Japan’s industrial competitiveness by creating a strong, independent green chemicals business entity by 2027.

The most recent analyst rating on (JP:4183) stock is a Sell with a Yen3650.00 price target. To see the full list of analyst forecasts on Mitsui Chemicals stock, see the JP:4183 Stock Forecast page.

Mitsui Chemicals Reports Decline in FY2024 Financial Results
May 20, 2025

Mitsui Chemicals announced a decline in its FY2024 non-consolidated financial results compared to the previous fiscal year. The company reported a decrease in ordinary and net income, primarily due to reduced operating income and dividend income, impacting its financial performance and potentially affecting stakeholder confidence.

The most recent analyst rating on (JP:4183) stock is a Sell with a Yen3650.00 price target. To see the full list of analyst forecasts on Mitsui Chemicals stock, see the JP:4183 Stock Forecast page.

Mitsui Chemicals Reports FY2024 Financial Shortfall
May 13, 2025

Mitsui Chemicals reported a shortfall in its FY2024 financial results compared to its previous forecasts. The decline was primarily due to decreased sales in the ICT Solutions segment and an impairment loss in the Life & Healthcare Solutions segment, along with increased income tax expenses. Despite these challenges, the company maintained its dividend forecast.

The most recent analyst rating on (JP:4183) stock is a Sell with a Yen3650.00 price target. To see the full list of analyst forecasts on Mitsui Chemicals stock, see the JP:4183 Stock Forecast page.

Mitsui Chemicals Reports 5% Increase in FY2024 Operating Income
May 13, 2025

Mitsui Chemicals reported a 5% increase in operating income before special items for FY2024, reaching 101.0 billion yen, driven by growth in specialty chemicals and successful sales price revisions in basic materials. Despite challenges such as an ethylene plant failure in Osaka, the company managed to offset losses through strategic business restructuring, indicating a strong market position and resilience.

The most recent analyst rating on (JP:4183) stock is a Sell with a Yen3650.00 price target. To see the full list of analyst forecasts on Mitsui Chemicals stock, see the JP:4183 Stock Forecast page.

Mitsui Chemicals Reports FY2024 Financial Results with Mixed Performance
May 13, 2025

Mitsui Chemicals reported its consolidated financial results for FY2024, showing a slight increase in sales revenue and operating income. Despite challenges in certain segments, the company saw growth in Life & Healthcare Solutions and Mobility Solutions. The organizational reforms and segment revisions implemented in April 2024 are expected to impact future performance positively. However, the company faced a decrease in net income and cash flow challenges, indicating a need for strategic adjustments to maintain financial stability.

The most recent analyst rating on (JP:4183) stock is a Sell with a Yen3650.00 price target. To see the full list of analyst forecasts on Mitsui Chemicals stock, see the JP:4183 Stock Forecast page.

Mitsui Chemicals Completes Acquisition of DNA Chip Research Shares
Apr 8, 2025

Mitsui Chemicals, Inc. announced the completion of its tender offer to acquire common shares of DNA Chip Research Inc. The acquisition, resolved in February 2025, involved purchasing up to 5,823,062 shares, with a minimum threshold of 3,119,000 shares. This strategic move is expected to enhance Mitsui Chemicals’ capabilities and market positioning in the biotechnology sector.

Mitsui Chemicals Enhances Governance with Structural Changes
Mar 31, 2025

Mitsui Chemicals has announced the abolition of its Senior Advisor and Advisor system, aiming to improve management transparency and effectiveness. Additionally, the company will change the chairperson of its Nomination Committee to an independent outside director, enhancing the fairness and objectivity of its nomination process.

Mitsui Chemicals Launches Employee Incentive Plan with Treasury Share Disposal
Mar 31, 2025

Mitsui Chemicals has announced the establishment of a Restricted Stock Incentive Plan aimed at its Employee Shareholding Association. This plan involves the disposal of 1,245,000 treasury shares as restricted stock to incentivize employees, aligning their interests with shareholders and promoting long-term corporate value. The initiative is designed to enhance asset-building opportunities for employees while fostering shared value creation with stakeholders.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.