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Mitsubishi Electric (MIELY)
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Mitsubishi Electric (MIELY) AI Stock Analysis

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MIELY

Mitsubishi Electric

(OTC:MIELY)

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Outperform 73 (OpenAI - 4o)
Rating:73Outperform
Price Target:
$56.00
â–²(5.07% Upside)
Mitsubishi Electric's strong financial performance, characterized by robust revenue growth and profitability, is the primary driver of its stock score. Technical indicators suggest a positive short-term trend, though momentum is limited. The valuation is fair, with a modest dividend yield, contributing to a balanced overall assessment.

Mitsubishi Electric (MIELY) vs. SPDR S&P 500 ETF (SPY)

Mitsubishi Electric Business Overview & Revenue Model

Company DescriptionMitsubishi 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 MoneyMitsubishi 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 Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q3-2025)
|
Next Earnings Date:Oct 31, 2025
Earnings Call Sentiment Positive
The earnings call highlighted a strong quarter for Mitsubishi Electric, with record-breaking revenue and profit, improved margins, and solid performance in key segments like Infrastructure and Life. However, the Industry & Mobility and Semiconductor & Device segments faced challenges, with declines in performance. Despite these challenges, the positive aspects, including the impact of the weaker yen and increased free cash flow, suggest a generally positive outlook.
Q3-2025 Updates
Positive Updates
Record-Breaking Revenue and Operating Profit
Both revenue and operating profit for the third quarter reached record highs, with revenue amounting to JPY 1,356.7 billion and operating profit at JPY 126.8 billion, surpassing previous records even when excluding gains from MD LOGIS share sales.
Improved Profit Margins
Operating profit margin improved by 2.4 percentage points to a record-high 9.4%, with a 0.6 percentage point improvement even after excluding MD LOGIS share sales.
Strong Performance in Infrastructure and Life Segments
Both segments saw significant increases in revenue and operating profit, driven by strong performances in public utility systems, energy systems, and demand for air conditioning systems.
Positive Impact of Weaker Yen
The weaker yen contributed to a JPY 27 billion increase in revenue and a JPY 7 billion increase in income.
Increase in Free Cash Flow
Free cash flow increased by JPY 174.2 billion year-on-year, resulting in an inflow of JPY 174.1 billion.
Negative Updates
Decline in Industry & Mobility Segment
This segment experienced decreases in both revenue and operating profit, primarily due to weaker demand in the FA Systems and Automotive Equipment businesses.
Challenges in Semiconductor & Device Segment
Despite a solid demand for optical devices, revenue decreased due to stagnation in major markets for power semiconductors, including EV and factory automation sectors.
Increased Costs in Parts and Materials
Cost increases in parts, materials, and logistics negatively impacted profits, although efforts were made to counterbalance these through price improvements.
Company Guidance
In the third quarter of fiscal year 2025, Mitsubishi Electric reported record-high revenues of JPY 1,356.7 billion and an operating profit of JPY 126.8 billion, reflecting the impact of a weaker yen and sales growth in Infrastructure and Life segments. Excluding a JPY 24 billion gain from the sale of MD LOGIS shares, the operating margin improved by 0.6 percentage points to 7.6%. The nine-month cumulative figures also reached record highs with revenue at JPY 4.3 trillion and operating profit at JPY 303.5 billion. Despite cost increases in parts, materials, and logistics, the company managed to improve profitability through price adjustments and efficiency efforts. The full-year forecast anticipates JPY 5.4 trillion in revenue, up JPY 10 billion from previous projections, with operating profit expected to remain at JPY 400 billion. The Industry & Mobility segment faced declines, but these were offset by strong performances in other segments. Mitsubishi Electric continues to optimize inventory and enhance financial performance through strategic measures.

Mitsubishi Electric Financial Statement Overview

Summary
Mitsubishi Electric demonstrates strong financial health with significant revenue and profit growth, efficient operations, and a robust balance sheet with low leverage. Despite some fluctuations in cash flow, the overall financial position is stable and promising.
Income Statement
85
Very Positive
The company shows strong revenue growth, with a 5.09% increase from 2023 to 2024. Gross profit margin is solid at 29.39%, and net profit margin improved to 5.42%. Both EBIT and EBITDA margins are healthy, indicating efficient operations and good cost control.
Balance Sheet
78
Positive
Mitsubishi Electric maintains a strong equity position with an equity ratio of 60.65%. The debt-to-equity ratio is low at 0.11, suggesting limited financial leverage. Return on equity is a robust 7.62%, reflecting effective use of equity capital.
Cash Flow
80
Positive
Free cash flow has improved significantly from the previous year, enhancing liquidity. The operating cash flow to net income ratio is 1.46, indicating strong cash generation relative to net income. However, the negative free cash flow in 2023 highlights potential volatility.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue5.55T5.52T5.26T5.00T4.48T4.19T
Gross Profit1.73T1.69T1.55T1.41T1.26T1.17T
EBITDA667.28B673.09B450.87B476.19B458.86B443.51B
Net Income365.87B324.08B284.95B213.91B203.48B193.13B
Balance Sheet
Total Assets6.30T6.38T6.17T5.58T5.11T4.80T
Cash, Cash Equivalents and Short-Term Investments821.78B823.04B817.78B706.82B789.31B819.06B
Total Debt360.87B360.66B394.64B400.76B329.46B365.43B
Total Liabilities2.22T2.30T2.30T2.22T2.01T1.93T
Stockholders Equity3.95T3.95T3.74T3.24T2.98T2.75T
Cash Flow
Free Cash Flow274.75B229.83B206.47B-8.85B126.31B353.76B
Operating Cash Flow465.56B455.90B415.48B166.71B282.37B542.12B
Investing Cash Flow-147.46B-191.75B-94.12B-148.53B-114.87B-176.55B
Financing Cash Flow-284.45B-265.33B-240.12B-119.57B-241.32B-157.35B

Mitsubishi Electric Technical Analysis

Technical Analysis Sentiment
Positive
Last Price53.30
Price Trends
50DMA
50.04
Positive
100DMA
45.98
Positive
200DMA
40.51
Positive
Market Momentum
MACD
0.89
Negative
RSI
62.61
Neutral
STOCH
91.21
Negative
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 53.3 is above the 20-day moving average (MA) of 51.63, above the 50-day MA of 50.04, and above the 200-day MA of 40.51, indicating a bullish trend. The MACD of 0.89 indicates Negative momentum. The RSI at 62.61 is Neutral, neither overbought nor oversold. The STOCH value of 91.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MIELY.

Mitsubishi Electric Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$4.24B12.9019.13%0.87%3.73%32.29%
80
Outperform
$15.45B27.327.53%0.80%-4.84%2.33%
77
Outperform
$10.63B27.6815.54%0.18%13.14%-6.09%
74
Outperform
$60.67B75.9034.84%0.09%26.31%62.78%
73
Outperform
$55.02B22.469.57%0.54%3.76%32.58%
73
Outperform
$21.94B26.8125.34%1.26%0.95%13.74%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MIELY
Mitsubishi Electric
53.30
20.57
62.85%
AYI
Acuity Brands
360.66
61.79
20.67%
ENS
EnerSys
113.51
13.06
13.00%
HUBB
Hubbell B
418.89
-18.94
-4.33%
NVT
nVent Electric
98.72
27.48
38.57%
VRT
Vertiv Holdings
168.88
61.55
57.35%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Oct 03, 2025