Mitsubishi (8058) AI Stock Analysis

• Market Cap: ¥20.14T
• Dividend Yield: 2.94%
• Average Volume (3M): 7.54M
• Price to Earnings (P/E): 27.8
• Beta (1Y): 1.10
• Revenue Growth: -7.54%
• EPS Growth: -35.70%
• Country: JP
• Employees: 105,267
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): N/A
• Shares Outstanding: 4,028,926,300
• 10 Day Avg. Volume: 8,568,770
• 30 Day Avg. Volume: 7,539,543
• PEG Ratio: 3.71
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 0.57
• P/FCF Ratio: 8.27
• 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: ¥4,524.96
• Price Target Upside: -14.86% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥5,803.00 ▲(9.18% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is primarily driven by mixed financial performance: stable scale and improved leverage are offset by weaker margins/returns and a notable recent downshift in free cash flow and cash-to-debt coverage. Technicals are strong with an uptrend, but momentum is very overextended, increasing pullback risk. Valuation is moderate-to-rich on P/E, with the dividend providing some support.

Positive Factors

Diversified trading + operating model

Mitsubishi's broad sogo-shosha model spans commodities, industrials, energy, infrastructure and consumer goods, providing multiple, structurally different cash streams and risk diversification. This reduces firm-level reliance on any single cycle and supports durable fee, trading and investment income over months to years.

Improved balance-sheet resilience

Leverage has come down from earlier elevated levels and equity has been rebuilt, creating a more resilient capital structure. Lower relative leverage improves flexibility for project development, capital allocation and weathering commodity cycles, strengthening the firm's structural ability to invest or deleverage.

Positive free cash flow generation

Despite recent softness, Mitsubishi still generates positive operating and free cash flow that covers a sizable share of earnings. Persistent cash generation underpins dividends, reinvestment and asset recycling strategies, giving the company durable internal funding capacity over the medium term.

Negative Factors

Softening profitability margins

Compression in net and EBITDA margins reduces long-term earnings power and return on capital. Lower margins can persist through commodity or supply-chain stress, limiting cash available for reinvestment and shareholder returns and making results more sensitive to volume and pricing shifts.

Declining cash conversion and FCF downshift

A near-30% fall in FCF and weaker operating cash relative to debt signal deteriorating cash conversion quality. Reduced FCF constrains the company's ability to fund capex, dividends or buybacks without tapping financing, raising structural risk to liquidity and strategic investment over the coming months.

Cyclical, choppy earnings profile

Mitsubishi's earnings are exposed to commodity cycles, FX and portfolio shifts, producing uneven revenue and profit swings. This structural cyclicality makes forward earnings visibility limited and increases execution risk for multi‑year projects, complicating steady ROE and payout planning.

Mitsubishi Business Overview & Revenue Model

Company Description

Mitsubishi Corporation engages in the natural gas, industrial materials, petroleum and chemicals, mineral resources, industrial infrastructure, automotive and mobility, food and consumer industry, power solution, and urban development businesses worldwide. The company's Natural Gas segment is involved in the natural gas/oil exploration, production, and development, as well as liquified natural gas businesses. Its Industrial Materials segment invests in, develops, and trades in carbon, steel products, and performance materials for the automobile and mobility, construction, and infrastructure industries. The company's Petroleum & Chemicals segment invests in, develops, and trades in crude oil and oil products, LPG, ethylene, methanol, salt, ammonia, plastics, and fertilizers. Its Mineral Resources segment invests in and develops metallurgical coal, copper, iron ore, and aluminum resources. The company's Industrial Infrastructure segment trades in energy infrastructure, industrial plants, machinery tools, agricultural machinery, mining machinery, elevators, escalators, ships, and aerospace related equipment. Its Automotive & Mobility segment produces, finances, and sells passenger and commercial cars; and mobility services. The company's Food Industry segment develops and sells food resources, fresh foods, consumer goods, and food ingredients. Its Consumer Industry segment engages in supplying products and services a range of fields, including retail & distribution, logistics, healthcare, apparel, and tire, etc. The company's Power Solution segment generates, transmits, and retails power; supplies power generating and transmitting products and equipment; develops and sells lithium-ion battery; develops hydrogen; and offers battery services. Its Urban Development segment engages in the leasing; and urban infrastructure and real estate development, operation, and management businesses. The company was incorporated in 1950 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Mitsubishi Corporation generates revenue through multiple key streams, including trading activities, investment income, and service provisions across its diversified business segments. The company engages in the import and export of goods, capitalizing on its international trading relationships to facilitate transactions in commodities such as metals, energy, and agricultural products. Additionally, Mitsubishi invests in various ventures and projects, earning returns from holdings in companies across different sectors, including automotive and real estate. Their partnerships with other firms and government entities enhance their market presence and create opportunities for joint ventures, further contributing to their financial performance. The company also earns income through logistics and financial services, providing value-added solutions to its clients. Overall, Mitsubishi Corporation's diverse business model and strategic investments enable it to generate steady revenue streams and maintain a competitive edge in the global market.

Mitsubishi Financial Statement Overview

Summary

Income statement is solid but softening (TTM revenue +2.5% while net and EBITDA margins declined). Balance sheet leverage is moderate and improved versus prior years, though leverage has ticked up versus the most recent annual level and ROE is down to ~8.1% from the 2022–2024 range. Cash flow is the main drag: FCF remains positive but fell sharply (~-29%) and cash-to-debt coverage weakened.

Income Statement

TTM (Trailing-Twelve-Months) revenue is slightly higher (+2.54%), but profitability has softened versus the last annual period: net margin fell to ~4.0% (from ~5.1%) and EBITDA margin declined to ~6.2% (from ~7.6%). Longer term, the company shows a strong rebound from 2021’s low-profit year to materially higher earnings in 2022–2025, but growth has been choppy with periods of revenue contraction, reflecting a more cyclical/volatile earnings profile.

Balance Sheet

Leverage is moderate in TTM (debt at ~0.82x equity) and improved meaningfully versus earlier years when debt was above equity (>1.0x in 2021–2022). Equity has built over time, supporting balance-sheet resilience, but total debt remains sizable in absolute terms and leverage has ticked up from the most recent annual level (~0.57x), which is a mild negative. Returns on equity are solid but not exceptional in TTM (~8.1%) and below the stronger 2022–2024 range (~10–15%).

Cash Flow

TTM (Trailing-Twelve-Months) cash generation is positive (operating cash flow and free cash flow both positive), and free cash flow covers a meaningful portion of earnings (~62%). However, free cash flow declined sharply (about -29% growth) and cash conversion weakened versus the last annual period (operating cash flow relative to debt fell to ~0.12 from ~0.28), indicating more pressure from working capital, capex, or timing effects. Cash flow quality is acceptable, but the recent downshift lowers confidence in near-term cash momentum.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	18.36T	18.62T	19.57T	21.57T	17.26T	12.88T
Gross Profit	1.58T	1.84T	2.36T	2.56T	2.15T	1.61T
EBITDA	1.14T	1.41T	1.48T	1.69T	1.45T	687.64B
Net Income	731.23B	950.71B	964.03B	1.18T	937.53B	172.55B
Balance Sheet
Total Assets	23.94T	21.50T	23.46T	22.15T	21.91T	18.63T
Cash, Cash Equivalents and Short-Term Investments	1.54T	1.65T	1.35T	1.69T	1.71T	1.48T
Total Debt	7.44T	5.34T	5.69T	6.56T	7.24T	7.18T
Total Liabilities	14.08T	11.34T	13.36T	13.03T	14.05T	12.10T
Stockholders Equity	9.10T	9.37T	9.04T	8.07T	6.88T	5.61T
Cash Flow
Free Cash Flow	571.11B	1.27T	826.84B	1.48T	662.01B	628.57B
Operating Cash Flow	922.89B	1.66T	1.35T	1.93T	1.06T	1.02T
Investing Cash Flow	-458.38B	-273.94B	-205.76B	-177.47B	-167.55B	-357.30B
Financing Cash Flow	-342.90B	-1.53T	-1.09T	-1.77T	-693.40B	-691.18B

Mitsubishi Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5315.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8058, the sentiment is Positive. The current price of 5315 is above the 20-day moving average (MA) of 5008.30, above the 50-day MA of 4323.64, and above the 200-day MA of 3529.16, indicating a bullish trend. The MACD of 272.31 indicates Negative momentum. The RSI at 79.03 is Negative, neither overbought nor oversold. The STOCH value of 80.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8058.

Mitsubishi Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8002	74 Outperform	$9.64T	18.62	15.34%	2.29%	9.62%	25.71%
8001	71 Outperform	¥16.75T	16.72	15.80%	2.11%	0.93%	15.80%
8015	70 Outperform	¥7.23T	19.38	13.49%	2.10%	5.32%	9.73%
8053	69 Neutral	¥7.66T	13.78	12.86%	2.48%	3.19%	72.26%
8058	68 Neutral	¥20.14T	27.84	7.39%	2.94%	-7.54%	-35.70%
8031	67 Neutral	¥17.00T	19.92	11.47%	2.28%	-1.33%	-7.40%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%