Mitsubishi Materials (5711) AI Stock Analysis

• Market Cap: $340.59B
• Dividend Yield: 3.86%
• Average Volume (3M): 844.29K
• Price to Earnings (P/E): 38.0
• Beta (1Y): 0.98
• Revenue Growth: 11.12%
• EPS Growth: -80.21%
• Country: JP
• Employees: 18,323
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -31.00
• Shares Outstanding: 131,489,530
• 10 Day Avg. Volume: 794,270
• 30 Day Avg. Volume: 844,286
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.30
• Enterprise Value/Revenue: 0.40
• Enterprise Value/Gross Profit: 4.62
• Enterprise Value/Ebitda: 10.00
• 1Y Price Target: $2,084.99
• Price Target Upside: -20.45% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ¥2,553.00 ▼(-2.59% Downside)

The overall score is driven by a strong valuation suggesting undervaluation and attractive dividend yield, supported by stable technical indicators. Financial performance is on a positive trajectory, though there is potential for improvement in leveraging resources and enhancing returns on equity.

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 Corporation generates revenue primarily through the manufacturing and sale of materials and components across multiple sectors. The Advanced Materials & Tools segment contributes significantly by providing high-performance materials and cutting tools used in various manufacturing processes. The Metals segment is another major revenue stream, involving the production and sale of non-ferrous metals, mainly copper and aluminum, which are essential for electronics and construction industries. Additionally, Mitsubishi Materials benefits from its Environmental & Recycling sector, which focuses on recycling and eco-friendly solutions, capitalizing on the growing demand for sustainable practices. The company also engages in strategic partnerships and joint ventures, enhancing its market reach and technological capabilities, thereby contributing to its overall revenue.

Mitsubishi Materials Financial Statement Overview

Summary

Mitsubishi Materials shows a recovery trend with improved revenue and profitability margins. Moderate leverage and positive cash flow trends support liquidity, but there's room for improvement in return on equity and free cash flow conversion.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.96T	1.54T	1.63T	1.81T	1.49T
Gross Profit	166.65B	148.15B	176.77B	208.80B	172.35B
EBITDA	106.02B	102.24B	96.16B	120.80B	92.91B
Net Income	34.08B	29.79B	20.33B	45.02B	24.41B
Balance Sheet
Total Assets	2.38T	2.17T	1.89T	2.13T	2.04T
Cash, Cash Equivalents and Short-Term Investments	91.61B	134.92B	142.13B	159.22B	153.09B
Total Debt	593.10B	603.16B	533.56B	608.71B	629.48B
Total Liabilities	1.68T	1.48T	1.26T	1.47T	1.42T
Stockholders Equity	677.25B	653.64B	593.32B	584.82B	545.23B
Cash Flow
Free Cash Flow	2.81B	-31.60B	-31.55B	-71.27B	-285.00M
Operating Cash Flow	58.89B	51.35B	45.16B	6.89B	78.44B
Investing Cash Flow	-79.38B	-103.00B	-43.98B	-3.21B	-101.76B
Financing Cash Flow	-13.21B	32.92B	3.47B	-5.05B	41.51B

Mitsubishi Materials Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2621.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 2621 is above the 20-day moving average (MA) of 2570.37, above the 50-day MA of 2440.50, and above the 200-day MA of 2349.61, indicating a bullish trend. The MACD of 45.00 indicates Positive momentum. The RSI at 61.43 is Neutral, neither overbought nor oversold. The STOCH value of 57.68 is Neutral, 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	82 Outperform	103.33B	5.74	14.23%	2.11%	7.28%	22.26%
1515	80 Outperform	135.37B	16.52	6.37%	2.66%	12.71%	-1.52%
5727	77 Outperform	117.08B	43.40	6.39%	1.09%	7.37%	-47.09%
5711	71 Outperform	$340.59B	37.99	1.33%	3.86%	11.12%	-80.21%
5714	68 Neutral	320.18B	15.06	6.81%	2.79%	-9.15%	-31.58%
5713	60 Neutral	1.19T	55.16	1.22%	2.40%	5.12%	-63.31%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%