Mitsubishi Motors (7211) AI Stock Analysis

• Market Cap: ¥608.15B
• Dividend Yield: 3.6%
• Average Volume (3M): 7.72M
• Price to Earnings (P/E): 14.5
• Beta (1Y): 1.14
• Revenue Growth: -0.05%
• EPS Growth: -73.17%
• Country: JP
• Employees: 28,982
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Auto - Manufacturers
• EPS (TTM): 5.90
• Shares Outstanding: 1,460,476,800
• 10 Day Avg. Volume: 5,515,140
• 30 Day Avg. Volume: 7,721,663
• PEG Ratio: -0.21
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 166.34
• 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: ¥372.98
• Price Target Upside: -10.58% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 67 Neutral
• Price Target: ¥451.00 ▲(8.13%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 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, 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 Financial Statement Overview

Summary

Mitsubishi Motors has demonstrated robust revenue growth and has strong operational margins, indicating healthy performance. The balance sheet is stable with low leverage, but cash flow conversion remains a challenge, limiting cash generation relative to net income. Overall, financial statements suggest a strong recovery with room for improvement in cash flow management.

Income Statement

Mitsubishi Motors has demonstrated robust revenue growth since 2021, with revenues increasing from 1.46 trillion JPY in 2021 to 2.79 trillion JPY in 2024. The TTM (Trailing-Twelve-Months) gross profit margin stands at 19.34%, indicating efficient cost management, while the net profit margin is 3.14%, which, although positive, suggests room for improvement in profitability. The EBIT and EBITDA margins are solid at 4.99% and 7.42% respectively, showcasing healthy operational performance.

Balance Sheet

The company's balance sheet reflects a strong equity position with a stockholders' equity of 971.72 billion JPY, contributing to an equity ratio of 42.44% in the TTM period. The debt-to-equity ratio is moderate at 0.33, indicating a balanced approach to leveraging debt for growth. Return on equity (ROE) is 8.77%, showing satisfactory returns generated on shareholder investments. Overall, the balance sheet demonstrates financial stability with manageable leverage.

Cash Flow

The TTM shows a positive free cash flow, albeit reduced compared to previous annual periods. The operating cash flow to net income ratio is 0.35, revealing a challenge in converting earnings into cash. The free cash flow to net income ratio is 0.04, suggesting limited cash generation relative to net income. Despite improvements since 2021, cash flow management remains an area for enhancement to support future growth projects.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
2.72T	2.79T	2.46T	2.04T	1.46T	2.27T
	Gross Profit
525.26B	609.10B	522.80B	362.45B	156.46B	337.51B
	EBIT
135.46B	190.97B	190.50B	87.33B	-95.32B	12.79B
	EBITDA
201.28B	255.32B	232.53B	154.88B	-226.99B	82.48B
	Net Income Common Stockholders
85.18B	154.71B	168.73B	74.04B	-312.32B	-25.78B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
400.16B	674.23B	595.96B	511.50B	455.72B	399.61B
	Total Assets
2.29T	2.45T	2.20T	1.93T	1.86T	1.94T
	Total Debt
316.67B	492.36B	428.28B	480.53B	483.32B	299.39B
	Net Debt
-83.49B	-181.88B	-167.68B	-30.97B	27.61B	-100.22B
	Total Liabilities
1.28T	1.41T	1.37T	1.30T	1.33T	1.15T
	Stockholders Equity
971.72B	1.01T	801.17B	606.97B	508.26B	773.01B
Cash Flow		Free Cash Flow
3.29B	13.96B	93.93B	30.92B	-133.40B	-110.59B
	Operating Cash Flow
29.80B	140.81B	173.58B	118.11B	-41.54B	18.79B
	Investing Cash Flow
-26.41B	-138.87B	-53.15B	-69.12B	-101.32B	-105.71B
	Financing Cash Flow
-49.19B	37.67B	-61.87B	-10.23B	168.29B	9.62B

Mitsubishi Motors Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 417.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 417.1 is below the 20-day moving average (MA) of 427.71, above the 50-day MA of 403.37, and above the 200-day MA of 415.97, indicating a neutral trend. The MACD of 2.78 indicates Positive momentum. The RSI at 48.73 is Neutral, neither overbought nor oversold. The STOCH value of 19.70 is Positive, 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
7211	67 Neutral	¥608.15B	14.53	4.11%	3.60%	-0.05%	-73.17%
Sector *	63 Neutral	$6.96B	11.51	2.80%	3.85%	2.70%	-24.43%
FUJHF		$12.86B	5.97	12.64%	4.25%	―	―
ISUZF		$8.66B	10.89	9.10%	4.67%	―	―
MZDAF		$3.74B	5.18	6.30%	6.51%	―	―
NSANF		$8.40B	12.42	-12.13%	4.02%	―	―
YAMHF		$7.14B	13.82	7.19%	4.17%	―	―

Mitsubishi Motors Corporate Events

Mitsubishi Motors Reports Fiscal Year 2025 Financial Results

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.