Mitsubishi Chemical Holdings (JP:4188)
:4188
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Mitsubishi Chemical Holdings
(4188)
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Rating:53Neutral
Price Target:
¥1,070.00
▲(12.23% Upside)
Action:Reiterated
Date:05/15/26
The score is primarily held back by materially weakened profitability and an expensive P/E multiple. Offsetting this, cash flow generation remains comparatively resilient and technicals show an uptrend above major moving averages, though momentum indicators are mixed.
Positive Factors
Cash generation
Consistent operating cash flow and continued positive free cash flow provide durable internal funding for capex, maintenance, and working capital. This supports reinvestment and deleveraging even when reported earnings and margins are weak, improving long-term resilience.
Negative Factors
Profitability deterioration
A sharp decline to near-zero net margins signals lower earnings quality and reduced capacity to absorb cost or demand shocks. Persistently weak net profit undermines ROE, limits retained earnings for growth, and makes funding strategic initiatives more dependent on cash or external financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent operating cash flow and continued positive free cash flow provide durable internal funding for capex, maintenance, and working capital. This supports reinvestment and deleveraging even when reported earnings and margins are weak, improving long-term resilience.
Read all positive factors
Mitsubishi Chemical Holdings (4188) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.32T
Dividend Yield3.5%
Average Volume (3M)5.46M
Price to Earnings (P/E)104.2
Beta (1Y)0.96
Revenue Growth-15.96%
EPS Growth-74.31%
CountryJP
Employees66,358
SectorBasic Materials
Sector Strength58
IndustryChemicals
Share Statistics
EPS (TTM)-60.68
Shares Outstanding1,441,467,200
10 Day Avg. Volume5,007,700
30 Day Avg. Volume5,460,770
Financial Highlights & Ratios
PEG Ratio-1.43
Price to Book (P/B)0.70
Price to Sales (P/S)0.33
P/FCF Ratio8.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥963.33Price Target Upside1.04% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)69.82
Revenue Forecast (FY)¥3.89T
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 foo...
How the Company Makes Money
The company makes money primarily by selling chemical and materials products and related solutions across multiple end markets, with revenue generated from (1) volume-driven product sales in industrial/commodity chemicals and basic materials, wher...
Mitsubishi Chemical Holdings Earnings Call Summary
Earnings Call Date:Feb 06, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
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.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.
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%.
Read all updates
Q3-2024 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
46
Neutral
Balance Sheet
54
Neutral
Cash Flow
60
Neutral
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.70T | 4.41T | 4.39T | 4.63T | 3.98T |
| Gross Profit | 1.07T | 1.28T | 1.15T | 1.24T | 1.11T |
| EBITDA | 528.38B | 481.62B | 561.06B | 468.97B | 564.03B |
| Net Income | 11.83B | 45.02B | 119.60B | 96.07B | 177.16B |
Balance Sheet | |||||
| Total Assets | 5.88T | 5.89T | 6.10T | 5.77T | 5.57T |
| Cash, Cash Equivalents and Short-Term Investments | 527.10B | 326.14B | 294.92B | 297.22B | 245.79B |
| Total Debt | 1.89T | 2.18T | 2.34T | 2.38T | 2.29T |
| Total Liabilities | 3.46T | 3.61T | 3.83T | 3.79T | 3.73T |
| Stockholders Equity | 1.76T | 1.74T | 1.76T | 1.56T | 1.46T |
Cash Flow | |||||
| Free Cash Flow | 152.20B | 238.31B | 196.46B | 96.16B | 102.02B |
| Operating Cash Flow | 436.29B | 552.85B | 465.15B | 355.19B | 346.87B |
| Investing Cash Flow | 124.47B | -275.43B | -263.53B | -250.52B | -134.89B |
| Financing Cash Flow | -375.21B | -246.65B | -224.28B | -57.90B | -330.17B |
Mitsubishi Chemical Holdings Technical Analysis
Positive
953.40
Price Trends
946.51
Positive
974.22
Positive
897.33
Positive
Market Momentum
16.33
Negative
61.38
Neutral
68.13
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 953.4 is below the 20-day moving average (MA) of 957.62, above the 50-day MA of 946.51, and above the 200-day MA of 897.33, indicating a bullish trend. The MACD of 16.33 indicates Negative momentum. The RSI at 61.38 is Neutral, neither overbought nor oversold. The STOCH value of 68.13 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | ¥13.51T | 24.77 | 11.19% | 2.17% | 0.50% | -6.23% | |
66 Neutral | ¥2.27T | 12.90 | 8.29% | 2.89% | 1.22% | 19.36% | |
64 Neutral | ¥808.89B | 17.47 | 4.79% | 4.21% | -4.09% | -27.31% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | ¥2.88T | 29.02 | 4.42% | 1.00% | -3.97% | -4.31% | |
61 Neutral | ¥947.43B | 13.44 | 8.79% | 2.68% | -10.66% | 57.43% | |
53 Neutral | ¥1.32T | 104.16 | 1.09% | 3.50% | -15.96% | -74.31% |
* Basic Materials Sector Average
JP:4188
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Mitsubishi Chemical Holdings Corporate Events
Mitsubishi Chemical Group Misses Profit Forecast After Impairments, Executives Cut Pay
May 13, 2026
Mitsubishi Chemical Group reported that sales for the year ended March 31, 2026 slightly exceeded its earlier forecast, but core operating income and net profit fell well short after sizable impairment losses. The write-downs related to Soarnol pr...
Mitsubishi Chemical Group Posts Profit Slump but Holds Dividend and Signals Earnings Rebound
May 13, 2026
Mitsubishi Chemical Group reported a 6.2% decline in sales revenue to ¥3.70 trillion for the year ended March 31, 2026, with core operating income down slightly but operating income plunging 78.8% as income before taxes nearly flatlined. Net ...
Mitsubishi Chemical Group Maps Out FY2026 Strategy With Chemicals Growth Investments
May 13, 2026
Mitsubishi Chemical Group Corporation has issued an operational summary for the fiscal year ended March 31, 2026, detailing consolidated financial statements, segment performance, and cash flow and balance sheet positions. The release highlights t...
Mitsubishi Chemical Elevates New Spanish Homecare Unit to Specified Subsidiary
Apr 30, 2026
Mitsubishi Chemical Group said its consolidated subsidiary Nippon Sanso Holdings has completed the acquisition of Spain-based home healthcare provider Esteve Teijin Healthcare, which has been renamed Nippon Sanso Homecare España. The deal was...
Mitsubishi Chemical Hit by ¥30 Billion Impairment as U.K. SoarnoL Expansion Costs Climb
Apr 22, 2026
Mitsubishi Chemical Group has revised its investment plan for its SoarnoL ethylene-vinyl alcohol resin facility in the U.K., after design complexity, safety reassessments, and global inflation pushed construction costs above initial estimates and ...
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.