Mitsubishi Pencil Company, Limited (7976) AI Stock Analysis

• Market Cap: ¥127.74B
• Dividend Yield: 2.09%
• Average Volume (3M): 77.10K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 0.79
• Revenue Growth: 6.39%
• EPS Growth: -34.84%
• Country: JP
• Employees: 2,800
• Sector: Industrials
• Sector Strength: 72
• Industry: Business Equipment & Supplies
• EPS (TTM): 41.30
• Shares Outstanding: 60,042,590
• 10 Day Avg. Volume: 74,810
• 30 Day Avg. Volume: 77,100
• 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 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): 158.3
• Revenue Forecast (FY): ¥95.22B

• Rating: 71 Outperform
• Price Target: ¥2,517.00 ▲(15.62% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by solid financial strength (notably a strong, low-leverage balance sheet and multi-year revenue growth), tempered by a meaningful deterioration in free cash flow and softer earnings in 2025. Technicals are neutral-to-mixed and valuation appears fair with a moderate dividend yield.

Positive Factors

Multi-year revenue growth

Sustained revenue growth across 2021–2025 signals durable demand for core writing instruments and stationery. Persistent top-line expansion supports scale economies, distribution leverage and investment in product lines and overseas expansion, underpinning medium-term growth prospects.

Negative Factors

Negative free cash flow

A shift to negative free cash flow in 2025 indicates weakening cash conversion and higher reinvestment or working-capital strain. Persistently negative FCF would limit ability to fund growth organically, pay dividends or reduce debt without drawing on reserves or external financing.

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...

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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 generates revenue through the sale of its diverse product lineup, which includes writing instruments, markers, and stationery items. The company employs a multi-faceted revenue model that includes direct sales through retail chan...

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Mitsubishi Pencil generates revenue through the sale of its diverse product lineup, which includes writing instruments, markers, and stationery items. The company employs a multi-faceted revenue model that includes direct sales through retail chan...

Mitsubishi Pencil Company, Limited Financial Statement Overview

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

• Technical Analysis Sentiment: Positive
• Last Price: 2177.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 2381.10, below the 50-day MA of 2344.26, and above the 200-day MA of 2159.77, indicating a bullish trend. The MACD of 34.63 indicates Negative momentum. The RSI at 58.71 is Neutral, neither overbought nor oversold. The STOCH value of 84.03 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7976	71 Outperform	¥127.74B	19.05	―	2.09%	6.39%	-34.84%
7846	71 Outperform	¥174.05B	26.04	―	2.56%	-0.26%	3.35%
7984	67 Neutral	¥388.42B	18.13	8.83%	2.33%	6.29%	8.74%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7962	61 Neutral	¥23.38B	17.72	―	1.69%	-2.71%	―
7975	47 Neutral	¥3.99B	27.03	―	2.03%	3.24%	―
7992	42 Neutral	¥3.29B	-15.38	―	―	4.11%	33.06%

Mitsubishi Pencil Company, Limited Corporate Events