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

• Market Cap: ¥4.07B
• Dividend Yield: 2.69%
• Average Volume (3M): 10.07K
• Price to Earnings (P/E): 19.1
• Beta (1Y): 1.20
• Revenue Growth: 2.48%
• EPS Growth: 161.80%
• Country: JP
• Employees: 318
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 40.07
• 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: 67 Neutral
• Price Target: ¥966.00 ▲(50.70% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is driven primarily by solid but not standout financial performance: steady revenue growth and manageable leverage are offset by thin net profitability, low ROE, and weak free-cash-flow conversion. Technicals are supportive due to a strong uptrend, but overbought signals raise near-term risk. Valuation appears reasonable with a modest dividend yield.

Positive Factors

Revenue and margin improvement

Consistent ~5.3% revenue growth paired with a rising EBITDA margin indicates improving operational efficiency and stable end-market demand. Over a 2–6 month horizon this supports reinvestment capacity, steadier operating cash generation, and a more resilient earnings base against cyclical swings.

Conservative capital structure

Moderate leverage and a strong equity ratio provide financial flexibility and lower default risk. This balance sheet strength supports capital allocation optionality—funding working capital, targeted capex or dividends—without heavy reliance on volatile external financing in the medium term.

Solid operating cash generation

An OCF-to-net-income ratio near 0.9 indicates earnings are backed by cash generation, reflecting quality of core operations. While FCF conversion is weak, consistent operating cash provides a foundation to manage capex timing, reduce leverage, or improve working capital over coming quarters.

Negative Factors

Thin net profitability

Very low net margin and weak ROE limit internal capital creation and shareholder returns. With narrow profitability, the company is more exposed to margin compression from cost inflation or pricing pressure, constraining growth investments and long-term value creation if not improved.

Weak free cash flow conversion

Negative FCF conversion and declining FCF growth suggest difficulty turning accounting profits into discretionary cash. This undermines capacity to fund expansion, reduce debt, or raise dividends without external financing, raising structural funding risk over the medium term.

Modest gross margin / pricing power

A 17.2% gross margin indicates limited pricing power or higher input intensity relative to peers. Lower gross profitability reduces the buffer to absorb cost shocks, limits scope for margin expansion, and constrains long-term ability to finance R&D, product development, or premium positioning.

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

Stable revenue growth (5.29%) and improved EBITDA margin (4.50%) support performance, and leverage is manageable (D/E 0.51; equity ratio 52.06%). However, profitability remains thin (net margin 1.55%, ROE 2.54%) and free-cash-flow conversion is weak (negative FCF to net income and negative FCF growth).

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 767.25, below the 50-day MA of 709.72, and below the 200-day MA of 705.14, indicating a bullish trend. The MACD of 67.99 indicates Negative momentum. The RSI at 88.28 is Negative, neither overbought nor oversold. The STOCH value of 92.60 is Negative, 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	75 Outperform	¥14.17B	12.16	―	3.02%	3.43%	3.75%
6637	72 Outperform	¥56.22B	12.54	―	0.91%	5.28%	18.38%
5820	67 Neutral	¥4.07B	19.14	―	2.69%	2.48%	161.80%
6882	65 Neutral	¥15.24B	173.69	―	4.42%	-11.74%	-84.61%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6905	59 Neutral	¥56.23B	-141.15	―	5.01%	-32.74%	-117.06%
6943	51 Neutral	¥4.29B	-34.55	―	1.79%	-10.43%	-368.47%