Mitsuba Corporation (7280) AI Stock Analysis

• Market Cap: ¥66.41B
• Dividend Yield: 0.99%
• Average Volume (3M): 87.54K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 1.29
• Revenue Growth: -0.83%
• EPS Growth: -27.20%
• Country: JP
• Employees: 22,665
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 13.63
• Shares Outstanding: 46,154,015
• 10 Day Avg. Volume: 67,820
• 30 Day Avg. Volume: 87,540
• PEG Ratio: -0.22
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 0.11
• P/FCF Ratio: 1.26
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥1,560.00 ▲(59.84% Upside)
• Action: Reiterated Date: 02/11/26
• Date: Action: Reiterated 02/11/26

The score is supported most by strong technical uptrend (price above all key moving averages with positive MACD) and attractive valuation (low P/E). Offsetting these positives, financial performance is mixed: profitability has improved and cash flow is positive, but TTM revenue decline, thin margins, and still-elevated leverage reduce resilience.

Positive Factors

Improved profitability

Mitsuba has meaningfully improved operating and net margins versus the weak 2022–2023 period, showing an operational recovery. Sustained margin improvement increases earnings resilience, funds reinvestment into product/production, and reduces reliance on volume recovery alone over the next several quarters.

Positive cash generation

Consistent positive operating and free cash flow in recent periods provides durable internal funding for capex, working capital and debt reduction. Reliable cash generation supports competitive production investments and cushions the company through cyclical automotive demand fluctuations.

Global manufacturing and localized supply

A global production footprint with localized supply to OEMs reduces customer service risk, enhances bid competitiveness for platform allocations, and mitigates single-market disruptions. This structural capability supports long-term win rates on series-production contracts across regions.

Negative Factors

Top-line decline

An ~8.6% TTM revenue decline signals weakening demand or lost content that materially affects scale economics. Sustained top-line contraction can erode fixed-cost leverage, pressure margins, and heighten sensitivity of earnings to OEM production shifts over the medium term.

Elevated leverage

Although leverage has declined from prior extremes, a ~1.4x debt-to-equity ratio still constrains strategic flexibility, increases interest burden risk, and reduces buffer against auto-cycle downturns. Elevated debt can limit ability to invest or absorb prolonged revenue weakness.

Thin margins and uneven FCF conversion

Modest net margins and weaker FCF conversion (FCF ~66% of net income TTM) leave limited excess cash for R&D, capex or deleveraging without relying on operational improvement. This margin and cash-conversion sensitivity increases vulnerability to raw-material and volume swings.

Mitsuba Corporation Business Overview & Revenue Model

Company Description

Mitsuba Corporation (7280) is a Japanese automotive components manufacturer specializing in the production of electric motors, automotive parts, and systems for various vehicle applications. The company operates primarily in the automotive sector, offering core products such as wiper motors, cooling fan motors, and power window motors. Mitsuba is committed to innovation and sustainability, developing advanced technologies that enhance the efficiency and performance of automotive systems.

How the Company Makes Money

Mitsuba Corporation generates revenue through the manufacturing and sales of its automotive components to major automobile manufacturers worldwide. The company's primary revenue streams include the sale of electric motors and related automotive parts, which are essential for vehicle functionality. Mitsuba has established significant partnerships with leading automakers, providing them with customized solutions that meet specific performance and regulatory requirements. Additionally, the company benefits from economies of scale in production, allowing it to maintain competitive pricing and improve profit margins. Strategic investments in research and development also contribute to Mitsuba's earnings, as they enable the company to introduce innovative products that meet the evolving demands of the automotive industry.

Mitsuba Corporation Financial Statement Overview

Summary

Earnings have recovered with improved operating/net margins versus 2022–2023 and positive operating/free cash flow, but TTM revenue is down (~-8.6%), net margins remain modest (~3–4%), leverage is still meaningful despite improvement (debt-to-equity ~1.4x TTM), and TTM free cash flow conversion is weaker (about two-thirds of net income).

Income Statement

Profitability has improved meaningfully versus the weak 2022–2023 period, with stronger operating and net margins in the most recent annual results (2025) and solid profitability in TTM (Trailing-Twelve-Months). That said, top-line momentum is a concern: revenue is down in TTM (Trailing-Twelve-Months) (about -8.6%), and net margin remains modest for the industry (roughly 3–4%), leaving earnings sensitive to volume and cost swings.

Balance Sheet

Leverage remains elevated, though trending better: debt-to-equity improved from very high levels in 2021–2023 (above ~2.7–3.4x) to ~1.7x in 2025 and ~1.4x in TTM (Trailing-Twelve-Months). Returns on equity are healthy in the latest periods (low-teens), but the balance sheet still carries meaningful debt relative to equity, which can limit flexibility if industry conditions soften.

Cash Flow

Cash generation is generally supportive, with positive operating cash flow and solid free cash flow in 2024–2025 and TTM (Trailing-Twelve-Months). However, free cash flow growth is negative in the latest periods (down modestly in 2025 and sharply in TTM (Trailing-Twelve-Months)), and free cash flow covers only about two-thirds of net income in TTM (Trailing-Twelve-Months), pointing to some conversion volatility versus the stronger 2024–2025 profile.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	345.66B	349.35B	344.15B	319.50B	286.48B	269.20B
Gross Profit	54.54B	54.29B	52.48B	40.04B	38.91B	38.05B
EBITDA	31.08B	35.94B	37.06B	24.81B	23.34B	24.10B
Net Income	8.74B	11.86B	13.74B	1.19B	83.00M	732.00M
Balance Sheet
Total Assets	338.47B	333.53B	357.49B	328.45B	342.75B	343.14B
Cash, Cash Equivalents and Short-Term Investments	101.31B	97.91B	102.25B	75.79B	74.56B	78.75B
Total Debt	144.51B	160.31B	170.99B	178.86B	188.09B	196.57B
Total Liabilities	214.97B	222.65B	234.91B	241.50B	254.55B	266.92B
Stockholders Equity	110.69B	95.70B	101.64B	66.77B	68.02B	58.37B
Cash Flow
Free Cash Flow	20.52B	29.24B	31.13B	19.75B	770.00M	7.80B
Operating Cash Flow	32.12B	38.02B	41.51B	29.62B	12.00B	15.41B
Investing Cash Flow	-10.71B	-6.88B	-5.24B	-9.17B	-6.84B	-6.66B
Financing Cash Flow	-20.30B	-33.92B	-13.79B	-20.68B	-13.03B	12.82B

Mitsuba Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 976.00
• 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:7280, the sentiment is Positive. The current price of 976 is below the 20-day moving average (MA) of 1418.70, below the 50-day MA of 1280.02, and below the 200-day MA of 991.31, indicating a bullish trend. The MACD of 35.50 indicates Positive momentum. The RSI at 58.30 is Neutral, neither overbought nor oversold. The STOCH value of 45.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7280.

Mitsuba Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7244	81 Outperform	¥54.87B	8.84	8.46%	2.64%	-6.35%	18.49%
7229	71 Outperform	¥45.12B	10.60	―	2.37%	-13.35%	-19.38%
7236	71 Outperform	¥62.90B	6.61	―	3.60%	0.14%	882.91%
7266	71 Outperform	¥22.52B	11.42	―	2.70%	-8.63%	-55.68%
7280	70 Outperform	¥66.41B	7.67	―	0.99%	-0.83%	-27.20%
7245	65 Neutral	¥57.32B	15.57	5.33%	2.09%	1.26%	56.37%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Mitsuba Corporation Corporate Events

Mitsuba Reshapes Executive and Managerial Ranks to Bolster Global Operations

Mitsuba Corporation has announced a wide-ranging set of officer and manager personnel changes effective April 1, 2026, aimed at strengthening its global management structure and core functional divisions. Two new operating officers will be appointed, including the current head of the Mexican subsidiary and the Tomioka Plant manager, signaling a promotion of regional and manufacturing leadership into corporate roles.

The company is also reshuffling responsibilities among existing senior and operating officers, with notable emphasis on business management, electrification solutions, production engineering, quality assurance, and automobile parts development. At the managerial level, Mitsuba is appointing new general managers across corporate planning, quality assurance, ICT digital promotion, purchasing, supply chain management, and new business planning, in a move that appears designed to bolster governance, digital capabilities, and product development while integrating overseas leadership experience into headquarters functions.

The most recent analyst rating on (JP:7280) stock is a Hold with a Yen1542.00 price target. To see the full list of analyst forecasts on Mitsuba Corporation stock, see the JP:7280 Stock Forecast page.

Mitsuba Books ¥5.3 Billion Impairment Loss on Chinese Subsidiaries

Mitsuba Corporation has booked an extraordinary loss of ¥5.267 billion after determining that fixed assets at two consolidated subsidiaries in China were impaired under Japan’s accounting standards. A reassessment of recoverability, driven by the current business environment and weaker future earnings prospects, showed that the assets’ recoverable value had fallen below their carrying amount.

The impairment charge has been incorporated into Mitsuba’s consolidated financial results for the nine months ended December 31, 2025, for the fiscal year ending March 2026. This move signals pressure on the company’s Chinese operations and may weigh on profitability for the current fiscal year, highlighting ongoing operational and market challenges in that region for shareholders and other stakeholders.

The most recent analyst rating on (JP:7280) stock is a Hold with a Yen1542.00 price target. To see the full list of analyst forecasts on Mitsuba Corporation stock, see the JP:7280 Stock Forecast page.

Mitsuba Lifts Earnings and Dividend Forecast, Adds 80th Anniversary Payout

Mitsuba Corporation has raised its full-year consolidated earnings forecast for the fiscal year ending March 2026, citing strong performance in its motorcycle business in Asia and South America and in its information services division, which more than offset weak sales in China. The company now expects higher net sales, operating income, ordinary income, and profit attributable to owners of the parent than previously projected, although earnings are still set to remain below the prior fiscal year’s profit levels.

Reflecting the improved outlook and its commitment to shareholder returns, Mitsuba also revised its dividend plan, lifting the forecast year-end payout to 25 yen per share. This includes a 5-yen increase in the ordinary dividend to 20 yen and an additional 5-yen commemorative dividend to mark the company’s 80th anniversary, signaling confidence in its earnings recovery and reinforcing engagement with long-term shareholders.

The most recent analyst rating on (JP:7280) stock is a Hold with a Yen1542.00 price target. To see the full list of analyst forecasts on Mitsuba Corporation stock, see the JP:7280 Stock Forecast page.

Mitsuba Lifts Dividend as Nine-Month Profit Falls and Full-Year Outlook Softens

Mitsuba Corporation reported consolidated net sales of ¥253.7 billion for the nine months to December 31, 2025, down 1.4% year on year, while operating profit edged up 2.9% to ¥16.1 billion and ordinary profit climbed 11.2% to ¥16.7 billion. Profit attributable to owners of the parent dropped 29.9% to ¥7.3 billion, and basic earnings per share fell accordingly, though the balance sheet strengthened with total assets at ¥338.5 billion, net assets at ¥123.5 billion, and the equity ratio improving to 32.7%.

For the full year to March 31, 2026, the company now forecasts net sales of ¥340.0 billion, a 2.7% decline, operating profit of ¥20.0 billion, and profit attributable to owners of the parent of ¥9.0 billion, implying a sharp year-on-year earnings contraction despite modest profit growth at the ordinary level. Reflecting both a revision to earnings guidance and its 80th anniversary, Mitsuba plans to lift the annual dividend on common stock to ¥25 per share, including a ¥5 commemorative component, signaling a shareholder-return focus even as profitability comes under pressure.

The most recent analyst rating on (JP:7280) stock is a Hold with a Yen1542.00 price target. To see the full list of analyst forecasts on Mitsuba Corporation stock, see the JP:7280 Stock Forecast page.

Mitsuba Corporation Expands with New Subsidiary in India

Mitsuba Corporation has announced the establishment of a wholly-owned subsidiary in Chennai, India, as part of its strategic expansion in the country. This move aligns with India’s ‘Make in India’ initiative, aiming to enhance local production and supply chains. The new subsidiary, Mitsuba India R&D Pvt. Ltd., will focus on developing and marketing automotive and electrical components, contributing to the company’s growth and competitiveness in the medium to long term.

The most recent analyst rating on (JP:7280) stock is a Hold with a Yen999.00 price target. To see the full list of analyst forecasts on Mitsuba Corporation stock, see the JP:7280 Stock Forecast page.

Mitsuba Corporation Reports Strong Second Quarter Earnings

Mitsuba Corporation announced a positive variance in its earnings for the second quarter of the fiscal year ending March 2026, with net sales and profits exceeding previous forecasts. This improvement was driven by strong motorcycle product sales in the Americas and favorable foreign exchange rates due to a weaker yen. Despite these gains, the company has maintained its full-year earnings forecast due to ongoing uncertainties like the semiconductor shortage.

The most recent analyst rating on (JP:7280) stock is a Hold with a Yen999.00 price target. To see the full list of analyst forecasts on Mitsuba Corporation stock, see the JP:7280 Stock Forecast page.

Mitsuba Corporation Reports Mixed Financial Results Amidst Market Challenges

Mitsuba Corporation reported a slight decline in net sales and operating profit for the six months ended September 30, 2025, compared to the previous year. Despite this, the company saw an increase in ordinary profit, indicating some operational improvements. The financial forecast for the fiscal year ending March 31, 2026, anticipates further declines in net sales and profits, suggesting potential challenges ahead for the company in maintaining its market position.

The most recent analyst rating on (JP:7280) stock is a Hold with a Yen999.00 price target. To see the full list of analyst forecasts on Mitsuba Corporation stock, see the JP:7280 Stock Forecast page.