Mitsubishi Materials (5711) AI Stock Analysis

• Market Cap: ¥797.33B
• Dividend Yield: 2.83%
• Average Volume (3M): 1.32M
• Price to Earnings (P/E): 36.9
• Beta (1Y): 1.20
• Revenue Growth: -0.64%
• EPS Growth: -65.65%
• Country: JP
• Employees: 18,323
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 236.49
• Shares Outstanding: 131,489,530
• 10 Day Avg. Volume: 1,318,770
• 30 Day Avg. Volume: 1,316,853
• PEG Ratio: 0.65
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 113.53
• 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): 166.22
• Revenue Forecast (FY): ¥1.65T

• Rating: 66 Neutral
• Price Target: ¥6,600.00 ▲(123.99% Upside)
• Action: Reiterated Date: 02/13/26
• Date: Action: Reiterated 02/13/26

The score is driven primarily by improving financial performance (recovery in revenue/profitability and better operating cash flow) and strong technical uptrend signals. This is meaningfully offset by stretched valuation (P/E 43.34) and overbought momentum indicators that raise near-term downside risk.

Positive Factors

Improving operating cash flow

Operating cash flow has strengthened (OCF to net income 1.73) and free cash flow has turned positive, reflecting improving cash generation. Durable OCF improvement enhances liquidity to fund working capital and capex, reduces reliance on external funding, and cushions cyclical metals downturns.

Revenue recovery and margin improvement

The company shows a recovery in revenue accompanied by higher EBITDA and improving net margin, indicating operational recovery and better mix or pricing. Sustained margin expansion would increase free cash flow potential and improve resilience across cyclical metals and construction end markets.

Diversified materials & recycling portfolio

A diversified portfolio across non-ferrous metals, cement, advanced materials, tooling and recycling reduces single-cycle exposure. Structural exposure to electronics, automotive and infrastructure demand plus recycling capabilities supports steady order streams and long-term resilience.

Negative Factors

Modest profitability metrics

Net margin and ROE remain low, limiting retained earnings and shareholder returns. Persistently modest profitability suggests constrained pricing power or capital efficiency versus peers, reducing the firm’s capacity to organically reinvest and build buffers against commodity or demand shocks.

Weak free cash flow conversion

A low FCF-to-net-income ratio indicates limited ability to convert accounting profits into discretionary cash. This constrains durable investments, dividend stability and debt reduction, making the company more sensitive to working-capital swings and cyclical profit declines over the medium term.

Moderate leverage and equity ratio

Leverage at roughly 0.88 with an equity ratio under 30% indicates meaningful reliance on liabilities to fund assets. In a capital-intensive, cyclical industry this reduces financial flexibility for capex or M&A and increases sensitivity to rising rates or prolonged commodity downturns.

Mitsubishi Materials Business Overview & Revenue Model

Company Description

Mitsubishi Materials Corporation, together with its subsidiaries, manufactures and sells cement products, metals, materials and tools, and electronic materials. The company produces and sells cement, soil stabilizing cement, concrete repair materials, premixed grouting mortars for semi-flexible, water-retaining pavement, non-shrink grout mortars, aggregates, and tools. It also engages in mining, smelting, and refining copper, copper alloy products, gold, silver, precious metal clay, and functional materials. In addition, it provides cemented carbide products and sintering parts for automotive components; and functional materials, chemical products, and electronic devices, as well as polycrystalline silicon and chlorosilane gas. Further, the company offers aluminum sheets, plates, foils, extruded products, cans, and bottles; and engages in the renewable energy activities comprising geothermal, solar, and hydraulic power generation, as well as sells coal and recycles radioactive waste. It has operations in Europe, East Asia, North America, Southeast Asia, Japan, South America, and Oceania. The company was founded in 1871 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Mitsubishi Materials generates revenue through multiple key streams. The primary source of income comes from the production and sale of metals, particularly copper, which is used in various industrial applications. The company also earns significant revenue from its cement and concrete products, catering to the construction industry. In addition, its electronics division contributes to earnings through the sale of high-tech materials and components. Strategic partnerships and joint ventures with other firms enhance its market reach and innovation capabilities, allowing for diversified product offerings and increased sales. Furthermore, fluctuations in global commodity prices, operational efficiencies, and demand from construction and electronics industries significantly impact the company's profitability.

Mitsubishi Materials Financial Statement Overview

Summary

Financials show a recovery trend with improving revenue and profitability, but overall profitability remains modest (net margin 1.7%, ROE 5.0%). Leverage is moderate (debt-to-equity ~0.88) and cash generation is improving, though free cash flow conversion is still weak (FCF to net income 0.08).

Income Statement

Mitsubishi Materials has experienced mixed revenue growth with a recent increase, highlighting a recovery from previous declines. The gross profit margin stands at 8.5%, indicating moderate efficiency in production. The net profit margin improved to 1.7%, reflecting a positive bottom-line performance. EBIT and EBITDA margins show stable operational profitability, with recent improvements in EBITDA margin to 5.4%.

Balance Sheet

The company's debt-to-equity ratio is approximately 0.88, indicating a moderate level of leverage. Return on equity is 5.0%, which is modest and suggests room for improvement in generating returns on shareholder investments. The equity ratio is 28.5%, showing a stable capital structure with a reasonable proportion of assets funded by equity.

Cash Flow

Operating cash flow shows a positive trend, and the free cash flow has turned positive, indicating improving liquidity and operational efficiency. The operating cash flow to net income ratio is 1.73, demonstrating strong cash generation relative to net income. However, the free cash flow to net income ratio is lower at 0.08, highlighting potential challenges in converting profits into free cash.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2023	Mar 2022
Income Statement
Total Revenue	1.88T	1.96T	1.54T	1.63T	1.81T	1.49T
Gross Profit	148.01B	166.65B	148.15B	176.77B	208.80B	172.35B
EBITDA	90.28B	106.02B	102.24B	66.87B	150.20B	114.09B
Net Income	9.07B	34.08B	29.79B	20.33B	45.02B	24.41B
Balance Sheet
Total Assets	2.36T	2.38T	2.17T	1.89T	2.13T	2.04T
Cash, Cash Equivalents and Short-Term Investments	131.44B	91.61B	134.92B	142.13B	159.22B	153.09B
Total Debt	602.39B	593.10B	603.16B	533.56B	608.71B	629.48B
Total Liabilities	1.68T	1.68T	1.48T	1.26T	1.47T	1.42T
Stockholders Equity	659.73B	677.25B	653.64B	593.32B	584.82B	545.23B
Cash Flow
Free Cash Flow	0.00	2.81B	-31.60B	-31.55B	-71.27B	-285.00M
Operating Cash Flow	0.00	58.89B	51.35B	45.16B	6.89B	78.44B
Investing Cash Flow	0.00	-79.38B	-103.00B	-43.98B	-3.21B	-101.76B
Financing Cash Flow	0.00	-13.21B	32.92B	3.47B	-5.05B	41.51B

Mitsubishi Materials Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2946.50
• 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:5711, the sentiment is Positive. The current price of 2946.5 is below the 20-day moving average (MA) of 5167.50, below the 50-day MA of 4508.88, and below the 200-day MA of 3077.08, indicating a bullish trend. The MACD of 394.35 indicates Negative momentum. The RSI at 77.48 is Negative, neither overbought nor oversold. The STOCH value of 90.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5711.

Mitsubishi Materials Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5715	76 Outperform	¥193.49B	13.60	11.58%	1.62%	9.81%	30.20%
1515	74 Outperform	¥338.66B	32.78	6.77%	2.30%	8.19%	34.88%
5713	68 Neutral	¥3.59T	35.98	1.33%	1.98%	3.15%	-63.65%
3036	68 Neutral	¥98.00B	16.04	―	2.98%	8.89%	102.20%
5711	66 Neutral	¥797.33B	36.87	2.14%	2.83%	-0.64%	-65.65%
5714	66 Neutral	¥703.92B	31.40	5.02%	2.12%	-7.98%	-42.51%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Mitsubishi Materials Corporate Events

Mitsubishi Materials Lifts FY2026 Profit Outlook on Weaker Yen and Stronger Metals

Mitsubishi Materials has sharply revised upward its consolidated earnings forecast for the fiscal year ending March 2026, projecting net sales of ¥1.76 trillion and operating profit of ¥47 billion, well above its prior outlook though still below last year’s revenue base. The company expects operating and ordinary profit to outperform on the back of a weaker yen, higher metal prices, successful price pass-through for tungsten products, and stronger cemented carbide sales, while leaving net profit and dividend guidance unchanged due to extraordinary losses tied to structural reforms aimed at improving profitability from the next fiscal year.

The most recent analyst rating on (JP:5711) stock is a Hold with a Yen5260.00 price target. To see the full list of analyst forecasts on Mitsubishi Materials stock, see the JP:5711 Stock Forecast page.

Mitsubishi Materials’ Nine‑Month Profit Falls as Sales Decline, Full‑Year Outlook Cut

Mitsubishi Materials reported nine‑month net sales to December 31, 2025 of ¥1.28 trillion, down 13.4% year on year, with operating profit falling 15.2% to ¥27.4 billion and profit attributable to owners of the parent sliding 26.0% to ¥36.4 billion, even as ordinary profit rose 7.6%. The balance sheet expanded, with total assets increasing to ¥2.93 trillion and shareholders’ equity rising to ¥717.0 billion, but the equity ratio weakened to 24.5% amid a larger asset base.

Despite the weaker earnings, the company kept its dividend stance intact, having paid a total of ¥100 per share in the year ended March 2025 and forecasting the same annual payout for the year to March 2026. Management revised its full‑year forecast, now projecting a 10.3% decline in net sales to ¥1.76 trillion, a 26.6% increase in operating profit to ¥47.0 billion, and a sharp 41.3% drop in full‑year profit attributable to owners to ¥20.0 billion, signaling pressure on bottom‑line profitability even as operating performance improves.

The most recent analyst rating on (JP:5711) stock is a Hold with a Yen5260.00 price target. To see the full list of analyst forecasts on Mitsubishi Materials stock, see the JP:5711 Stock Forecast page.

Mitsubishi UBE Cement to Halt Output at Kyushu Kanda No. 2 and Convert Site to Recycling Hub

Mitsubishi Materials has disclosed that its cement subsidiary, Mitsubishi UBE Cement Corporation, will cease cement production at Kyushu Plant Kanda District 2 by around the end of March 2027 and consolidate cement manufacturing at Kanda District 1 to streamline operations and improve asset efficiency amid declining domestic demand and weakening export profitability in the cement sector. The Kanda District 2 site will be converted into a recycling promotion base focused on treating and processing various waste materials—such as plastics, metals, glass, ash, sludge, and other industrial residues—for thermal recycling, a move aimed at boosting MUCC’s thermal energy substitution rate toward a company-wide target of 50% or more, enhancing competitiveness, and supporting its longer-term carbon-neutral and sustainability goals.

The most recent analyst rating on (JP:5711) stock is a Hold with a Yen4296.00 price target. To see the full list of analyst forecasts on Mitsubishi Materials stock, see the JP:5711 Stock Forecast page.