Mitsubishi Motors (7211) AI Stock Analysis

• Market Cap: ¥601.01B
• Dividend Yield: 3.33%
• Average Volume (3M): 6.74M
• Price to Earnings (P/E): 175.7
• Beta (1Y): 1.17
• Revenue Growth: -0.87%
• EPS Growth: -105.50%
• Country: JP
• Employees: 28,982
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): N/A
• Shares Outstanding: 1,460,476,800
• 10 Day Avg. Volume: 6,660,580
• 30 Day Avg. Volume: 6,744,143
• PEG Ratio: -0.20
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.21
• P/FCF Ratio: 7.33
• 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: ¥410.42
• Price Target Upside: -4.35% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥473.00 ▲(10.23% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is driven primarily by solid financial performance (profitability recovery and a stronger balance sheet), tempered by weakening margins and declining free cash flow. Technicals remain trend-positive but show overbought risk, while valuation is the main headwind due to an extremely high P/E despite a moderate dividend yield.

Positive Factors

Financial Stability

A strong balance sheet with improving debt-to-equity ratio indicates prudent financial management, enhancing long-term stability and resilience.

Operational Efficiency

Operational efficiency supports profitability and competitiveness, allowing the company to sustain its market position despite margin pressures.

Cash Generation

Strong operating cash flow ensures the company can fund operations and investments, crucial for long-term growth and financial health.

Negative Factors

Margin Decline

Declining margins can erode profitability, indicating potential cost pressures or pricing challenges that may impact long-term financial performance.

Free Cash Flow Decrease

A decrease in free cash flow limits the company's ability to invest in growth opportunities and may strain financial flexibility over time.

Revenue Growth Decline

Negative revenue growth suggests declining sales momentum, potentially impacting market share and long-term competitiveness.

Mitsubishi Motors Business Overview & Revenue Model

Company Description

Mitsubishi Motors Corporation, together with its subsidiaries, develops, produces, and sells passenger vehicles, and their parts and components in Japan, Europe, North America, Oceania, rest of Asia, and internationally. The company operates through Automobile Business and Financial Service Business segments. Its products include EVs, PHEVs, SUVs and pickup trucks, passenger vehicles and minivans, and Kei-cars under the Mitsubishi brand. The company is also involved in the automobile transport and maintenance activities; auto sales financing, leasing, rental, and sale; investigation, testing, and research related to automobiles; manufacturing of automobile engines and transmissions, and press parts; and wholesale trading activities. Mitsubishi Motors Corporation was incorporated in 1970 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Mitsubishi Motors generates revenue primarily through the sale of vehicles, including passenger cars, light trucks, and electric vehicles. The company's revenue model is supported by several key revenue streams, including direct sales to consumers, fleet sales to businesses, and exports to international markets. Additionally, Mitsubishi Motors engages in partnerships and collaborations with other automotive manufacturers, which can lead to joint ventures and shared technology development. The company also earns revenue from financing solutions and after-sales services, such as maintenance and spare parts, which contribute to its overall earnings. Economic factors, market demand, and regulatory policies in different regions also significantly affect the company's financial performance.

Mitsubishi Motors Financial Statement Overview

Summary

Financials reflect resilience and improved stability: profitability recovered from prior losses and the balance sheet is strong with improving leverage and growing equity. Offsetting this, margins have recently declined and free cash flow has fallen significantly, which raises caution on reinvestment capacity.

Income Statement

Mitsubishi Motors shows consistent revenue growth over the years with a notable recovery from a net loss in 2021 to profitability in recent years. The gross profit margin and EBIT margin indicate strong operational efficiency, although there has been a decline in both over the past year. The net profit margin is positive, reflecting a stable bottom line, despite a decrease in net income compared to the previous year.

Balance Sheet

The company's balance sheet is strong, with a favorable debt-to-equity ratio improving over time, indicating prudent financial leverage. Stockholders' equity has grown, showing shareholder value increase. The equity ratio reflects a solid asset base funded by equity, enhancing financial stability. However, a decrease in cash positions suggests potential liquidity management improvements.

Cash Flow

Operating cash flow remains robust, supporting the company's financial health. However, free cash flow has decreased significantly, which may impact future investments and operations. The operating cash flow to net income ratio is strong, indicating good cash-generating capability from profits, yet the free cash flow to net income ratio shows room for improvement.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	2.77T	2.79T	2.79T	2.46T	2.04T	1.46T
Gross Profit	491.09B	517.82B	568.85B	522.80B	362.45B	156.46B
EBITDA	137.96B	167.99B	255.32B	232.53B	153.40B	-226.99B
Net Income	12.26B	40.99B	154.71B	168.73B	74.04B	-312.32B
Balance Sheet
Total Assets	2.15T	2.25T	2.45T	2.20T	1.93T	1.86T
Cash, Cash Equivalents and Short-Term Investments	329.39B	452.51B	674.23B	595.96B	511.50B	455.72B
Total Debt	326.87B	314.79B	492.36B	428.28B	480.53B	483.32B
Total Liabilities	1.23T	1.27T	1.41T	1.37T	1.30T	1.33T
Stockholders Equity	871.95B	934.41B	1.01T	801.17B	606.97B	508.26B
Cash Flow
Free Cash Flow	3.29B	79.65B	13.96B	93.93B	30.92B	-133.40B
Operating Cash Flow	29.80B	174.73B	140.81B	173.58B	118.11B	-41.54B
Investing Cash Flow	-26.41B	-114.75B	-138.87B	-53.15B	-69.12B	-101.32B
Financing Cash Flow	-49.19B	-274.76B	37.67B	-61.87B	-10.23B	168.29B

Mitsubishi Motors Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 429.10
• 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:7211, the sentiment is Positive. The current price of 429.1 is above the 20-day moving average (MA) of 427.65, above the 50-day MA of 397.84, and above the 200-day MA of 397.99, indicating a bullish trend. The MACD of 8.58 indicates Positive momentum. The RSI at 55.42 is Neutral, neither overbought nor oversold. The STOCH value of 21.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7211.

Mitsubishi Motors Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7269	74 Outperform	¥4.44T	11.13	12.95%	1.85%	2.99%	9.99%
7203	71 Outperform	¥51.40T	13.50	12.89%	2.78%	6.44%	11.88%
7211	66 Neutral	¥601.01B	175.71	-0.65%	3.33%	-0.87%	-105.50%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7267	59 Neutral	¥5.18T	12.90	5.23%	4.41%	-0.43%	-26.68%
7261	55 Neutral	¥853.47B	99.77	1.72%	4.52%	-0.83%	-75.20%
7201	47 Neutral	¥1.47T	-1.59	-16.69%	―	-3.01%	-755.71%

Mitsubishi Motors Corporate Events

Mitsubishi Motors Swings to Loss and Halves Profit Outlook as Margins Squeeze

Mitsubishi Motors reported largely flat net sales of ¥1.98 trillion for the nine months to December 31, 2025, but operating profit plunged nearly 70% to ¥31.6 billion and the company swung to a net loss of ¥4.5 billion, reversing a ¥33.2 billion profit a year earlier, as profitability weakened and the equity ratio declined to 38.4% from 41.6%. Against this backdrop, the automaker trimmed its full-year earnings outlook, now targeting a 49.6% drop in operating profit and a 75.6% fall in profit attributable to owners of the parent, while still forecasting modest top-line growth to ¥2.9 trillion and maintaining a reduced annual dividend of ¥10 per share, signaling pressure on margins and returns even as it fine-tunes its consolidation scope with changes to group companies.

The most recent analyst rating on (JP:7211) stock is a Hold with a Yen370.00 price target. To see the full list of analyst forecasts on Mitsubishi Motors stock, see the JP:7211 Stock Forecast page.

Mitsubishi Motors’ U.S. Unit Wins New Trial in US$1 Billion Pennsylvania Liability Case

Mitsubishi Motors said its U.S. sales subsidiary, Mitsubishi Motors North America, has won a key ruling in a major U.S. product liability case, after the Superior Court of Pennsylvania vacated a roughly US$1 billion verdict against the company and ordered a new trial on all claims related to alleged defects in the restraint system of a 1992 Mitsubishi 3000GT. The case, stemming from a 2017 accident that injured the husband of plaintiff Soomi Amagasu, had left the U.S. unit as the sole defendant after the parent company was dismissed in 2021, and while Mitsubishi Motors maintains the vehicle is not defective, it acknowledged that the ultimate financial impact of the retrial remains uncertain and pledged to continue contesting the claims and to disclose any material effects on its earnings.

The most recent analyst rating on (JP:7211) stock is a Hold with a Yen360.00 price target. To see the full list of analyst forecasts on Mitsubishi Motors stock, see the JP:7211 Stock Forecast page.

Mitsubishi Motors to Book ¥24.3 Billion Non-Operating Income from Thai Unit’s Special Dividend

Mitsubishi Motors Corporation announced that its Thai consolidated subsidiary, Mitsubishi Motors (Thailand) Co., Ltd., has resolved to pay a special dividend of THB 5 billion. MMC will record approximately JPY 24.3 billion from this dividend as non-operating income in its nonconsolidated financial statements for the fiscal year ending March 31, 2026, while the payment will have no effect on its consolidated financial results because the dividend is sourced from a consolidated subsidiary.

The most recent analyst rating on (JP:7211) stock is a Hold with a Yen360.00 price target. To see the full list of analyst forecasts on Mitsubishi Motors stock, see the JP:7211 Stock Forecast page.