Mitsui E&S Holdings Co (7003) AI Stock Analysis

• Market Cap: $245.08B
• Dividend Yield: <0.01%
• Average Volume (3M): 8.49M
• Price to Earnings (P/E): 6.3
• Beta (1Y): 2.16
• Revenue Growth: 4.38%
• EPS Growth: 54.63%
• Country: JP
• Employees: 5,952
• Sector: Industrials
• Sector Strength: 87
• Industry: Aerospace & Defense
• EPS (TTM): 38.46
• Shares Outstanding: 103,098,720
• 10 Day Avg. Volume: 6,748,850
• 30 Day Avg. Volume: 8,486,376
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.81
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ¥2,582.00 ▲(6.26%Upside)

Mitsui E&S Holdings Co's stock is supported by strong technical momentum and attractive valuation metrics. The company's improved financial performance further underpins the stock's potential, although caution is warranted due to historical volatility and significant debt.

Mitsui E&S Holdings Co Business Overview & Revenue Model

Company Description

Mitsui E&S Holdings Co., Ltd. engages in shipbuilding and engineering businesses worldwide. The company operates through Ship, Ocean Development, Machinery, and Engineering segments. The Ship segment builds commercial ships, naval ships, high speed passenger/vehicle ferries, offshore structures, underwater TV vehicles, and steel structures. The Ocean Development segment provides floating production storage offloading vessels. The Machinery segment offers marine and stationary diesel engines, marine equipment, gas engines, steam turbines, blowers, process compressors, gas turbines, cogeneration systems, regulating systems, container cranes, industrial cranes, container terminal management systems, HWM manipulators, and induction heaters, as well as equipment of radar sensing for underground and construction. The Engineering segment engages in renewable energy power generation plants, power generation business, overseas civil works, waste treatment plants, water treatment plants, resources recycling plants, and PCB disposal plants businesses. In addition, it engages in information and communication equipment related, transport equipment, systems development, real estate lease, and infrastructure related business. The company was formerly known as Mitsui Engineering & Shipbuilding Co., Ltd. Mitsui E&S Holdings Co., Ltd. was founded in 1917 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Mitsui E&S Holdings Co. generates revenue through several key streams, primarily focusing on their shipbuilding and marine engine manufacturing divisions. The company constructs commercial vessels, such as bulk carriers and tankers, for domestic and international markets. Additionally, it produces marine diesel engines and auxiliary machinery, which are integral to ship operations. Beyond manufacturing, Mitsui E&S offers EPC services, executing large-scale projects in energy and infrastructure, which provide substantial revenue contributions. Strategic partnerships and collaborations with global industry leaders enhance its market reach and technological capabilities, further supporting its financial performance.

Mitsui E&S Holdings Co Financial Statement Overview

Summary

Mitsui E&S Holdings Co's financials show a company in recovery with improved profitability, leverage, and cash flow metrics. The gross and net profit margins have significantly improved, and the debt-to-equity ratio has decreased, enhancing financial stability. However, historical volatility and substantial debt levels pose risks.

Income Statement

Mitsui E&S Holdings Co has shown significant recovery in profitability over recent years. The gross profit margin increased from negative figures to a healthy 16.4% in 2025. The net profit margin also improved significantly, reaching 12.4% in 2025 from losses in prior years. Revenue growth has been positive, with a 4.4% increase from 2024 to 2025. Both EBIT and EBITDA margins have strengthened, indicating improved operational efficiency and effective cost management. However, the company has experienced volatility in past revenues and profits, which could pose risks.

Balance Sheet

The balance sheet of Mitsui E&S Holdings Co shows improved equity stability, with stockholders' equity increasing to 169.9 billion JPY in 2025. The debt-to-equity ratio decreased significantly, enhancing financial leverage stability. Return on equity (ROE) has improved to 23%, showcasing strong profitability relative to equity. The equity ratio has also improved, indicating increased financial stability. However, the company still carries substantial total debt, which needs careful management to avoid potential risks.

Cash Flow

Mitsui E&S Holdings Co has shown significant improvements in its cash flow position. Free cash flow turned positive in 2025, reflecting better cash generation capacity. The operating cash flow to net income ratio indicates strong cash conversion from profits. However, the cash flow position has been volatile in previous years, with negative free cash flow in several periods, indicating potential liquidity risks.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
315.11B	301.88B	262.30B	579.36B	663.83B
	Gross Profit
51.57B	47.24B	36.92B	28.75B	30.87B
	EBIT
23.13B	19.63B	9.38B	-10.03B	-12.24B
	EBITDA
50.90B	32.10B	26.80B	-2.83B	6.97B
	Net Income Common Stockholders
39.08B	25.05B	15.55B	-21.82B	134.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
35.35B	35.57B	45.80B	51.76B	137.65B
	Total Assets
449.21B	467.14B	439.96B	409.15B	766.45B
	Total Debt
105.24B	170.66B	150.47B	150.68B	174.93B
	Net Debt
69.89B	137.14B	104.67B	98.92B	37.29B
	Total Liabilities
275.05B	320.63B	329.28B	346.20B	670.55B
	Stockholders Equity
169.85B	142.10B	106.53B	57.21B	67.66B
Cash Flow		Free Cash Flow
5.22B	-41.64B	-22.44B	-29.25B	-5.24B
	Operating Cash Flow
14.85B	-34.44B	-15.04B	-20.27B	7.48B
	Investing Cash Flow
60.90B	-354.00M	-3.00B	-70.92B	21.11B
	Financing Cash Flow
-76.57B	24.11B	9.52B	806.00M	-6.81B

Mitsui E&S Holdings Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2430.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7003, the sentiment is Positive. The current price of 2430 is above the 20-day moving average (MA) of 2300.75, above the 50-day MA of 1943.32, and above the 200-day MA of 1569.35, indicating a bullish trend. The MACD of 108.75 indicates Positive momentum. The RSI at 63.29 is Neutral, neither overbought nor oversold. The STOCH value of 53.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7003.

Mitsui E&S Holdings Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9303	79 Outperform	¥225.36B	11.52		3.54%	4.73%	62.80%
7003	74 Outperform	$245.08B	6.31	24.36%	<0.01%	4.38%	54.63%
Sector *	66 Neutral	$4.47B	12.22	5.40%	3.65%	4.14%	-12.00%
8AF		€1.16B	7.14	28.05%	1.87%	―	―
7022	78 Outperform	¥9.08B	7.70		2.74%	7.08%	165.76%
7004	77 Outperform	¥161.46B	7.29		2.40%	9.84%	16.55%
7018	70 Neutral	¥9.60B	9.43		0.71%	-3.74%	-55.02%

Mitsui E&S Holdings Co Corporate Events

Mitsui E&S Unveils Strategic ‘Rolling Vision 2025’ Plan

Mitsui E&S Holdings Co. has unveiled its updated mid-term business plan, ‘MITSUI E&S Rolling Vision 2025,’ which outlines strategic goals and targets up to 2027. The plan emphasizes sustainable growth, business investments, and shareholder returns, with a focus on expanding core and new businesses, particularly in maintenance services using digital technology and marine propulsion systems.

Mitsui E&S Proposes Amendments to Articles of Incorporation

Mitsui E&S Holdings Co. announced a proposal to amend its Articles of Incorporation following the acquisition and cancellation of all Class A Preferred Shares. This amendment, to be presented at the upcoming shareholders’ meeting, reflects the removal of provisions related to these shares, indicating a streamlined share structure and potentially impacting shareholder dynamics.

Mitsui E&S Reports Extraordinary Income and Losses for Fiscal Year 2025

Mitsui E&S Holdings Co., Ltd. announced that it recorded extraordinary income and losses for the fiscal year ending March 31, 2025. The company reported a 4.5 billion yen gain from reversing a provision for losses on a subsidiary’s business, which had previously incurred significant project-related losses. This gain is reflected only in the non-consolidated financial results. Additionally, the company recorded a 3.8 billion yen provision for contract losses to prepare for potential future contract-related losses, impacting both consolidated and non-consolidated financial results.

Mitsui E&S Reports Strong Financial Results for FY 2025

Mitsui E&S Holdings Co. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a significant increase in net sales and ordinary income. The company’s strong financial performance is attributed to improved operational efficiencies and strategic investments, positioning it well in the competitive industrial market.

Mitsui E&S Announces Gain from Affiliate Stock Sale

Mitsui E&S Holdings Co. announced an expected extraordinary gain of approximately 4.2 billion yen from the sale of its shares in Mitsui E&S Shipbuilding Co., Ltd. to Tsuneishi Shipbuilding Co., Ltd. This strategic move aims to ensure the continued growth of Mitsui E&S Shipbuilding and strengthen Tsuneishi’s business, although the impact on Mitsui E&S’s consolidated financial results will be minimal.