Mitsubishi Materials (5711) AI Stock Analysis

• Market Cap: ¥385.93B
• Dividend Yield: 3.39%
• Average Volume (3M): 1.45M
• Price to Earnings (P/E): 41.7
• Beta (1Y): 0.94
• 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: 1,373,740
• 30 Day Avg. Volume: 1,446,083
• 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: ¥3,000.31
• Price Target Upside: 1.83% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: ¥3,147.00 ▲(6.80% Upside)

Mitsubishi Materials' stock score is driven by a solid financial recovery and strong technical indicators, suggesting positive momentum. However, the high P/E ratio indicates potential overvaluation, which tempers the overall score. The absence of earnings call data and corporate events limits additional insights.

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 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 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	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 above the 20-day moving average (MA) of 2896.33, above the 50-day MA of 2696.34, and above the 200-day MA of 2382.00, indicating a bullish trend. The MACD of 79.55 indicates Positive momentum. The RSI at 58.35 is Neutral, neither overbought nor oversold. The STOCH value of 59.23 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	―	¥108.62B	5.79	15.20%	2.00%	7.28%	22.26%
1515	―	¥138.01B	16.43	5.92%	2.72%	12.71%	-1.52%
5714	―	$337.32B	15.58	5.76%	2.74%	-9.15%	-31.58%
5711	―	¥385.93B	41.73	1.33%	3.39%	11.12%	-80.21%
Sector *	―	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5713	―	$1.47T	68.07	1.31%	2.12%	5.12%	-63.31%
5727	―	¥109.39B	38.94	4.87%	1.25%	7.37%	-47.09%