Mitsuba Corporation (7280) AI Stock Analysis

• Market Cap: ¥56.34B
• Dividend Yield: 0.99%
• Average Volume (3M): 87.54K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 1.33
• 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: ¥1,367.00 ▲(40.06% 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's margin recovery versus 2022–2023 reflects operational fixes and pricing/efficiency gains that are sustainable across cycles. Stronger operating and net margins support cash generation, reinvestment in product lines, and improved resilience to cyclical OEM demand shocks.

Consistent cash generation

Recurring positive operating and free cash flow across recent years provides durable funding for capex, working capital and debt servicing. Even with conversion volatility, the firm can fund core operations internally and maintain supplier/customer relationships without constant equity raises.

Core product & OEM footprint

Mitsuba's focus on electromechanical motors and a global production footprint anchors long-term OEM series-production contracts. Motors are structural vehicle components, so established supplier status and localized manufacturing underpin durable revenue streams across regions and model cycles.

Negative Factors

TTM revenue decline

A near-term top-line decline reduces scale economics and limits margin expansion potential. Persistent or recurring revenue weakness would force greater reliance on cost cuts or pricing actions, increasing operational risk and pressuring long-term reinvestment and supplier stability.

Modest net margins

Net margins in the low single digits leave earnings highly sensitive to raw-material, logistics, or volume swings common in auto supply chains. Margin thinness constrains retained earnings for growth, amplifies the impact of revenue volatility, and limits strategic flexibility.

Leverage and FCF conversion weakness

Although leverage has improved from earlier peaks, meaningful debt levels limit balance-sheet flexibility if volumes fall. Weaker FCF conversion and negative recent FCF growth raise refinancing and investment risks, reducing cushion against downturns or large capex needs.

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 primarily makes money by manufacturing and selling automotive components—especially electromechanical products (e.g., motors and motor-related systems)—to automotive and motorcycle manufacturers (OEMs) and other tiered suppliers. Revenue is generated from (1) series-production supply contracts tied to customers’ vehicle production volumes, where Mitsuba delivers components for installation in new vehicles; and (2) sales from its global production footprint that supports localized supply to customers in multiple regions. Earnings are influenced by factors typical to automotive suppliers, including model adoption of Mitsuba’s components, customer production levels, pricing/contract terms, manufacturing efficiency, and raw-material and logistics costs. Specific quantitative breakdowns of revenue by product line, customer, or region are null.

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	241.49B	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: Negative
• Last Price: 976.00
• 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 Negative. The current price of 976 is below the 20-day moving average (MA) of 1335.60, below the 50-day MA of 1353.10, and below the 200-day MA of 1026.04, indicating a neutral trend. The MACD of -27.83 indicates Positive momentum. The RSI at 42.38 is Neutral, neither overbought nor oversold. The STOCH value of 35.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7280.

Mitsuba Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6592	84 Outperform	¥417.85B	6.79	8.36%	2.71%	0.75%	35.26%
6995	81 Outperform	¥253.54B	8.29	―	3.36%	1.36%	139.77%
7276	76 Outperform	$706.48B	14.05	7.20%	2.41%	-0.73%	88.36%
7282	75 Outperform	¥487.78B	7.76	8.58%	2.62%	1.44%	-0.92%
7287	74 Outperform	¥145.35B	10.91	―	2.93%	1.77%	117.03%
7280	70 Outperform	¥56.34B	14.59	―	0.99%	-0.83%	-27.20%
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.