Mitsuba Corporation (7280) AI Stock Analysis

• Market Cap: ¥60.06B
• Dividend Yield: 0.99%
• Average Volume (3M): 87.54K
• Price to Earnings (P/E): 5.2
• Beta (1Y): 1.35
• Revenue Growth: -0.83%
• EPS Growth: -27.20%
• Country: JP
• Employees: 22,665
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 63.70
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: ¥1,634.00 ▲(67.42% Upside)

The score is supported primarily by strong technical momentum and an attractive low P/E valuation. Financial performance is solid on growth and operating efficiency, but is tempered by high leverage, low net profitability, and a recent decline in free cash flow.

Positive Factors

Revenue growth and gross margin improvement

Consistent TTM revenue growth of ~10.5% alongside a rising gross margin to 15.7% indicates durable demand for Mitsuba's core automotive components and improved cost absorption. This enhances scale economics and pricing resilience, supporting steadier long-term cash flows and competitive positioning.

Operational efficiency and returns

A return on equity near 12.3% combined with healthy EBIT/EBITDA margins demonstrates management's ability to convert capital into operating returns. Sustained operating efficiency supports reinvestment in product development and strengthens Mitsuba's capacity to compete in automotive electrification over the medium term.

Cash generation capability

Solid operating cash flow and a high free-cash-flow-to-net-income ratio (~75%) show efficient conversion of profits into cash. Reliable cash generation underpins capital expenditure for EV motor development, funds working capital needs, and provides flexibility for strategic investments across automotive cycles.

Negative Factors

Elevated financial leverage

A debt-to-equity ratio of ~1.56 signals elevated leverage for an auto-parts supplier. High indebtedness raises interest and refinancing risk, reducing resilience to downturns in vehicle production cycles and constraining financial flexibility for R&D, capex or strategic M&A over the medium term.

Thin net profit margin

A net margin around 3.4% leaves limited buffer against raw material inflation, OEM pricing pressure or cyclical revenue drops. Persistently low bottom-line profitability can constrain retained earnings, limit reinvestment and weaken the company's ability to fund transformation toward electrified vehicle components.

Declining free cash flow

A 22.2% decline in free cash flow over the trailing period materially reduces internal funding for capex, R&D and debt reduction. Continued FCF weakness would increase reliance on external financing, limiting Mitsuba's ability to invest in long-term electrification initiatives and strategic resilience.

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

Good overall fundamentals driven by strong revenue growth (TTM +10.5%) and improved gross margin (15.7%). Offsetting factors include low net margin (3.4%), elevated leverage (debt-to-equity 1.56), and a notable TTM free cash flow decline (-22.2%).

Income Statement

Mitsuba Corporation shows strong revenue growth with a TTM growth rate of 10.5%, indicating robust demand in the auto parts sector. The gross profit margin has improved to 15.7%, reflecting efficient cost management. However, the net profit margin remains relatively low at 3.4%, suggesting room for improvement in profitability. EBIT and EBITDA margins are healthy, supporting operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio of 1.56, indicating significant leverage, which could pose financial risks. However, the return on equity is strong at 12.3%, demonstrating effective use of shareholder funds. The equity ratio is moderate, suggesting a balanced asset structure.

Cash Flow

Operating cash flow is solid, but free cash flow has declined by 22.2% in the TTM, which could impact future investments. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to profits. The free cash flow to net income ratio is strong at 75%, reflecting efficient cash utilization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	345.96B	349.35B	344.15B	319.50B	286.48B	269.20B
Gross Profit	53.81B	54.29B	52.48B	40.04B	38.91B	38.05B
EBITDA	35.12B	35.94B	37.06B	24.81B	23.34B	24.10B
Net Income	11.60B	11.86B	13.74B	1.19B	83.00M	732.00M
Balance Sheet
Total Assets	331.63B	333.53B	357.49B	328.45B	342.75B	343.14B
Cash, Cash Equivalents and Short-Term Investments	94.31B	97.91B	102.25B	75.79B	74.56B	78.75B
Total Debt	144.44B	160.31B	170.99B	178.86B	188.09B	196.57B
Total Liabilities	214.74B	222.65B	234.91B	241.50B	254.55B	266.92B
Stockholders Equity	102.81B	95.70B	101.64B	66.77B	68.02B	58.37B
Cash Flow
Free Cash Flow	22.12B	29.24B	31.13B	19.75B	770.00M	7.80B
Operating Cash Flow	32.98B	38.02B	41.51B	29.62B	12.00B	15.41B
Investing Cash Flow	-10.18B	-6.88B	-5.24B	-9.17B	-6.84B	-6.66B
Financing Cash Flow	-20.99B	-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: Positive

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 1295.75, below the 50-day MA of 1102.92, and above the 200-day MA of 936.07, indicating a bullish trend. The MACD of 70.25 indicates Positive momentum. The RSI at 58.46 is Neutral, neither overbought nor oversold. The STOCH value of 16.23 is Positive, 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
7280	80 Outperform	¥60.06B	5.19	―	0.99%	-0.83%	-27.20%
7244	74 Outperform	¥48.61B	8.37	8.46%	2.64%	-6.35%	18.49%
7236	72 Outperform	¥51.30B	5.39	―	3.60%	0.14%	882.91%
7229	72 Outperform	¥47.05B	9.02	―	2.37%	-13.35%	-19.38%
7266	64 Neutral	¥18.50B	15.30	―	2.70%	-8.63%	-55.68%
7245	62 Neutral	¥47.43B	12.35	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 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.