Mitsubishi Pencil Company, Limited (7976) AI Stock Analysis

• Market Cap: ¥109.46B
• Dividend Yield: 2.03%
• Average Volume (3M): 170.62K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.83
• Revenue Growth: 20.31%
• EPS Growth: 6.00%
• Country: JP
• Employees: 2,800
• Sector: Industrials
• Sector Strength: 88
• Industry: Business Equipment & Supplies
• EPS (TTM): 26.44
• Shares Outstanding: 61,042,590
• 10 Day Avg. Volume: 135,200
• 30 Day Avg. Volume: 170,620
• PEG Ratio: 0.46
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.88
• 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

• Rating: 73 Outperform
• Price Target: ―

Mitsubishi Pencil's overall stock score reflects its strong financial performance, with robust revenue and profitability metrics, a solid balance sheet, and prudent leverage management. The technical analysis suggests current bearish price trends, but the valuation remains attractive with a reasonable P/E ratio and decent dividend yield.

Mitsubishi Pencil Company, Limited Business Overview & Revenue Model

Company Description

Mitsubishi Pencil Company, Limited, headquartered in Tokyo, Japan, is a renowned manufacturer specializing in writing instruments. Established in 1887, the company is best known for its 'uni' brand, which includes a wide range of products such as mechanical pencils, ballpoint pens, gel pens, markers, and other stationery items. Mitsubishi Pencil Company operates within the stationery industry, providing high-quality, innovative writing solutions to a global market.

How the Company Makes Money

Mitsubishi Pencil Company makes money primarily through the sale of its writing instruments and stationery products. The company's revenue model is centered around its 'uni' brand, which is highly regarded for its quality and innovation. Key revenue streams include domestic and international sales of mechanical pencils, gel ink pens, and other writing tools. The company leverages its strong brand recognition and extensive distribution network to reach consumers and businesses worldwide. Significant partnerships with retailers and distributors enhance its market presence, while continuous product innovation and brand loyalty contribute to sustained earnings.

Mitsubishi Pencil Company, Limited Financial Statement Overview

Summary

Mitsubishi Pencil demonstrates strong financial health with impressive revenue growth and profitability margins. The balance sheet is robust with low leverage, and the company efficiently utilizes its equity. Despite a decline in free cash flow, the company maintains positive cash flow ratios, suggesting operational resilience.

Income Statement

Mitsubishi Pencil has demonstrated strong revenue growth with a significant increase from 2023 to 2024, resulting in a revenue growth rate of 18.74%. The gross profit margin has improved to 52.74%, and the net profit margin is robust at 12.69%. The EBIT and EBITDA margins are also healthy at 13.73% and 18.73%, respectively, indicating effective cost management and operational efficiency. These metrics underscore the company's profitability and growth momentum.

Balance Sheet

The balance sheet shows a solid equity base with an equity ratio of 72.58%, reflecting financial stability. The company maintains a low debt-to-equity ratio of 0.09, indicating conservative leverage. Return on Equity (ROE) is strong at 8.78%, highlighting efficient use of equity to generate profits. Overall, the balance sheet reflects a stable financial position with low leverage and good equity utilization.

Cash Flow

The company's free cash flow has decreased from 2023 to 2024, resulting in a negative growth rate of -74.68%, which is a concern. However, the operating cash flow to net income ratio remains positive at 0.57, indicating that the company generates sufficient cash from operations to cover its net income. The free cash flow to net income ratio is lower at 0.22, suggesting that while cash generation is adequate, there is room for improvement in managing capital expenditures.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
88.82B	74.80B	69.00B	61.89B	55.18B
	Gross Profit
46.84B	38.45B	33.95B	30.67B	27.31B
	EBIT
12.19B	11.85B	9.24B	7.52B	5.49B
	EBITDA
21.33B	17.02B	13.10B	10.80B	8.30B
	Net Income Common Stockholders
11.27B	10.17B	6.95B	5.66B	3.79B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
41.35B	57.91B	48.07B	44.93B	42.78B
	Total Assets
176.88B	145.47B	130.80B	123.79B	114.88B
	Total Debt
11.62B	3.38B	4.09B	4.81B	5.55B
	Net Debt
-29.73B	-54.54B	-43.98B	-40.12B	-37.23B
	Total Liabilities
46.17B	28.99B	25.80B	26.12B	23.03B
	Stockholders Equity
128.36B	114.29B	103.09B	95.88B	90.07B
Cash Flow		Free Cash Flow
2.51B	9.91B	5.70B	4.40B	261.00M
	Operating Cash Flow
6.47B	11.76B	7.28B	8.37B	4.74B
	Investing Cash Flow
-27.91B	-71.00M	-1.65B	-3.94B	-4.55B
	Financing Cash Flow
4.11B	-3.72B	-3.90B	-2.75B	-3.91B

Mitsubishi Pencil Company, Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2073.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7976, the sentiment is Negative. The current price of 2073 is below the 20-day moving average (MA) of 2110.70, below the 50-day MA of 2260.76, and below the 200-day MA of 2374.83, indicating a bearish trend. The MACD of -56.56 indicates Negative momentum. The RSI at 37.10 is Neutral, neither overbought nor oversold. The STOCH value of 35.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7976.

Mitsubishi Pencil Company, Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7984	81 Outperform	€338.21B	18.61	7.55%	2.39%	2.90%	-14.49%
7846	80 Outperform	¥156.29B	11.02		2.90%	5.42%	13.99%
7976	73 Outperform	¥109.46B	10.73		2.03%	20.31%	6.00%
7975	70 Neutral	¥3.88B	9.42		2.19%	4.74%	―
Sector *	66 Neutral	$4.51B	12.29	5.40%	3.67%	4.15%	-12.21%
7962	54 Neutral	¥24.83B	167.00		1.60%	1.78%	-46.92%
7992	47 Neutral	¥3.62B	―		―	6.93%	33.43%

Mitsubishi Pencil Company, Limited Corporate Events

Mitsubishi Pencil Completes Treasury Share Acquisition and Cancellation

Mitsubishi Pencil Company has completed the acquisition and cancellation of its treasury shares as per the resolutions made in February 2025. This strategic move involved acquiring 1,000,000 common shares for approximately ¥2.39 billion and subsequently canceling these shares, which represents 1.64% of the total shares outstanding. The cancellation is scheduled for August 25, 2025, and is expected to optimize the company’s capital structure and potentially enhance shareholder value.

Mitsubishi Pencil Completes Treasury Share Disposal for Executive Remuneration

Mitsubishi Pencil Company, Limited has completed the payment procedures for the disposal of its treasury shares as part of a restricted share-based remuneration plan. This disposal involves 18,900 shares of common stock, allocated to directors and executive officers, and is valued at approximately 47.97 million JPY. This move is part of the company’s strategic efforts to align the interests of its management with those of its shareholders, potentially impacting its operational dynamics and market positioning.

Mitsubishi Pencil Advances Treasury Share Acquisition Plan

Mitsubishi Pencil Company, Limited announced the acquisition of 342,600 treasury shares between April 1 and April 30, 2025, as part of a previously resolved plan to acquire up to 1,000,000 shares. This strategic move, with a total acquisition price of ¥820,435,100, is part of the company’s ongoing efforts to manage its capital structure and potentially enhance shareholder value.

Mitsubishi Pencil Announces Treasury Share Disposal for Executive Incentives

Mitsubishi Pencil Company has announced the disposal of 18,900 treasury shares as part of a restricted share-based remuneration plan for its directors and executive officers. This initiative aims to align the interests of the company’s leadership with shareholders by incentivizing long-term business performance and corporate value growth.

Mitsubishi Pencil Sees Sales Growth Amid Profit Decline

Mitsubishi Pencil Company reported a 12.5% increase in net sales for the first quarter of 2025, despite a decline in operating and ordinary profits. The company’s financial position remains strong with a high equity-to-asset ratio, and it has included a new subsidiary, UNI LINC INDIA PRIVATE LIMITED, in its consolidation scope, indicating strategic expansion.

Mitsubishi Pencil Advances Treasury Share Acquisition Strategy

Mitsubishi Pencil Company announced the acquisition of 183,500 treasury shares for approximately ¥475.7 million as part of a previously resolved plan to acquire up to 1,000,000 shares. This move is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value, indicating a proactive approach in financial management.