Mitsubishi Electric (6503) AI Stock Analysis

• Market Cap: ¥9.95T
• Dividend Yield: 1.19%
• Average Volume (3M): 4.92M
• Price to Earnings (P/E): 24.8
• Beta (1Y): 1.46
• Revenue Growth: 4.62%
• EPS Growth: 40.65%
• Country: JP
• Employees: 149,914
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 47.85
• Shares Outstanding: 2,113,201,700
• 10 Day Avg. Volume: 6,056,250
• 30 Day Avg. Volume: 4,920,096
• PEG Ratio: 1.19
• Price to Book (P/B): 1.43
• Price to Sales (P/S): 1.03
• P/FCF Ratio: 21.62
• 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: 72 Outperform
• Price Target: ¥4,855.00 ▲(1.36% Upside)

Mitsubishi Electric's strong financial performance and positive technical indicators are the primary drivers of its stock score. However, the high P/E ratio and overbought technical signals suggest caution. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates solid demand for Mitsubishi Electric's diverse product offerings, supporting long-term market presence.

Cash Flow Generation

Strong cash flow generation enhances Mitsubishi Electric's ability to invest in growth opportunities and maintain financial flexibility.

Balance Sheet Health

A robust balance sheet with low leverage supports Mitsubishi Electric's financial stability and capacity to withstand economic fluctuations.

Negative Factors

Modest Profit Margins

Relatively modest profit margins may limit Mitsubishi Electric's ability to reinvest in the business and compete on pricing.

Valuation Concerns

A high P/E ratio suggests potential overvaluation, which could impact investor sentiment and limit stock price appreciation.

Earnings Call Data Absence

Lack of earnings call data may hinder transparency and investor confidence, affecting long-term perception of management quality.

Mitsubishi Electric Business Overview & Revenue Model

Company Description

Mitsubishi Electric Corporation develops, manufactures, distributes, and sells electrical and electronic equipment worldwide. The company offers turbine generators, hydraulic turbine generators, nuclear power plant and power electronics equipment, motors, transformers, circuit breakers, gas insulated switchgears, switch controls, surveillance-system control and security systems, transmission and distribution ICT systems, large display devices, locomotive and rolling stock electrical equipment, wireless and wired communications systems, network camera systems, elevators, escalators, building security and management systems, and others. It also provides programmable logic controllers, inverters, servomotors, human-machine interfaces, hoists, magnetic switches, circuit breakers, time and power meters, uninterruptible power supply, industrial fans, computerized numerical controllers, electrical-discharge and laser processing machines, industrial robots, clutches, automotive electrical equipment, electric powertrain systems, car electronics and mechatronics, car multimedia, and others. In addition, the company offers satellite communications and radar equipment, satellites, antennas, missile and fire control systems, broadcasting and information systems equipment, network security systems, and systems integration products; and power modules, high-frequency devices, optical and LCD devices, and others. Further, it provides air conditioners, chillers, showcases, compressors, refrigeration units, air-to-water heat pump boilers, ventilators, hot water supply systems, IH cooking heaters, LED bulbs, indoor lighting, LCD televisions, refrigerators, electric fans, dehumidifiers, air purifiers, vacuum cleaners, jar rice cookers, microwave ovens, and others. Additionally, the company offers procurement, logistics, real estate, advertising, finance, and other services. Mitsubishi Electric Corporation was incorporated in 1921 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Mitsubishi Electric generates revenue through a diversified model that includes the sale of its core products, systems integration services, and maintenance contracts. Key revenue streams include industrial automation solutions, which cater to manufacturers seeking to enhance productivity and efficiency, and building systems, which cover HVAC systems, elevators, and other infrastructure-related technologies. Additionally, the company earns revenue from its semiconductor and display systems divisions, which supply essential components for various electronic devices. Significant partnerships with other technology firms and collaborations in smart city initiatives also bolster revenue generation, while ongoing investments in R&D enable Mitsubishi Electric to innovate and maintain a competitive edge in the market.

Mitsubishi Electric Financial Statement Overview

Summary

Mitsubishi Electric exhibits strong financial performance with robust revenue growth, healthy profit margins, and efficient cash flow generation. The balance sheet is stable with low leverage, supporting continued growth and financial health.

Income Statement

Mitsubishi Electric shows strong revenue growth with a TTM (Trailing-Twelve-Months) increase of 1.13%. The company maintains healthy margins with a gross profit margin of 34.33% and a net profit margin of 6.59%. EBIT and EBITDA margins are also solid at 8.19% and 12.12%, respectively, indicating efficient operations and profitability. The consistent improvement in these metrics over the years highlights a positive growth trajectory.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.09, suggesting conservative leverage and financial stability. The return on equity (ROE) is 9.42%, reflecting effective use of equity to generate profits. The equity ratio stands at 62.81%, indicating a strong equity base relative to total assets. Overall, the company maintains a stable financial position with manageable debt levels.

Cash Flow

Mitsubishi Electric demonstrates strong cash flow performance with a free cash flow growth rate of 25.92% in the TTM period. The operating cash flow to net income ratio is 1.34, and the free cash flow to net income ratio is 0.59, indicating efficient cash generation relative to net income. The positive cash flow trends support the company's ability to fund operations and investments.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.61T	5.52T	5.26T	5.00T	4.48T	4.19T
Gross Profit	1.86T	1.69T	1.55T	1.41T	1.26T	1.17T
EBITDA	689.86B	634.11B	546.56B	488.12B	470.74B	455.65B
Net Income	394.79B	324.08B	284.95B	213.91B	203.48B	193.13B
Balance Sheet
Total Assets	6.44T	6.38T	6.17T	5.58T	5.11T	4.80T
Cash, Cash Equivalents and Short-Term Investments	862.84B	757.33B	765.38B	645.87B	727.18B	767.41B
Total Debt	338.89B	360.66B	394.64B	400.76B	329.46B	365.43B
Total Liabilities	2.26T	2.30T	2.30T	2.22T	2.01T	1.93T
Stockholders Equity	4.05T	3.95T	3.74T	3.24T	2.98T	2.75T
Cash Flow
Free Cash Flow	345.96B	261.92B	239.72B	-8.85B	126.31B	353.76B
Operating Cash Flow	529.20B	455.90B	415.48B	166.71B	282.37B	542.12B
Investing Cash Flow	-122.43B	-206.16B	-94.12B	-148.53B	-114.87B	-176.55B
Financing Cash Flow	-317.49B	-250.92B	-240.12B	-119.57B	-241.32B	-157.35B

Mitsubishi Electric Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4790.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6503, the sentiment is Positive. The current price of 4790 is above the 20-day moving average (MA) of 4674.70, above the 50-day MA of 4456.78, and above the 200-day MA of 3528.50, indicating a bullish trend. The MACD of 88.85 indicates Positive momentum. The RSI at 57.55 is Neutral, neither overbought nor oversold. The STOCH value of 51.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6503.

Mitsubishi Electric Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6504	76 Outperform	¥1.70T	20.75	12.05%	1.50%	5.44%	-5.19%
6516	76 Outperform	¥157.54B	19.67	―	1.53%	3.37%	21.35%
5801	73 Outperform	¥704.90B	20.09	10.06%	1.21%	10.52%	60.75%
6503	72 Outperform	¥9.95T	24.83	10.23%	1.19%	4.62%	40.65%
6506	72 Outperform	¥1.31T	35.19	13.26%	1.49%	-2.18%	30.16%
5803	63 Neutral	¥4.71T	36.39	32.32%	0.91%	27.53%	137.34%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Mitsubishi Electric Corporate Events

Mitsubishi Electric Announces Treasury Stock Disposal for Executive Incentives

Mitsubishi Electric Corporation announced the disposal of 329,400 shares of treasury stock as part of its stock compensation plan to enhance the motivation of its executive officers. The disposal is expected to have minimal impact on the stock market due to the small dilution scale, and it aims to align executive interests with long-term corporate value improvement.

The most recent analyst rating on (JP:6503) stock is a Buy with a Yen4599.00 price target. To see the full list of analyst forecasts on Mitsubishi Electric stock, see the JP:6503 Stock Forecast page.

Mitsubishi Electric Enhances Executive Stock Compensation Plan

Mitsubishi Electric Corporation has announced additional contributions to its performance-based stock compensation plan for executive officers, aligning the plan for associate executive officers with that of executive officers starting fiscal 2026. This move aims to enhance corporate value and shareholder engagement by motivating executives to focus on long-term growth, with implications for improved transparency and alignment of executive incentives with company performance.

The most recent analyst rating on (JP:6503) stock is a Buy with a Yen4599.00 price target. To see the full list of analyst forecasts on Mitsubishi Electric stock, see the JP:6503 Stock Forecast page.

Mitsubishi Electric Concludes Stock Repurchase Program

Mitsubishi Electric Corporation announced the conclusion of its stock repurchase program, initially approved in April 2025. The company successfully repurchased 29,893,600 shares, with an aggregate value of approximately JPY 99.99 billion, through market trades on the Tokyo Stock Exchange. This strategic move is likely to impact the company’s market positioning and shareholder value positively.

The most recent analyst rating on (JP:6503) stock is a Buy with a Yen4599.00 price target. To see the full list of analyst forecasts on Mitsubishi Electric stock, see the JP:6503 Stock Forecast page.

Mitsubishi Electric Reports Record Revenue and Profit for H1 Fiscal 2026

Mitsubishi Electric reported record-high revenue and operating profit for the first half of fiscal 2026, driven by increased sales in the Infrastructure segment and strategic profitability improvements. Despite the stronger yen, the company forecasts higher revenue for the fiscal year, attributing growth to favorable foreign exchange rates and sales expansion, while maintaining its operating profit forecast unchanged. The company declared an interim dividend of 25 yen per share, reflecting a commitment to shareholder returns.

The most recent analyst rating on (JP:6503) stock is a Buy with a Yen4599.00 price target. To see the full list of analyst forecasts on Mitsubishi Electric stock, see the JP:6503 Stock Forecast page.