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

• Market Cap: ¥2.63B
• Dividend Yield: 2.39%
• Average Volume (3M): 7.44K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.98
• Revenue Growth: 2.89%
• EPS Growth: 94.76%
• Country: JP
• Employees: 318
• Sector: Industrials
• Sector Strength: 79
• Industry: Electrical Equipment & Parts
• EPS (TTM): 3.03
• Shares Outstanding: 3,799,965
• 10 Day Avg. Volume: 9,490
• 30 Day Avg. Volume: 7,443
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥788.00
• Price Target Upside: 10.67% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: ¥788.00 ▲(10.67% Upside)

Mitsuboshi Co., Ltd. has a solid financial foundation with stable revenue growth and operational efficiency. However, challenges in cash flow management and thin net margins are areas of concern. The technical indicators suggest potential short-term weakness, while the valuation metrics indicate the stock is fairly valued with a reasonable dividend yield.

Mitsuboshi Co., Ltd. Business Overview & Revenue Model

Company Description

Mitsuboshi Co., Ltd. (5820) is a Japanese company specializing in the manufacturing and distribution of precision metal products. The company operates primarily in the sectors of industrial machinery, automotive components, and electronics. Mitsuboshi is known for its high-quality metal processing capabilities, including cutting, pressing, and assembly, which serve a broad range of industries requiring precision-engineered metal parts.

How the Company Makes Money

Mitsuboshi Co., Ltd. generates revenue through the sale of its precision metal products to various industrial sectors. The company's key revenue streams include the production and supply of metal components for industrial machinery, automotive parts, and electronic devices. Mitsuboshi's earnings are significantly influenced by its ability to maintain strong relationships with major manufacturers in these sectors. Additionally, the company may engage in partnerships or collaborations with other firms to expand its market reach and enhance its product offerings, although specific current partnerships are not detailed.

Mitsuboshi Co., Ltd. Financial Statement Overview

Summary

Mitsuboshi Co., Ltd. shows stable revenue growth and improved operational efficiency. However, thin net margins and low return on equity are concerns. Cash flow management needs improvement, particularly in converting earnings into free cash flow.

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	10.88B	10.88B	10.33B	9.95B	9.19B	7.64B
Gross Profit	1.87B	1.87B	1.69B	1.67B	1.73B	1.61B
EBITDA	489.89M	489.89M	408.03M	160.13M	645.25M	484.64M
Net Income	167.50M	168.24M	123.66M	-68.28M	281.07M	188.43M
Balance Sheet
Total Assets	12.70B	12.70B	12.71B	10.95B	10.42B	9.98B
Cash, Cash Equivalents and Short-Term Investments	2.04B	2.04B	1.68B	1.62B	1.07B	1.75B
Total Debt	3.40B	3.40B	3.00B	2.21B	1.71B	1.96B
Total Liabilities	6.09B	6.09B	6.11B	4.88B	4.25B	4.02B
Stockholders Equity	6.61B	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: Negative
• Last Price: 712.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 712 is below the 20-day moving average (MA) of 726.10, below the 50-day MA of 727.58, and below the 200-day MA of 809.86, indicating a bearish trend. The MACD of -4.52 indicates Positive momentum. The RSI at 42.19 is Neutral, neither overbought nor oversold. The STOCH value of 30.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5820.

Mitsuboshi Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6763	81 Outperform	¥23.36B	13.91		2.85%	13.05%	14.25%
5819	77 Outperform	¥11.49B	9.81		3.31%	-1.60%	0.69%
7711	73 Outperform	¥17.55B	21.01		1.17%	17.04%	25.79%
5820	67 Neutral	¥2.63B	14.91		2.39%	2.89%	94.76%
Sector *	64 Neutral	$10.96B	16.35	8.89%	1.96%	2.68%	-15.17%
6748	―	¥8.94B	5.72		2.65%	―	―
6882	58 Neutral	¥12.18B	110.88		4.62%	-17.49%	-96.33%