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): 13.1
• 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): 276.6
• Revenue Forecast (FY): ¥89.50B

• 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 revenue expansion over multiple years indicates durable demand for the company’s engineering, plant and environmental solutions. Consistent top-line growth supports scale advantages, stronger supplier and customer relationships, and provides a base to fund reinvestment and long-term product development.

Margin Sustainability

Healthy and improving gross and operating margins point to efficient project execution and pricing discipline in engineering and plant businesses. Durable margins help absorb cyclical downturns, enable steady reinvestment into technology and after-sales services, and support long-term profitability.

Balance Sheet Strength

A strong equity ratio and very low leverage provide financial flexibility for capital-intensive projects and R&D. This conservatism reduces refinancing risk, enables opportunistic investments or M&A, and supports the company’s ability to weather industry cycles without jeopardizing operations.

Negative Factors

Free Cash Flow Volatility

Negative and volatile free cash flow driven by higher capex and falling operating cash flow is a structural concern for a capital-intensive engineering firm. Persistent FCF deficits can force reliance on financing, constrain organic growth investments, and limit ability to sustain dividends or weather downturns.

Weak Cash Conversion

Earnings not translating into cash signals working capital stress or timing mismatches on project receipts. Over months, poor cash conversion undermines liquidity, increases financing costs, and can limit the firm’s ability to fund backlog execution or respond to bidding opportunities without external funding.

Cyclical End-Market Exposure

Concentration in chemical/process and environmental projects exposes revenues to industrial capex cycles and regulatory-driven timing. Project-driven revenues and long lead times can create durable volatility in orders and margins as industrial investment ebbs and flows across multi-quarter 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: Neutral

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 3572.25, below the 50-day MA of 3432.30, and above the 200-day MA of 2739.61, indicating a bullish trend. The MACD of 116.53 indicates Negative momentum. The RSI at 60.11 is Neutral, neither overbought nor oversold. The STOCH value of 73.33 is Neutral, 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	13.13	16.37%	2.79%	31.48%	16.11%
9551	76 Outperform	¥148.94B	17.81	12.54%	1.84%	13.86%	51.05%
6370	72 Outperform	¥957.47B	39.74	6.61%	1.58%	5.02%	-27.41%
6013	71 Outperform	¥227.07B	19.02	9.02%	3.11%	1.25%	-3.97%
6368	71 Outperform	¥774.83B	27.54	―	1.43%	7.87%	38.32%
7004	66 Neutral	¥179.49B	17.22	―	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.