Mitsubishi Kakoki Kaisha,Ltd. (6331) AI Stock Analysis

• Market Cap: ¥88.82B
• Dividend Yield: 2.79%
• Average Volume (3M): 314.16K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 1.20
• Revenue Growth: 31.48%
• EPS Growth: 16.11%
• Country: JP
• Employees: 957
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): 67.28
• Shares Outstanding: 23,741,850
• 10 Day Avg. Volume: 316,290
• 30 Day Avg. Volume: 314,163
• PEG Ratio: -0.67
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.52
• P/FCF Ratio: -7.04
• 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: 79 Outperform
• Price Target: ¥4,341.00 ▲(34.60% Upside)
• Action: Reiterated Date: 12/09/25
• Date: Action: Reiterated 12/09/25

The overall stock score of 79.1 reflects Mitsubishi Kakoki Kaisha, Ltd.'s strong financial performance, particularly in revenue growth and profit margins, despite challenges in cash flow management. The technical analysis indicates robust bullish momentum, further supporting the stock's positive outlook. The valuation is reasonable, with a solid P/E ratio and attractive dividend yield, making it an appealing investment in its industry.

Positive Factors

Revenue Growth

Sustained multi-year top-line growth indicates durable demand for the firm’s plant engineering and environmental solutions. Higher revenue scale supports long-cycle project wins, improves bargaining power with suppliers, and creates a larger base to fund capex and recurring after-sales services over 2–6 months and beyond.

Margin Sustainability

Healthy and improving gross and operating margins reflect efficient project execution and pricing in engineered plant contracts. Sustained margins enhance cash generation potential, support reinvestment in technology and maintenance services, and provide buffer against cyclical revenue swings over the medium term.

Balance Sheet Strength

Very low leverage and a strong equity base give financial flexibility for large capital projects typical of industrial engineering. This structural conservatism reduces refinancing risk, supports steady investment for plant builds and maintenance contracts, and underpins resilience across business cycles.

Negative Factors

Weak Cash Conversion

Volatile and negative free cash flow driven by higher capex and falling operating cash flow strains liquidity and could limit self-funded growth or require external financing. For a capex-intensive engineering business, persistent weak cash conversion raises execution and financing risks over coming quarters.

Declining ROE

A falling ROE signals reduced efficiency in generating shareholder returns from equity, possibly from margin pressure, investment timing, or project mix. If the downward trend persists, it may indicate less effective capital allocation and weaker long-term shareholder value creation.

Cyclical Exposure

Above‑market beta and industry exposure to industrial and pollution-control projects imply sensitivity to economic cycles and capex swings. Structural cyclicality can cause revenue and margin volatility for multi-year plant contracts, challenging stability of cash flows and planning over medium-term horizons.

Mitsubishi Kakoki Kaisha,Ltd. Business Overview & Revenue Model

Company Description

Mitsubishi Kakoki Kaisha, Ltd. engages in the engineering and construction of various industrial and chemical plants and environmental control facilities in Japan, Asia, and internationally. The company operates through Engineering and Machinery segments. The Engineering segment constructs city gas and petroleum plants, hydrogen generation plants, sewage treatment equipment, industrial effluent treatment equipment, water treatment and related products, as well as various chemical engineering plants. The Machinery segment offers oil purifiers, separator and filtration machinery, sea water screening facilities, and mixers and related products. It also manufactures and sells of industrial machineries and equipment, including centrifugal separators, filtration systems, screens, mixers and cleaners. The company was formerly known as Kakoki Seisaku, Ltd. and changed its name to Mitsubishi Kakoki Kaisha, Ltd. in 1938. Mitsubishi Kakoki Kaisha, Ltd. was founded in 1935 and is headquartered in Kawasaki, Japan.

How the Company Makes Money

Mitsubishi Kakoki Kaisha generates revenue primarily through the sale of industrial machinery and equipment, as well as through engineering services associated with the design and maintenance of such products. Key revenue streams include contracts for the construction of large-scale industrial facilities, ongoing maintenance services, and the sale of proprietary technology solutions. Additionally, the company benefits from strategic partnerships with other firms in the energy and chemical sectors, which facilitate collaborative projects and expand its market reach. The demand for energy-efficient and environmentally friendly industrial solutions further enhances its earnings potential.

Mitsubishi Kakoki Kaisha,Ltd. Financial Statement Overview

Summary

Mitsubishi Kakoki Kaisha, Ltd. showcases a robust income statement with strong revenue growth and healthy profit margins, indicating an upward trajectory in financial performance. The balance sheet is stable with low leverage and solid equity ratios, although a decline in ROE suggests a need for enhanced profitability strategies. Cash flow management appears to be a concern with recent negative trends, highlighting the importance of improving cash conversion efficiency to sustain growth and stability.

Income Statement

Mitsubishi Kakoki Kaisha, Ltd. demonstrates a strong financial performance with a consistent increase in total revenue, from ¥45,062 million in 2020 to ¥59,202 million in 2025. The gross profit margin showed an upward trend, reaching 22.04% in 2025. The net profit margin is healthy at 8.24% in 2025, albeit a slight decrease from previous years. The EBIT and EBITDA margins are robust at 9.62% and 13.10% respectively in 2025, showcasing efficient operational management. Revenue growth is evident with a remarkable 23.90% increase from 2024 to 2025.

Balance Sheet

The company's balance sheet reflects a solid equity position with an equity ratio of 57.76% in 2025, indicating financial stability. The debt-to-equity ratio remains low at 0.09, suggesting prudent leverage management. The return on equity (ROE) is strong at 12.76% in 2025, although it has decreased compared to previous years, indicating a slight reduction in profitability for shareholders.

Cash Flow

Cash flow analysis indicates a volatile free cash flow position, with a negative free cash flow of ¥-4,395 million in 2025, primarily due to increased capital expenditures and a significant drop in operating cash flow. The operating cash flow to net income ratio is negative, reflecting challenges in converting income to cash. This presents a potential risk for liquidity management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	63.07B	59.20B	47.77B	44.59B	45.44B	48.75B
Gross Profit	13.77B	13.21B	11.36B	8.68B	8.31B	8.02B
EBITDA	7.90B	7.76B	8.37B	5.04B	4.17B	4.19B
Net Income	5.13B	4.88B	5.40B	3.04B	2.55B	2.51B
Balance Sheet
Total Assets	63.48B	66.17B	63.17B	52.90B	50.52B	51.84B
Cash, Cash Equivalents and Short-Term Investments	10.77B	10.82B	15.18B	13.12B	11.23B	7.05B
Total Debt	3.30B	3.30B	3.30B	3.30B	3.30B	3.30B
Total Liabilities	25.38B	27.94B	28.59B	22.58B	23.22B	26.55B
Stockholders Equity	38.09B	38.23B	34.58B	30.32B	27.30B	25.21B
Cash Flow
Free Cash Flow	0.00	-4.39B	-817.00M	82.00M	4.18B	-3.07B
Operating Cash Flow	0.00	-3.31B	1.36B	996.00M	5.12B	-2.59B
Investing Cash Flow	0.00	43.00M	1.37B	1.35B	-558.00M	831.00M
Financing Cash Flow	0.00	-1.05B	-854.00M	-533.00M	-512.00M	-477.00M

Mitsubishi Kakoki Kaisha,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3225.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6331, the sentiment is Positive. The current price of 3225 is below the 20-day moving average (MA) of 3548.50, below the 50-day MA of 3423.30, and above the 200-day MA of 2727.25, indicating a bullish trend. The MACD of 120.36 indicates Negative momentum. The RSI at 62.43 is Neutral, neither overbought nor oversold. The STOCH value of 82.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6331.

Mitsubishi Kakoki Kaisha,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6331	79 Outperform	¥88.82B	13.58	16.37%	2.79%	31.48%	16.11%
9551	76 Outperform	¥148.94B	17.36	12.54%	1.84%	13.86%	51.05%
6370	72 Outperform	¥957.47B	38.75	6.61%	1.58%	5.02%	-27.41%
6013	71 Outperform	¥227.07B	19.12	9.02%	3.11%	1.25%	-3.97%
6368	71 Outperform	¥774.83B	27.11	―	1.43%	7.87%	38.32%
7004	66 Neutral	¥179.49B	17.47	―	2.41%	2.47%	1.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Mitsubishi Kakoki Kaisha,Ltd. Corporate Events

Mitsubishi Kakoki Lifts FY2026 Profit Outlook and Hikes Dividend Forecast

Mitsubishi Kakoki Kaisha revised its full-year consolidated earnings outlook for the fiscal year ending March 31, 2026, keeping net sales unchanged at ¥88.5 billion but lifting operating income, ordinary income and profit attributable to owners of the parent, with net profit now projected to rise about 17% versus the previous forecast, supported by additional construction orders, improved construction costs and an expected gain on the sale of fixed assets. In tandem with the stronger profit outlook and in line with its medium-term management plan and shareholder return policy, the company raised its year-end dividend forecast from ¥46 to ¥65 per share, taking the projected annual dividend to ¥105 per share after its three-for-one stock split, signaling a more confident earnings trajectory and enhanced cash returns for shareholders.

The most recent analyst rating on (JP:6331) stock is a Hold with a Yen3875.00 price target. To see the full list of analyst forecasts on Mitsubishi Kakoki Kaisha,Ltd. stock, see the JP:6331 Stock Forecast page.

Mitsubishi Kakoki Lifts FY2025 Forecast After 70% Profit Surge in First Nine Months

For the nine months ended 31 December 2025, Mitsubishi Kakoki reported a sharp improvement in performance, with net sales surging 43.5% year on year to ¥59.3 billion and profit attributable to owners of parent jumping 70.8% to ¥4.2 billion, reflecting strong operational momentum and improved profitability following the finalization of accounting for a prior business combination. The company’s financial base remained solid, with total assets rising to ¥70.5 billion and an equity ratio of 57.7%, and it revised its full‑year forecast upward to ¥88.5 billion in net sales and ¥6.85 billion in profit attributable to owners, implying gains of around 40–60% across key profit lines; at the same time, Mitsubishi Kakoki adjusted its dividend plan in light of a three‑for‑one stock split, now projecting a total annual dividend of ¥105 per share for the year ending March 2026, equivalent to ¥315 on a pre‑split basis, underscoring its commitment to shareholder returns.

The most recent analyst rating on (JP:6331) stock is a Hold with a Yen3875.00 price target. To see the full list of analyst forecasts on Mitsubishi Kakoki Kaisha,Ltd. stock, see the JP:6331 Stock Forecast page.

Mitsubishi Kakoki to Invest ¥18 Billion in Head Office and Kawasaki Works Overhaul

Mitsubishi Kakoki Kaisha, Ltd. has approved a major restructuring of its historic Head Office and Kawasaki Works in Kawasaki to modernize aging facilities and strengthen its business base in line with its Management Vision for 2050, including a revised strategic focus on four key business fields and a new manufacturing strategy. The project entails an approximately ¥18 billion investment, up from earlier plans due to expanded construction scope and higher building costs, with work scheduled from January 2026 to December 2028 and funded through internal resources and borrowings; the company says existing plants will operate in parallel with the new build, avoiding disruption to manufacturing and with the financial impact already incorporated into its fiscal 2025–26 forecasts, signaling a long-term capacity and competitiveness upgrade without short-term operational shocks for stakeholders.

The most recent analyst rating on (JP:6331) stock is a Buy with a Yen3448.00 price target. To see the full list of analyst forecasts on Mitsubishi Kakoki Kaisha,Ltd. stock, see the JP:6331 Stock Forecast page.

Mitsubishi Kakoki Approves Restructuring of Head Office and Kawasaki Works

Mitsubishi Kakoki Kaisha, Ltd. has approved a restructuring of its head office and Kawasaki Works at a Board of Directors meeting held on December 25, 2025, signaling an organizational and operational realignment of its core administrative and manufacturing functions. While detailed plans have yet to be released in English, the decision suggests the company is positioning its main offices and key production site for greater efficiency and competitiveness, a move that could affect its cost structure and capacity and may have implications for employees, customers, and other stakeholders once specifics are disclosed.

The most recent analyst rating on (JP:6331) stock is a Buy with a Yen3448.00 price target. To see the full list of analyst forecasts on Mitsubishi Kakoki Kaisha,Ltd. stock, see the JP:6331 Stock Forecast page.

Mitsubishi Kakoki Completes Treasury Share Disposal

Mitsubishi Kakoki Kaisha, Ltd. announced the completion of payment for the disposal of treasury shares through a third-party allotment to its Employee Stock Ownership. The number of shares and total proceeds were revised due to partial forfeiture, with the impact on the company’s financial results for the fiscal year ending March 2026 expected to be minimal.

The most recent analyst rating on (JP:6331) stock is a Buy with a Yen3448.00 price target. To see the full list of analyst forecasts on Mitsubishi Kakoki Kaisha,Ltd. stock, see the JP:6331 Stock Forecast page.