Mitsubishi Chemical Holdings (4188) AI Stock Analysis

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Mitsubishi Chemical Holdings

(OTC:4188)

Rating:70Outperform

Price Target:

¥835.00

▲(7.44%Upside)

The overall score is driven by solid financial performance and robust technical analysis, balanced by moderate valuation concerns. The company's strong cash flow and operational efficiency are significant strengths, but caution is advised due to leverage and long-term trend indicators.

Mitsubishi Chemical Holdings (4188) vs. iShares MSCI Japan ETF (EWJ)

Market Cap

$1.10T

Dividend Yield6.18%

Average Volume (3M)6.52M

Price to Earnings (P/E)24.6

Beta (1Y)0.80

Revenue Growth0.46%

EPS Growth-62.37%

CountryJP

Employees66,358

SectorBasic Materials

Sector Strength67

IndustryChemicals

Share Statistics

EPS (TTM)-10.08

Shares Outstanding1,506,288,100

10 Day Avg. Volume5,474,820

30 Day Avg. Volume6,518,096

Financial Highlights & Ratios

PEG Ratio-0.62

Price to Book (P/B)0.64

Price to Sales (P/S)0.00

P/FCF Ratio4.66

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$809.45

Price Target Upside4.15% Upside

Rating ConsensusHold

Number of Analyst Covering2

Mitsubishi Chemical Holdings Business Overview & Revenue Model

Company DescriptionMitsubishi Chemical Holdings Corporation, a comprehensive chemical company based in Japan, operates in various sectors, including performance products, industrial materials, and health care. It is a leading player in the chemical industry, offering a wide range of products such as polymers, advanced materials, and specialty chemicals that serve various industries like automotive, electronics, and healthcare. The company is committed to innovation and sustainability, emphasizing research and development to create value-added solutions for global markets.

How the Company Makes MoneyMitsubishi Chemical Holdings generates revenue primarily through the sale of its diverse range of chemical products and materials. The company operates through three main segments: Performance Products, Industrial Materials, and Health Care. The Performance Products segment includes high-performance materials and specialty chemicals, which are critical for automotive, electronics, and packaging industries. The Industrial Materials segment provides basic chemicals and polymers, serving as essential components in construction, automotive, and various industrial applications. The Health Care segment focuses on pharmaceuticals and medical services, contributing to the company's earnings through the development and sale of prescription drugs and healthcare solutions. Additionally, Mitsubishi Chemical Holdings benefits from strategic partnerships and collaborations in research and development, driving innovation and expanding its market reach. The company also invests in sustainable practices and technologies, aligning with global trends towards environmental responsibility, which can enhance its profitability and market position.

Mitsubishi Chemical Holdings Earnings Call Summary

Earnings Call Date:May 13, 2025

(Q3-2024)

% Change Since: 6.47%|

Next Earnings Date:Aug 01, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed performance. Highlights included strong cost management and performance in industrial gases and healthcare. However, significant challenges were noted in specialty and basic materials, as well as ongoing struggles in the MMA and carbon businesses.

Q3-2024 Updates

Positive Updates

Strong Financial Performance Amid Industry Downturn

MCG delivered a better-than-forecast core operating income of JPY 183.9 billion, and a positive cash flow of JPY 165.7 million, despite the prolonged chemical industry downturn.

Cost Reductions Surpassed Annual Targets

Achieved JPY 82 billion in cost reductions, exceeding the full-year target of JPY 80 billion, contributing to securing profits.

Industrial Gases and Healthcare Performance

Industrial gases saw a sales increase of 6% and profits up by 45%. Healthcare sales rose 6% with a 177% profit increase due to RADICAVA sales in the U.S.

Negative Updates

Specialty Materials and Basic Materials Challenges

Sales in Specialty Materials decreased by 6%, with profits dropping by 69% year-on-year. Basic Materials recorded a loss of JPY 10.4 billion, with sales down 13%.

MMA and Carbon Business Struggles

MMA sales decreased by 12%, and the carbon business recorded a loss for the third consecutive quarter due to weak coke market conditions.

Continued Market Weakness in Key Segments

Weak demand in semiconductor, housing, and construction materials, with no significant recovery expected in Q4.

Company Guidance

During the third quarter earnings call for Mitsubishi Chemical Group, several financial metrics were highlighted by the executives. The company's core operating income for the year-to-date reached JPY 183.9 billion, surpassing forecasts despite the challenging economic conditions in the chemical industry. Strong positive cash flow was reported at JPY 165.7 million, with cost reductions amounting to JPY 82 billion, exceeding the annual target of JPY 80 billion. The balance sheet showed continued improvement with a net debt-to-equity ratio of 1.2. Revenue declined by 5% year-on-year to JPY 3,245.1 billion, while core operating income saw a 3% year-on-year increase. Specialty Materials experienced a significant 69% drop in profit, while Industrial Gases and the Healthcare sector reported profit increases of 45% and 177%, respectively. The average exchange rate was JPY 143.8 to the dollar, and naphtha prices fell 15% year-on-year to JPY 67,900. The company maintained its full-year earnings forecast, emphasizing ongoing cost management and restructuring efforts.

Mitsubishi Chemical Holdings Financial Statement Overview

Summary

Mitsubishi Chemical Holdings shows strong revenue growth and operational efficiency, but faces challenges with net income volatility and high leverage. Solid cash flow management provides a foundation for financial stability.

Income Statement

Positive

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

Positive

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

Positive

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

Mitsubishi Chemical Holdings Technical Analysis

Technical Analysis Sentiment

Positive

Last Price777.20

Price Trends

50DMA

757.77

Positive

100DMA

737.51

Positive

200DMA

768.08

Positive

Market Momentum

MACD

7.60

Negative

RSI

57.90

Neutral

STOCH

60.66

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4188, the sentiment is Positive. The current price of 777.2 is above the 20-day moving average (MA) of 764.51, above the 50-day MA of 757.77, and above the 200-day MA of 768.08, indicating a bullish trend. The MACD of 7.60 indicates Negative momentum. The RSI at 57.90 is Neutral, neither overbought nor oversold. The STOCH value of 60.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4188.

Mitsubishi Chemical Holdings Peers Comparison

Overall Rating

UnderperformOutperform

Sector (70)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4021	81 Outperform	€640.49B	15.01	18.55%	5.70%	10.88%	14.80%
4042	74 Outperform	$697.52B	12.04	7.04%	4.56%	5.74%	1.14%
3407	72 Outperform	$1.37T	10.27	7.25%	5.57%	9.06%	210.11%
4188	70 Outperform	$1.10T	24.57	2.49%	6.18%	0.46%	-62.37%
Sector *	70 Outperform	¥175.59B	10.94	6.29%	4.99%	3.93%	3.23%
4004	70 Outperform	¥650.43B	17.49	6.01%	3.62%	5.93%	82.41%
4005	61 Neutral	$601.34B	15.57	3.96%	3.27%	6.51%	―

* Basic Materials Sector Average

Performance Comparison

JP:4188

Mitsubishi Chemical Holdings

777.20

-83.48

-9.70%

JP:4021

Nissan Chemical

4,703.00

-9.18

-0.19%

JP:4005

Sumitomo Chemical Co

367.40

-5.25

-1.41%

JP:4004

Showa Denko KK

3,592.00

-64.09

-1.75%

JP:4042

Tosoh

2,192.00

209.41

10.56%

JP:3407

Asahi Kasei

1,006.00

-0.60

-0.06%

Mitsubishi Chemical Holdings Corporate Events

Mitsubishi Chemical Announces Treasury Share Acquisition Status

Jul 1, 2025

Mitsubishi Chemical Group Corporation has announced the status of its treasury share acquisition, acquiring 18,879,100 common shares valued at JPY 14,253,120,510 between June 1 and June 30, 2025. This acquisition is part of a broader plan approved by the Board of Directors to acquire up to 100,000,000 shares, with a maximum total acquisition price of 50,000,000,000 yen, indicating a strategic move to manage its capital structure and potentially enhance shareholder value.

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

Jun 5, 2025

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.

Mitsubishi Chemical Group Announces Dividend Distribution

May 20, 2025

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.

Mitsubishi Chemical Announces Treasury Share Acquisition and Cancellation

May 13, 2025

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.

Mitsubishi Chemical Reports Mixed Financial Results for FY2025

May 13, 2025

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.

Mitsubishi Chemical Holdings Announces Strategic Growth and Divestiture Plans

May 13, 2025

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.

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.Date of analysis: Jul 01, 2025