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Mitsubishi Motors Corporation (JP:7211)
:7211

Mitsubishi Motors (7211) AI Stock Analysis

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Mitsubishi Motors

(OTC:7211)

Rating:67Neutral
Price Target:
¥451.00
▲(7.20%Upside)
Mitsubishi Motors shows strong financial stability and recovery, which is the most significant factor contributing to its score. Technical analysis indicates neutral momentum, and the valuation is moderate with a supportive dividend yield. The lack of current earnings call data and notable corporate events does not affect the overall assessment.

Mitsubishi Motors (7211) vs. iShares MSCI Japan ETF (EWJ)

Mitsubishi Motors Business Overview & Revenue Model

Company DescriptionMitsubishi Motors Corporation (7211) is a leading global automobile manufacturer headquartered in Tokyo, Japan. The company is engaged in the development, production, and distribution of a wide range of vehicles, including passenger cars, SUVs, and light commercial vehicles. Mitsubishi Motors is recognized for its innovative engineering and commitment to sustainability, offering products that emphasize performance, safety, and environmental responsibility. The company operates in various markets worldwide, serving diverse customer needs with a focus on reliability and cutting-edge technology.
How the Company Makes MoneyMitsubishi Motors generates revenue primarily through the sale of vehicles, parts, and accessories. The company operates through several key revenue streams: the sale of new vehicles, which includes passenger cars and SUVs; the sale of parts and accessories, which supports vehicle maintenance and customization; and after-sales services, which encompass repairs and maintenance. Additionally, Mitsubishi Motors benefits from its strategic partnerships and alliances, such as its participation in the Renault-Nissan-Mitsubishi Alliance, which enhances its competitive position through shared technology, platforms, and supply chains. The company's earnings are also influenced by its focus on emerging markets, where it seeks to expand its presence and capture growing consumer demand for automobiles.

Mitsubishi Motors Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q3-2024)
|
% Change Since: 9.19%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong performance in North America and the domestic market, along with notable achievements like the Design Car of the Year award and the start of overseas EV production. However, these positives were offset by global sales volume declines, challenges in the ASEAN region, and increased costs affecting profit, leading to a balanced overall sentiment.
Q3-2024 Updates
Positive Updates
Increase in Net Sales and Operating Profit
Net sales increased 14% year-on-year to JPY 263.9 billion, and operating profit increased 4% year-on-year to JPY 160.1 billion with an OP margin of 7.8%.
North America and Domestic Market Growth
The North American market showed robust retail sales and increased fleet demand, with improved inventory levels and strong sales momentum for the OUTLANDER series. The domestic Japanese market also recorded a significant year-over-year increase due to resolving vehicle supply shortages.
Design Car of the Year Award
The Delica Mini won the Design Car of the Year award at Japan Car of the Year 2023-2024, marking the first time the company received this award.
First Overseas EV Production
The company started production of the L100EV, a light commercial electric vehicle, in Indonesia, indicating a strategic move to meet growing EV demand in the ASEAN region.
Negative Updates
Decrease in Global Sales Volume
Global sales volume decreased 7% year-on-year to 585,000 units, affected by transportation capacity issues and sluggish demand in certain regions.
Challenges in ASEAN Region
The ASEAN region faced lower-than-expected demand due to inflation, high interest rates, and intensified price competition, leading to an 8% year-on-year decrease in retail sales volume.
Profit Deterioration Due to Costs
Sales expenses and procurement costs negatively impacted operating profit by JPY 22.1 billion and JPY 29 billion, respectively, due to increased advertisement expenses, shipping costs, and inflation.
Thailand Market Struggles
The market in Thailand saw a 40% year-on-year decline in TIV, particularly affecting the pickup segment, due to strict automobile loan screening.
Company Guidance
During the third quarter of FY 2023 earnings call for Mitsubishi Motors, Kentaro Matsuoka outlined the company's financial performance and strategic initiatives. Despite resolving vehicle supply shortages caused by semiconductor and vessel constraints, demand remained below expectations in some regions. Mitsubishi achieved a 14% year-on-year increase in net sales to JPY 263.9 billion, while operating profit rose by 4% year-on-year to JPY 160.1 billion with an operating profit margin of 7.8%. Ordinary profit reached JPY 166 billion, and net income was JPY 102.8 billion, influenced by restructuring costs in China. Retail sales volume decreased by 7% year-on-year to 585,000 units due to logistical challenges and sluggish demand. The year-on-year operating profit improvement was driven by a JPY 64.7 billion increase from volume and mix/selling price, despite a JPY 22.1 billion reduction from increased sales expenses and a JPY 29 billion deterioration from shipping and factory costs. Additionally, R&D expenses grew by JPY 5.7 billion, and other expenses increased by JPY 17.8 billion. Currency fluctuations had a favorable effect of JPY 16.3 billion. The company plans to maintain its profit forecast amid a challenging business environment, while focusing on new product launches and a midterm plan to roll out 12 new models, including seven electrified vehicles, by 2025.

Mitsubishi Motors Financial Statement Overview

Summary
Mitsubishi Motors exhibits strong financial stability and a recovery trajectory from past losses. The income statement reveals operational efficiency, although recent margin declines warrant attention. The balance sheet is robust, supported by a declining debt ratio and increasing equity. Cash flow metrics highlight effective cash management, though declining free cash flow suggests caution.
Income Statement
75
Positive
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
80
Positive
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
70
Positive
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
TTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
2.72T2.79T2.79T2.46T2.04T1.46T
Gross Profit
520.79B517.82B609.10B522.80B362.45B156.46B
EBIT
135.46B138.83B190.97B190.50B87.33B-95.32B
EBITDA
201.28B167.99B255.32B232.53B154.88B-226.99B
Net Income Common Stockholders
85.18B40.99B154.71B168.73B74.04B-312.32B
Balance SheetCash, Cash Equivalents and Short-Term Investments
400.16B452.51B674.23B595.96B511.50B455.72B
Total Assets
2.29T2.25T2.45T2.20T1.93T1.86T
Total Debt
316.67B314.79B492.36B428.28B480.53B483.32B
Net Debt
-83.49B-137.72B-181.88B-167.68B-30.97B27.61B
Total Liabilities
1.28T1.27T1.41T1.37T1.30T1.33T
Stockholders Equity
971.72B934.41B1.01T801.17B606.97B508.26B
Cash FlowFree Cash Flow
3.29B79.65B13.96B93.93B30.92B-133.40B
Operating Cash Flow
29.80B174.73B140.81B173.58B118.11B-41.54B
Investing Cash Flow
-26.41B-114.75B-138.87B-53.15B-69.12B-101.32B
Financing Cash Flow
-49.19B-274.76B37.67B-61.87B-10.23B168.29B

Mitsubishi Motors Technical Analysis

Technical Analysis Sentiment
Positive
Last Price420.70
Price Trends
50DMA
403.35
Positive
100DMA
413.47
Positive
200DMA
416.18
Positive
Market Momentum
MACD
2.45
Positive
RSI
50.83
Neutral
STOCH
27.12
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 420.7 is below the 20-day moving average (MA) of 427.12, above the 50-day MA of 403.35, and above the 200-day MA of 416.18, indicating a neutral trend. The MACD of 2.45 indicates Positive momentum. The RSI at 50.83 is Neutral, neither overbought nor oversold. The STOCH value of 27.12 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥1.87T5.5712.64%4.99%-0.37%-9.93%
71
Outperform
$1.04T12.877.19%4.17%4.48%-51.81%
71
Outperform
¥539.29B4.736.30%7.01%3.96%-45.09%
70
Outperform
¥1.26T10.039.10%5.01%-5.27%-20.14%
67
Neutral
$608.15B14.534.11%3.60%-0.05%-73.17%
63
Neutral
$6.98B11.412.80%4.24%2.68%-24.94%
51
Neutral
$1.22T12.25-12.13%2.84%-0.41%-269.88%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7211
Mitsubishi Motors
420.70
8.60
2.09%
JP:7261
Mazda Motor
866.80
-539.75
-38.37%
JP:7272
Yamaha Motor Co
1,096.50
-358.20
-24.62%
JP:7201
Nissan Motor Co
363.70
-171.50
-32.04%
JP:7202
Isuzu Motors
1,850.00
-108.52
-5.54%
JP:7270
SUBARU
2,571.50
-618.59
-19.39%

Mitsubishi Motors Corporate Events

Mitsubishi Motors Reports Fiscal Year 2025 Financial Results
May 8, 2025

Mitsubishi Motors reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a slight decrease in net sales and significant declines in operating and ordinary income compared to the previous year. Despite these challenges, the company increased its cash dividend per share, indicating a commitment to returning value to shareholders. The forecast for the next fiscal year anticipates a modest increase in net sales but expects further declines in operating and ordinary income, reflecting ongoing challenges in the market.

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.