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Mitsui & Co (JP:8031)
:8031

Mitsui & Co (8031) AI Stock Analysis

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Mitsui & Co

(OTC:8031)

Rating:79Outperform
Price Target:
¥3,339.00
▲(11.93%Upside)
Mitsui & Co's stock score is driven by strong financial health and efficient cash flow management, with positive technical momentum supporting short-term growth. Valuation metrics suggest the stock is undervalued, though recent profitability pressures and mixed earnings call sentiment temper the overall outlook.

Mitsui & Co (8031) vs. iShares MSCI Japan ETF (EWJ)

Mitsui & Co Business Overview & Revenue Model

Company DescriptionMitsui & Co., Ltd. is a leading Japanese general trading company, also known as a 'sogo shosha.' Founded in 1947 and headquartered in Tokyo, Mitsui operates across a diverse range of sectors including energy, machinery, chemicals, food, retail, logistics, and finance. The company is involved in the worldwide trading of goods and services, investment in major projects, and the development of new business ventures, leveraging its extensive global network and expertise in various industries.
How the Company Makes MoneyMitsui & Co. generates revenue through a combination of trading activities, strategic investments, and business development across its key sectors. The company earns money by facilitating the global trade of a wide array of products and commodities, including energy resources such as oil and natural gas, metals, chemicals, food products, and machinery. Additionally, Mitsui invests in infrastructure and resource development projects, such as mining and energy production, which contribute to its earnings. The company also engages in financing and logistics services, leveraging its comprehensive supply chain management capabilities. Strategic partnerships and joint ventures with other multinational corporations play a crucial role in expanding its business opportunities and enhancing profitability.

Mitsui & Co Earnings Call Summary

Earnings Call Date:Aug 05, 2025
(Q3-2025)
|
% Change Since: 1.15%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted a strong cash flow performance and resilience in the energy segment, but also faced challenges with a decrease in overall profit and issues in coffee trading and renewable energy sectors. The sentiment is a balance between positive cash flow and energy performance against profit declines and segment-specific struggles.
Q3-2025 Updates
Positive Updates
Strong Cash Flow Performance
Core operating cash flow (COCF) reached JPY793.5 billion, a year-on-year increase of JPY24.4 billion, indicating a robust cash flow generation.
Resilient Energy Segment
Energy segment saw an increase in COCF by JPY109.7 billion to JPY277.8 billion, driven mainly by LNG-related business, highlighting strong performance in this segment.
Steady Progress in Investment Projects
Investments in various projects including a metal recycling business in India and a food service logistics business in Japan are expected to contribute to earnings in the current or next fiscal year.
Negative Updates
Decrease in Overall Profit
Profit decreased by JPY74.2 billion to JPY652.2 billion, largely due to lower iron ore and metallurgical coal prices and other segmental challenges.
Struggles in Coffee Trading
Coffee trading faced challenges, with high prices and delayed contract implementations leading to sluggish performance.
Impairment Loss in Mainstream Renewable Energy
A JPY15.9 billion impairment loss was recorded in the renewable energy business, posing a challenge for future profitability in this segment.
Company Guidance
During the third quarter earnings call for Mitsui & Co., CFO Tetsuya Shigeta provided detailed guidance on the company's financial performance and forecasts. The core operating cash flow (COCF) for the first nine months was reported at JPY793.5 billion, and the profit was JPY652.2 billion, aligning with expectations. The company maintained its full-year forecast with COCF expected to reach JPY1 trillion and profit JPY920 billion. Significant progress was made in segments like Mineral & Metal Resources and Energy, which exceeded 80% of their forecasts. Cash inflows totaled JPY1,260 billion, including asset recycling gains of JPY466 billion, while cash outflows were JPY1.011 billion, covering investments and shareholder returns. Mitsui's investment activities included ventures in India, Japan, Vietnam, Indonesia, and the U.S., with anticipated earnings contributions starting in fiscal year 2027. Despite uncertainties in the macro environment, the company emphasized its strategy to balance shareholder returns and investments for growth, with no changes to its shareholder returns policy from Q2.

Mitsui & Co Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
14.31T13.32T14.31T11.76T8.01T6.89T
Gross Profit
1.28T1.25T1.40T1.14T811.47B839.42B
EBIT
381.84B525.42B702.28B544.82B169.93B278.16B
EBITDA
938.57B1.28T1.23T1.08T553.18B615.54B
Net Income Common Stockholders
989.45B1.06T1.13T914.72B335.46B391.51B
Balance SheetCash, Cash Equivalents and Short-Term Investments
948.85B902.72B2.16T2.13T1.49T1.62T
Total Assets
17.36T16.90T15.38T14.92T12.52T11.81T
Total Debt
4.98T4.78T5.04T4.88T4.75T4.93T
Net Debt
4.04T3.88T3.65T3.75T3.68T3.87T
Total Liabilities
9.59T9.13T8.82T9.13T7.69T7.75T
Stockholders Equity
7.55T7.54T6.37T5.61T4.57T3.82T
Cash FlowFree Cash Flow
630.64B569.65B819.47B621.37B557.01B238.54B
Operating Cash Flow
956.15B864.42B1.05T806.90B772.70B526.38B
Investing Cash Flow
-182.25B-427.55B-178.34B-181.19B-322.47B-185.23B
Financing Cash Flow
-982.73B-1.01T-634.68B-614.33B-486.96B-204.56B

Mitsui & Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2983.00
Price Trends
50DMA
2824.44
Positive
100DMA
2852.51
Positive
200DMA
2957.61
Positive
Market Momentum
MACD
54.62
Negative
RSI
58.09
Neutral
STOCH
78.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8031, the sentiment is Positive. The current price of 2983 is above the 20-day moving average (MA) of 2931.77, above the 50-day MA of 2824.44, and above the 200-day MA of 2957.61, indicating a bullish trend. The MACD of 54.62 indicates Negative momentum. The RSI at 58.09 is Neutral, neither overbought nor oversold. The STOCH value of 78.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8031.

Mitsui & Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
$3.24T8.8914.04%3.33%1.18%9.37%
80
Outperform
$11.28T12.2510.17%3.22%-4.85%2.91%
79
Outperform
¥8.51T9.7311.74%3.16%10.04%-13.12%
79
Outperform
$4.43T7.9012.19%3.48%5.52%46.82%
78
Outperform
$4.90T9.6613.98%3.08%7.44%8.27%
77
Outperform
$11.02T12.4415.55%2.50%4.95%11.34%
65
Neutral
$4.44B12.225.28%248.14%4.08%-12.12%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8031
Mitsui & Co
2,973.00
-749.65
-20.14%
JP:8002
Marubeni
2,861.00
35.62
1.26%
JP:8053
Sumitomo
3,626.00
-217.89
-5.67%
JP:8058
Mitsubishi
2,904.00
-229.07
-7.31%
JP:8001
Itochu
7,657.00
556.75
7.84%
JP:8015
Toyota Tsusho
3,010.00
87.84
3.01%

Mitsui & Co Corporate Events

Mitsui & Co. Enhances Materiality with Focus on Human Rights
May 1, 2025

Mitsui & Co. has conducted a comprehensive review of its materiality, identifying six key issues crucial for its sustainable growth and societal development. The review led to the addition of a new standalone material issue focused on human rights, reflecting the company’s commitment to respecting human rights in its business operations. This strategic move aims to align Mitsui’s corporate activities with evolving social issues and stakeholder expectations, enhancing its industry positioning and stakeholder trust.

Mitsui & Co. Opposes Shareholder Proposals on Risk Disclosure Amendments
May 1, 2025

Mitsui & Co., Ltd. announced its decision to oppose shareholder proposals requesting amendments to its Articles of Incorporation for enhanced disclosure of financial risk audits and the financial impact of climate targets. The Board of Directors believes that specifying such matters in the Articles could impair the flexibility and appropriateness of audits and management decisions, given the changing nature of risks and business conditions. Mitsui emphasizes its existing comprehensive audit and risk management processes, which include climate change considerations, under the supervision of its Board and various committees.

Mitsui & Co. Reports Revenue Growth but Decline in Profitability for FY 2025
May 1, 2025

Mitsui & Co., Ltd. reported a 10% increase in revenue for the fiscal year ending March 31, 2025, compared to the previous year, primarily driven by its Energy segment. However, profit before income taxes and profit attributable to owners of the parent decreased by 12.8% and 15.4% respectively, indicating challenges in maintaining profitability despite revenue growth.

Mitsui & Co. Reports Decline in Profits but Increases Dividends
May 1, 2025

Mitsui & Co., Ltd. reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a decrease in profit and comprehensive income compared to the previous year. The company experienced a decline in profit before income taxes and profit attributable to owners of the parent, reflecting challenges in its operations. Despite these declines, Mitsui announced a dividend increase, indicating a commitment to returning value to shareholders.

Mitsui & Co. Completes New Share Issuance for Stock-Based Remuneration
Apr 29, 2025

Mitsui & Co., Ltd. has completed the issuance of new shares as part of a post-delivery transfer-restricted stock-based remuneration plan. This issuance, approved by the Board of Directors, involves 493,304 common stock shares at an issue price of 2,926 yen per share, amounting to a total value of 1,443,407,504 yen. The allocation targets 8 managing officers, including 6 retired officers, which reflects Mitsui’s strategic approach to incentivizing its leadership and aligning their interests with the company’s long-term goals.

Mitsui & Co. Announces New Share Issuance for Managing Officers
Apr 9, 2025

Mitsui & Co., Ltd. announced the issuance of new shares as part of a tenure-linked restricted stock unit system aimed at incentivizing Managing Officers to enhance the company’s long-term corporate value. The issuance involves 493,304 shares to be allocated to eight Managing Officers, including retirees, under a remuneration system that restricts transfer of shares for up to 30 years, with conditions for lifting restrictions based on tenure and conduct.

Mitsui Boosts Investment in U.S. Clean Energy Subsidiaries
Apr 8, 2025

Mitsui & Co., Ltd. has announced an increase in capital for its U.S.-based subsidiaries, MIT Clean Energy Co. and MIT Clean Ammonia LLC, as part of its investment in the Blue Point Low-Carbon Ammonia Production Project. This strategic move positions Mitsui to enhance its capabilities in the clean energy sector, with a focus on low-carbon ammonia production, although the financial impact for the fiscal year ending March 2026 is expected to be minor.

Mitsui & Co. Invests in Major Low-Carbon Ammonia Project in the US
Apr 8, 2025

Mitsui & Co., Ltd. has announced its final investment decision to participate in the Blue Point low-carbon ammonia production project in Louisiana, USA, alongside CF Industries and JERA Co., Inc. The project, which will be one of the world’s largest low-carbon ammonia facilities, aims to produce approximately 1.4 million tons of low-carbon ammonia annually by 2029, utilizing carbon capture and sequestration to significantly reduce CO2 emissions. This initiative aligns with Mitsui’s strategic focus on energy transition and aims to supply low-carbon ammonia to Europe, Asia, and other regions, contributing to reduced greenhouse gas emissions in various industries.

Mitsui Acquires Full Ownership of ITC Rubis to Boost European Operations
Apr 2, 2025

Mitsui & Co., Ltd. has acquired the remaining 50% of shares in ITC Rubis Terminal Antwerp NV, making it a wholly owned subsidiary. This acquisition will allow Mitsui to double its earnings from ITC Rubis and accelerate the expansion of its tank terminal operations in Antwerp, a key chemical logistics hub in Europe.

Mitsui & Co. Transfers Kawakami Paint Shares to Subsidiary
Mar 28, 2025

Mitsui & Co., Ltd. has announced an intra-group transaction involving the sale of its 6.01% shareholding in Kawakami Paint Co., Ltd. to its subsidiary, Mitsui Bussan Chemicals Co., Ltd. This transaction results in Mitsui Bussan Chemicals acquiring more than 5% of the voting rights in Kawakami Paint, which is considered equivalent to a tender offer under Japanese financial regulations. This move is expected to consolidate Mitsui Bussan Chemicals’ influence in Kawakami Paint, potentially impacting the company’s strategic direction and stakeholder interests.

Mitsui & Co. Sells Brazilian Farmland, Dissolves Subsidiary
Mar 16, 2025

Mitsui & Co., Ltd. has announced the sale of its farmland in Brazil, owned by its subsidiary AGRICOLA XINGU S.A., to SLC Agrícola S.A., a Brazilian agriculture company. The transaction, valued at approximately JPY 23.7 billion, involves the dissolution of Mitsui’s specified subsidiary, XINGU AGRI AG, marking a strategic shift in Mitsui’s agricultural investments and potentially impacting its market positioning in the agriculture sector.

Mitsui & Co. Finalizes Acquisition of Rhodes Ridge Iron Ore Stake
Mar 12, 2025

Mitsui & Co., Ltd. has signed a definitive agreement to acquire a 15% interest in the Rhodes Ridge iron ore project in Australia from AMB Holdings Pty Ltd. The acquisition, valued at approximately 2,003 million USD, is expected to have a minor impact on Mitsui’s financial results for FY March 2025 and is anticipated to be completed by FY March 2026, pending necessary approvals.

Mitsui & Co. Expands Data Center Business with New Acquisition
Mar 12, 2025

Mitsui & Co., Ltd. announced the acquisition of an operational hyperscale data center in Kanagawa Prefecture, Japan, as part of its strategy to expand its data center business. This acquisition will be included in a new data center fund established with institutional investors, aiming to enhance digital infrastructure and provide investment opportunities in growing asset classes. The impact on the fiscal year’s profit is expected to be minor.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.