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Mitsubishi Materials Corp. (JP:5711)
:5711
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Mitsubishi Materials (5711) AI Stock Analysis

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JP:5711

Mitsubishi Materials

(OTC:5711)

Rating:71Outperform
Price Target:
¥2,553.00
▲(10.04%Upside)
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 (5711) vs. iShares MSCI Japan ETF (EWJ)

Mitsubishi Materials Business Overview & Revenue Model

Company DescriptionMitsubishi 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 MoneyMitsubishi 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 signs of recovery with improved revenue and profitability margins. The company has a moderate debt-to-equity ratio, indicating reasonable leverage, and a positive trend in operating cash flow. However, improvement is needed in return on equity and converting profits into free cash flow.
Income Statement
72
Positive
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
68
Positive
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
65
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue1.96T1.54T1.63T1.81T1.49T
Gross Profit166.65B148.15B176.77B208.80B172.35B
EBITDA106.02B102.24B96.16B120.80B92.91B
Net Income34.08B29.79B20.33B45.02B24.41B
Balance Sheet
Total Assets2.38T2.17T1.89T2.13T2.04T
Cash, Cash Equivalents and Short-Term Investments91.61B134.92B142.13B159.22B153.09B
Total Debt593.10B603.16B533.56B608.71B629.48B
Total Liabilities1.68T1.48T1.26T1.47T1.42T
Stockholders Equity677.25B653.64B593.32B584.82B545.23B
Cash Flow
Free Cash Flow2.81B-31.60B-31.55B-71.27B-285.00M
Operating Cash Flow58.89B51.35B45.16B6.89B78.44B
Investing Cash Flow-79.38B-103.00B-43.98B-3.21B-101.76B
Financing Cash Flow-13.21B32.92B3.47B-5.05B41.51B

Mitsubishi Materials Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2320.00
Price Trends
50DMA
2260.02
Positive
100DMA
2289.14
Positive
200DMA
2338.25
Negative
Market Momentum
MACD
16.78
Negative
RSI
57.16
Neutral
STOCH
71.02
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 2320 is above the 20-day moving average (MA) of 2292.43, above the 50-day MA of 2260.02, and below the 200-day MA of 2338.25, indicating a neutral trend. The MACD of 16.78 indicates Negative momentum. The RSI at 57.16 is Neutral, neither overbought nor oversold. The STOCH value of 71.02 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$301.07B8.845.00%4.31%27.35%14.36%
62
Neutral
$10.37B10.131.50%2.95%2.32%-32.65%
$1.99B11.196.92%3.11%
$6.36B58.450.90%3.07%
$630.77M22.676.35%1.80%
€730.65M12.756.29%2.92%
€498.43M4.2914.23%1.74%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5711
Mitsubishi Materials
2,322.50
-362.65
-13.51%
DWMNF
Dowa Holdings Co
32.66
-1.11
-3.29%
STMNF
Sumitomo Metal Mining Co
22.22
-6.64
-23.01%
TTNNF
Toho Titanium Company
7.72
-0.86
-10.02%
DE:7GI
Nittetsu Mining Co., Ltd.
43.00
15.89
58.61%
DE:FUR
Furukawa Co., Ltd.
13.90
3.50
33.65%
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.Date of analysis: Jul 24, 2025