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Mitsui Mining and Smelting Company Limited (JP:5706)
:5706

Mitsui Mining and Smelting Company (5706) AI Stock Analysis

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JP

Mitsui Mining and Smelting Company

(OTC:5706)

Rating:81Outperform
Price Target:
¥5,586.00
▲(17.58%Upside)
Mitsui Mining and Smelting Company scores highly due to its strong financial performance and attractive valuation. The company benefits from robust revenue and profit growth, effective cost management, and solid cash flow generation. Its low P/E ratio suggests potential undervaluation, making the stock appealing from a valuation perspective. While technical analysis indicates strong momentum, caution is advised due to overbought signals. Overall, the company is well-positioned with a strong financial foundation and attractive valuation metrics.

Mitsui Mining and Smelting Company (5706) vs. iShares MSCI Japan ETF (EWJ)

Mitsui Mining and Smelting Company Business Overview & Revenue Model

Company DescriptionMitsui Mining & Smelting Co., Ltd. manufactures and sells nonferrous metal products in Japan and internationally. The company operates through four segments: Engineered Materials, Metals, Automotive Parts & Components, and Affiliates Coordination. It manufactures engineered powders comprising ultra-fine powders for electronic materials, powder metallurgy, and solder powders; rare metals, such as tantalumu and niobium oxides and carbides, and cerium oxide abrasives; battery materials, including hydrogen storage alloys, and lithium manganese oxides; catalysts; copper foils; PVD materials; and ceramics for electronic components. The company also offers side door latches, back door latches, hood latches, etc. for automobiles; perlite for processing and cooling; Nenisanso, a soil improvement material; and ROKAHELP, a perlite-based filter aid. In addition, it smelts and recycles nonferrous metals comprising zinc, zinc base alloys, lead, tin, bismuth, antimony trioxide, copper, gold and silver, and sulfuric acid; explores for copper and zinc ores; operates geothermal power plant; and provides resource development and environmental conservation related engineering services. Further, the company offers zinc and lead ingots, zinc sulfate, crude zinc oxide, zinc raw materials, and sulfuric acid and plaster products; chemical products; optical crystals, scintillators, and radiation detectors; aluminum- and magnesium-related die-casted products; rolled copper products; and grinding wheels;. Additionally, it engages in the mechatronics and corrosion prevention businesses; handling wires and cables activities; and provision of engineering services and IT systems. The company was formerly known as Kamioka Mining and Smelting Co., Ltd. and changed its name to Mitsui Mining & Smelting Co., Ltd. in 1952. Mitsui Mining & Smelting Co., Ltd. was founded in 1874 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyMitsui Mining and Smelting Company generates revenue through multiple streams, primarily driven by its mining and smelting operations. Key revenue sources include the sale of base metals like zinc and copper, which are essential for various industrial applications. Additionally, the company produces and sells electronic components and battery materials, catering to the growing demand in the electronics and automotive sectors. Mitsui Kinzoku also benefits from strategic partnerships and collaborations, which help expand its market reach and technological capabilities. The company's focus on research and development further enhances its ability to innovate and deliver high-value products, ensuring a steady revenue flow from diverse market segments.

Mitsui Mining and Smelting Company Financial Statement Overview

Summary
Mitsui Mining and Smelting Company demonstrates strong financial health across its income statement, balance sheet, and cash flow. The company is experiencing solid revenue and profit growth, effective cost management, and improved profitability. The balance sheet reflects a stable equity position, although debt levels require monitoring. Cash flow generation is robust, supporting liquidity and operational flexibility. Overall, the company is well-positioned for future growth with a strong financial foundation.
Income Statement
85
Very Positive
Mitsui Mining and Smelting Company has shown strong revenue growth over the years, with a 10.1% increase in 2025 compared to 2024. The gross profit margin improved to 21.1% in 2025 from 14.8% in 2024, indicating better cost management. The net profit margin also increased significantly to 9.1% from 4.0% the previous year. EBIT and EBITDA margins are healthy, reflecting strong operational efficiency. Overall, the income statement reflects robust growth and profitability.
Balance Sheet
78
Positive
The company's balance sheet shows a stable equity position with the equity ratio improving to 50.4% in 2025 from 43.5% in 2024. The debt-to-equity ratio has decreased, indicating reduced leverage risk. Return on equity rose to 19.5%, showcasing efficient use of equity to generate profits. However, total debt remains substantial, suggesting a need for continuous monitoring of leverage levels. Overall, the balance sheet reflects stability with some leverage concerns.
Cash Flow
82
Very Positive
Operating cash flow has remained strong, increasing slightly from the previous year. Free cash flow grew by 4.5% in 2025, supporting positive cash generation trends. The operating cash flow to net income ratio remains solid, indicating that earnings are effectively translating into cash. Free cash flow to net income ratio is healthy, further highlighting robust cash generation capabilities. Overall, the cash flow statement is positive, with strong liquidity and cash management.
Breakdown
TTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
696.07B712.34B646.70B651.97B633.35B522.94B
Gross Profit
141.08B150.24B95.40B79.34B122.56B102.22B
EBIT
73.11B74.74B31.69B12.53B60.74B51.12B
EBITDA
104.15B116.58B75.60B50.99B99.67B90.37B
Net Income Common Stockholders
62.95B64.66B25.99B8.51B52.09B44.73B
Balance SheetCash, Cash Equivalents and Short-Term Investments
43.40B44.47B32.48B26.82B29.61B30.41B
Total Assets
675.77B657.94B640.63B631.89B637.88B595.11B
Total Debt
188.22B168.14B203.02B221.46B227.13B250.91B
Net Debt
144.81B123.67B170.54B194.65B197.51B220.49B
Total Liabilities
343.68B317.08B354.62B370.49B387.83B384.55B
Stockholders Equity
323.32B331.55B278.52B253.37B239.69B198.97B
Cash FlowFree Cash Flow
0.0045.70B43.74B11.86B35.18B-1.01B
Operating Cash Flow
0.0076.70B75.34B43.01B60.67B27.57B
Investing Cash Flow
0.00-20.87B-34.91B-31.64B-25.54B-16.32B
Financing Cash Flow
0.00-43.63B-36.56B-14.68B-37.52B-15.24B

Mitsui Mining and Smelting Company Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price4751.00
Price Trends
50DMA
4253.28
Positive
100DMA
4341.72
Positive
200DMA
4488.04
Positive
Market Momentum
MACD
147.78
Positive
RSI
53.31
Neutral
STOCH
8.05
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5706, the sentiment is Neutral. The current price of 4751 is below the 20-day moving average (MA) of 4859.95, above the 50-day MA of 4253.28, and above the 200-day MA of 4488.04, indicating a neutral trend. The MACD of 147.78 indicates Positive momentum. The RSI at 53.31 is Neutral, neither overbought nor oversold. The STOCH value of 8.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5706.

Mitsui Mining and Smelting Company Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$269.14B4.1620.86%0.02%10.15%148.74%
80
Outperform
¥222.74B8.11
4.02%6.59%18.35%
66
Neutral
$4.50B12.265.40%3.65%4.17%-12.02%
DENO4
€617.31M7.788.66%3.89%
74
Outperform
¥22.24B11.39
2.93%5.03%33.62%
71
Outperform
¥127.03B14.45
2.41%-0.43%42.04%
65
Neutral
¥48.42B876.02
-24.20%-82.44%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5706
Mitsui Mining and Smelting Company
4,751.00
127.06
2.75%
DE:NO4
Noritake Co.,Limited
21.40
-0.40
-1.83%
JP:3106
KURABO INDUSTRIES LTD.
7,480.00
2,759.34
58.45%
JP:5721
S.Science Company, Ltd.
342.00
319.00
1386.96%
JP:5821
Hirakawa Hewtech Corp.
1,506.00
164.95
12.30%
JP:8020
Kanematsu Corporation
2,614.50
131.22
5.28%

Mitsui Mining and Smelting Company Corporate Events

Mitsui Mining & Smelting Unveils 2025-2027 Business Strategy
May 21, 2025

Mitsui Mining & Smelting Co., Ltd. has announced its new medium-term business plan for 2025-2027, aiming to strengthen management foundations, expand human capital, and promote digital transformation. This strategic plan is expected to enhance the company’s operational efficiency and market positioning, potentially impacting stakeholders positively by aligning with current industry trends.

The most recent analyst rating on (JP:5706) stock is a Hold with a Yen5800.00 price target. To see the full list of analyst forecasts on Mitsui Mining and Smelting Company stock, see the JP:5706 Stock Forecast page.

Mitsui Mining & Smelting Faces Shareholder Proposals Amid Governance Concerns
May 13, 2025

Mitsui Mining & Smelting Co., Ltd. received a shareholder proposal from HIDESHOU Company, Limited, which will be presented at the upcoming Annual General Meeting. The proposal includes the dismissal of the current Representative Director, NOU Takeshi, due to insufficient compensation to victims of cadmium leakage, and a request for stock dividends. The Board of Directors has reviewed and decided to oppose both proposals, indicating a potential conflict with shareholder interests and raising questions about the company’s governance and stakeholder relations.

The most recent analyst rating on (JP:5706) stock is a Hold with a Yen5800.00 price target. To see the full list of analyst forecasts on Mitsui Mining and Smelting Company stock, see the JP:5706 Stock Forecast page.

Mitsui Mining Transfers Shares in Mitsui Kinzoku ACT to HI-LEX
May 13, 2025

Mitsui Mining & Smelting Co., Ltd. has decided to transfer all its shares in its subsidiary, Mitsui Kinzoku ACT Corporation, to HI-LEX CORPORATION. This strategic move is part of Mitsui Mining’s effort to adapt to technological changes in the automotive industry and enhance its business portfolio. The transfer is expected to help Mitsui Kinzoku ACT achieve sustainable growth by leveraging HI-LEX’s resources and market capabilities, despite the recording of extraordinary losses associated with the share transfer.

The most recent analyst rating on (JP:5706) stock is a Hold with a Yen5800.00 price target. To see the full list of analyst forecasts on Mitsui Mining and Smelting Company stock, see the JP:5706 Stock Forecast page.

Mitsui Mining & Smelting Co. Announces Progressive Dividend Policy
May 13, 2025

Mitsui Mining & Smelting Co., Ltd. has announced a change in its dividend policy, effective from the fiscal year ending March 2026. The company will adopt a progressive dividend policy, increasing the dividend on consolidated shareholders’ equity from 3.0% to 3.5%, reflecting improvements in business conditions and financial position. This change is expected to enhance shareholder value and demonstrate the company’s commitment to distributing profits while maintaining necessary reserves for future development.

The most recent analyst rating on (JP:5706) stock is a Hold with a Yen5800.00 price target. To see the full list of analyst forecasts on Mitsui Mining and Smelting Company stock, see the JP:5706 Stock Forecast page.

Mitsui Mining & Smelting Co. Increases Dividend Payout
May 13, 2025

Mitsui Mining & Smelting Co., Ltd. announced a decision to increase its dividend payout to 90 yen per share for the fiscal year ending March 31, 2025, reflecting a rise in final settlement value from the full-year earnings forecast. This move aligns with the company’s policy of maintaining stable dividends and is set to be discussed at the upcoming Annual General Meeting of Shareholders.

The most recent analyst rating on (JP:5706) stock is a Hold with a Yen5800.00 price target. To see the full list of analyst forecasts on Mitsui Mining and Smelting Company stock, see the JP:5706 Stock Forecast page.

Mitsui Mining & Smelting Co. Reports Record FY2024 Results, Anticipates FY2025 Challenges
May 13, 2025

In FY2024, Mitsui Mining & Smelting Co., Ltd. achieved record highs in sales and profits due to increased sales volume in its Engineered Materials segment and favorable conditions in the Metals segment, including a weak yen and high metal prices. However, the FY2025 forecast anticipates a decline in revenue and profit due to factors such as a strong yen, lower metal prices, and the divestiture of Mitsui Kinzoku ACT, alongside the absence of previous gains from investment securities.

The most recent analyst rating on (JP:5706) stock is a Hold with a Yen5800.00 price target. To see the full list of analyst forecasts on Mitsui Mining and Smelting Company stock, see the JP:5706 Stock Forecast page.

Mitsui Mining Reports Strong Financial Growth for FY2025
May 13, 2025

Mitsui Mining and Smelting Company reported a significant increase in its financial performance for the fiscal year ended March 31, 2025, with net sales rising by 10.2% and profit attributable to owners of the parent increasing by 148.8%. The company also announced a higher dividend payout, reflecting its strong financial position and commitment to returning value to shareholders.

The most recent analyst rating on (JP:5706) stock is a Hold with a Yen5800.00 price target. To see the full list of analyst forecasts on Mitsui Mining and Smelting Company stock, see the JP:5706 Stock Forecast page.

Mitsui Mining & Smelting Revises Director Compensation System
Apr 16, 2025

Mitsui Mining & Smelting Co., Ltd. has announced revisions to its restricted stock compensation system for directors, aiming to enhance corporate value and align with shareholders’ interests. The changes include extending the system to include outside directors and audit & supervisory committee members, subject to shareholder approval, reflecting a strategic move to strengthen governance and incentivize sustainable growth.

Mitsui Kinzoku Strengthens Governance and DE&I Initiatives
Mar 26, 2025

Mitsui Mining and Smelting Company has announced its commitment to strengthening corporate governance and promoting diversity, equity, and inclusion (DE&I) within its operations. The company has implemented measures such as revising its executive compensation system to include ESG-criteria-based restricted stock compensation and establishing a Diversity, Equity, and Inclusion Office. These initiatives are designed to enhance the company’s management practices and foster a more inclusive corporate culture, ultimately aiming to improve its economic value and stakeholder relationships.

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.