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Mitsubishi Pencil Company, Limited (JP:7976)
:7976
Japanese Market
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Mitsubishi Pencil Company, Limited (7976) AI Stock Analysis

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JP:7976

Mitsubishi Pencil Company, Limited

(7976)

Rating:76Outperform
Price Target:
¥2,311.00
▲(13.62% Upside)
Mitsubishi Pencil's strong financial performance and reasonable valuation are the primary drivers of its score. The technical analysis indicates a neutral market position. The absence of earnings call insights and corporate events does not impact the score.

Mitsubishi Pencil Company, Limited (7976) vs. iShares MSCI Japan ETF (EWJ)

Mitsubishi Pencil Company, Limited Business Overview & Revenue Model

Company DescriptionMitsubishi 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 pens and markers, and school supplies. Mitsubishi Pencil Co., Ltd. was founded in 1887 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyMitsubishi Pencil Company, Limited generates revenue primarily through the sale of its wide array of writing instruments and stationery products. The company's revenue streams are predominantly derived from product sales in both domestic and international markets. Mitsubishi Pencil has established a strong distribution network that includes direct sales, partnerships with retailers, and online platforms to reach consumers worldwide. Key revenue drivers include the popularity of its Uni-ball brand, which features a variety of pens such as gel, rollerball, and ballpoint pens, as well as mechanical pencils and markers. The company's focus on innovation, quality, and brand reputation helps maintain its competitive edge, allowing it to capture a significant share of the global stationery market. While specific financial partnerships are not publicly detailed, Mitsubishi Pencil's collaborations with retailers and distributors are crucial in expanding its market presence and accessibility to consumers.

Mitsubishi Pencil Company, Limited Financial Statement Overview

Summary
Mitsubishi Pencil demonstrates strong financial health with significant revenue growth and profitability margins. The balance sheet is robust with low leverage and efficient equity utilization. However, a notable decline in free cash flow suggests room for improvement in cash flow management.
Income Statement
87
Very Positive
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
82
Very Positive
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
75
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue88.82B74.80B69.00B61.89B55.18B
Gross Profit46.84B38.45B33.95B30.67B27.31B
EBITDA21.33B17.02B13.10B10.80B8.30B
Net Income11.27B10.17B6.95B5.66B3.79B
Balance Sheet
Total Assets176.88B145.47B130.80B123.79B114.88B
Cash, Cash Equivalents and Short-Term Investments41.35B57.91B48.07B44.93B42.78B
Total Debt11.62B3.38B4.09B4.81B5.55B
Total Liabilities46.17B28.99B25.80B26.12B23.03B
Stockholders Equity128.36B114.29B103.09B95.88B90.07B
Cash Flow
Free Cash Flow2.51B9.91B5.70B4.40B261.00M
Operating Cash Flow6.47B11.76B7.28B8.37B4.74B
Investing Cash Flow-27.91B-71.00M-1.65B-3.94B-4.55B
Financing Cash Flow4.11B-3.72B-3.90B-2.75B-3.91B

Mitsubishi Pencil Company, Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2034.00
Price Trends
50DMA
2041.79
Negative
100DMA
2192.44
Negative
200DMA
2286.62
Negative
Market Momentum
MACD
0.34
Positive
RSI
42.42
Neutral
STOCH
35.44
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 2034 is below the 20-day moving average (MA) of 2057.40, below the 50-day MA of 2041.79, and below the 200-day MA of 2286.62, indicating a bearish trend. The MACD of 0.34 indicates Positive momentum. The RSI at 42.42 is Neutral, neither overbought nor oversold. The STOCH value of 35.44 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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥108.30B14.53
2.26%10.66%-37.99%
64
Neutral
$10.64B16.015.48%2.12%2.72%-24.90%
€2.41B19.057.98%
76
Outperform
¥169.16B11.93
2.80%5.42%13.99%
68
Neutral
¥3.92B10.37
2.19%4.21%
52
Neutral
¥24.23B56.30
1.64%0.22%
46
Neutral
¥3.68B
6.93%33.43%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7976
Mitsubishi Pencil Company, Limited
2,034.00
13.65
0.68%
DE:KOK
Kokuyo Co
5.20
1.70
48.57%
JP:7846
Pilot Corporation
4,369.00
288.51
7.07%
JP:7962
King Jim Co., Ltd.
847.00
28.18
3.44%
JP:7975
LIHIT LAB., INC.
1,144.00
50.21
4.59%
JP:7992
Sailor Pen Co., Ltd.
127.00
20.00
18.69%

Mitsubishi Pencil Company, Limited Corporate Events

Mitsubishi Pencil Revises 2025 Earnings Forecast Amid Overseas Market Challenges
Jul 31, 2025

Mitsubishi Pencil Company has revised its earnings forecast for the fiscal year ending December 31, 2025, citing lower-than-expected net sales due to prolonged inventory adjustments in overseas markets, particularly in Europe. Despite a strong overall market, the company anticipates decreased operating profit due to reduced sales and increased expenses, including foreign exchange losses and extraordinary losses from store closures. The company remains committed to investing in brand initiatives for future growth.

Mitsubishi Pencil Updates Dividend Policy and Forecasts
Jul 31, 2025

Mitsubishi Pencil Company, Limited has announced a change in its dividend policy, setting a new target for a consolidated dividend payout ratio of 40%. This change is part of the company’s strategy to enhance shareholder returns and align with its medium-term management plan. The company has also determined an interim dividend of 26 yen per share for the fiscal year ending December 2025, with a revised year-end dividend forecast of 26 yen per share, resulting in a total annual dividend increase to 52 yen. This move is expected to improve capital efficiency and focus on capital costs and stock prices, benefiting stakeholders.

Mitsubishi Pencil Reports Mixed Financial Results for First Half of 2025
Jul 31, 2025

Mitsubishi Pencil Company reported a slight increase in net sales for the first half of 2025, but experienced declines in operating and ordinary profits compared to the previous year. The company has revised its earnings forecast for the full fiscal year, anticipating a decrease in profits, and has made significant changes in its consolidation scope, including the addition and exclusion of certain subsidiaries.

Mitsubishi Pencil Completes Treasury Share Acquisition and Cancellation
May 29, 2025

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
May 13, 2025

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.

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.Date of analysis: Aug 02, 2025