Mitsubishi Electric (6503) AI Stock Analysis

• Market Cap: €8.31T
• Dividend Yield: 1.32%
• Average Volume (3M): 4.92M
• Price to Earnings (P/E): 21.8
• Beta (1Y): 1.48
• Revenue Growth: 4.21%
• EPS Growth: 33.53%
• Country: JP
• Employees: 149,914
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): N/A
• 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: €4,008.90
• Price Target Upside: -4.69% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 75 Outperform
• Price Target: ¥4,599.00 ▲(9.34% Upside)

Mitsubishi Electric's strong financial performance, characterized by robust revenue growth and solid cash flow management, is the primary driver of its stock score. Technical analysis supports a positive outlook with bullish momentum indicators. However, the valuation is moderate, with a P/E ratio suggesting the stock is fairly priced, and a modest dividend yield. The absence of earnings call and corporate events data did not impact the score calculation.

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 displays a strong financial profile with consistent revenue growth, improved profitability, and a robust balance sheet. The company has effectively managed its cash flows, though attention to debt levels remains important.

Income Statement

Mitsubishi Electric shows consistent revenue growth, with a notable increase from ¥4.19 trillion in 2021 to ¥5.52 trillion in 2025. The gross profit margin has remained solid, improving from 28% in 2021 to 31% in 2025. Net profit margin also improved, reflecting increased efficiency and profitability. EBIT and EBITDA margins have shown positive trends, though there is room for further margin expansion.

Balance Sheet

The company's balance sheet is robust, with a strong equity position growing from ¥2.43 trillion in 2020 to ¥3.95 trillion in 2025. The debt-to-equity ratio has remained stable, indicating prudent leverage levels. Return on Equity has improved alongside profitability. With a high equity ratio, Mitsubishi Electric maintains a solid financial foundation, though monitoring of debt levels is advised.

Cash Flow

Operating cash flow has been strong, supporting capital expenditures and leading to positive free cash flows. The free cash flow to net income ratio indicates effective cash generation relative to profits. Although there was a dip in free cash flow in 2023, subsequent recovery demonstrates effective cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.52T	5.52T	5.26T	5.00T	4.48T	4.19T
Gross Profit	1.81T	1.69T	1.55T	1.41T	1.26T	1.17T
EBITDA	613.08B	634.11B	546.56B	488.12B	470.74B	455.65B
Net Income	324.03B	324.08B	284.95B	213.91B	203.48B	193.13B
Balance Sheet
Total Assets	6.38T	6.38T	6.17T	5.58T	5.11T	4.80T
Cash, Cash Equivalents and Short-Term Investments	757.33B	757.33B	765.38B	645.87B	727.18B	767.41B
Total Debt	360.66B	360.66B	394.64B	400.76B	329.46B	365.43B
Total Liabilities	2.30T	2.30T	2.30T	2.22T	2.01T	1.93T
Stockholders Equity	3.95T	3.95T	3.74T	3.24T	2.98T	2.75T
Cash Flow
Free Cash Flow	273.48B	261.92B	239.72B	-8.85B	126.31B	353.76B
Operating Cash Flow	455.90B	455.90B	415.48B	166.71B	282.37B	542.12B
Investing Cash Flow	-188.31B	-206.16B	-94.12B	-148.53B	-114.87B	-176.55B
Financing Cash Flow	-184.70B	-250.92B	-240.12B	-119.57B	-241.32B	-157.35B

Mitsubishi Electric Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4206.00
• 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:6503, the sentiment is Positive. The current price of 4206 is above the 20-day moving average (MA) of 3966.10, above the 50-day MA of 3792.47, and above the 200-day MA of 3058.47, indicating a bullish trend. The MACD of 97.87 indicates Negative momentum. The RSI at 68.35 is Neutral, neither overbought nor oversold. The STOCH value of 76.63 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	―	$1.54T	16.18	14.11%	1.45%	2.67%	21.99%
6516	―	¥131.03B	23.22	―	1.10%	-5.87%	-35.84%
6503	―	€8.31T	21.80	9.91%	1.32%	4.21%	33.53%
5801	―	$664.01B	18.93	10.54%	1.15%	12.76%	162.49%
6506	―	$1.09T	18.91	13.26%	1.56%	-2.18%	30.16%
5803	―	€4.53T	43.91	27.92%	0.68%	24.29%	75.04%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Mitsubishi Electric Corporate Events

Mitsubishi Electric Reports Progress on Stock Repurchase Program

Mitsubishi Electric Corporation announced the status of its stock repurchase program, which was approved by the Board of Directors in April 2025. The company repurchased 3,733,400 shares valued at approximately JPY 13.75 billion from September 1 to 30, 2025, as part of a larger plan to buy back up to 60 million shares. This move is part of Mitsubishi Electric’s strategy to optimize capital structure and enhance shareholder value, reflecting its commitment to strategic financial management.

The most recent analyst rating on (JP:6503) stock is a Buy with a Yen4500.00 price target. To see the full list of analyst forecasts on Mitsubishi Electric stock, see the JP:6503 Stock Forecast page.

Mitsubishi Electric to Acquire Nozomi Networks, Boosting OT Security Capabilities

Mitsubishi Electric has announced its agreement to acquire all shares of Nozomi Networks, a U.S.-based leader in operational technology security solutions, to strengthen its OT security business. This acquisition is expected to enhance Mitsubishi Electric’s capabilities in providing comprehensive security solutions, leveraging Nozomi’s advanced technology and customer base to accelerate the growth of its digital platform and related businesses.

The most recent analyst rating on (JP:6503) stock is a Hold with a Yen3300.00 price target. To see the full list of analyst forecasts on Mitsubishi Electric stock, see the JP:6503 Stock Forecast page.

Mitsubishi Electric Launches Career Support Program for Senior Employees

Mitsubishi Electric has announced a new support program for employees aged 53 and older in Japan, aimed at facilitating career progression and corporate transformation. This initiative is part of the company’s strategy to balance its human resource structure, offering increased retirement settlements and re-employment support to eligible employees, while also encouraging younger staff to advance within the organization. The program reflects Mitsubishi Electric’s broader efforts to innovate and enhance corporate value, although its financial impact remains undetermined at this time.

The most recent analyst rating on (JP:6503) stock is a Hold with a Yen3300.00 price target. To see the full list of analyst forecasts on Mitsubishi Electric stock, see the JP:6503 Stock Forecast page.

Mitsubishi Electric Reports Progress on Stock Repurchase Program

Mitsubishi Electric Corporation announced the status of its stock repurchase program, which was approved by the Board of Directors in April 2025. As of August 31, 2025, the company repurchased 21,449,600 shares at an aggregate value of JPY 67,627,362,300, as part of its plan to buy back up to 60 million shares by October 31, 2025. This move is expected to impact the company’s market positioning and shareholder value positively.

The most recent analyst rating on (JP:6503) stock is a Hold with a Yen3300.00 price target. To see the full list of analyst forecasts on Mitsubishi Electric stock, see the JP:6503 Stock Forecast page.

Mitsubishi Electric Confirms Financial Stability with Interim Review Completion

Mitsubishi Electric Corporation announced the completion of an optional interim review of its consolidated financial results for the first quarter of fiscal 2026, confirming no changes to the previously disclosed statements. This announcement underscores the company’s transparency and commitment to maintaining accurate financial reporting, which is crucial for stakeholders and investors.

The most recent analyst rating on (JP:6503) stock is a Buy with a Yen3800.00 price target. To see the full list of analyst forecasts on Mitsubishi Electric stock, see the JP:6503 Stock Forecast page.

Mitsubishi Electric Reports Progress on Stock Repurchase Program

Mitsubishi Electric Corporation announced the status of its stock repurchase program, with 6,614,300 shares repurchased for an aggregate value of JPY 20,758,998,000 between July 1 and 31, 2025. This initiative is part of a broader plan approved by the Board of Directors to repurchase up to 60 million shares, reflecting the company’s strategic efforts to enhance shareholder value and optimize its capital structure.

The most recent analyst rating on (JP:6503) stock is a Buy with a Yen3800.00 price target. To see the full list of analyst forecasts on Mitsubishi Electric stock, see the JP:6503 Stock Forecast page.

Mitsubishi Electric Reports Strong Q1 Fiscal 2026 Financial Results

Mitsubishi Electric announced its consolidated financial results for the first quarter of fiscal 2026, reporting a revenue increase to 1,312,896 million yen and a significant rise in net profit to 96,518 million yen. The company’s strong performance, marked by a notable increase in operating profit and net profit attributable to stockholders, underscores its robust market positioning and potential positive implications for stakeholders.

The most recent analyst rating on (JP:6503) stock is a Buy with a Yen3000.00 price target. To see the full list of analyst forecasts on Mitsubishi Electric stock, see the JP:6503 Stock Forecast page.