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Mitsubishi Chemical Holdings (JP:4188)
:4188
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Mitsubishi Chemical Holdings (4188) AI Stock Analysis

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JP:4188

Mitsubishi Chemical Holdings

(4188)

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Neutral 54 (OpenAI - 4o)
Rating:54Neutral
Price Target:
¥822.00
▲(1.97% Upside)
Mitsubishi Chemical Holdings receives an overall score of 54, primarily influenced by its mixed financial performance and high valuation. The company's high leverage and declining revenue growth are significant concerns, while technical indicators suggest potential short-term weakness. The stock's high P/E ratio indicates it may be overvalued, though the dividend yield offers some compensation.

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

Mitsubishi Chemical Holdings Business Overview & Revenue Model

Company DescriptionMitsubishi Chemical Holdings Corporation (4188) is a leading global chemical company based in Japan, involved in a diverse range of sectors including chemicals, performance materials, and healthcare. The company operates through various subsidiaries, focusing on the manufacture and supply of products such as industrial chemicals, plastics, advanced materials, and life sciences. With a commitment to sustainability and innovation, Mitsubishi Chemical Holdings aims to enhance the quality of life through its advanced chemical solutions and technologies.
How the Company Makes MoneyMitsubishi Chemical Holdings generates revenue primarily through the production and sale of chemical products across multiple sectors. Key revenue streams include the sales of performance materials, such as engineering plastics and films, which are utilized in automotive, electronics, and packaging industries. Additionally, the company earns income from its healthcare segment, which provides medical and pharmaceutical products. Strategic partnerships with other companies and research institutions also contribute to revenue through collaborative projects and joint ventures, enhancing product development and market reach. The company's focus on innovation and sustainability helps to maintain its competitive edge and drive sales growth.

Mitsubishi Chemical Holdings Earnings Call Summary

Earnings Call Date:Oct 31, 2025
(Q3-2024)
|
% Change Since: |
Next Earnings Date:Feb 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.
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 presents a stable but cautious financial outlook. The company maintains decent profitability margins and cash flow generation, but declining revenue growth and high leverage are areas of concern. Improvement in operational efficiency and debt reduction are necessary for enhanced financial stability.
Income Statement
Mitsubishi Chemical Holdings shows a mixed performance in its income statement. The TTM data indicates a decline in revenue growth at -5.64%, which is concerning. However, the company maintains a stable gross profit margin of approximately 29% and a modest net profit margin of 1.02%. The EBIT and EBITDA margins are relatively low at 4.28% and 10.54%, respectively, suggesting room for improvement in operational efficiency.
Balance Sheet
The balance sheet reflects a high debt-to-equity ratio of 1.17, indicating significant leverage, which could pose financial risks. The return on equity is low at 2.52%, suggesting limited profitability from shareholders' investments. The equity ratio stands at 29.54%, showing a moderate level of equity financing relative to total assets.
Cash Flow
The cash flow statement reveals a positive free cash flow growth rate of 3.81% in the TTM, indicating improved cash generation. The operating cash flow to net income ratio is 0.37, and the free cash flow to net income ratio is 0.43, both suggesting adequate cash flow relative to net income. However, the company should focus on enhancing cash flow efficiency further.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue4.16T4.41T4.39T4.63T3.98T3.26T
Gross Profit1.21T1.28T1.15T1.24T1.11T926.25B
EBITDA439.97B205.68B561.06B456.72B542.84B283.92B
Net Income25.00B45.02B119.60B96.46B177.16B-7.56B
Balance Sheet
Total Assets5.84T5.89T6.10T5.77T5.57T5.29T
Cash, Cash Equivalents and Short-Term Investments288.47B392.25B377.73B297.22B245.79B349.58B
Total Debt2.08T2.04T2.20T2.24T2.16T2.35T
Total Liabilities3.56T3.61T3.83T3.79T3.73T3.72T
Stockholders Equity1.73T1.74T1.76T1.56T1.46T1.24T
Cash Flow
Free Cash Flow247.40B238.31B190.67B74.19B89.21B210.12B
Operating Cash Flow539.19B552.85B465.15B355.19B346.87B467.13B
Investing Cash Flow-230.69B-275.43B-246.09B-247.63B-128.78B-217.01B
Financing Cash Flow-268.06B-246.65B-241.72B-60.78B-336.28B-142.77B

Mitsubishi Chemical Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price806.10
Price Trends
50DMA
845.02
Negative
100DMA
802.98
Positive
200DMA
763.70
Positive
Market Momentum
MACD
-1.42
Positive
RSI
37.26
Neutral
STOCH
35.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4188, the sentiment is Negative. The current price of 806.1 is below the 20-day moving average (MA) of 839.95, below the 50-day MA of 845.02, and above the 200-day MA of 763.70, indicating a neutral trend. The MACD of -1.42 indicates Positive momentum. The RSI at 37.26 is Neutral, neither overbought nor oversold. The STOCH value of 35.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4188.

Mitsubishi Chemical Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
¥718.66B15.7920.91%3.32%13.93%23.19%
$706.90B14.656.04%4.54%3.71%-19.97%
$1.08T29.385.90%1.09%1.60%-6.74%
¥1.67T13.986.55%3.22%5.91%78.43%
$747.17B76.930.92%2.61%0.98%
$10.43B7.12-0.05%2.87%2.86%-36.73%
$1.16T46.061.29%3.97%-6.66%-78.39%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4188
Mitsubishi Chemical Holdings
806.10
22.37
2.85%
JP:3407
Asahi Kasei
1,182.50
93.94
8.63%
JP:4021
Nissan Chemical
5,217.00
251.52
5.07%
JP:4004
Showa Denko KK
6,039.00
2,555.14
73.34%
JP:4005
Sumitomo Chemical Co
453.60
71.60
18.74%
JP:4042
Tosoh
2,200.00
379.95
20.88%

Mitsubishi Chemical Holdings Corporate Events

Mitsubishi Chemical Revises Financial Forecast for Fiscal Year 2025
Oct 31, 2025

Mitsubishi Chemical Group Corporation has revised its financial forecast for the fiscal year ending March 31, 2026, predicting a decrease in core operating income by 5.7% to ¥250.0 billion. This revision is attributed to a reduction in price gaps and sales volume declines in the MMA & Derivatives and Basic Materials & Polymers segments, despite strong demand in the Specialty Materials segment. The company also anticipates lower operating and net income due to special item losses expected in the second half of fiscal 2025, alongside structural reforms.

The most recent analyst rating on (JP:4188) stock is a Hold with a Yen800.00 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 Amid Strategic Reclassification
Oct 31, 2025

Mitsubishi Chemical Group Corporation reported its consolidated financial results for the first half of the fiscal year ending March 31, 2026, showing a decline in sales revenue by 10.5% compared to the previous year. Despite this, the company experienced a significant increase in net income attributable to owners of the parent by 169.1%, primarily due to the reclassification of discontinued operations following the transfer of Mitsubishi Tanabe Pharma Corporation and its subsidiaries.

The most recent analyst rating on (JP:4188) stock is a Hold with a Yen800.00 price target. To see the full list of analyst forecasts on Mitsubishi Chemical Holdings stock, see the JP:4188 Stock Forecast page.

Mitsubishi Chemical Amends Share Cancellation Plan
Oct 14, 2025

Mitsubishi Chemical Group Corporation announced amendments to its plan to cancel its own shares, initially resolved in May 2025. The company will now cancel 64,820,900 treasury shares on October 28, 2025, instead of the previously scheduled June 30, 2026. This move is part of a broader strategy to manage its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (JP:4188) stock is a Hold with a Yen851.00 price target. To see the full list of analyst forecasts on Mitsubishi Chemical Holdings stock, see the JP:4188 Stock Forecast page.

Mitsubishi Chemical Implements Voluntary Retirement Program
Sep 29, 2025

Mitsubishi Chemical Group Corporation has announced the implementation of a voluntary retirement program as part of its Medium-term Management Plan 2029. This initiative aims to optimize the organization’s operations and workforce, reduce fixed costs, and support employees in pursuing new career opportunities. The restructuring charges are expected to be approximately 30 billion yen, impacting the fiscal year ending March 2026, but no revisions to the forecast are currently planned.

The most recent analyst rating on (JP:4188) stock is a Hold with a Yen903.00 price target. To see the full list of analyst forecasts on Mitsubishi Chemical Holdings stock, see the JP:4188 Stock Forecast page.

Mitsubishi Chemical Expands in Australia with Coregas Acquisition
Sep 19, 2025

Mitsubishi Chemical Group Corporation announced a change in its specified subsidiary status following the acquisition of Coregas Pty Ltd, an industrial gas company in Australia, through its subsidiary Nippon Sanso Holdings Corporation. This acquisition, completed on July 1, 2025, strengthens MCG’s position in the industrial gas market in Australia and New Zealand, potentially enhancing its operational capabilities and market reach in the region.

The most recent analyst rating on (JP:4188) stock is a Hold with a Yen903.00 price target. To see the full list of analyst forecasts on Mitsubishi Chemical Holdings stock, see the JP:4188 Stock Forecast page.

Mitsubishi Chemical Completes Interim Financial Review Amid Revenue Decline
Aug 8, 2025

Mitsubishi Chemical Group Corporation announced the completion of an interim review of its Japanese consolidated financial results for the first quarter of the fiscal year ending March 31, 2026, by an independent auditor, confirming no changes to the previously disclosed statements. The company reported a decline in sales revenue and net income compared to the previous year, reflecting challenging market conditions. The financial results highlight the company’s ongoing efforts to manage its operations effectively amidst a dynamic economic environment.

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 Completes Treasury Share Acquisition
Aug 4, 2025

Mitsubishi Chemical Group Corporation has completed the acquisition of 889,200 treasury shares valued at JPY 720,259,790, as part of a resolution made by its Board of Directors. This acquisition is part of a larger plan to purchase up to 100 million shares, reflecting the company’s strategic financial management and potential impact on 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 Reports Q1 Earnings Decline
Aug 1, 2025

Mitsubishi Chemical Holdings Corporation is a diversified chemical company operating in the specialty materials, industrial gases, and basic materials sectors, known for its global presence and innovative solutions in the chemical industry.

Mitsubishi Chemical Group Reports Q1 Financial Decline Amid Strategic Reclassification
Aug 1, 2025

Mitsubishi Chemical Group reported a decline in its financial performance for the first quarter of the fiscal year ending March 31, 2026, with significant decreases in sales revenue and net income compared to the previous year. The company attributes part of this decline to the reclassification of its subsidiary, Mitsubishi Tanabe Pharma Corporation, as discontinued operations, impacting its consolidated financial results.

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 Acquires Over 28 Million Treasury Shares in July
Aug 1, 2025

Mitsubishi Chemical Group Corporation announced the acquisition of 28,715,600 of its common shares, valued at JPY 22,725,462,410, during July 2025. This move is part of a broader plan approved by the Board of Directors to acquire up to 100 million shares by May 2026, with a maximum budget of JPY 50 billion. The acquisition aims to enhance shareholder value and optimize the company’s capital structure.

The most recent analyst rating on (JP:4188) stock is a Buy with a Yen1040.00 price target. To see the full list of analyst forecasts on Mitsubishi Chemical Holdings stock, see the JP:4188 Stock Forecast page.

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: Nov 01, 2025