Mitsubishi Chemical Holdings (4188) AI Stock Analysis

• Market Cap: $1.12T
• Dividend Yield: 3.63%
• Average Volume (3M): 5.46M
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.69
• Revenue Growth: -11.50%
• EPS Growth: 25.86%
• Country: JP
• Employees: 66,358
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 65.70
• Shares Outstanding: 1,441,467,200
• 10 Day Avg. Volume: 5,007,700
• 30 Day Avg. Volume: 5,460,770
• PEG Ratio: -0.37
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.24
• P/FCF Ratio: 4.40
• Enterprise Value/Market Cap: 2.92
• Enterprise Value/Revenue: 0.82
• Enterprise Value/Gross Profit: 2.83
• Enterprise Value/Ebitda: 7.89
• 1Y Price Target: $852.26
• Price Target Upside: -3.39% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥949.00 ▲(7.57% Upside)

The overall stock score reflects a stable but challenged financial position, with technical indicators showing a positive trend. Valuation metrics suggest the stock is reasonably priced with an attractive dividend yield. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Strategic Collaboration

The partnership with Boston Materials enhances Mitsubishi Chemical's position in thermal management solutions, potentially expanding its market reach and product offerings in high-performance computing and AI sectors.

Operational Efficiency

Mitsubishi Chemical's operational efficiency indicates effective cost management, which can support long-term profitability and competitiveness despite current profitability challenges.

Innovation and Sustainability

A strong focus on innovation and sustainability positions Mitsubishi Chemical to adapt to industry trends and regulatory changes, supporting long-term growth and market leadership.

Negative Factors

High Leverage

High leverage can increase financial risk, limiting Mitsubishi Chemical's ability to invest in growth opportunities and potentially impacting its financial stability.

Declining Revenue

A decline in revenue suggests challenges in market demand or competitive positioning, which could hinder Mitsubishi Chemical's long-term growth and profitability.

Declining Cash Flow Growth

Decreasing cash flow growth may impact Mitsubishi Chemical's ability to fund operations and investments, posing a risk to its financial health and strategic initiatives.

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 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 Financial Statement Overview

Summary

Mitsubishi Chemical Holdings shows a mixed financial performance. While maintaining decent profitability margins and cash flow generation, the company faces challenges with declining revenue growth and high leverage. Improvements in operational efficiency and debt reduction are needed 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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.96T	4.41T	4.39T	4.63T	3.98T	3.26T
Gross Profit	1.16T	1.28T	1.15T	1.24T	1.11T	926.25B
EBITDA	414.68B	481.62B	561.06B	456.72B	542.84B	283.92B
Net Income	114.23B	45.02B	119.60B	96.46B	177.16B	-7.56B
Balance Sheet
Total Assets	5.66T	5.89T	6.10T	5.77T	5.57T	5.29T
Cash, Cash Equivalents and Short-Term Investments	585.44B	392.25B	377.73B	297.22B	245.79B	349.58B
Total Debt	1.89T	2.04T	2.20T	2.24T	2.16T	2.35T
Total Liabilities	3.28T	3.61T	3.83T	3.79T	3.73T	3.72T
Stockholders Equity	1.80T	1.74T	1.76T	1.56T	1.46T	1.24T
Cash Flow
Free Cash Flow	163.84B	238.31B	190.67B	74.19B	89.21B	210.12B
Operating Cash Flow	439.43B	552.85B	465.15B	355.19B	346.87B	467.13B
Investing Cash Flow	38.35B	-275.43B	-246.09B	-247.63B	-128.78B	-217.01B
Financing Cash Flow	-409.47B	-246.65B	-241.72B	-60.78B	-336.28B	-142.77B

Mitsubishi Chemical Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 882.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 882.2 is above the 20-day moving average (MA) of 858.56, above the 50-day MA of 846.95, and above the 200-day MA of 777.48, indicating a bullish trend. The MACD of 6.62 indicates Negative momentum. The RSI at 60.35 is Neutral, neither overbought nor oversold. The STOCH value of 61.76 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4021	72 Outperform	¥717.31B	15.94	19.69%	3.30%	10.06%	18.03%
4004	72 Outperform	$1.13T	104.96	1.67%	1.02%	-1.90%	-71.97%
4042	71 Outperform	$715.65B	17.71	4.79%	4.31%	-1.21%	-27.21%
3407	69 Neutral	¥1.89T	13.47	7.48%	2.87%	3.55%	95.65%
4188	68 Neutral	$1.12T	10.25	1.09%	3.63%	-11.50%	25.86%
4005	66 Neutral	¥767.80B	9.05	8.79%	2.65%	-1.64%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Mitsubishi Chemical Holdings Corporate Events

Mitsubishi Chemical Revises Financial Forecast for Fiscal Year 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.

Mitsubishi Chemical Reports Mixed Financial Results Amid Strategic Reclassification

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.

Mitsubishi Chemical Amends Share Cancellation Plan

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.

Mitsubishi Chemical Implements Voluntary Retirement Program

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.

Mitsubishi Chemical Expands in Australia with Coregas Acquisition

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.