Mitani Sangyo Co., Ltd. (8285) AI Stock Analysis

• Market Cap: ¥42.48B
• Dividend Yield: 1.9%
• Average Volume (3M): 74.88K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.84
• Revenue Growth: 12.47%
• EPS Growth: 21.98%
• Country: JP
• Employees: 3,569
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 17.80
• Shares Outstanding: 61,772,500
• 10 Day Avg. Volume: 64,460
• 30 Day Avg. Volume: 74,876
• PEG Ratio: 0.47
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 8.65
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: ¥809.00 ▲(42.93% Upside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

The score is driven primarily by strong financial performance (steady growth, stable profitability, solid balance sheet, and healthy operating cash flow) and an attractive low P/E valuation. Offsetting these positives, technical indicators suggest softer near-term momentum (RSI below 50 and low Stoch), keeping the overall score below the highest tier.

Positive Factors

Revenue Growth Trend

Sustained ~11% revenue growth indicates expanding end-market demand and successful mix of product sales plus project services. That pace supports durable top-line momentum, enabling reinvestment in systems and services and providing a stable base for profit expansion over months.

Balance Sheet Strength

A moderate leverage profile with strong equity backing gives financial flexibility to fund projects, absorb cyclical shocks, and pursue opportunistic investments. This structural solidity supports sustained operations and lowers refinancing risk across a 2–6 month horizon.

Operating Cash Generation

Consistent operating cash flow and improving free cash flow trends reflect high cash conversion ability from core activities. Reliable cash generation underpins capital allocation — dividends, capex, or selective M&A — and reduces dependence on external financing.

Negative Factors

Operational Efficiency (EBIT Margin)

Below-potential EBIT margins indicate operational inefficiencies that limit profit leverage from revenue growth. Without durable margin improvement (cost control, scale benefits, or productivity gains), earnings sensitivity to revenue could remain muted over months.

Asset Utilization & FCF Conversion

Suboptimal asset turnover and weaker free cash flow conversion versus reported earnings point to capital tied up in operations or projects. This structural drag can constrain capacity to fund growth or returns and may limit durable cash returned to shareholders.

Business Complexity / Execution Risk

Multi-domain trading and solutions model increases strategic and operational complexity, raising execution risk. Managing disparate product and project businesses can dilute focus, hinder standardized processes, and slow sustained margin improvement or integration gains.

Mitani Sangyo Co., Ltd. Business Overview & Revenue Model

Company Description

Mitani Sangyo Co., Ltd. engages in chemicals, resin, electronics, information systems, air conditioning systems, housing equipment, energy businesses in Japan and internationally. The company offers inorganic chemicals comprising alkali industry products, ammonia and acid products, water treatment chemicals, and others; organic chemicals, including alcohols, aromatic hydrocarbons, ester, ketones, glycol and ether, and others; pharmaceutical intermediates and active pharmaceutical ingredients; functional materials, such as health food materials, electronic materials, food additives, and others; pesticide intermediates, fine chemicals, cosmetic materials and intermediates, etc.; and reuse and recycle of waste, by-products, etc. It also provides plastic moldings, including automotive parts, precision parts, appearance trims, original parts, special moldings; assembled substrates, electronic parts, dies, and composite unit products, as well as kitchen and bathroom products, storage unit equipment, and air conditioning equipment under the INTENZA brand. In addition, the company offers system integration services; package software; hardware maintenance; infrastructure solutions, such as constructs information and network infrastructures, security information, data erasing, platform service, and mail system; and call center services, PC help desk services, and agency services for repair arrangement. Further, it is involved in the construction of air conditioning, sanitary plumbing, and special facilities construction, as well as other special technical construction; and renovation activities. Additionally, the company offers petroleum products; LPG gas; lithium-ion batteries; and solar power generator systems. Mitani Sangyo Co., Ltd. was founded in 1928 and is headquartered in Kanazawa, Japan.

How the Company Makes Money

Mitani Sangyo Co., Ltd. generates revenue through the wholesale distribution of industrial materials and equipment. The company has established multiple key revenue streams, which include sales of machinery, tools, and raw materials to various sectors such as construction and manufacturing. Additionally, Mitani Sangyo benefits from long-term partnerships with manufacturers and suppliers, allowing it to offer a wide range of products at competitive prices. The company's revenue model is supported by its extensive distribution network, which enables efficient logistics and timely delivery, further enhancing customer satisfaction and repeat business.

Mitani Sangyo Co., Ltd. Financial Statement Overview

Summary

Strong overall fundamentals supported by consistent revenue growth, stable gross margin, and commendable net profit margin. Balance sheet leverage appears moderate with solid equity backing, while operating cash flow is robust; main drawbacks are room to improve EBIT margin (operational efficiency), asset utilization, and free cash flow conversion versus earnings.

Income Statement

Mitani Sangyo Co., Ltd. has shown a solid performance in terms of revenue growth, with a consistent upward trajectory over the past years. The gross profit margin has remained stable, and net profit margin is commendable. However, the EBIT margin indicates room for improvement in operational efficiency.

Balance Sheet

The company maintains a healthy balance sheet with a moderate debt-to-equity ratio, suggesting balanced leverage. The return on equity is reasonable, reflecting efficient use of shareholder funds. The equity ratio highlights a strong asset backing, although there is potential to enhance asset utilization.

Cash Flow

Cash flow analysis reveals a robust operating cash flow, with a positive trend in free cash flow growth. The operating cash flow to net income ratio indicates effective cash generation from operations, although free cash flow to net income ratio suggests there is room for cash flow improvement relative to earnings.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	106.12B	103.07B	95.86B	90.42B	84.43B	80.54B
Gross Profit	20.51B	19.14B	17.70B	15.67B	14.69B	14.63B
EBITDA	4.47B	4.04B	3.78B	3.15B	3.34B	4.62B
Net Income	2.74B	2.44B	2.07B	960.00M	1.43B	2.26B
Balance Sheet
Total Assets	96.36B	94.45B	95.52B	86.81B	86.46B	82.94B
Cash, Cash Equivalents and Short-Term Investments	8.45B	8.45B	8.87B	7.53B	6.92B	6.68B
Total Debt	15.83B	17.77B	18.96B	21.38B	21.73B	16.92B
Total Liabilities	46.22B	46.87B	48.36B	45.19B	46.17B	41.79B
Stockholders Equity	49.95B	47.38B	47.01B	41.49B	40.16B	38.94B
Cash Flow
Free Cash Flow	0.00	2.36B	4.63B	2.41B	-330.00M	879.00M
Operating Cash Flow	0.00	4.24B	5.60B	3.66B	1.09B	3.61B
Investing Cash Flow	0.00	-1.48B	-869.00M	-1.45B	-2.09B	-4.63B
Financing Cash Flow	0.00	-3.20B	-3.81B	-1.54B	993.00M	1.30B

Mitani Sangyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 566.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8285, the sentiment is Positive. The current price of 566 is below the 20-day moving average (MA) of 713.30, below the 50-day MA of 674.20, and above the 200-day MA of 503.54, indicating a neutral trend. The MACD of 11.27 indicates Positive momentum. The RSI at 52.12 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8285.

Mitani Sangyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8285	78 Outperform	¥42.48B	7.95	―	1.90%	12.47%	21.98%
8078	78 Outperform	¥306.41B	7.92	11.34%	3.38%	3.44%	6.97%
8014	73 Outperform	¥99.54B	10.14	―	3.74%	-2.33%	-16.42%
8020	73 Outperform	¥357.79B	9.25	―	3.13%	1.50%	9.82%
8088	69 Neutral	¥462.45B	14.68	―	3.37%	4.50%	-9.36%
8057	68 Neutral	¥102.14B	9.91	―	2.91%	31.48%	83.15%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Mitani Sangyo Co., Ltd. Corporate Events

Mitani Sangyo Delivers Strong Nine-Month Earnings and Lifts Full-Year Outlook, Dividend

Mitani Sangyo reported strong results for the nine months ended December 31, 2025, with net sales rising 14.0% year on year to ¥86.5 billion and profit attributable to owners of parent jumping 50.5% to ¥2.94 billion, driving earnings per share up to ¥47.67. Total assets increased to ¥110.6 billion and the equity ratio improved to 52.5%, while the company raised interim dividends to ¥5.00 per share and forecasts full-year sales of ¥116.0 billion and profit attributable to owners of parent of ¥3.0 billion, implying continued profit growth and an increase in the annual dividend to ¥13.00 per share, underscoring strengthening financial performance and enhanced returns to shareholders.

The most recent analyst rating on (JP:8285) stock is a Buy with a Yen680.00 price target. To see the full list of analyst forecasts on Mitani Sangyo Co., Ltd. stock, see the JP:8285 Stock Forecast page.