Mitsui High-Tec, Inc. (6966) AI Stock Analysis

• Market Cap: ¥160.27B
• Dividend Yield: 2.45%
• Average Volume (3M): 1.59M
• Price to Earnings (P/E): 15.6
• Beta (1Y): 1.26
• Revenue Growth: 4.60%
• EPS Growth: -21.64%
• Country: JP
• Employees: 4,609
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 17.63
• Shares Outstanding: 197,334,320
• 10 Day Avg. Volume: 1,243,270
• 30 Day Avg. Volume: 1,594,150
• PEG Ratio: -0.63
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 0.77
• P/FCF Ratio: -113.58
• 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: ¥1,000.00
• Price Target Upside: 14.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 57.46
• Revenue Forecast (FY): ¥246.80B

• Rating: 75 Outperform
• Price Target: ¥986.00 ▲(12.43% Upside)
• Action: Reiterated Date: 10/29/25
• Date: Action: Reiterated 10/29/25

Mitsui High-Tec, Inc. demonstrates strong financial performance with robust revenue growth and operational efficiency. The valuation is attractive with a reasonable P/E ratio and a good dividend yield. However, technical indicators suggest short-term bearish momentum, which slightly tempers the overall score.

Positive Factors

Sustained multi-year revenue growth

Multi-year revenue more than doubled, reflecting sustained demand and successful market penetration in precision components. Durable top-line growth supports scale economies, capacity utilization and long-term customer relationships in automotive and electronics supply chains.

Strong operating margins and efficiency

Consistently strong gross and operating margins indicate durable operational advantages—efficient manufacturing, cost control and value-added tooling services. Margin strength underpins reinvestment capacity and competitive pricing power across industrial and automotive customers.

Solid equity base and balance-sheet resilience

A healthy equity ratio provides financial resilience against cyclical downturns and supports capital-intensive investments. Strong asset backing increases creditor and customer confidence and preserves strategic optionality for expansion or technology investment over the medium term.

Negative Factors

Moderate leverage on the balance sheet

Moderate leverage raises refinancing and interest-cost risks and limits financial flexibility. In a capital-intensive manufacturing business, this constrains ability to fund expansion or absorb shocks without additional borrowing or equity, making balance-sheet management important.

Variable free cash flow due to high capex

High and lumpy capital expenditures have produced negative free cash flow recently, reducing available discretionary cash. Persistent capex intensity can constrain returns to shareholders and slow deleveraging, meaning cash-generation improvements must outpace investment needs.

Declining net income and EPS contraction

Despite revenue growth, net income and EPS have weakened, suggesting margin pressure or rising non-operating costs. Continued EPS contraction can limit capacity to invest, pay dividends, or build reserves, making profitability stabilization a key medium-term priority.

Mitsui High-Tec, Inc. Business Overview & Revenue Model

Company Description

Mitsui High-tec, Inc. produces and sells lead frames, precision tools, motor cores, and surface grinders for electronics, automobile, and industrial machinery industries in Japan and internationally. It operates through Tooling, Electronic Parts, Electrical Parts, and Machinery segments. The company's precision tooling/precision parts products include motor core dies, lead frame dies, and other type of stamping tools used in motor cores and IC lead frames, electric motor cores, automobile components, coins, resin injection molding, and others. It also offers surface grinders, such as grinding machines, MSG series products, and profile grinders; and overhaul and parts repair services. In addition, the company provides open lead frames for semiconductor packages; and motor core stamping service. Further, it offers die maintenance services. The company was formerly known as Mitsui Mfg. Co., Ltd. and changed its name to Mitsui High-tec, Inc. in May 1984. Mitsui High-tec, Inc. was incorporated in 1934 and is headquartered in Kitakyushu, Japan.

How the Company Makes Money

Mitsui High-Tec generates revenue through the sale of its high-tech components and materials to various industries, including automotive, semiconductor, and electronics. Key revenue streams include the manufacturing and distribution of precision machined components and magnetic materials, which are essential for the performance of electronic devices and automotive applications. The company benefits from long-term contracts and partnerships with major industry players, providing stability and predictability in its revenue. Additionally, Mitsui High-Tec invests in research and development to create innovative products that meet evolving market demands, enhancing its competitive edge and driving sales growth.

Mitsui High-Tec, Inc. Financial Statement Overview

Summary

Mitsui High-Tec, Inc. exhibits strong growth and operational efficiency, particularly in revenue and margins. The balance sheet is solid, though the leverage needs monitoring. Cash flow management requires attention to improve free cash flow. Overall, the company is well-positioned in the semiconductor industry, with opportunities for further strengthening its financial stability.

Income Statement

The company has shown impressive growth in revenue over the years, with a significant increase from ¥97.35 billion in 2021 to ¥214.89 billion in 2025. The gross profit margin is robust, reflecting efficient cost management. However, there is a slight decline in net income, impacting the net profit margin. Despite this, the EBIT and EBITDA margins remain strong, showcasing the company's operational efficiency.

Balance Sheet

The balance sheet reveals a solid equity base with a healthy equity ratio, suggesting strong asset backing. However, the debt-to-equity ratio indicates a moderate level of leverage, which could pose risks if not managed properly. The return on equity remains competitive, reflecting the company's ability to generate profits from its equity.

Cash Flow

The cash flow statement indicates variability in free cash flow, with negative values in recent years due to high capital expenditures. The operating cash flow remains strong, but the free cash flow to net income ratio shows room for improvement. Overall, the company's cash generation ability is stable, but careful management is needed to enhance free cash flow.

Breakdown	TTM	Jan 2025	Jan 2024	Jan 2023	Jan 2022	Jan 2021
Income Statement
Total Revenue	219.25B	214.89B	195.88B	174.62B	139.43B	97.35B
Gross Profit	32.38B	32.38B	32.68B	35.94B	26.46B	13.41B
EBITDA	34.09B	30.54B	33.54B	31.92B	24.15B	11.18B
Net Income	9.33B	12.22B	15.54B	17.58B	11.78B	2.59B
Balance Sheet
Total Assets	234.39B	223.70B	195.70B	159.80B	134.04B	96.26B
Cash, Cash Equivalents and Short-Term Investments	56.43B	49.88B	39.25B	33.94B	31.31B	17.75B
Total Debt	86.85B	76.37B	62.48B	51.05B	48.88B	35.38B
Total Liabilities	125.07B	113.37B	98.70B	79.20B	72.65B	48.47B
Stockholders Equity	108.99B	109.98B	96.63B	80.31B	61.12B	47.54B
Cash Flow
Free Cash Flow	0.00	-1.46B	-4.78B	105.00M	-166.00M	-3.55B
Operating Cash Flow	0.00	24.37B	31.68B	22.08B	18.13B	8.96B
Investing Cash Flow	0.00	-26.51B	-36.39B	-19.59B	-17.74B	-12.51B
Financing Cash Flow	0.00	11.07B	8.83B	-665.00M	12.47B	1.71B

Mitsui High-Tec, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 877.00
• 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:6966, the sentiment is Positive. The current price of 877 is above the 20-day moving average (MA) of 807.00, above the 50-day MA of 769.63, and above the 200-day MA of 755.48, indicating a bullish trend. The MACD of 22.43 indicates Negative momentum. The RSI at 71.38 is Negative, neither overbought nor oversold. The STOCH value of 78.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6966.

Mitsui High-Tec, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5384	77 Outperform	¥251.20B	24.66	―	3.09%	14.85%	29.86%
6890	76 Outperform	¥298.60B	22.48	5.41%	3.28%	11.15%	-19.39%
6966	75 Outperform	¥160.27B	15.58	―	2.45%	4.60%	-21.64%
6315	71 Outperform	¥226.18B	40.35	10.10%	1.00%	-12.50%	-26.08%
6871	71 Outperform	¥468.61B	39.16	―	1.02%	29.60%	24.39%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6707	55 Neutral	¥154.27B	-42.55	―	―	-51.82%	-96.08%

Mitsui High-Tec, Inc. Corporate Events

Mitsui High-Tec Reports Mixed Financial Results for Nine Months Ending October 2025

Mitsui High-Tec, Inc. reported a modest increase in net sales for the nine months ending October 31, 2025, despite a decline in operating and ordinary profits compared to the previous year. The company’s financial position showed a slight increase in total assets and net assets, although the equity-to-asset ratio decreased. The company maintained its dividend forecast, reflecting a cautious approach amid fluctuating profits.

The most recent analyst rating on (JP:6966) stock is a Buy with a Yen876.00 price target. To see the full list of analyst forecasts on Mitsui High-Tec, Inc. stock, see the JP:6966 Stock Forecast page.