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Mitsubishi Electric Corp (JP:6503)
:6503
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Mitsubishi Electric (6503) AI Stock Analysis

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JP:6503

Mitsubishi Electric

(Frankfurt:6503)

Rating:76Outperform
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 (6503) vs. iShares MSCI Japan ETF (EWJ)

Mitsubishi Electric Business Overview & Revenue Model

Company DescriptionMitsubishi 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 MoneyMitsubishi 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
85
Very Positive
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
80
Positive
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
78
Positive
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 Price3309.00
Price Trends
50DMA
3040.05
Positive
100DMA
2865.91
Positive
200DMA
2687.89
Positive
Market Momentum
MACD
75.15
Negative
RSI
66.59
Neutral
STOCH
81.60
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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥6.90T21.118.40%1.52%5.02%14.73%
75
Outperform
¥1.08T11.7514.10%2.12%1.83%21.82%
74
Outperform
€2.43T26.6824.26%1.12%22.46%78.58%
72
Outperform
$566.66B17.009.85%1.49%13.75%412.78%
70
Outperform
$870.77B15.8513.09%2.04%-6.12%13.95%
64
Neutral
¥116.04B20.58
1.54%-13.34%-45.53%
61
Neutral
C$6.52B7.652.76%2.58%6.48%-23.55%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6503
Mitsubishi Electric
3,254.00
701.02
27.46%
JP:6516
Sanyo Denki Co., Ltd.
9,580.00
2,207.70
29.95%
JP:5803
Fujikura Ltd
8,940.00
6,028.74
207.08%
JP:6504
Fuji Electric Co
7,551.00
-707.86
-8.57%
JP:6506
Yaskawa Electric
3,224.00
-1,899.79
-37.08%
JP:5801
Furukawa Electric Co
8,138.00
4,231.21
108.30%

Mitsubishi Electric Corporate Events

Mitsubishi Electric Reports Progress on Stock Repurchase Program
Jul 3, 2025

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
Jun 4, 2025

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
May 13, 2025

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
May 8, 2025

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.

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.Date of analysis: Jul 02, 2025