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

• Market Cap: ¥3.46B
• Dividend Yield: 2.69%
• Average Volume (3M): 10.07K
• Price to Earnings (P/E): 4.0
• Beta (1Y): 1.15
• 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: -80.28
• 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: 75 Outperform
• Price Target: ¥1,014.00 ▲(58.19% Upside)
• Action: Upgraded Date: 03/05/26
• Date: Action: Upgraded 03/05/26

The score is driven primarily by attractive valuation (very low P/E) and strong technical trend/momentum, partially offset by overbought signals (very high RSI). Financial performance is stable but held back by thin net margins, low ROE, and weak free cash flow conversion.

Positive Factors

Revenue Growth

Consistent revenue growth of ~5.3% indicates stable end-market demand and gradual share expansion. Over a multi-month horizon this supports predictable top-line, underpins capacity planning and investment, and reduces reliance on one-off gains for durable earnings progress.

Balance Sheet Health

Moderate leverage and a strong equity ratio provide financial flexibility and lower solvency risk. This structural strength enables the company to fund working capital, invest selectively or weather cyclical headwinds without forcing distress sales or aggressive refinancing in the medium term.

Improving Operational Margins

Rising gross and EBITDA margins reflect better cost control or pricing power, boosting operational resilience. Sustained margin improvement enhances cash generation potential and gives management room to reinvest in products or operations, supporting durable competitive positioning.

Negative Factors

Thin Net Profitability

A net margin near 1.6% leaves a very thin profit buffer after costs and taxes, limiting retained earnings and sensitivity to cost shocks. Over months this constrains capacity to self-fund growth, dividends or absorb input-price volatility without eroding equity.

Low Return on Equity

ROE around 2.5% signals limited effectiveness in converting equity into profits. Structurally low ROE can deter capital allocation, implying reinvested earnings generate modest returns and reducing shareholder reward potential over multi-month horizons.

Weak Free Cash Flow Conversion

Negative FCF conversion means reported earnings do not translate into spendable cash, restricting debt reduction, capex or dividends. This structural cash shortfall reduces financial optionality and raises execution risk for strategic initiatives over the coming months.

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

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Mitsuboshi Co., Ltd. Financial Statement Overview

Summary

Financials are steady but not strong: revenue growth is positive (5.29%) and EBITDA margin improved (4.50%), but net margin remains thin (1.55%) and ROE is low (2.54%). Cash generation vs. earnings is decent (operating cash flow to net income 0.88), yet free cash flow conversion is weak (negative free cash flow to net income and negative free cash flow 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	1.86B	1.87B	1.69B	1.67B	1.73B	1.61B
EBITDA	366.79M	363.81M	275.06M	351.03M	457.88M	386.63M
Net Income	173.77M	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	3.25B	3.40B	3.00B	2.21B	1.71B	1.96B
Total Liabilities	5.94B	6.09B	6.11B	4.88B	4.25B	4.02B
Stockholders Equity	6.60B	6.61B	6.60B	6.07B	6.17B	5.96B
Cash Flow
Free Cash Flow	0.00	-38.55M	-242.03M	27.34M	-448.68M	518.11M
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: Neutral
• Last Price: 641.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 641 is below the 20-day moving average (MA) of 950.00, below the 50-day MA of 804.24, and below the 200-day MA of 718.74, indicating a neutral trend. The MACD of 35.43 indicates Positive momentum. The RSI at 50.52 is Neutral, neither overbought nor oversold. The STOCH value of 14.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5820.

Mitsuboshi Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5820	75 Outperform	¥3.46B	4.00	―	2.69%	2.48%	161.80%
5819	75 Outperform	¥12.70B	10.63	―	3.02%	3.43%	3.75%
6637	72 Outperform	¥53.74B	12.37	―	0.91%	5.28%	18.38%
6882	65 Neutral	¥14.27B	27.15	―	4.42%	-11.74%	-84.61%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6905	59 Neutral	¥49.52B	195.39	―	5.01%	-32.74%	-117.06%
6943	51 Neutral	¥4.04B	7.18	―	1.79%	-10.43%	-368.47%