Mitsubishi Chemical Holdings (4188) AI Stock Analysis

• Market Cap: ¥1.44T
• Dividend Yield: 3.5%
• Average Volume (3M): 5.46M
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.76
• Revenue Growth: -11.50%
• EPS Growth: 25.86%
• Country: JP
• Employees: 66,358
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): N/A
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥980.00
• Price Target Upside: 2.79% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥1,128.00 ▲(18.31% 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

Diversified End Markets

Mitsubishi Chemical's broad footprint across industrial manufacturing, electronics, mobility, healthcare and consumer markets provides meaningful revenue diversification. That reduces concentration risk, smooths demand cyclicality across segments, and supports more stable medium-term cash flows and resilience to single-market shocks.

Specialty Materials & Pharma Exposure

The group's focus on specialty materials and pharmaceuticals entails differentiated formulations, longer qualification cycles, and potential premium pricing. These higher-value lines tend to deliver stronger margin sustainability, customer stickiness, and better long-term competitive positioning versus commodity chemical products.

Stable Gross Profit Margin

A relatively stable gross margin points to disciplined manufacturing and cost control, supporting core profitability even amid top-line pressure. Sustained gross margins allow continued R&D and capex in specialty areas, preserving product differentiation and long-term operational competitiveness.

Negative Factors

High Leverage

Significant leverage reduces financial flexibility, raises interest expense vulnerability, and limits capacity for strategic investments or opportunistic M&A. Over a multi-month horizon, high debt amplifies downside risk if cash flows weaken, complicating deleveraging without asset sales or constrained shareholder returns.

Declining Revenue

A notable TTM revenue decline signals weakening demand or competitive/price pressures. Persistent top-line contraction reduces operating leverage and free cash generation, making it harder to invest in high-margin specialty segments or to reverse leverage without a clear structural revenue recovery plan.

Weakening Free Cash Flow

Declining free cash flow growth erodes liquidity and limits the company's ability to self-fund capex, R&D, and debt reduction. Over time this can force trade-offs such as reduced investment in high-growth areas, asset disposals, or external financing, all of which can impair long-term growth and resilience.

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 exhibits a stable but challenged financial position. Operational efficiency is evident, but profitability and growth are areas of concern. High leverage and declining cash flow growth pose risks, necessitating strategic improvements to enhance financial health and shareholder value.

Income Statement

Mitsubishi Chemical Holdings shows a mixed performance in its income statement. The gross profit margin is relatively stable, indicating efficient cost management. However, the net profit margin is low, reflecting challenges in converting revenue into profit. Revenue has declined in the TTM period, which is a concern for growth prospects. EBIT and EBITDA margins are moderate, suggesting operational efficiency but room for improvement.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage which could pose financial risks. Return on equity is low, suggesting limited profitability relative to shareholder equity. The equity ratio is moderate, showing a balanced asset structure but with potential vulnerability due to high debt levels.

Cash Flow

Cash flow analysis indicates a decline in free cash flow growth, which is concerning for future liquidity. The operating cash flow to net income ratio is moderate, suggesting adequate cash generation relative to net income. However, the free cash flow to net income ratio shows some strain, highlighting potential challenges in maintaining cash reserves.

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: 953.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 1002.61, above the 50-day MA of 938.49, and above the 200-day MA of 823.26, indicating a bullish trend. The MACD of 30.01 indicates Negative momentum. The RSI at 78.34 is Negative, neither overbought nor oversold. The STOCH value of 85.19 is Negative, 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
4063	75 Outperform	¥10.30T	20.39	10.87%	2.17%	3.77%	0.35%
4042	71 Outperform	¥872.05B	25.45	4.79%	4.21%	-1.21%	-27.21%
3407	69 Neutral	¥2.17T	13.78	7.48%	2.89%	3.55%	95.65%
4188	68 Neutral	¥1.44T	16.44	1.09%	3.50%	-11.50%	25.86%
4004	65 Neutral	¥1.69T	157.94	1.67%	1.00%	-1.90%	-71.97%
4005	65 Neutral	¥895.36B	9.19	8.79%	2.68%	-1.64%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Mitsubishi Chemical Holdings Corporate Events

Mitsubishi Chemical to Exit Coke and Carbon Materials Business, Booking ¥85 Billion Loss

Mitsubishi Chemical Group Corporation will withdraw from its coke and carbon materials (needle coke, pitch coke) business, a segment within the coal operations of subsidiary Mitsubishi Chemical Corporation, following a prolonged slump in the overseas coke market driven by weak steel demand and oversupply from China and new Indonesian capacity. The decision, which affects operations at the Kagawa Plant but excludes pitch-based carbon fibers and anode materials, reflects a strategic portfolio shift away from structurally unprofitable coal-related activities, with production scheduled to end in the second half of fiscal 2027 and around 600 employees to be covered by support measures. The group expects to book approximately ¥85 billion in total non-recurring losses tied to impairment, equipment removal and employee support costs, with ¥19 billion recognized as extraordinary losses in the third quarter and roughly ¥66 billion estimated for the fourth quarter of the fiscal year ending March 2026, and will revise its full-year earnings forecast once the financial impact is fully assessed.

The most recent analyst rating on (JP:4188) stock is a Buy with a Yen1132.00 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 to Consolidate CVC Operations Under Mitsubishi Chemical Corporation

Mitsubishi Chemical Group Corporation will transfer its corporate venture capital (CVC) business and related assets to its consolidated subsidiary Mitsubishi Chemical Corporation via a simplified absorption-type company split effective April 1, 2026. The move will shift ownership of Diamond Edge Ventures, stakes in several industrial innovation venture funds, and shareholdings in multiple startups into Mitsubishi Chemical Corporation’s Innovation Division, aligning the venture arm with the technology development function that was reorganized under the subsidiary in April 2025; the restructuring involves no shareholder meetings, stock allocation or capital change, and is intended to streamline governance and accelerate innovation initiatives by consolidating business operations and associated investment assets under a single operating entity.

The most recent analyst rating on (JP:4188) stock is a Hold with a Yen1100.00 price target. To see the full list of analyst forecasts on Mitsubishi Chemical Holdings stock, see the JP:4188 Stock Forecast page.

Mitsubishi Chemical’s Workforce Restructuring Program Results in Significant Cost Savings

Mitsubishi Chemical Corporation announced the results of its Next-stage Support Program, aimed at restructuring its workforce by offering retirement and reemployment support to eligible employees. The program resulted in 1,273 applicants, leading to an anticipated annual reduction in labor expenses by approximately 16 billion yen. Despite an extraordinary loss of 27.7 billion yen due to restructuring costs, the company expects these changes to contribute positively to its financial performance in the long term.

The most recent analyst rating on (JP:4188) stock is a Hold with a Yen860.00 price target. To see the full list of analyst forecasts on Mitsubishi Chemical Holdings stock, see the JP:4188 Stock Forecast page.