Mitsubishi Materials (5711) AI Stock Analysis

• Market Cap: ¥290.23B
• Dividend Yield: 4.33%
• Average Volume (3M): 678.33K
• Price to Earnings (P/E): 8.5
• Beta (1Y): 1.00
• Revenue Growth: 27.35%
• EPS Growth: 14.36%
• Country: JP
• Employees: 18,323
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Industrial Materials
• EPS (TTM): 28.42
• Shares Outstanding: 131,489,530
• 10 Day Avg. Volume: 674,380
• 30 Day Avg. Volume: 678,330
• PEG Ratio: -0.25
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.93
• 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: ¥2,200.29
• Price Target Upside: -0.95% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: ¥2,438.00 ▲(9.75%Upside)

Mitsubishi Materials scores well due to its attractive valuation and improving financial performance. The P/E ratio and dividend yield are particularly favorable, making it appealing for value and income investors. However, technical analysis shows mixed signals with some bearish indicators, suggesting potential short-term volatility. No additional insights from earnings calls or corporate events were available to further influence the score.

Mitsubishi Materials Business Overview & Revenue Model

Company Description

Mitsubishi Materials Corporation (5711) is a diversified materials company headquartered in Japan that operates across several sectors including metals, advanced materials, and tools. The company is involved in the production of a wide range of materials such as copper, aluminum, cement, and electronic materials. Mitsubishi Materials also manufactures cutting tools and precision machinery, serving industries from automotive to electronics with its advanced solutions.

How the Company Makes Money

Mitsubishi Materials makes money primarily through the production and sale of non-ferrous metals, cement, and advanced materials. The company's revenue streams are diversified across its different business units. In the metals sector, it generates income from mining, refining, and selling copper and other metals. The advanced materials division earns revenue by providing high-performance materials such as electronic components and automotive parts. Additionally, its tools and precision machinery unit contributes to earnings through the manufacturing and sale of cutting tools and machinery, serving industries like manufacturing and construction. Strategic partnerships, efficient production processes, and a global supply chain also play significant roles in the company's revenue generation.

Mitsubishi Materials Financial Statement Overview

Summary

Mitsubishi Materials is on a recovery path with improved revenue and profitability margins. However, there is room for improvement in leveraging resources to generate higher returns on equity. The balance sheet shows moderate leverage, and cash flow statements reveal improving liquidity.

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 2022	Mar 2021
Income Statement		Total Revenue
1.94T	1.96T	1.54T	1.63T	1.81T	1.49T
	Gross Profit
169.80B	166.65B	148.15B	176.77B	208.80B	172.35B
	EBIT
40.16B	37.12B	23.28B	50.08B	52.71B	26.57B
	EBITDA
78.39B	106.02B	102.24B	96.16B	120.80B	92.91B
	Net Income Common Stockholders
54.37B	34.08B	29.79B	20.33B	45.02B	24.41B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
110.68B	91.61B	134.92B	142.13B	159.22B	153.09B
	Total Assets
2.44T	2.38T	2.17T	1.89T	2.13T	2.04T
	Total Debt
709.59B	593.10B	603.16B	533.56B	608.71B	629.48B
	Net Debt
598.91B	501.49B	468.24B	391.44B	449.49B	476.39B
	Total Liabilities
1.73T	1.68T	1.48T	1.26T	1.47T	1.42T
	Stockholders Equity
690.25B	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: Negative
• Last Price: 2221.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5711, the sentiment is Negative. The current price of 2221.5 is below the 20-day moving average (MA) of 2233.82, below the 50-day MA of 2224.55, and below the 200-day MA of 2366.50, indicating a bearish trend. The MACD of -3.73 indicates Negative momentum. The RSI at 46.00 is Neutral, neither overbought nor oversold. The STOCH value of 51.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5711.

Mitsubishi Materials Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5715	81 Outperform	€80.05B	4.32	14.23%	3.30%	6.88%	19.10%
1515	80 Outperform	€124.03B	13.61	6.29%	3.39%	17.91%	37.76%
5714	68 Neutral	¥270.68B	9.98	6.92%	3.30%	-5.37%	-2.62%
5711	68 Neutral	¥290.23B	8.52	5.00%	4.33%	27.35%	14.36%
5727	65 Neutral	¥87.47B	23.48	6.35%	1.73%	13.48%	-24.74%
5713	56 Neutral	¥918.84B	55.75	0.90%	3.29%	10.24%	-71.84%
Sector *	51 Neutral	$2.03B	-1.27	-21.09%	3.98%	2.91%	-30.50%