Mitsuboshi Co., Ltd. (5820) AI Stock Analysis

• Market Cap: ¥2.69B
• Dividend Yield: 2.69%
• Average Volume (3M): 10.07K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 1.05
• Revenue Growth: 2.48%
• EPS Growth: 161.80%
• Country: JP
• Employees: 318
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 13.34
• Shares Outstanding: 3,959,965
• 10 Day Avg. Volume: 7,460
• 30 Day Avg. Volume: 10,070
• PEG Ratio: 0.51
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.28
• P/FCF Ratio: -80.29
• 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: 64 Neutral
• Price Target: ¥751.00 ▲(17.16% Upside)

The overall stock score of 64 reflects Mitsuboshi Co., Ltd.'s stable financial performance and reasonable valuation, offset by technical indicators suggesting a bearish trend. The lack of earnings call data and corporate events limits further insights.

Positive Factors

Revenue growth and margin improvement

Consistent revenue growth with improving gross and EBITDA margins indicates structural operational improvements. Sustained top-line expansion plus rising operating efficiency supports reinvestment capacity, resilience to cost pressures, and incremental scale economies over the coming months.

Conservative capital structure

Moderate leverage and a strong equity ratio provide durable financial flexibility, lowering refinancing and solvency risk. This balance sheet profile supports funding for capex or working capital through cycles without excessive reliance on external debt markets.

Operating cash generation

Nearly one-to-one conversion of net income into operating cash flow shows the core business reliably generates cash. This structural cash generation underpins working capital, routine capex, and distribution capacity even if free cash flow conversion lags.

Negative Factors

Low return on equity

Subdued ROE reflects limited ability to translate equity into shareholder returns. Over a multi-month horizon this constrains long-term wealth creation, limits retained-earnings growth, and may restrict the firm's capacity to fund growth without dilutive financing.

Weak free cash flow conversion

Negative FCF conversion and declining FCF growth signal structural difficulty turning accounting profits into discretionary cash. This limits funding for strategic investments, dividends, or debt reduction and increases dependence on external financing over time.

Limited investor communications

Absence of earnings calls and limited corporate event disclosure reduces transparency into strategy and management priorities. Over months this can hinder investor confidence, complicate external assessment of governance, and raise uncertainty about strategic direction.

Mitsuboshi Co., Ltd. Business Overview & Revenue Model

Company Description

Mitsuboshi Co., Ltd. manufactures and sells electric wires and synthetic resin products in Japan. The company offers electric wires, such as rubber flexible cables, welding cables, vinyl flexible cables, Star MIC cable series, flexible cords, and heavy polychloroprene rubbers; high-performance tubes, including thermoflon, blacktrack, rumflon series, transformer master series, popurex series tubes that are applied in physical and chemical equipment, analytical equipment, semiconductor processing, chemical industry, electronic industry, general industry, and other applications; and heating wires used in home appliances, industrial and food furnaces, fittings, industrial equipment, and automotive applications. The company was formerly known as Mitsuboshi Trading Co., Ltd. and changed its name to Mitsuboshi Co., Ltd. in 1971. Mitsuboshi Co., Ltd. was founded in 1919 and is headquartered in Osaka, Japan.

How the Company Makes Money

Mitsuboshi Co., Ltd. generates revenue through multiple key streams, primarily from the sale of its industrial rubber products. The company's revenue model is based on direct sales to manufacturers in automotive and industrial sectors, where it serves as a critical supplier of belts and hoses. Additionally, Mitsuboshi benefits from long-term contracts and partnerships with major companies in these industries, ensuring a steady flow of income. The company also invests in research and development to produce advanced products, which can command higher prices in the market. Exporting its goods to international markets further diversifies its revenue sources, contributing positively to its earnings.

Mitsuboshi Co., Ltd. Financial Statement Overview

Summary

Mitsuboshi Co., Ltd. shows stable revenue growth and improved operational efficiency. However, low net profit margins and return on equity, along with challenges in free cash flow conversion, highlight areas for improvement.

Income Statement

Mitsuboshi Co., Ltd. demonstrates a solid revenue growth trajectory with a Revenue Growth Rate of 5.29% over the last year. The Gross Profit Margin stands at 17.17%, providing a steady profit buffer despite being slightly lower than past years. EBITDA Margin has improved to 4.50%, indicating better operational efficiency. However, the Net Profit Margin of 1.55% suggests relatively thin net profitability, which remains a concern for long-term value generation.

Balance Sheet

The company's balance sheet reflects moderate leverage with a Debt-to-Equity Ratio of 0.51, indicating reasonable financial risk. The Equity Ratio is strong at 52.06%, suggesting a healthy proportion of equity financing. However, the Return on Equity (ROE) at 2.54% is low, which may limit attractiveness for equity investors seeking higher returns.

Cash Flow

Mitsuboshi's cash flow situation shows improvement with a positive Operating Cash Flow to Net Income Ratio of 0.88, indicating good cash generation relative to net earnings. However, the Free Cash Flow to Net Income Ratio is negative, reflecting challenges in converting earnings into free cash flow. The Free Cash Flow Growth Rate is also negative, suggesting potential cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.91B	10.88B	10.33B	9.95B	9.19B	7.64B
Gross Profit	1.85B	1.87B	1.69B	1.67B	1.73B	1.61B
EBITDA	492.64M	489.89M	408.03M	160.13M	645.25M	484.64M
Net Income	164.50M	168.24M	123.66M	-68.28M	281.07M	188.43M
Balance Sheet
Total Assets	12.54B	12.70B	12.71B	10.95B	10.42B	9.98B
Cash, Cash Equivalents and Short-Term Investments	1.97B	2.04B	1.68B	1.62B	1.07B	1.75B
Total Debt	3.24B	3.40B	3.00B	2.21B	1.71B	1.96B
Total Liabilities	6.00B	6.09B	6.11B	4.88B	4.25B	4.02B
Stockholders Equity	6.54B	6.61B	6.60B	6.07B	6.17B	5.96B
Cash Flow
Free Cash Flow	0.00	-38.55M	-246.02M	17.47M	-455.34M	514.64M
Operating Cash Flow	0.00	147.30M	113.11M	104.91M	-352.23M	632.03M
Investing Cash Flow	0.00	-55.04M	-428.12M	35.42M	28.21M	-85.53M
Financing Cash Flow	0.00	283.68M	384.83M	414.00M	-348.10M	-224.32M

Mitsuboshi Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 641.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5820, the sentiment is Positive. The current price of 641 is below the 20-day moving average (MA) of 689.60, below the 50-day MA of 655.04, and below the 200-day MA of 705.62, indicating a neutral trend. The MACD of 15.87 indicates Positive momentum. The RSI at 57.92 is Neutral, neither overbought nor oversold. The STOCH value of 29.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5820.

Mitsuboshi Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5819	81 Outperform	¥12.43B	10.48	―	3.02%	3.43%	3.75%
6763	80 Outperform	¥26.06B	14.73	―	3.16%	12.72%	53.85%
7711	73 Outperform	¥45.12B	54.77	―	0.67%	10.13%	24.53%
5820	64 Neutral	¥2.69B	13.16	―	2.69%	2.48%	161.80%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6882	61 Neutral	¥14.24B	157.11	―	4.42%	-11.74%	-84.61%