Mitsubishi Materials (5711) AI Stock Analysis

• Market Cap: ¥522.19B
• Dividend Yield: 2.83%
• Average Volume (3M): 1.32M
• Price to Earnings (P/E): 35.1
• Beta (1Y): 1.03
• Revenue Growth: -0.64%
• EPS Growth: -65.65%
• Country: JP
• Employees: 18,323
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): N/A
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ¥4,216.00 ▲(43.09% Upside)

The score is driven primarily by improving financial performance and cash generation, supported by a strong uptrend and positive MACD. It is tempered by overbought technical signals (RSI/Stoch) and a relatively expensive valuation (P/E 32.38) despite a moderate dividend yield.

Positive Factors

Improving operating cash generation

Operating cash flow well above reported net income and improving EBITDA/net margins signal sturdier cash generation cycles. This durable improvement supports funding working capital, reinvestment and service of liabilities, reducing reliance on external financing over months.

Diversified business mix

A multi-segment footprint across metals, cement and electronics reduces single-market exposure and smooths cyclical volatility. Structural diversification enhances resilience to sector-specific downturns and supports cross-segment allocation of capital and R&D over the medium term.

Free cash flow turned positive

Transition to positive free cash flow indicates improving conversion of operations into spendable cash. Sustained FCF provides lasting flexibility to invest in capex, deleverage or sustain dividends, strengthening the firm’s financial optionality over several quarters.

Negative Factors

Sharp historical revenue decline

A ~64% reported decline in revenue is a structural concern: persistent top-line contraction can erode scale, margin leverage and pricing power. Rebuilding sustainable revenue is necessary to support margins and returns over the coming months.

Poor free cash flow conversion

Very low FCF-to-net-income conversion highlights difficulty turning accounting profits into spendable cash. This impairs long-term capacity for capex, M&A or debt reduction unless conversion materially improves, increasing structural funding risk.

Modest returns and moderate leverage

Low ROE indicates modest effectiveness in deploying shareholder capital, while nearly 0.9x leverage and a sub-30% equity ratio signal non-trivial debt reliance. Together these structural factors limit financial flexibility and constrain durable earnings accretion.

Mitsubishi Materials Business Overview & Revenue Model

Company Description

Mitsubishi Materials Corporation (5711) is a diversified multinational corporation based in Japan, primarily engaged in the manufacturing and sale of materials and components for various industries. The company operates across several sectors, including metals, cement, and electronics. Key product offerings include copper, gold, and silver, as well as cement, concrete products, and various metal processing materials. Mitsubishi Materials also provides advanced materials for the electronics sector, such as semiconductor materials and cutting tools.

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

Mitsubishi Materials shows a positive trend in financial recovery with improved revenue and profitability margins. The balance sheet indicates moderate leverage, and cash flow statements reflect improving liquidity. However, there is room for improvement in generating higher returns on equity and converting profits into free cash.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
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 3628.90, below the 50-day MA of 3296.80, and above the 200-day MA of 2616.81, indicating a bullish trend. The MACD of 194.01 indicates Negative momentum. The RSI at 76.81 is Negative, neither overbought nor oversold. The STOCH value of 84.32 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	77 Outperform	¥159.89B	10.51	11.58%	1.62%	9.81%	30.20%
1515	75 Outperform	¥209.83B	21.05	6.77%	2.30%	8.19%	34.88%
5714	64 Neutral	¥479.83B	23.73	5.02%	2.12%	-7.98%	-42.51%
5711	63 Neutral	¥522.19B	35.07	2.14%	2.83%	-0.64%	-65.65%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5727	58 Neutral	¥109.96B	31.97	5.78%	1.49%	0.82%	-1.72%
5713	56 Neutral	¥1.97T	80.59	1.33%	1.98%	3.15%	-63.65%