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Mitsubishi Electric
(6503)
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Rating:68Neutral
Price Target:
¥6,444.00
▲(11.12% Upside)
Action:Reiterated
Date:08/01/26
The score is driven primarily by solid and improving financial health (better margins, strong balance sheet, improving ROE) tempered by moderate growth and cash-flow variability. Technicals are mildly positive based on moving averages, but valuation is a meaningful headwind due to the high P/E and low dividend yield.
Positive Factors
Balance sheet strength
Very low leverage and a materially larger equity base provide durable financial flexibility. With debt-to-equity near 0.08 and equity rising, Mitsubishi Electric can fund capex, R&D, and selective M&A without stressing liquidity, supporting resilience through industry cycles and enabling steady strategic investment.
Negative Factors
Moderate revenue growth
Top-line expansion is modest (around 3.1% TTM) for a global industrial leader, which limits leverage from scale gains and reduces the pace at which operating leverage can lift profits. Sustained outperformance will require product innovation, service growth or strategic M&A to materially accelerate medium‑term revenue trends.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Very low leverage and a materially larger equity base provide durable financial flexibility. With debt-to-equity near 0.08 and equity rising, Mitsubishi Electric can fund capex, R&D, and selective M&A without stressing liquidity, supporting resilience through industry cycles and enabling steady strategic investment.
Read all positive factors
Mitsubishi Electric (6503) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥12.42T
Dividend Yield0.93%
Average Volume (3M)4.92M
Price to Earnings (P/E)28.5
Beta (1Y)1.49
Revenue Growth9.57%
EPS Growth18.11%
CountryJP
Employees150,386
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)207.56
Shares Outstanding2,113,201,700
10 Day Avg. Volume6,056,250
30 Day Avg. Volume4,920,096
Financial Highlights & Ratios
PEG Ratio0.90
Price to Book (P/B)2.28
Price to Sales (P/S)1.73
P/FCF Ratio26.87
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥7,288.89Price Target Upside25.69% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)251.92
Revenue Forecast (FY)¥6.31T
Mitsubishi Electric Business Overview & Revenue Model
Company Description
Mitsubishi Electric Corporation develops, manufactures, sells, and distributes electrical and electronic equipment in Japan, North America, rest of Asia, Europe, and internationally. It operates through Infrastructure, Industry & Mobility, Life, B...
How the Company Makes Money
Mitsubishi Electric makes money primarily by selling manufactured products, integrated systems, and related services across multiple end markets. Key revenue streams include: (1) Industrial/Factory Automation: sales of automation hardware and cont...
Mitsubishi Electric Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
70
Positive
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.08T | 5.89T | 5.52T | 5.26T | 5.00T | 4.48T |
| Gross Profit | 2.09T | 1.89T | 1.69T | 1.55T | 1.41T | 1.26T |
| EBITDA | 742.36B | 766.78B | 532.44B | 450.87B | 476.19B | 458.86B |
| Net Income | 426.65B | 407.70B | 324.08B | 284.95B | 213.91B | 203.48B |
Balance Sheet | ||||||
| Total Assets | 7.25T | 7.36T | 6.38T | 6.17T | 5.58T | 5.11T |
| Cash, Cash Equivalents and Short-Term Investments | 929.15B | 731.61B | 757.33B | 765.38B | 645.87B | 727.18B |
| Total Debt | 337.98B | 363.28B | 462.29B | 501.29B | 505.05B | 394.71B |
| Total Liabilities | 2.53T | 2.73T | 2.30T | 2.30T | 2.22T | 2.01T |
| Stockholders Equity | 4.57T | 4.48T | 3.95T | 3.74T | 3.24T | 2.98T |
Cash Flow | ||||||
| Free Cash Flow | 536.87B | 379.83B | 261.92B | 239.72B | -8.85B | 126.31B |
| Operating Cash Flow | 771.13B | 575.99B | 455.90B | 415.48B | 166.71B | 282.37B |
| Investing Cash Flow | -412.21B | -344.40B | -206.16B | -105.47B | -150.38B | -117.56B |
| Financing Cash Flow | -305.94B | -304.72B | -250.92B | -228.76B | -117.72B | -238.63B |
Mitsubishi Electric Technical Analysis
Positive
5799.00
Price Trends
5832.44
Positive
5822.55
Positive
5269.73
Positive
Market Momentum
-59.34
Negative
53.39
Neutral
72.82
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 5799 is above the 20-day moving average (MA) of 5619.35, below the 50-day MA of 5832.44, and above the 200-day MA of 5269.73, indicating a bullish trend. The MACD of -59.34 indicates Negative momentum. The RSI at 53.39 is Neutral, neither overbought nor oversold. The STOCH value of 72.82 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥2.04T | 19.51 | 13.23% | 1.41% | 10.40% | 15.01% | |
70 Outperform | ¥549.87B | 13.14 | 11.44% | 1.54% | 4.94% | 37.62% | |
68 Neutral | ¥12.42T | 28.48 | 9.80% | 1.19% | 9.57% | 18.11% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | ¥7.32T | 43.95 | 32.23% | 0.82% | 20.73% | 72.44% | |
56 Neutral | ¥2.21T | 30.52 | 19.52% | 0.62% | 8.80% | 117.66% | |
54 Neutral | ¥1.27T | 37.42 | 7.18% | 1.29% | 4.62% | -38.12% |
* Industrials Sector Average
JP:6503
Mitsubishi Electric
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Mitsubishi Electric Corporate Events
Mitsubishi Electric Outlines Q1 FY2027 Results and Forecast Framework
Jul 31, 2026
Mitsubishi Electric released a briefing outlining its consolidated financial results for the first quarter of fiscal 2027, ending March 31, 2027. The document also presents key points, current financial performance, and forecasts alongside supplem...
Mitsubishi Electric Posts Strong Q1 FY2027 Results With Higher Profit and Equity Ratio
Jul 31, 2026
Mitsubishi Electric reported strong results for the first quarter of fiscal 2027, with revenue rising 14.0% year-on-year to ¥1,497.1 billion and operating profit up 24.6% to ¥139.5 billion, reflecting broad-based business momentum. Adjus...
Mitsubishi Electric Corrects Capex Figures as Fiscal 2026 Profit Jumps 26%
Jun 11, 2026
Mitsubishi Electric has issued a partial correction to its previously disclosed fiscal 2026 consolidated financial results, revising capital expenditure figures in several segments and lifting the consolidated total to 270.6 billion yen for FY 202...
Mitsubishi Electric to Exit Kodensha Stake in Portfolio Realignment
May 25, 2026
Mitsubishi Electric has agreed to transfer its entire stake in consolidated subsidiary The Kodensha Co., Ltd. to Kodensha via a share repurchase, following a tender offer by KINDEN Corporation in which Mitsubishi Electric will not participate. Aft...
Mitsubishi Electric to Dispose of Treasury Shares for Expanded Stock Compensation Plans
May 25, 2026
Mitsubishi Electric will dispose of a total of 513,600 shares of treasury stock on June 12, 2026, allocating them to trust accounts managed by The Master Trust Bank of Japan for its Board Incentive Plan and a newly introduced Employee Stock Owners...
Mitsubishi Electric Expands Equity-Based Pay With New ESOP for Executives
May 25, 2026
Mitsubishi Electric will increase contributions to its performance-based stock compensation plan for executive officers and associates, while also introducing a new stock compensation scheme for executive-level employees via an ESOP trust starting...
Mitsubishi Electric to Book ¥210 Billion Extraordinary Gain From Pension Asset Return
May 25, 2026
Mitsubishi Electric Corporation plans to book a substantial extraordinary gain in its non-consolidated results after securing a partial return of overfunded retirement benefit trust assets. The company’s plan assets exceed defined benefit ob...
Mitsubishi Electric Lifts Dividend Outlook for Fiscal 2027 After Maintaining 2026 Payout
May 13, 2026
Mitsubishi Electric’s board has approved a year-end dividend of 30 yen per share for fiscal 2026, matching the prior year’s payout and reflecting its policy of targeting roughly a 3% adjusted dividend-on-equity ratio to balance shareho...
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.