Mipox Corp. (5381) AI Stock Analysis

• Market Cap: ¥14.10B
• Dividend Yield: 2.29%
• Average Volume (3M): 149.06K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 2.14
• Revenue Growth: 5.37%
• EPS Growth: 63.30%
• Country: JP
• Employees: 448
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 11.93
• Shares Outstanding: 14,451,920
• 10 Day Avg. Volume: 138,540
• 30 Day Avg. Volume: 149,060
• PEG Ratio: -0.03
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 0.75
• P/FCF Ratio: 9.20
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥1,200.00 ▲(168.46% Upside)
• Action: Upgraded Date: 02/19/26
• Date: Action: Upgraded 02/19/26

The score is driven primarily by the strong financial recovery in 2025 and very bullish technical trend/momentum. These positives are tempered by a relatively expensive valuation (higher P/E and low dividend yield) and the company’s history of earnings volatility.

Positive Factors

Profitability recovery

Mipox's 2025 margin and revenue rebound reflects improved operational efficiency and pricing power in its core finishing products. Sustained higher gross and net margins strengthen internal cash generation, support reinvestment in processes and product quality, and reduce sensitivity to input cost swings over the medium term.

Improved leverage

Lower leverage and a solid equity ratio provide a more resilient capital structure, reducing refinancing and interest risks. A mid-teens ROE indicates profitable use of equity; this financial flexibility supports steady capex, working capital needs, and selective strategic investments without over-reliance on external funding.

Strong cash generation

Very strong free cash flow growth and >1x cash conversion indicate durable cash-generative operations. Reliable cash flows enhance ability to fund R&D, maintain production capacity, deleverage, or return capital, improving long-term financial flexibility and resilience to demand variability in industrial end markets.

Negative Factors

Earnings volatility

The company's recent recovery follows pronounced earnings swings and a negative EBIT year, signaling earnings sensitivity to demand and cost dynamics. Persistent volatility complicates multi-quarter planning, weakens predictability for investors and creditors, and raises the chance of margin reversals if headwinds re-emerge.

Cyclicality of end markets

Heavy exposure to electronics and other precision manufacturing ties revenue to cyclical capex and production cycles. Structural swings in customer production volumes can materially affect recurring consumable demand, amplifying revenue and profit variability across 2-6 month horizons and challenging steady growth execution.

Narrow product and disclosure scope

A concentrated product set focused on abrasives and limited disclosure on customer concentration raise dependency risks. Narrow end-market exposure and lack of transparency on major customers can magnify revenue shocks and limit visibility into sustainable demand, constraining strategic diversification options.

Mipox Corp. Business Overview & Revenue Model

Company Description

Mipox Corporation provides polishing products in Japan and internationally. It offers polishing films, abrasive papers and cloths, functional films, liquid polishing slurries, fiber discs, abrasive non-woven fabrics, flap wheels, fine diamonds, fine super pellets, detergents/lubricants, polishing machines, inspection equipment, cleaning products, VARIO products, 3D printed objects, and retroreflective materials. The company also provides quality measurement, contracted polishing, research and development, and consulting services. Its products are used in hard-disk, optical fiber and connector, flat-panel display, semiconductor, compound semiconductor, sample and shaft polishing, automobile and other products, hoop material and wire rod, 3D printed structure, other surface processing and polishing, printed circuit board, architecture, wood and finishing hardware, automobile and its repair, sheet and metal, aircraft, shipbuilding, and stone and glasses. The company was formerly known as Nihon Micro Coating Co., Ltd and changed its name to Mipox Corporation in August 2013. Mipox Corporation was founded in 1925 and is headquartered in Chiyoda, Japan.

How the Company Makes Money

Mipox makes money primarily by manufacturing and selling abrasive and polishing-related products used in customers’ production processes. Key revenue streams include: (1) sales of coated abrasives (e.g., abrasive films, tapes, and related consumable materials) that customers repeatedly purchase as they are consumed during polishing/finishing operations; and (2) sales of other surface-processing materials and products associated with precision finishing workflows. The company’s earnings are driven by demand from manufacturers that require high-precision surface quality (such as electronics-related manufacturing), where consumable abrasives are used continuously in production. Specific details on pricing structure, customer concentration, segment revenue breakdown, and significant partnerships are null.

Mipox Corp. Financial Statement Overview

Summary

Financials show a strong 2025 recovery: revenue grew 19.4%, gross margin reached 38.0%, and net margin improved to 8.2%. Leverage is improved (debt-to-equity 0.63) and cash conversion is strong (operating cash flow to net income 1.75) with sharp free cash flow growth. The main offset is historical volatility (e.g., negative EBIT in 2024) and past balance sheet/cash flow fluctuations.

Income Statement

Mipox Corp. shows a solid recovery in profitability with a gross profit margin of 38.0% and net profit margin of 8.2% for 2025. The revenue growth rate of 19.4% from 2024 to 2025 indicates strong top-line expansion. EBIT and EBITDA margins also improved significantly, suggesting operational efficiency. However, historical volatility in profitability, such as the negative EBIT in 2024, highlights potential risks.

Balance Sheet

The company's debt-to-equity ratio improved to 0.63 in 2025, indicating a better leverage position. Return on equity stands at 10.8%, reflecting good profitability on shareholder investments. The equity ratio of 53.1% provides a stable financial base. However, past fluctuations in equity and liabilities suggest potential financial risks.

Cash Flow

Mipox Corp. has improved its cash flow management, with a free cash flow growth rate of 611.8% from 2024 to 2025. The operating cash flow to net income ratio of 1.75 indicates strong cash conversion. Free cash flow to net income ratio is 1.00, showing balanced cash generation. Despite positive trends, past inconsistencies in cash flows pose potential challenges.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	11.30B	11.17B	9.35B	10.03B	10.45B	7.36B
Gross Profit	4.22B	4.25B	2.58B	3.46B	4.55B	2.69B
EBITDA	1.25B	1.58B	579.65M	1.04B	1.81B	500.81M
Net Income	470.50M	911.88M	-408.66M	45.29M	1.55B	87.12M
Balance Sheet
Total Assets	16.32B	15.93B	15.98B	16.20B	14.61B	11.30B
Cash, Cash Equivalents and Short-Term Investments	2.36B	2.41B	2.69B	2.61B	2.39B	3.02B
Total Debt	6.09B	5.34B	6.37B	6.01B	4.09B	5.11B
Total Liabilities	8.13B	7.47B	8.49B	8.20B	6.52B	6.93B
Stockholders Equity	8.19B	8.46B	7.48B	8.00B	8.09B	4.37B
Cash Flow
Free Cash Flow	0.00	915.12M	-178.77M	-1.42B	-1.70B	-375.25M
Operating Cash Flow	0.00	1.60B	451.87M	-423.12M	1.66B	-114.49M
Investing Cash Flow	0.00	-695.59M	-633.76M	-1.07B	-3.34B	-225.17M
Financing Cash Flow	0.00	-1.06B	144.43M	1.64B	932.90M	575.07M

Mipox Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 447.00
• 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:5381, the sentiment is Positive. The current price of 447 is below the 20-day moving average (MA) of 888.60, below the 50-day MA of 744.02, and below the 200-day MA of 540.73, indicating a bullish trend. The MACD of 72.33 indicates Negative momentum. The RSI at 58.89 is Neutral, neither overbought nor oversold. The STOCH value of 72.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5381.

Mipox Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4633	77 Outperform	¥111.02B	10.07	―	3.72%	5.40%	14.80%
4116	76 Outperform	¥79.56B	6.04	―	3.04%	1.57%	-33.97%
4403	75 Outperform	¥689.16B	17.03	12.15%	1.58%	2.62%	2.81%
5381	75 Outperform	¥14.10B	9.34	―	2.29%	5.37%	63.30%
4626	75 Outperform	¥588.84B	20.62	―	3.26%	11.78%	8.98%
6988	68 Neutral	$2.06T	17.01	11.98%	1.54%	1.84%	-6.57%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Mipox Corp. Corporate Events

Mipox Sales Grow but Profits Slide Sharply as Margin Pressure Mounts

Mipox Corporation reported consolidated net sales of ¥8.87 billion for the nine months ended December 31, 2025, up 6.7% year on year, but operating profit fell 48.8% to ¥428 million, with profit attributable to owners of parent down 46.1% to ¥431 million. Despite higher sales, profit margins weakened significantly, though the balance sheet remained solid with total assets of ¥17.35 billion and an equity ratio of 50.6%.

The company kept its dividend policy unchanged, paying no interim dividend but planning a year-end dividend of ¥10 per share, matching the prior year’s total. For the full year to March 31, 2026, Mipox forecasts net sales of ¥11 billion, a slight 1.5% decline, and a sharp profit contraction, with operating profit expected to drop 36.3% and net profit 39.7%, signaling ongoing pressure on earnings despite stable top-line performance.

The most recent analyst rating on (JP:5381) stock is a Buy with a Yen875.00 price target. To see the full list of analyst forecasts on Mipox Corp. stock, see the JP:5381 Stock Forecast page.

Mipox Posts Profit Slump Despite Modest Sales Growth and Cuts Full-Year Outlook

Mipox Corporation reported consolidated net sales of ¥5.69 billion for the six months ended September 30, 2025, up 1.1% year on year, but operating profit plunged 63.1% to ¥235 million and profit attributable to owners of parent fell 42.0% to ¥265 million, reflecting a sharp deterioration in profitability despite marginal top-line growth; total assets increased to ¥17.29 billion while the equity ratio weakened to 48.8% from 53.1%. The company kept its interim dividend at zero and reaffirmed a full-year dividend of ¥10 per share, while revising its earnings forecast for the year ending March 31, 2026 to project a slight decline in annual sales to ¥11.0 billion and steep drops in profit, signaling a more challenging operating environment and potentially softer returns for shareholders compared with the prior year.

The most recent analyst rating on (JP:5381) stock is a Hold with a Yen487.00 price target. To see the full list of analyst forecasts on Mipox Corp. stock, see the JP:5381 Stock Forecast page.