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

• Market Cap: ¥677.64B
• Dividend Yield: 0.6%
• Average Volume (3M): 3.02M
• Price to Earnings (P/E): 17.9
• Beta (1Y): 1.93
• Revenue Growth: 7.78%
• EPS Growth: -53.68%
• Country: JP
• Employees: 5,952
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 77.83
• Shares Outstanding: 103,098,720
• 10 Day Avg. Volume: 3,959,080
• 30 Day Avg. Volume: 3,020,410
• PEG Ratio: 0.08
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 0.53
• P/FCF Ratio: 31.74
• 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
• EPS Forecast (FY): 327.12
• Revenue Forecast (FY): ¥356.80B

• Rating: 72 Outperform
• Price Target: ¥7,458.00 ▲(15.27% Upside)
• Action: Upgraded Date: 02/18/26
• Date: Action: Upgraded 02/18/26

The score is driven primarily by improved financial performance (stronger profitability, lower leverage, and solid free cash flow) and supported by a strong bullish technical setup. These positives are partially offset by less attractive valuation (higher P/E and low dividend yield) and the company’s history of earnings/cash-flow volatility.

Positive Factors

Margin Improvement

TTM margin expansion and modest revenue growth signal that core operations are generating healthier profits versus the loss-making years. Sustained higher gross/operating margins improve cash conversion and competitive pricing flexibility across marine, logistics and EPC segments.

Deleveraging & Balance Sheet Strength

Material reduction in debt-to-equity increases financial resilience, lowering interest burden and improving capacity to bid on large EPC projects. A stronger capital structure supports investment, risk-taking on contracts, and reduces refinancing risk through cycles.

Robust Free Cash Flow Generation

Consistent positive operating cash flow and sizeable free cash flow relative to earnings provide durable funding for capex, maintenance, and deleveraging. High FCF coverage supports reinvestment in aftermarket services and buffers capital needs during project timing variability.

Negative Factors

Earnings & Cash-flow Volatility

Past cycles of negative cash flow and elevated leverage show the company's results can reverse quickly when project timing or margins worsen. That volatility undermines predictability of returns and raises the risk that recent improvements may not be sustained without structural change.

Project Mix & Execution Risk

Heavy reliance on EPC and large bespoke projects means earnings and margins are sensitive to execution, milestone timing, and contract scope changes. Structural dependence on lumpy project wins creates revenue volatility and requires robust project management to maintain margins.

Working-capital / Cash Sensitivity

Relatively low OCF-to-sales implies cash conversion can deteriorate if receivables or inventory rise during large projects. Persistent working-capital sensitivity increases need for short-term funding, constraining flexibility for capex or strategic investments during downturns.

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 makes money primarily by selling industrial products and delivering engineering/services tied to marine and logistics infrastructure. Key revenue streams typically include (1) product sales of maritime-related equipment and systems (e.g., components and machinery supplied to shipbuilders and vessel operators) and associated aftermarket services such as maintenance, repairs, and parts; (2) sales of port and logistics machinery and systems (e.g., equipment used in ports and cargo handling) along with installation, retrofits, and lifecycle support; and (3) engineering, procurement, and construction (EPC) and related project work for industrial and infrastructure customers, where revenue is recognized based on project milestones/progress and includes both equipment supply and engineering services. Profitability is influenced by project mix (one-off project margins vs. recurring service/parts), capacity utilization in manufacturing, and the timing and execution risk of large projects. Specific major customers, partnership arrangements, and segment-level revenue breakdowns: null.

Mitsui E&S Holdings Co Financial Statement Overview

Summary

Financials indicate a clear turnaround: TTM revenue grew 4.2% with strong margins (gross ~18.7%, operating ~16.4%, net ~7.2%). Leverage has improved (debt-to-equity ~0.43) and ROE is healthy (~13.9%). Free cash flow is solid (~28.9bn) and ~70% of net income, but historical volatility (prior years with negative cash flow and higher leverage) remains a key risk to consistency.

Income Statement

TTM (Trailing-Twelve-Months) results show solid profitability and improved operating performance: revenue grew 4.2% with healthy margins (gross ~18.7%, operating ~16.4%, net ~7.2%). The multi-year trajectory is notably better than 2021–2022, when profits were near-breakeven/negative and margins were weak. A key watch-out is variability in net profitability versus the most recent annual period (annual net margin was higher), suggesting earnings can swing and may not be purely driven by steady underlying operations.

Balance Sheet

Leverage has improved materially: debt relative to equity is ~0.43 in TTM (Trailing-Twelve-Months), down from elevated levels in 2021–2023, while equity has grown. Returns on equity are healthy (~13.9% TTM), indicating better capital productivity than the earlier period that included losses and very high leverage. Risk remains that the company has a history of balance-sheet stress (prior high debt vs. equity), so maintaining today’s stronger capitalization through the cycle is important.

Cash Flow

Cash generation has strengthened in TTM (Trailing-Twelve-Months): operating cash flow is positive (~39.6bn) and free cash flow is solid (~28.9bn) with strong growth (~15.3%). Free cash flow covers a meaningful portion of earnings (free cash flow is ~70% of net income), supporting earnings quality. However, cash flow has been volatile (negative operating/free cash flow in multiple prior years), and operating cash flow remains relatively low compared with sales, implying working-capital or project timing can still create swings.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	349.55B	315.11B	301.88B	262.30B	579.36B	644.69B
Gross Profit	71.17B	51.57B	47.24B	36.92B	28.75B	30.87B
EBITDA	49.62B	31.75B	28.03B	17.32B	1.67B	1.60B
Net Income	29.27B	39.08B	25.05B	15.55B	-21.82B	135.00M
Balance Sheet
Total Assets	475.21B	449.21B	467.14B	439.96B	409.15B	759.03B
Cash, Cash Equivalents and Short-Term Investments	50.80B	35.35B	35.57B	45.80B	51.76B	137.65B
Total Debt	83.69B	105.24B	170.66B	150.47B	150.68B	174.03B
Total Liabilities	266.14B	275.05B	320.63B	329.27B	346.19B	670.54B
Stockholders Equity	204.53B	169.85B	142.10B	106.54B	57.22B	64.31B
Cash Flow
Free Cash Flow	28.86B	5.22B	-41.64B	-22.44B	-29.25B	-5.24B
Operating Cash Flow	39.55B	14.85B	-34.44B	-15.04B	-20.27B	7.48B
Investing Cash Flow	-900.00M	60.90B	-354.00M	-3.00B	-70.92B	21.11B
Financing Cash Flow	-27.55B	-76.57B	24.11B	9.52B	806.00M	-6.81B

Mitsui E&S Holdings Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6470.00
• 50DMA: Negative
• 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 6470 is below the 20-day moving average (MA) of 7088.95, below the 50-day MA of 6968.44, and above the 200-day MA of 5033.55, indicating a neutral trend. The MACD of -174.76 indicates Positive momentum. The RSI at 47.33 is Neutral, neither overbought nor oversold. The STOCH value of 67.81 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
7014	75 Outperform	¥346.57B	8.58	16.64%	1.36%	0.58%	-24.42%
7003	72 Outperform	¥677.64B	17.86	13.69%	0.60%	7.78%	-53.68%
7022	70 Outperform	¥12.62B	2.74	―	2.71%	2.02%	27.03%
7004	66 Neutral	¥165.84B	-49.70	―	2.41%	2.47%	1.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7018	63 Neutral	¥26.36B	12.29	―	0.27%	1.60%	314.05%
6302	54 Neutral	¥618.03B	11.29	4.83%	2.95%	-2.67%	-85.21%

Mitsui E&S Holdings Co Corporate Events

Mitsui E&S Says Subsidiary KAJI TECHNOLOGY’s Forecast Revisions Have Limited Group Impact

Mitsui E&S Co., Ltd. announced that its consolidated subsidiary, KAJI TECHNOLOGY CORPORATION, has revised its non-consolidated financial forecasts and dividend forecasts for the fiscal year ending March 31, 2026. The parent company emphasized that the impact of these revisions on Mitsui E&S’s consolidated financial results will be immaterial, suggesting limited implications for the group’s overall earnings and for shareholders at the holding-company level.

While specific figures were not disclosed in the announcement, the revision of forecasts at KAJI TECHNOLOGY underscores ongoing adjustments within Mitsui E&S’s portfolio as it manages performance across its subsidiaries. By clarifying that the changes will not materially affect consolidated results, Mitsui E&S appears to be reassuring investors that group-level financial stability and guidance remain intact despite subsidiary-level forecast updates.

The most recent analyst rating on (JP:7003) stock is a Buy with a Yen8039.00 price target. To see the full list of analyst forecasts on Mitsui E&S Holdings Co stock, see the JP:7003 Stock Forecast page.

Mitsui E&S Launches Restricted Stock Incentive Plan for Employee Shareholding Association

Mitsui E&S Co., Ltd. will dispose of up to 34,720 treasury shares of its common stock as restricted shares to the Mitsui E&S Employee Shareholding Association on July 24, 2026, at 7,111 yen per share, for a maximum total of about 246.9 million yen. The program targets up to 4,960 employees across the company and its subsidiaries, with each eligible employee potentially receiving seven shares funded through a special monetary incentive of 49,777 yen per person contributed into the association.

The company is establishing this restricted stock incentive plan to deepen value sharing between employees and shareholders and to motivate staff toward sustainable improvement of corporate value during its current growth phase. Shares will be subject to transfer restrictions and clawback provisions under a restricted stock allotment agreement, and employees’ interests in the association linked to these shares will be locked until restrictions are lifted, reinforcing long-term engagement and alignment with shareholder interests.

The most recent analyst rating on (JP:7003) stock is a Hold with a Yen7451.00 price target. To see the full list of analyst forecasts on Mitsui E&S Holdings Co stock, see the JP:7003 Stock Forecast page.

Mitsui E&S Triples Annual Dividend Forecast on Upgraded Earnings Outlook

MITSUI E&S Co., Ltd. has revised its dividend forecast for the fiscal year ending March 31, 2026, sharply increasing the projected year-end dividend to ¥35 per share and the total annual dividend to ¥50 per share from an earlier plan that left the year-end payout undetermined. The move follows an upward revision to full-year consolidated earnings forecasts and reflects the company’s stated policy of maintaining a 15% dividend payout ratio while balancing shareholder returns with capital expenditure, R&D investment, and financial stability.

Compared with the previous fiscal year’s total dividend of ¥20 per share and the earlier interim dividend of ¥15 per share for FY2025, the new forecast signals a materially higher cash return to investors. By linking dividends to improved earnings and explicitly considering the cost of equity and debt, the company aims to bolster sustainable corporate value and reinforce its appeal to shareholders seeking both income and disciplined capital allocation.

The most recent analyst rating on (JP:7003) stock is a Hold with a Yen7451.00 price target. To see the full list of analyst forecasts on Mitsui E&S Holdings Co stock, see the JP:7003 Stock Forecast page.

MITSUI E&S Lifts FY2025 Profit Outlook on Strong Marine and Logistics Margins

MITSUI E&S Co., Ltd. raised its full-year FY2025 earnings forecast while keeping net sales unchanged at ¥340 billion, reflecting stronger profitability rather than top-line growth. The company now expects operating income of ¥35 billion, ordinary income of ¥40 billion, and profit attributable to owners of parent of ¥31 billion, all notably higher than its November guidance.

Management attributed the upgrade to steady execution of relatively high-margin projects in its Marine Propulsion Systems and Logistics Systems segments, alongside cost reduction efforts that lifted nine-month results above prior assumptions. The after-sales service business is also performing solidly, and while the company continues to monitor U.S. tariff policy and geopolitical risks, it anticipates only limited impact on performance and has slightly updated its foreign exchange assumption to ¥150 per U.S. dollar.

By segment, operating income guidance was raised for New Business Development, Marine Propulsion Systems, and Logistics Systems, partially offset by a downgrade in Peripheral Businesses, underscoring a shift toward core, higher-margin operations. The overall revision suggests improved operational resilience and margin expansion, reinforcing MITSUI E&S’s profit outlook despite an uncertain macro environment.

The most recent analyst rating on (JP:7003) stock is a Hold with a Yen7451.00 price target. To see the full list of analyst forecasts on Mitsui E&S Holdings Co stock, see the JP:7003 Stock Forecast page.

Mitsui E&S Lifts Profit Outlook on Strong Q3 and Strategic Expansion

Mitsui E&S Holdings reported solid performance for the third quarter of the fiscal year ending March 2026, with new orders of ¥207.6 billion, net sales of ¥253.2 billion, and operating income of ¥31.1 billion, all increasing year-on-year. Supported by this strong momentum, the company raised its full-year operating income forecast to ¥35 billion, and outlined strategic initiatives such as creating a Port Digital Transformation Department, expanding production capacity for ammonia-fueled propulsion systems, introducing a restricted stock incentive plan for its employee shareholding association, and securing an A- [Positive] credit rating from R&I, all of which underscore its efforts to bolster growth, technological edge, and financial standing.

The most recent analyst rating on (JP:7003) stock is a Hold with a Yen7451.00 price target. To see the full list of analyst forecasts on Mitsui E&S Holdings Co stock, see the JP:7003 Stock Forecast page.

Mitsui E&S Lifts Full-Year Forecasts After Strong Nine-Month Earnings, Plans Higher Dividend

Mitsui E&S Co., Ltd. reported consolidated net sales of ¥253.2 billion for the nine months ended December 31, 2025, up from ¥218.7 billion a year earlier, with operating income rising to ¥35.9 billion and profit attributable to owners of parent increasing to ¥25.4 billion. The company strengthened its financial position with total assets of ¥475.2 billion and an equity ratio of 43.0%, revised up its full-year earnings forecast on the back of improved profitability, and announced a higher dividend forecast of ¥50 per share for the fiscal year ending March 31, 2026, signaling confidence in earnings and shareholder returns.

For the full year to March 31, 2026, Mitsui E&S now projects net sales of ¥340 billion, operating income of ¥40 billion, and profit attributable to owners of parent of ¥31 billion, assuming an exchange rate of USD1 = JPY150. The firm maintained a stable share base with approximately 100.9 million shares outstanding and no significant changes in the scope of consolidation, indicating that earnings momentum is being driven by existing operations rather than large-scale structural changes.

The most recent analyst rating on (JP:7003) stock is a Hold with a Yen7451.00 price target. To see the full list of analyst forecasts on Mitsui E&S Holdings Co stock, see the JP:7003 Stock Forecast page.