Mitsubishi Electric (MIELY) AI Stock Analysis

• Market Cap: $80.66B
• Dividend Yield: 1.05%
• Average Volume (3M): 2.25K
• Price to Earnings (P/E): 31.6
• 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: 147.48
• Enterprise Value/Revenue: 2.09
• Enterprise Value/Gross Profit: 6.39
• Enterprise Value/Ebitda: 18.32
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 2.25
• Revenue Forecast (FY): $36.84B

• Rating: 71 Outperform
• Price Target: $85.00 ▲(41.53% 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 growing equity base provide structural financial resilience. This reduces refinancing and solvency risk during downturns, preserves capacity to fund large, capital-intensive projects or strategic investments, and supports steady capital allocation over the next several quarters.

Diversified segments + recurring services

Wide product mix across automation, HVAC, energy, building systems, and semiconductors plus aftermarket/service contracts creates multiple revenue channels. Recurring maintenance and spare-part income from installed equipment smooths cycles, strengthens customer lock-in, and supports predictable revenues and margins over time.

Improving margins with steady revenue growth

Material improvement in gross and net margins along with consistent multi-year revenue expansion indicates better pricing, mix, or cost control. Sustained margin improvement increases operating cash generation and ROE, enabling reinvestment or shareholder returns without compromising balance-sheet strength.

Negative Factors

Free cash flow volatility

Free cash flow has been uneven despite positive levels overall. Negative TTM FCF growth and historical negative years imply unpredictability in cash available for capex, acquisitions, or distributions, increasing execution risk for long-cycle projects and complicating multi-quarter planning.

Moderate net margins

Net margins remain modest relative to higher-margin tech peers, limiting the company's ability to convert revenue growth into outsized earnings or cash. In capital-intensive end markets, this constrains excess cash generation and reduces cushion versus cost inflation or pricing pressures.

Exposure to project timing and capex cycles

Significant revenue from large, long-cycle infrastructure and industrial projects makes top-line and cash flows lumpy. Timing and execution of these projects can cause multi-quarter swings in revenue and working capital needs, increasing operational and forecasting risk over the medium term.

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: Positive
• RSI: Neutral
• STOCH: 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 60.06 is below the 20-day moving average (MA) of 72.09, below the 50-day MA of 65.53, and above the 200-day MA of 52.76, indicating a bullish trend. The MACD of 3.22 indicates Positive momentum. The RSI at 69.41 is Neutral, neither overbought nor oversold. The STOCH value of 87.09 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HUBB	79 Outperform	$27.20B	30.91	25.07%	1.18%	0.82%	16.05%
ENS	77 Outperform	$6.12B	20.57	16.74%	0.67%	6.17%	20.86%
NVT	77 Outperform	$19.14B	45.47	12.30%	0.84%	5.31%	5.76%
VRT	77 Outperform	$97.52B	74.71	41.81%	0.11%	28.76%	76.31%
MIELY	71 Outperform	$80.66B	31.63	9.57%	1.05%	5.32%	41.12%
AYI	70 Outperform	$9.25B	23.21	15.61%	0.18%	13.14%	-6.09%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%