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

• Market Cap: ¥2.48B
• Dividend Yield: 2.59%
• Average Volume (3M): 10.07K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 1.03
• 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: 3,799,965
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥763.00 ▲(21.69% 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

Consistent revenue growth indicates a strong market position and demand for Mitsuboshi's precision metal products, supporting long-term business expansion.

Operational Efficiency

Improved operational efficiency suggests Mitsuboshi is effectively managing costs, enhancing profitability and competitive advantage in the precision metal industry.

Financial Stability

Moderate leverage and a strong equity ratio highlight Mitsuboshi's financial stability, providing a solid foundation for sustainable growth and investment capacity.

Negative Factors

Net Profit Margin

Thin net profit margins may limit Mitsuboshi's ability to generate significant shareholder value, posing challenges for long-term profitability and investment returns.

Return on Equity

Low ROE indicates inefficient use of equity capital, potentially deterring investors seeking higher returns and affecting Mitsuboshi's equity market appeal.

Free Cash Flow Conversion

Negative free cash flow conversion highlights cash management issues, which could constrain Mitsuboshi's ability to invest in growth opportunities and manage financial obligations.

Mitsuboshi Co., Ltd. Business Overview & Revenue Model

Company Description

Mitsuboshi Co., Ltd. (5820) is a Japan-based company primarily engaged in the manufacturing and sale of industrial rubber products, including belts, hoses, and other related components. The company operates in various sectors, such as automotive, machinery, and construction, providing high-quality solutions tailored to meet the diverse needs of its clients. Mitsuboshi emphasizes innovation and quality in its product offerings, which are essential in supporting various industrial applications.

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, the low return on equity and thin net margins are concerns. Cash flow management issues, particularly in free cash flow conversion, need addressing.

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: Negative
• Last Price: 627.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 627 is below the 20-day moving average (MA) of 651.35, below the 50-day MA of 672.16, and below the 200-day MA of 762.68, indicating a bearish trend. The MACD of -13.49 indicates Positive momentum. The RSI at 32.03 is Neutral, neither overbought nor oversold. The STOCH value of 4.40 is Positive, 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	80 Outperform	¥24.19B	14.29	―	3.44%	12.72%	53.85%
5819	77 Outperform	¥12.51B	10.51	―	3.02%	3.43%	3.75%
7711	72 Outperform	¥45.00B	53.87	―	0.53%	10.13%	24.53%
5820	64 Neutral	¥2.48B	12.62	―	2.59%	2.48%	161.80%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6882	61 Neutral	¥12.29B	33.54	―	4.56%	-11.74%	-84.61%