Mitsubishi Pencil Company, Limited (JP:7976)
:7976
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Mitsubishi Pencil Company, Limited
(7976)
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Rating:72Outperform
Price Target:
¥2,827.00
▲(29.86% Upside)
Action:ReiteratedDate:05/02/26
Overall score is driven primarily by solid financial strength (especially a conservatively positioned balance sheet) offset by a key near-term risk: profitability cooled in 2025 and free cash flow turned negative. Technicals are constructive on longer-term trend but show weak momentum, while valuation is supportive with a reasonable P/E and moderate dividend yield.
Positive Factors
Conservative balance sheet
Very low historical leverage and steady equity expansion provide durable financial flexibility. This conservatism supports investment, withstands demand shocks, and keeps borrowing capacity available for strategic moves or working-capital needs over the next several quarters.
Negative Factors
Negative free cash flow in 2025
A pivot to negative free cash flow undermines internal funding for capex, dividends, and working-capital needs. If sustained, it may force reliance on external financing or slower share returns, reducing strategic optionality and tightening liquidity over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low historical leverage and steady equity expansion provide durable financial flexibility. This conservatism supports investment, withstands demand shocks, and keeps borrowing capacity available for strategic moves or working-capital needs over the next several quarters.
Read all positive factors
Mitsubishi Pencil Company, Limited (7976) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥131.94B
Dividend Yield2.09%
Average Volume (3M)77.10K
Price to Earnings (P/E)12.7
Beta (1Y)0.81
Revenue Growth0.66%
EPS Growth-30.89%
CountryJP
Employees2,800
SectorIndustrials
Sector Strength72
IndustryBusiness Equipment & Supplies
Share Statistics
EPS (TTM)140.36
Shares Outstanding60,042,590
10 Day Avg. Volume74,810
30 Day Avg. Volume77,100
Financial Highlights & Ratios
PEG Ratio-0.43
Price to Book (P/B)0.86
Price to Sales (P/S)1.32
P/FCF Ratio-33.74
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)158.3
Revenue Forecast (FY)¥95.22B
Mitsubishi Pencil Company, Limited Business Overview & Revenue Model
Company Description
Mitsubishi Pencil Co., Ltd. manufactures and supplies writing instruments in Japan. The company's products include pencils and colored pencils, water-based ink roller balls, oil-based ballpoint pens, mechanical pencils and refill lead, felt-tip pe...
How the Company Makes Money
Mitsubishi Pencil makes money primarily by selling writing instruments and related stationery under its brands through a mix of retail, wholesale, and business-to-business channels in Japan and overseas. Its core revenue stream is the sale of high...
Mitsubishi Pencil Company, Limited Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 89.63B | 89.81B | 88.82B | 74.80B | 69.00B | 61.89B |
| Gross Profit | 47.38B | 43.41B | 46.84B | 38.45B | 33.95B | 30.67B |
| EBITDA | 16.31B | 15.15B | 16.64B | 17.02B | 13.10B | 10.80B |
| Net Income | 7.74B | 6.24B | 11.27B | 10.17B | 6.95B | 5.66B |
Balance Sheet | ||||||
| Total Assets | 170.45B | 183.00B | 176.88B | 146.01B | 130.80B | 123.79B |
| Cash, Cash Equivalents and Short-Term Investments | 34.09B | 37.07B | 41.35B | 57.91B | 48.07B | 45.24B |
| Total Debt | 10.76B | 14.90B | 12.16B | 3.47B | 4.17B | 4.85B |
| Total Liabilities | 39.33B | 42.57B | 46.17B | 29.14B | 25.79B | 26.12B |
| Stockholders Equity | 128.64B | 138.53B | 128.36B | 114.67B | 103.09B | 95.88B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -3.52B | 2.51B | 9.91B | 5.70B | 4.40B |
| Operating Cash Flow | 0.00 | 2.41B | 6.47B | 11.76B | 7.28B | 8.37B |
| Investing Cash Flow | 0.00 | -7.92B | -27.91B | -71.00M | -1.65B | -3.94B |
| Financing Cash Flow | 0.00 | -1.87B | 4.11B | -3.72B | -3.90B | -2.75B |
Mitsubishi Pencil Company, Limited Technical Analysis
Positive
2177.00
Price Trends
2369.74
Positive
2277.70
Positive
2177.22
Positive
Market Momentum
37.50
Negative
59.89
Neutral
63.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7976, the sentiment is Positive. The current price of 2177 is below the 20-day moving average (MA) of 2433.90, below the 50-day MA of 2369.74, and below the 200-day MA of 2177.22, indicating a bullish trend. The MACD of 37.50 indicates Negative momentum. The RSI at 59.89 is Neutral, neither overbought nor oversold. The STOCH value of 63.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7976.
Mitsubishi Pencil Company, Limited Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ¥131.94B | 12.67 | ― | 2.09% | 0.66% | -30.89% | |
71 Outperform | ¥168.16B | 15.37 | ― | 2.56% | 0.18% | -18.55% | |
64 Neutral | ¥347.53B | 9.14 | 8.83% | 2.33% | 7.82% | 13.39% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | ¥22.78B | 17.75 | ― | 1.69% | -2.48% | 161.85% | |
47 Neutral | ¥3.92B | 27.03 | ― | 2.03% | -1.04% | -83.70% | |
42 Neutral | ¥3.29B | -15.38 | ― | ― | -8.06% | 80.65% |
* Industrials Sector Average
JP:7976
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.