Mitsubishi Estate (MITEY) AI Stock Analysis

• Market Cap: $29.64B
• Dividend Yield: 0.94%
• Average Volume (3M): 2.85K
• Price to Earnings (P/E): 23.5
• Beta (1Y): 0.24
• Revenue Growth: 8.32%
• EPS Growth: 12.91%
• Country: US
• Employees: 11,045
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Diversified
• EPS (TTM): N/A
• Shares Outstanding: 1,217,233,800
• 10 Day Avg. Volume: 3,322
• 30 Day Avg. Volume: 2,846
• PEG Ratio: 1.12
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 1.94
• P/FCF Ratio: -25.60
• Enterprise Value/Market Cap: 269.94
• Enterprise Value/Revenue: 4.97
• Enterprise Value/Gross Profit: 18.60
• Enterprise Value/Ebitda: 19.05
• 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: 68 Neutral
• Price Target: $27.00 ▲(7.02% Upside)

Mitsubishi Estate's strong financial performance is the most significant factor, supported by consistent revenue growth and a solid balance sheet. However, technical indicators suggest potential short-term weakness, and the valuation is fair but not particularly attractive. The lack of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Consistent revenue growth and stable margins

Sustained top-line growth with stable gross and net margins indicates durable demand across Mitsubishi Estate’s core leasing, development and sales businesses. Over 2-6 months this supports predictable cash generation, underwriting of new projects, and resilience to cyclical volatility in property markets.

Solid balance sheet and improved ROE

A healthy equity ratio and rising ROE reflect strong capital structure and more efficient use of shareholders’ equity. This durable strength gives the company flexibility to fund redevelopment projects, absorb shocks, and pursue opportunistic investments without over-reliance on volatile external financing.

Strong operating cash flow and cash conversion

Consistently robust operating cash flow that covers capex demonstrates the business’s ability to convert property earnings into spendable cash. Over the medium term this supports reinvestment in development pipelines and property upkeep without excessive borrowing, underpinning long-term asset value.

Negative Factors

Negative free cash flow from heavy investments

Persistent negative free cash flow driven by large development and capex commitments can strain liquidity and heighten reliance on financing. If project timing or sales slow, funding needs could rise and compress financial flexibility, posing a structural risk over the coming months.

Moderate leverage typical of the sector

While leverage is managed, the inherent moderate debt levels in real estate raise refinancing and interest-rate sensitivity risks. In a prolonged downturn or rising rate environment, debt servicing and refinancing could pressure cash flow and limit the company’s ability to pursue new developments.

Low dividend yield limits income investor appeal

A persistently low dividend yield reduces appeal to income-oriented shareholders and can limit the investor base during periods of slower capital appreciation. Over months, this may weaken shareholder loyalty and reduce share-price support relative to higher-yielding property peers.

Mitsubishi Estate Business Overview & Revenue Model

Company Description

Mitsubishi Estate Co., Ltd. engages in the real estate activities in Japan and internationally. The company is involved in the development, leasing, property management, and sale of office buildings; planning, development, and tenant leasing of retail facilities/outlets; investment, development, operational management, and asset management of logistics facilities; operation of 16 hotels under the Royal Park Hotels brand in Japan and the Marunouchi Hotel in the Marunouchi area; and operation of Takamatsu Airport, Miyako Shimojishima Airport Terminal, Mt. Fuji Shizuoka Airport, and seven airports in Hokkaido. It also engages in the development and rebuilding, redevelopment, purchasing and sale, brokerage, and management of condominiums; and rental of apartments. In addition, the company provides real estate investment trust, as well as private placement funds management services. Further, it offers architectural design and engineering services, including construction, civil engineering, and urban and regional development planning and consulting. Additionally, the company provides real estate problem-solving solutions, such as real estate brokerage, condominium and office building leasing management support, and real estate appraisal. Mitsubishi Estate Co., Ltd. was founded in 1890 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Mitsubishi Estate generates revenue through several key streams: leasing income from its extensive portfolio of commercial and residential properties, which includes office buildings and shopping centers; sales of residential properties; and income from property management services. The company also engages in real estate development projects, which provide additional revenue through construction and sales. Significant partnerships with other real estate firms and joint ventures for large-scale development projects further bolster its earnings. Additionally, Mitsubishi Estate benefits from urban redevelopment initiatives, allowing it to capitalize on increasing property values in metropolitan areas.

Mitsubishi Estate Financial Statement Overview

Summary

Mitsubishi Estate demonstrates strong financial performance with consistent revenue growth and stable profit margins. The balance sheet is solid with a healthy equity ratio and moderate leverage. Cash flow is efficient, though negative free cash flow due to significant investments requires monitoring.

Income Statement

Mitsubishi Estate has demonstrated consistent revenue growth over the past years, with a notable increase in Total Revenue from 1,507 billion yen in 2024 to 1,579 billion yen in 2025. The Gross and Net Profit Margins have remained stable, indicating strong profitability. EBIT and EBITDA margins also reflect efficient cost management. The overall upward trajectory in revenues and profits underscores a robust performance in the real estate sector.

Balance Sheet

The company's balance sheet shows a healthy Equity Ratio, suggesting a solid capital structure. The Debt-to-Equity Ratio indicates moderate leverage, which is typical in the real estate industry, but it is well-managed. Return on Equity has improved, reflecting efficient earnings generation relative to equity. The financial stability and strong equity base support the company's growth initiatives.

Cash Flow

Mitsubishi Estate's cash flow is characterized by strong Operating Cash Flow, which covers its capital expenditures. However, Free Cash Flow is negative, which may indicate significant investments or capital expenditures. The Operating Cash Flow to Net Income Ratio is healthy, suggesting good cash conversion efficiency. While the cash flow reflects aggressive investment strategies, it remains an area to monitor closely.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.61T	1.58T	1.50T	1.38T	1.35T	1.21T
Gross Profit	430.22B	417.96B	392.27B	397.04B	374.76B	317.76B
EBITDA	419.93B	469.56B	375.79B	393.33B	373.10B	316.52B
Net Income	195.40B	189.36B	168.43B	165.34B	155.17B	135.66B
Balance Sheet
Total Assets	7.98T	8.00T	7.58T	6.87T	6.49T	6.07T
Cash, Cash Equivalents and Short-Term Investments	190.27B	1.32T	278.70B	945.00B	861.92B	670.85B
Total Debt	3.47T	3.34T	3.14T	2.87T	2.74T	2.52T
Total Liabilities	5.30T	5.26T	4.96T	4.49T	4.26T	4.01T
Stockholders Equity	2.51T	2.56T	2.40T	2.16T	2.00T	1.85T
Cash Flow
Free Cash Flow	0.00	-119.69B	-144.15B	-16.61B	-49.02B	-112.43B
Operating Cash Flow	0.00	324.12B	307.25B	269.91B	280.09B	207.41B
Investing Cash Flow	0.00	-361.50B	-362.02B	-312.05B	-313.78B	-297.30B
Financing Cash Flow	0.00	12.87B	100.43B	30.46B	90.97B	50.42B

Mitsubishi Estate Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.23
• 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 MITEY, the sentiment is Positive. The current price of 25.23 is above the 20-day moving average (MA) of 25.19, above the 50-day MA of 24.21, and above the 200-day MA of 21.06, indicating a bullish trend. The MACD of 0.23 indicates Positive momentum. The RSI at 54.81 is Neutral, neither overbought nor oversold. The STOCH value of 44.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MITEY.

Mitsubishi Estate Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AVB	74 Outperform	$24.49B	21.11	9.79%	3.83%	7.06%	12.05%
EQR	70 Outperform	$23.12B	20.23	10.55%	4.52%	4.78%	24.74%
REG	70 Outperform	$12.89B	32.23	6.07%	4.15%	5.38%	3.13%
MITEY	68 Neutral	$29.64B	23.54	7.99%	0.94%	8.32%	12.91%
WY	66 Neutral	$18.78B	57.06	3.42%	3.57%	-1.64%	-37.58%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
IRM	55 Neutral	$27.27B	172.51	―	3.98%	10.88%	51.13%