Mitsubishi Electric (JP:6503)
:6503
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Mitsubishi Electric
(6503)
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Rating:71Outperform
Price Target:
¥6,623.00
▲(13.91% Upside)
Action:ReiteratedDate:02/05/26
The score is driven primarily by solid financial strength (notably low leverage and improving profitability) and strong technical momentum. Offsetting factors are inconsistent/declining free cash flow trends and a relatively high P/E with a low dividend yield, which makes the stock less compelling on valuation.
Positive Factors
Low leverage / strong balance sheet
Very low debt-to-equity (~0.09) and a conservative balance sheet provide durable financial flexibility. This supports continued capital spending on projects, cushions cyclical revenue swings, and enables investment in R&D or selective M&A without stressing liquidity over the next 2-6 months.
Negative Factors
Volatile free cash flow
Although FCF is positive (~¥317B TTM), growth is down (~-8.4%) and historical volatility (including a negative FCF year) limits predictability. Inconsistent cash conversion can constrain funding for capex, dividends, or strategic investments and raises execution risk across cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage / strong balance sheet
Very low debt-to-equity (~0.09) and a conservative balance sheet provide durable financial flexibility. This supports continued capital spending on projects, cushions cyclical revenue swings, and enables investment in R&D or selective M&A without stressing liquidity over the next 2-6 months.
Read all positive factors
Mitsubishi Electric (6503) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥12.22T
Dividend Yield1.19%
Average Volume (3M)4.92M
Price to Earnings (P/E)21.6
Beta (1Y)1.48
Revenue Growth4.62%
EPS Growth40.65%
CountryJP
Employees149,914
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)53.11
Shares Outstanding2,113,201,700
10 Day Avg. Volume6,056,250
30 Day Avg. Volume4,920,096
Financial Highlights & Ratios
PEG Ratio1.19
Price to Book (P/B)1.43
Price to Sales (P/S)1.03
P/FCF Ratio21.62
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥6,227.30Price Target Upside7.11% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)231.84
Revenue Forecast (FY)¥6.02T
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,...
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 man...
Mitsubishi Electric Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
62
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.68T | 5.52T | 5.26T | 5.00T | 4.48T | 4.19T |
| Gross Profit | 1.85T | 1.69T | 1.55T | 1.41T | 1.26T | 1.17T |
| EBITDA | 631.91B | 532.44B | 450.87B | 476.19B | 458.86B | 443.51B |
| Net Income | 374.25B | 324.08B | 284.95B | 213.91B | 203.48B | 193.13B |
Balance Sheet | ||||||
| Total Assets | 6.66T | 6.38T | 6.17T | 5.58T | 5.11T | 4.80T |
| Cash, Cash Equivalents and Short-Term Investments | 719.24B | 757.33B | 765.38B | 645.87B | 727.18B | 767.41B |
| Total Debt | 355.44B | 462.29B | 501.29B | 505.05B | 394.71B | 434.71B |
| Total Liabilities | 2.36T | 2.30T | 2.30T | 2.22T | 2.01T | 1.93T |
| Stockholders Equity | 4.16T | 3.95T | 3.74T | 3.24T | 2.98T | 2.75T |
Cash Flow | ||||||
| Free Cash Flow | 316.80B | 261.92B | 239.72B | -8.85B | 126.31B | 353.76B |
| Operating Cash Flow | 490.67B | 455.90B | 415.48B | 166.71B | 282.37B | 542.12B |
| Investing Cash Flow | -196.46B | -206.16B | -105.47B | -150.38B | -117.56B | -176.26B |
| Financing Cash Flow | -331.58B | -250.92B | -228.76B | -117.72B | -238.63B | -157.64B |
Mitsubishi Electric Technical Analysis
Positive
5814.00
Price Trends
5454.41
Positive
5021.01
Positive
4299.24
Positive
Market Momentum
67.74
Negative
60.89
Neutral
93.03
Negative
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 5814 is above the 20-day moving average (MA) of 5390.51, above the 50-day MA of 5454.41, and above the 200-day MA of 4299.24, indicating a bullish trend. The MACD of 67.74 indicates Negative momentum. The RSI at 60.89 is Neutral, neither overbought nor oversold. The STOCH value of 93.03 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6503.
Mitsubishi Electric Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ¥10.00T | 26.86 | 32.32% | 0.91% | 27.53% | 137.34% | |
75 Outperform | ¥3.19T | 7.80 | 10.06% | 1.21% | 10.52% | 60.75% | |
73 Outperform | ¥636.23B | 8.10 | 9.63% | 2.12% | 3.05% | -16.11% | |
71 Outperform | ¥12.22T | 21.58 | 9.29% | 1.19% | 4.62% | 40.65% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | ¥1.63T | 19.95 | 12.05% | 1.50% | 5.44% | -5.19% | |
58 Neutral | ¥1.37T | 40.59 | 8.39% | 1.49% | -2.18% | 30.16% |
* Industrials Sector Average
JP:6503
Mitsubishi Electric
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Mitsubishi Electric Corporate Events
Mitsubishi Electric Reshapes HR Structure and Elevates Executives Ahead of April 2026
Feb 19, 2026
Mitsubishi Electric announced organizational and executive changes effective April 1, 2026, following a board decision in Tokyo. The Corporate Human Resources Group will be renamed the Corporate Human Resources Culture Transformation Group, conso...
Mitsubishi Electric Books ¥100 Billion Cost as Next-Stage Support Program Draws 4,700 Applicants
Feb 3, 2026
Mitsubishi Electric has reported the outcome of its “Next-Stage Support Program,” a voluntary separation initiative for contracted employees in Japan aged 53 and over, which was open from mid-December 2025 to early January 2026 and off...
Mitsubishi Electric Lifts Full-Year Outlook on Record Q3 Revenue and Profit
Feb 3, 2026
Mitsubishi Electric reported record third-quarter fiscal 2026 revenue of ¥1,423.5 billion and record operating profit of ¥144.7 billion when excluding the impact of its Next-Stage Support Program, driven by strong sales in the Infrastruc...
Mitsubishi Electric Finalizes Full Acquisition of OT Security Firm Nozomi Networks
Jan 29, 2026
Mitsubishi Electric has completed the full acquisition of U.S.-based Nozomi Networks Inc., a specialist in developing and selling operational technology (OT) security solutions, making the fast-growing cybersecurity firm a wholly owned subsidiary ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.