Mitsuba Corporation (7280) AI Stock Analysis

• Market Cap: ¥42.75B
• Dividend Yield: 1.05%
• Average Volume (3M): 87.54K
• Price to Earnings (P/E): 3.6
• Beta (1Y): 1.38
• Revenue Growth: -1.12%
• EPS Growth: -24.58%
• Country: JP
• Employees: 22,665
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 69.70
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ¥999.00 ▲(4.83% Upside)

Mitsuba Corporation's overall stock score reflects a balance of operational efficiency and valuation attractiveness against financial risks. The company's strong ROE and low P/E ratio are significant positives, but high leverage and declining revenue growth present challenges. Technical indicators suggest potential short-term weakness, but longer-term support remains.

Mitsuba Corporation Business Overview & Revenue Model

Company Description

Mitsuba Corporation manufactures and sells automotive electronic components. It provides auto electrical products, including front and rear wiper systems, power window and seat motors, roof motors, power sliding door drive systems, starter and fan motors, intelligent dynamic actuator, electric oil pump, electronic throttle control motors, and electric power steering and servo brake motors. The company also offers motorcycle electrical products, such as starter motors, AC generators, ACG starters, fuel pump modules, starter relays, transmission motors, LED turn signal lights systems, LED license lamps, EV drive systems, low profile driving systems, and EV Ecorun motors and solar car products. It primarily operates in Japan, China, other Asian countries, the Americas, and Europe. The company was formerly known as Mitsuba Electric Mfg. Co., Ltd. and changed its name to Mitsuba Corporation in October 1996. Mitsuba Corporation was incorporated in 1946 and is headquartered in Kiryu, Japan.

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

Mitsuba Corporation demonstrates operational efficiency with stable margins, but faces challenges with declining revenue growth and high leverage. While profitability metrics like ROE are strong, the high debt levels and declining cash flow growth present potential risks. The company needs to focus on improving sales growth and managing its debt to enhance financial stability.

Income Statement

Mitsuba Corporation's income statement shows a stable gross profit margin of around 15.5% in the TTM period, indicating consistent cost management. However, the net profit margin is relatively low at 3.4%, reflecting challenges in converting revenue into profit. The revenue growth rate has turned negative in the TTM period, signaling a potential slowdown in sales. Despite these challenges, the EBIT and EBITDA margins remain healthy, suggesting operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.68, indicating significant leverage which could pose financial risk. However, the return on equity (ROE) is reasonably strong at 12.17%, suggesting effective use of equity to generate profits. The equity ratio stands at 28.8%, showing a moderate level of equity financing relative to total assets.

Cash Flow

Cash flow analysis indicates a decline in free cash flow growth, which is concerning for future liquidity. The operating cash flow to net income ratio is low, suggesting limited cash generation relative to net income. However, the free cash flow to net income ratio is relatively strong at 76.9%, indicating good cash conversion from profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	345.60B	349.35B	344.15B	319.50B	286.48B	269.20B
Gross Profit	54.29B	54.29B	52.48B	40.04B	38.91B	38.05B
EBITDA	36.18B	35.94B	37.06B	24.81B	23.69B	24.10B
Net Income	11.86B	11.86B	13.74B	1.19B	83.00M	732.00M
Balance Sheet
Total Assets	333.44B	333.53B	357.49B	328.45B	342.75B	343.14B
Cash, Cash Equivalents and Short-Term Investments	103.87B	97.91B	102.25B	75.79B	74.56B	78.75B
Total Debt	150.28B	160.31B	170.99B	178.86B	188.09B	196.57B
Total Liabilities	223.78B	222.65B	234.91B	241.50B	254.55B	266.92B
Stockholders Equity	96.07B	95.70B	101.64B	66.77B	68.02B	58.37B
Cash Flow
Free Cash Flow	28.44B	29.24B	31.13B	19.75B	770.00M	7.80B
Operating Cash Flow	37.89B	38.02B	41.51B	29.62B	12.00B	15.41B
Investing Cash Flow	-9.36B	-6.88B	-5.24B	-9.17B	-6.84B	-6.66B
Financing Cash Flow	-16.83B	-33.92B	-13.79B	-20.68B	-13.03B	12.82B

Mitsuba Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 953.00
• 50DMA: Negative
• 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 953 is above the 20-day moving average (MA) of 947.65, below the 50-day MA of 958.56, and above the 200-day MA of 861.81, indicating a neutral trend. The MACD of -1.44 indicates Positive momentum. The RSI at 50.77 is Neutral, neither overbought nor oversold. The STOCH value of 34.83 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
7236	75 Outperform	¥37.64B	5.85	―	3.77%	0.14%	882.91%
7244	74 Outperform	€46.30B	8.14	8.65%	2.89%	-10.13%	-15.17%
7245	74 Outperform	¥48.27B	17.14	4.24%	1.97%	3.51%	-0.74%
7229	72 Outperform	¥45.05B	11.47	―	2.36%	-13.35%	-19.38%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7280	61 Neutral	¥42.75B	3.58	―	1.05%	-1.12%	-24.58%
7266	51 Neutral	¥16.66B	-64.43	―	3.18%	-7.01%	-108.77%

Mitsuba Corporation Corporate Events

Mitsuba Corporation Secures Syndicated Loan for Refinancing

Mitsuba Corporation has announced the conclusion of a syndicated term loan agreement to refinance existing borrowings, amounting to 36,388 million yen, with a repayment deadline set for March 31, 2031. The agreement includes financial covenants to maintain equity levels and avoid consecutive fiscal losses, with minimal impact expected on the company’s financial results for the fiscal year ending March 2026.

Mitsuba Corporation Reports Decline in Q1 2025 Sales Amid Market Challenges

Mitsuba Corporation reported a decline in net sales by 4.5% for the three months ended June 30, 2025, compared to the same period last year. Despite the decrease in sales, the company experienced a slight increase in operating profit by 3.9% and ordinary profit by 11.0%. The financial forecast for the fiscal year ending March 31, 2026, indicates a further decline in net sales and profits, reflecting challenges in the market and potential impacts on stakeholders.