Mitsubishi Materials (5711) AI Stock Analysis

• Market Cap: ¥581.11B
• Dividend Yield: 2.83%
• Average Volume (3M): 1.32M
• Price to Earnings (P/E): 39.0
• Beta (1Y): 1.06
• 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: ¥4,737.00 ▲(60.77% 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

Business Diversification

Mitsubishi Materials’ multi-segment business model spreads exposure across metals, cement, advanced materials and tooling. Diversification reduces reliance on any single end market, supports cross-cycle revenue stability and enables long-term resilience through demand in manufacturing and infrastructure.

Improving Cash Generation

Higher operating cash flow and a return to positive free cash flow indicate improving cash quality and conversion. Durable cash generation supports reinvestment, servicing of moderate debt, and working-capital needs, strengthening financial flexibility over the next several quarters.

Margin Recovery

Recent improvements in gross and EBITDA margins suggest better operational efficiency and pricing or mix improvements. Sustained margin recovery enhances earnings stability, helping the company weather cyclical metal markets and supporting reinvestment in higher-margin advanced materials businesses.

Negative Factors

Low Return on Equity

A 5% ROE signals modest returns on shareholder capital and may reflect capital intensity or inefficient asset utilization. Persistently low ROE can limit the company’s ability to generate strong shareholder value and constrains long-term equity-based growth potential.

Weak Free Cash Conversion

A very low FCF-to-net-income ratio implies much of reported profit is tied up in capex or working capital and not converting to distributable cash. This limits capacity to reduce leverage, increase dividends, or fund strategic investments without external financing.

Revenue Volatility / Commodity Exposure

Sharp historical revenue decline and exposure to non-ferrous metal prices and construction cycles indicate high top-line volatility. Structural commodity sensitivity can produce uneven earnings and cash flows, making multi-quarter planning and consistent growth more challenging.

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

Financials show a recovery with improved profitability (net margin 1.7%, EBITDA margin 5.4%) and strengthening operating cash generation (operating cash flow to net income 1.73). Offsetting this, returns remain modest (ROE 5.0%), leverage is moderate (debt-to-equity ~0.88), and free cash conversion is 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	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: 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 2946.5 is below the 20-day moving average (MA) of 4257.05, below the 50-day MA of 3711.48, and above the 200-day MA of 2769.46, indicating a bullish trend. The MACD of 233.21 indicates Positive momentum. The RSI at 68.19 is Neutral, neither overbought nor oversold. The STOCH value of 73.31 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	77 Outperform	¥167.86B	11.04	11.58%	1.62%	9.81%	30.20%
1515	74 Outperform	¥290.28B	29.11	6.77%	2.30%	8.19%	34.88%
5727	68 Neutral	¥132.45B	38.50	5.78%	1.49%	0.82%	-1.72%
5714	64 Neutral	¥548.26B	27.12	5.02%	2.12%	-7.98%	-42.51%
5711	63 Neutral	¥581.11B	39.03	2.14%	2.83%	-0.64%	-65.65%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5713	53 Neutral	¥2.57T	105.19	1.33%	1.98%	3.15%	-63.65%

Mitsubishi Materials Corporate Events

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.