Mitsubishi Electric (6503) AI Stock Analysis

• Market Cap: ¥6.90T
• Dividend Yield: 1.52%
• Average Volume (3M): 5.00M
• Price to Earnings (P/E): 21.1
• Beta (1Y): 1.46
• Revenue Growth: 5.02%
• EPS Growth: 14.73%
• Country: JP
• Employees: 149,914
• Sector: Industrials
• Sector Strength: 94
• Industry: Electrical Equipment & Parts
• EPS (TTM): 36.62
• Shares Outstanding: 2,113,201,700
• 10 Day Avg. Volume: 4,512,660
• 30 Day Avg. Volume: 5,000,573
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• 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: ¥3,358.02
• Price Target Upside: 1.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 76 Outperform
• Price Target: ¥3,550.00 ▲(7.28%Upside)

Mitsubishi Electric's strong financial performance and positive technical indicators are the primary drivers of its stock score. While the company's valuation appears somewhat high, the dividend yield offers partial compensation. Absence of earnings call insights and corporate events means these factors didn't influence the score.

Mitsubishi Electric Business Overview & Revenue Model

Company Description

Mitsubishi Electric Corporation is a leading global electronics and electrical equipment company headquartered in Tokyo, Japan. Engaged in the manufacturing and sales of electrical and electronic products and systems, the company operates across several key sectors including industrial automation, energy and electric systems, information and communication systems, electronic devices, and home appliances. Mitsubishi Electric is committed to innovation and sustainability, offering a wide range of advanced solutions that cater to commercial, industrial, and residential markets.

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
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Mitsubishi Electric Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3309.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 3309 is above the 20-day moving average (MA) of 3141.80, above the 50-day MA of 3040.05, and above the 200-day MA of 2687.89, indicating a bullish trend. The MACD of 75.15 indicates Negative momentum. The RSI at 66.59 is Neutral, neither overbought nor oversold. The STOCH value of 81.60 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6503	76 Outperform	¥6.90T	21.11	8.40%	1.52%	5.02%	14.73%
6504	75 Outperform	¥1.08T	11.75	14.10%	2.12%	1.83%	21.82%
5803	74 Outperform	€2.43T	26.68	24.26%	1.12%	22.46%	78.58%
5801	72 Outperform	$566.66B	17.00	9.85%	1.49%	13.75%	412.78%
6506	70 Outperform	$870.77B	15.85	13.09%	2.04%	-6.12%	13.95%
6516	64 Neutral	¥116.04B	20.58		1.54%	-13.34%	-45.53%
Sector *	61 Neutral	C$6.52B	7.65	2.76%	2.58%	6.48%	-23.55%

Mitsubishi Electric Corporate Events

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.