Mitsubishi Chemical Holdings (4188) AI Stock Analysis

• Market Cap: $1.06T
• Dividend Yield: 4.29%
• Average Volume (3M): 6.41M
• Price to Earnings (P/E): 23.5
• Beta (1Y): 0.81
• Revenue Growth: 0.46%
• EPS Growth: -62.37%
• Country: JP
• Employees: 66,358
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Chemicals
• EPS (TTM): -10.08
• Shares Outstanding: 1,506,288,100
• 10 Day Avg. Volume: 6,719,610
• 30 Day Avg. Volume: 6,406,813
• PEG Ratio: -0.25
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.06
• 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: $807.50
• Price Target Upside: 8.39% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 72 Outperform
• Price Target: ¥834.00 ▲(11.95%Upside)

Mitsubishi Chemical Holdings demonstrates strong financial performance through revenue growth and cash flow stability, despite some net income volatility and high leverage. Technical indicators suggest a stable market position with mild bullish momentum. Valuation metrics indicate potential overvaluation but are offset by a solid dividend yield.

Mitsubishi Chemical Holdings Business Overview & Revenue Model

Company Description

Mitsubishi Chemical Group Corporation provides performance products, chemicals, industrial gases, health care products, and other products in Japan and internationally. The company's performance products include specialty chemicals, functional food materials, inorganic materials, electronic and electrical components and products, molding and processed products, film and sheet products, synthetic paper and fiber, carbon fiber, equipment, instruments and systems, materials and products for industrial use, construction materials, civil engineering materials, aqua-related materials and products, leisure, sports, and daily goods. Its health care products comprise pharmaceuticals, pharmaceutical formulation materials and related products, drug discovery solutions, diagnostic reagents and instruments, health apparatus and instruments for medical use, medical support, nursing care and health support, and clinical examination and service. The company also offers industrial materials, such as basic chemicals, carbon materials, synthetic resins, and industrial gases; and engineering, information systems, analysis and inspection, packaging and logistics, survey, consulting, and other services. In addition, it provides engineering, transportation, and warehousing services. The company was incorporated in 2005 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Mitsubishi Chemical Holdings makes money through a diversified revenue model that includes the sale of chemicals, performance products, and industrial materials. The company's key revenue streams are derived from its broad portfolio of offerings, which cater to multiple industries such as automotive, electronics, and healthcare. Mitsubishi Chemical Holdings also generates income from its healthcare segment, which includes pharmaceuticals and medical devices. Additionally, strategic partnerships and collaborations with other companies and research institutions play a significant role in driving innovation and expanding market reach, further contributing to its earnings.

Mitsubishi Chemical Holdings Financial Statement Overview

Summary

Mitsubishi Chemical Holdings shows strong revenue growth and operational efficiency with a robust cash flow. However, net income volatility and high leverage are concerning risks.

Income Statement

Mitsubishi Chemical Holdings has demonstrated a steady revenue growth trajectory over the past five years, with a noticeable increase in gross profit margin, reflecting operational efficiency. However, the net profit margin has seen fluctuations, indicating some instability in net income, particularly in the most recent year. The company's EBIT and EBITDA margins show positive trends, suggesting healthy operating performance despite some volatility in net income.

Balance Sheet

The company's balance sheet reflects a relatively high debt-to-equity ratio, indicating leverage that could pose risks. However, the equity ratio indicates a stable position in terms of asset financing. The return on equity has been inconsistent, with recent declines highlighting potential profitability challenges. Overall, while the company maintains a solid asset base, the high leverage warrants caution.

Cash Flow

Mitsubishi Chemical Holdings shows robust cash flow management. The operating cash flow to net income ratio remains strong, and there's a consistent free cash flow generation, indicating effective capital expenditure control. The free cash flow growth rate has been positive, supporting financial flexibility and potential for future investments or debt reduction.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.81T	4.41T	4.39T	4.63T	3.98T	3.26T
Gross Profit	1.06T	1.28T	1.15T	1.24T	1.11T	926.25B
EBITDA	418.27B	473.55B	561.06B	468.97B	502.36B	414.96B
Net Income	130.63B	45.02B	119.60B	96.46B	177.16B	-7.56B
Balance Sheet
Total Assets	6.09T	5.89T	6.10T	5.77T	5.57T	5.29T
Cash, Cash Equivalents and Short-Term Investments	336.96B	326.14B	294.92B	371.69B	296.87B	397.39B
Total Debt	2.15T	2.04T	2.20T	2.24T	2.16T	2.35T
Total Liabilities	3.73T	3.61T	3.83T	3.79T	3.73T	3.72T
Stockholders Equity	1.81T	1.74T	1.76T	1.56T	1.46T	1.24T
Cash Flow
Free Cash Flow	245.53B	238.31B	190.67B	74.19B	89.21B	210.12B
Operating Cash Flow	476.58B	552.85B	465.15B	355.19B	346.87B	467.13B
Investing Cash Flow	-193.87B	-275.43B	-246.09B	-247.63B	-128.78B	-217.01B
Financing Cash Flow	-344.04B	-246.65B	-241.72B	-60.78B	-336.28B	-142.77B

Mitsubishi Chemical Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 745.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4188, the sentiment is Neutral. The current price of 745 is below the 20-day moving average (MA) of 752.11, above the 50-day MA of 730.53, and below the 200-day MA of 775.54, indicating a neutral trend. The MACD of 1.00 indicates Positive momentum. The RSI at 49.26 is Neutral, neither overbought nor oversold. The STOCH value of 22.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4188.

Mitsubishi Chemical Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4188	72 Outperform	$1.06T	23.55	2.49%	4.29%	0.46%	-62.37%
Sector *	58 Neutral	HK$16.65B	4.30	-6.43%	5.42%	-3.18%	-62.89%
AHKSF		$9.60B	11.01	7.25%	3.77%	―	―
NSC		€3.50B	13.38	18.55%	4.78%	―	―
SHWDF		$4.18B	17.19	6.01%	1.78%	―	―
SOMMF		$3.91B	17.78	3.96%	0.02%	―	―
TOSCF		$4.63B	12.14	7.04%	0.03%	―	―

Mitsubishi Chemical Holdings Corporate Events

Mitsubishi Chemical Announces Treasury Share Acquisition

Mitsubishi Chemical Group Corporation announced the acquisition of 16,337,000 treasury shares valued at JPY 12,301,110,370, as part of a broader plan to acquire up to 100,000,000 shares. This move, resolved by the Board of Directors, is aimed at optimizing capital structure and enhancing shareholder value, reflecting a strategic focus on financial management.

The most recent analyst rating on (JP:4188) stock is a Buy with a Yen1000.00 price target. To see the full list of analyst forecasts on Mitsubishi Chemical Holdings stock, see the JP:4188 Stock Forecast page.

Mitsubishi Chemical Group Announces Dividend Distribution

Mitsubishi Chemical Group has announced a resolution by its Board of Directors to distribute dividends from surplus, with a dividend per share set at ¥16 for the fiscal year ended March 31, 2024. This decision aligns with the company’s policy to maintain a dividend payout ratio of 35% under its New Medium-Term Management Plan 2029, reflecting a commitment to shareholder returns and future business growth.

The most recent analyst rating on (JP:4188) stock is a Buy with a Yen1000.00 price target. To see the full list of analyst forecasts on Mitsubishi Chemical Holdings stock, see the JP:4188 Stock Forecast page.

Mitsubishi Chemical Announces Treasury Share Acquisition and Cancellation

Mitsubishi Chemical Group Corporation announced the acquisition and subsequent cancellation of treasury shares, utilizing funds from the transfer of its subsidiary, Mitsubishi Tanabe Pharma Corporation, to Bain Capital. This strategic move aims to enhance shareholder returns and improve capital efficiency, reflecting the company’s commitment to increasing shareholder value over the medium to long term.

The most recent analyst rating on (JP:4188) stock is a Buy with a Yen1000.00 price target. To see the full list of analyst forecasts on Mitsubishi Chemical Holdings stock, see the JP:4188 Stock Forecast page.

Mitsubishi Chemical Reports Mixed Financial Results for FY2025

Mitsubishi Chemical Group Corporation reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a slight increase in sales revenue by 0.5% to ¥4,407,405 million. However, the company experienced a significant decline in net income attributable to owners of the parent by 62.4% compared to the previous year. Despite the challenges, the company maintained its dividend payout, reflecting its commitment to shareholders. The financial outlook for the following fiscal year indicates expected improvements in net income and earnings per share, suggesting potential recovery and growth.

The most recent analyst rating on (JP:4188) stock is a Buy with a Yen1000.00 price target. To see the full list of analyst forecasts on Mitsubishi Chemical Holdings stock, see the JP:4188 Stock Forecast page.

Mitsubishi Chemical Holdings Announces Strategic Growth and Divestiture Plans

Mitsubishi Chemical Holdings has released its operational summary for the fiscal year ending March 31, 2025, highlighting significant growth investment plans in its chemicals business. The company is also focusing on divesting non-core businesses to streamline operations, which is expected to enhance its market positioning and profitability.

The most recent analyst rating on (JP:4188) stock is a Buy with a Yen1000.00 price target. To see the full list of analyst forecasts on Mitsubishi Chemical Holdings stock, see the JP:4188 Stock Forecast page.