Mitsubishi Electric (MIELY) AI Stock Analysis

• Market Cap: $76.19B
• Dividend Yield: 1.05%
• Average Volume (3M): 2.25K
• Price to Earnings (P/E): 30.1
• Beta (1Y): 0.47
• Revenue Growth: 5.32%
• EPS Growth: 41.12%
• Country: US
• Employees: 149,914
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.68
• Shares Outstanding: 1,056,600,800
• 10 Day Avg. Volume: 3,555
• 30 Day Avg. Volume: 2,251
• PEG Ratio: 1.21
• Price to Book (P/B): 1.45
• Price to Sales (P/S): 1.04
• P/FCF Ratio: 25.00
• Enterprise Value/Market Cap: 152.34
• Enterprise Value/Revenue: 2.04
• Enterprise Value/Gross Profit: 6.24
• Enterprise Value/Ebitda: 17.88
• 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: 71 Outperform
• Price Target: $83.00 ▲(38.20% Upside)
• Action: Reiterated Date: 02/05/26
• Date: Action: Reiterated 02/05/26

The score is driven primarily by strong financial quality—especially a conservative balance sheet and improving margins—tempered by cash-flow volatility. Technicals are supportive with a clear uptrend, but elevated RSI suggests near-term momentum is stretched. Valuation is a mild headwind given the higher P/E and low dividend yield.

Positive Factors

Conservative balance sheet

Very low leverage and a steadily growing equity base give Mitsubishi Electric durable financial flexibility to fund long-cycle projects, weather downturns, and support strategic investments. A conservative capital structure reduces refinancing risk and underpins long-term operational resilience.

Improving margins & profitability

Margin expansion to ~33.6% gross and ~6.6% net indicates better pricing, mix and scale benefits. Sustained margin improvement strengthens intrinsic earnings power and ROE, providing a structural cushion against cyclical revenue dips and enabling reinvestment into higher-return business lines.

Diversified recurring revenue

A broad product portfolio plus installed-base service contracts (elevators, HVAC, automation) produce recurring, higher-margin aftermarket revenue. These annuity-like streams reduce cyclicality, improve revenue visibility over months, and enhance lifetime customer economics.

Negative Factors

Free cash flow volatility

Although FCF conversion (~65% of net income) is healthy, negative TTM FCF growth and a prior negative FCF year highlight inconsistent cash generation. Volatility hampers predictable capital allocation, can constrain dividends/buybacks or capex during downturns, and raises liquidity planning needs.

Moderate profitability levels

Net margins and ROE have improved but remain moderate, limiting margins of safety versus competitors. Sustaining long-term value creation depends on continuing efficiency and mix improvements; otherwise moderate profitability could restrict investment capacity and resilience to cost shocks.

Project timing & capex cycle exposure

Heavy exposure to long-cycle infrastructure and industrial capital projects makes revenue lumpy and sensitive to timing. This structural dependency can create multi-month earnings and cash-flow swings, complicating forecasting and increasing execution and backlog-delay risks.

Mitsubishi Electric Business Overview & Revenue Model

Company Description

Mitsubishi Electric Corporation develops, manufactures, distributes, and sells electrical and electronic equipment worldwide. The company offers turbine generators, hydraulic turbine generators, nuclear power plant and power electronics equipment, motors, transformers, circuit breakers, gas insulated switchgears, switch controls, surveillance-system control and security systems, transmission and distribution ICT systems, large display devices, locomotive and rolling stock electrical equipment, wireless and wired communications systems, network camera systems, elevators, escalators, building security and management systems, and others. It also provides programmable logic controllers, inverters, servomotors, human-machine interfaces, hoists, magnetic switches, circuit breakers, time and power meters, uninterruptible power supply, industrial fans, computerized numerical controllers, electrical-discharge and laser processing machines, industrial robots, clutches, automotive electrical equipment, electric powertrain systems, car electronics and mechatronics, car multimedia, and others. In addition, the company offers satellite communications and radar equipment, satellites, antennas, missile and fire control systems, broadcasting and information systems equipment, network security systems, and systems integration products; and power modules, high-frequency devices, optical and LCD devices, and others. Further, it provides air conditioners, chillers, showcases, compressors, refrigeration units, air-to-water heat pump boilers, ventilators, hot water supply systems, IH cooking heaters, LED bulbs, indoor lighting, LCD televisions, refrigerators, electric fans, dehumidifiers, air purifiers, vacuum cleaners, jar rice cookers, microwave ovens, and others. Additionally, the company offers procurement, logistics, real estate, advertising, finance, and other services. Mitsubishi Electric Corporation was incorporated in 1921 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Mitsubishi Electric generates revenue through multiple streams, primarily from the sale of its diverse range of products and solutions across different sectors. Key revenue streams include industrial automation systems, which encompass factory automation equipment and control systems, energy systems such as power generation and transmission equipment, and building systems like HVAC solutions and escalators. The company also earns revenue from its semiconductor and electronic components division. Significant partnerships with various industries, including automotive and construction, enhance its market reach and contribute to its earnings. Additionally, Mitsubishi Electric invests in research and development to innovate and maintain a competitive edge, allowing it to capture more market share in emerging technology sectors.

Mitsubishi Electric Financial Statement Overview

Summary

Strong overall fundamentals with improving profitability (TTM gross margin ~33.6%, net margin ~6.6%) and consistent multi-year revenue growth. Balance sheet is a key strength with very low leverage (TTM D/E ~0.09) and improving ROE (~9.3% TTM). Main constraint is cash-flow consistency: free cash flow is positive but volatile, with negative TTM FCF growth and a prior negative FCF year.

Income Statement

Profitability and scale are solid, with TTM (Trailing-Twelve-Months) revenue of ~¥5.70T and improving margins versus prior years (TTM gross margin ~33.6% vs ~28–31% historically; TTM net margin ~6.6% vs ~4.3–5.9%). Revenue has grown consistently over the last several annual periods (positive growth rates in 2022–2025 and TTM), supporting steady earnings expansion. The main drawback is that net margins remain moderate for the sector, and year-to-year growth is not consistently high (more steady than explosive).

Balance Sheet

The balance sheet looks conservative and resilient. Leverage is low with TTM (Trailing-Twelve-Months) debt-to-equity at ~0.09, and equity has steadily grown over time, providing a strong capital base (TTM equity ~¥4.16T). Returns on equity have improved to ~9.3% TTM from ~6–8% in earlier annual periods, signaling better profitability on shareholder capital. The key watch item is that returns are good but not exceptional, so ongoing margin/efficiency gains matter to sustain the upward trend.

Cash Flow

Cash generation is positive and supportive overall, with TTM (Trailing-Twelve-Months) operating cash flow ~¥484B and free cash flow ~¥309B, and free cash flow running at ~65% of net income (healthy conversion). However, free cash flow growth is negative in TTM (about -10.6%), and history shows some volatility (including a negative free cash flow year in 2023), which reduces confidence in the consistency of cash returns through cycles.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	5.70T	5.52T	5.26T	5.00T	4.48T	4.19T
Gross Profit	1.86T	1.69T	1.55T	1.41T	1.26T	1.17T
EBITDA	649.29B	673.09B	450.87B	476.19B	458.86B	443.51B
Net Income	376.22B	324.08B	284.95B	213.91B	203.48B	193.13B
Balance Sheet
Total Assets	6.66T	6.38T	6.17T	5.58T	5.11T	4.80T
Cash, Cash Equivalents and Short-Term Investments	719.73B	823.04B	817.78B	706.82B	789.31B	819.06B
Total Debt	355.68B	360.66B	394.64B	400.76B	329.46B	365.43B
Total Liabilities	2.36T	2.30T	2.30T	2.22T	2.01T	1.93T
Stockholders Equity	4.16T	3.95T	3.74T	3.24T	2.98T	2.75T
Cash Flow
Free Cash Flow	309.38B	229.83B	206.47B	-8.85B	126.31B	353.76B
Operating Cash Flow	484.04B	455.90B	415.48B	166.71B	282.37B	542.12B
Investing Cash Flow	-201.05B	-191.75B	-94.12B	-148.53B	-114.87B	-176.55B
Financing Cash Flow	-332.93B	-265.33B	-240.12B	-119.57B	-241.32B	-157.35B

Mitsubishi Electric Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 60.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MIELY, the sentiment is Positive. The current price of 60.06 is below the 20-day moving average (MA) of 68.93, below the 50-day MA of 63.97, and above the 200-day MA of 51.84, indicating a bullish trend. The MACD of 3.39 indicates Negative momentum. The RSI at 68.96 is Neutral, neither overbought nor oversold. The STOCH value of 69.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MIELY.

Mitsubishi Electric Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HUBB	79 Outperform	$27.77B	31.55	25.07%	1.18%	0.82%	16.05%
ENS	77 Outperform	$6.48B	21.78	16.74%	0.67%	6.17%	20.86%
NVT	77 Outperform	$18.70B	44.42	12.30%	0.84%	5.31%	5.76%
VRT	77 Outperform	$93.05B	71.29	41.81%	0.11%	28.76%	76.31%
MIELY	71 Outperform	$76.19B	30.05	9.57%	1.05%	5.32%	41.12%
AYI	70 Outperform	$9.61B	24.12	15.61%	0.18%	13.14%	-6.09%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%