Mitsubishi Electric (6503) AI Stock Analysis

• Market Cap: €7.62T
• Dividend Yield: 1.35%
• Average Volume (3M): 4.95M
• Price to Earnings (P/E): 20.6
• Beta (1Y): 1.44
• Revenue Growth: 4.21%
• EPS Growth: 33.53%
• Country: JP
• Employees: 149,914
• Sector: Industrials
• Sector Strength: 78
• Industry: Electrical Equipment & Parts
• EPS (TTM): 43.89
• Shares Outstanding: 2,113,201,700
• 10 Day Avg. Volume: 5,487,160
• 30 Day Avg. Volume: 4,953,933
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €3,593.80
• Price Target Upside: -2.32% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 73 Outperform
• Price Target: ¥3,898.00 ▲(5.95% Upside)

Mitsubishi Electric's strong financial performance and positive technical indicators contribute significantly to the stock's overall score. While the valuation reflects a fair market price, the technical analysis suggests caution due to potential overbought conditions. The absence of recent earnings call data or notable corporate events leaves the financial and technical assessments as the primary drivers of the score.

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 makes money through the sale and service of diversified products and systems across its various business segments. The Industrial Automation Systems segment, which includes factory automation products and services, is a major revenue generator, driven by the global demand for industrial machinery and automation solutions. The Energy and Electric Systems segment provides power generation and transmission systems, which are essential for infrastructure projects worldwide. The company also earns revenue from its Information and Communication Systems segment, offering communication and information processing systems to businesses and governments. Additionally, the Electronic Devices segment contributes to revenue through the sale of semiconductors and other electronic components. The Home Appliances segment, which includes air conditioning systems and other consumer electronics, serves both individual consumers and commercial clients. Mitsubishi Electric's strategic partnerships and collaborations with other corporations, governmental bodies, and research institutions enhance its market position and drive innovation, further contributing to its revenue growth.

Mitsubishi Electric Financial Statement Overview

Summary

Mitsubishi Electric exhibits strong financial performance with consistent revenue growth, improved profitability, and a stable balance sheet. While margins and cash flows are resilient, careful monitoring of debt levels is essential.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.52T	5.26T	5.00T	4.48T	4.19T
Gross Profit	1.69T	1.55T	1.41T	1.26T	1.17T
EBITDA	634.11B	546.56B	476.19B	458.86B	443.51B
Net Income	324.08B	284.95B	213.91B	203.48B	193.13B
Balance Sheet
Total Assets	6.38T	6.17T	5.58T	5.11T	4.80T
Cash, Cash Equivalents and Short-Term Investments	757.33B	765.38B	706.82B	789.31B	819.06B
Total Debt	360.66B	394.64B	400.76B	329.46B	365.43B
Total Liabilities	2.30T	2.30T	2.22T	2.01T	1.93T
Stockholders Equity	3.95T	3.74T	3.24T	2.98T	2.75T
Cash Flow
Free Cash Flow	261.92B	239.72B	-8.85B	126.31B	353.76B
Operating Cash Flow	455.90B	415.48B	166.71B	282.37B	542.12B
Investing Cash Flow	-206.16B	-94.12B	-148.53B	-114.87B	-176.55B
Financing Cash Flow	-250.92B	-240.12B	-119.57B	-241.32B	-157.35B

Mitsubishi Electric Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3679.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 3679 is above the 20-day moving average (MA) of 3449.05, above the 50-day MA of 3202.97, and above the 200-day MA of 2769.66, indicating a bullish trend. The MACD of 146.41 indicates Negative momentum. The RSI at 72.43 is Negative, neither overbought nor oversold. The STOCH value of 70.51 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
6503	73 Outperform	€7.62T	20.57	9.91%	1.35%	4.21%	33.53%
Sector *	71 Outperform	¥267.71B	14.94	8.32%	2.77%	6.08%	11.04%
FELTF	―	$9.03B	12.46	14.11%	2.01%	―	―
FUWAF	―	$4.18B	18.65	10.54%	0.94%	―	―
YASKF	―	$5.45B	15.50	13.09%	2.06%	―	―
FJK	―	€19.62B	31.14	27.92%	―	―	―
6516	66 Neutral	¥116.04B	21.76		1.53%	-5.87%	-35.84%

Mitsubishi Electric Corporate Events

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.

Mitsubishi Electric Reports Progress on Stock Repurchase Program

Mitsubishi Electric announced the status of its stock repurchase program, initially approved by the Board of Directors in April 2025. The company repurchased 4,028,300 shares valued at JPY 11,923,891,600 between June 1 and June 30, 2025, as part of a larger plan to buy back up to 60 million shares by October 31, 2025. This move is part of Mitsubishi Electric’s strategy to enhance shareholder value and optimize its capital structure.

The most recent analyst rating on (JP:6503) stock is a Buy with a Yen3400.00 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 Plan

Mitsubishi Electric Corporation announced the status of its stock repurchase plan, which was approved by its Board of Directors. The company repurchased 5,948,200 shares valued at JPY 17,317,061,500 between May 1 and May 31, 2025, as part of a larger plan to buy back up to 60 million shares worth JPY 100 billion by October 31, 2025. This move is part of Mitsubishi Electric’s strategy to enhance shareholder value and optimize its capital structure.

The most recent analyst rating on (JP:6503) stock is a Buy with a Yen3400.00 price target. To see the full list of analyst forecasts on Mitsubishi Electric stock, see the JP:6503 Stock Forecast page.

Mitsubishi Electric Announces Fiscal 2025 Dividend and Fiscal 2026 Forecast

Mitsubishi Electric Corporation announced a year-end dividend of 30 yen per share for fiscal 2025 and a forecasted interim dividend of 25 yen per share and a year-end dividend of 30 yen per share for fiscal 2026. This decision aligns with their policy of maintaining a 3% adjusted dividend on equity ratio, ensuring shareholder returns while supporting financial stability for growth investments. The announcement reflects Mitsubishi Electric’s commitment to balancing shareholder returns with strategic financial management, potentially impacting investor confidence and market positioning.

The most recent analyst rating on (JP:6503) stock is a Buy with a Yen3400.00 price target. To see the full list of analyst forecasts on Mitsubishi Electric stock, see the JP:6503 Stock Forecast page.

Mitsubishi Electric Reports Significant Changes in Fiscal 2025 Financial Results

Mitsubishi Electric reported a significant 22.8% decrease in non-consolidated net sales for fiscal 2025 compared to the previous year, primarily due to the spin-off of its automotive-equipment business to Mitsubishi Electric Mobility Corporation. Despite the drop in net sales, the company saw an increase in operating and ordinary income, highlighting a shift in its business structure and focus.