Mitsubishi Motors (7211) AI Stock Analysis

• Market Cap: ¥541.81B
• Dividend Yield: 3.36%
• Average Volume (3M): 6.74M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.11
• Revenue Growth: -0.87%
• EPS Growth: -105.50%
• Country: JP
• Employees: 28,982
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): -7.45
• 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: ¥362.93
• Price Target Upside: -3.89% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥428.00 ▲(13.35% Upside)

Mitsubishi Motors' overall stock score is driven by its strong financial performance, indicating stability and recovery potential. However, technical analysis shows mixed signals, and the high P/E ratio suggests overvaluation, which tempers the overall score.

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

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

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
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: Neutral
• Last Price: 377.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7211, the sentiment is Neutral. The current price of 377.6 is above the 20-day moving average (MA) of 366.03, below the 50-day MA of 378.79, and below the 200-day MA of 398.48, indicating a neutral trend. The MACD of -2.12 indicates Negative momentum. The RSI at 55.62 is Neutral, neither overbought nor oversold. The STOCH value of 82.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7211.

Mitsubishi Motors Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7270	80 Outperform	¥2.57T	9.68	9.73%	3.46%	1.04%	-31.52%
7202	77 Outperform	¥1.73T	12.77	―	3.75%	-5.66%	-28.73%
7272	69 Neutral	¥1.15T	75.49	1.38%	4.16%	-1.83%	-89.60%
7261	65 Neutral	$747.65B	22.36	1.72%	4.53%	-0.83%	-75.20%
7211	64 Neutral	¥541.81B	-81.57	-0.65%	3.36%	-0.87%	-105.50%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7201	49 Neutral	¥1.40T	-1.58	-16.69%	―	-3.01%	-755.71%

Mitsubishi Motors Corporate Events

Mitsubishi Motors Reports Decline in Q2 Financial Performance

Mitsubishi Motors reported a significant decline in its financial performance for the second quarter of the fiscal year ending March 31, 2026. The company experienced a decrease in net sales and operating profit, with a notable loss attributable to owners of the parent. This downturn reflects challenges in the automotive market, impacting the company’s financial health and shareholder returns.

Mitsubishi Motors to Receive USD199 Million Dividend from U.S. Subsidiary

Mitsubishi Motors Corporation announced that its subsidiary, Mitsubishi Motors North America, will pay a dividend of USD199 million, impacting the nonconsolidated financial results of the parent company. The dividend will be recognized as non-operating income in MMC’s financial statements, but it will not affect the consolidated financial results as it is from a consolidated subsidiary.

Mitsubishi Motors to Recognize Special Dividend from Thai Subsidiary

Mitsubishi Motors Corporation announced that its subsidiary in Thailand, Mitsubishi Motors (Thailand) Co., Ltd., has decided to pay a special dividend, which will be recognized as non-operating income in MMC’s nonconsolidated financial statements for the fiscal year ending March 31, 2026. This dividend will not affect MMC’s consolidated financial results as it is received from a consolidated subsidiary, highlighting a strategic financial maneuver within the company’s operations.