Mitsubishi Estate (MITEY) AI Stock Analysis

• Market Cap: $30.02B
• Dividend Yield: 0.94%
• Average Volume (3M): 2.85K
• Price to Earnings (P/E): 23.9
• 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: 274.42
• Enterprise Value/Revenue: 5.12
• Enterprise Value/Gross Profit: 19.15
• Enterprise Value/Ebitda: 19.62
• 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

Sustained top-line expansion demonstrates durable demand for Mitsubishi Estate's development and leasing mix. Stable revenue growth supports recurring rental income and provides capacity to fund redevelopment projects and long-cycle investments, underpinning earnings resilience over months.

Healthy Capital Structure

A strong equity ratio and improving ROE indicate a solid capital base that supports large-scale urban redevelopment and development pipelines. Well-managed leverage reduces refinancing stress and enhances the firm's ability to pursue strategic projects without undue solvency risk in the medium term.

Robust Operating Cash Flow

High operating cash generation relative to net income shows effective cash conversion from property operations and leasing. Reliable OCF funds ongoing maintenance and portions of capex, supporting sustainable operations and reinvestment even when development spending temporarily depresses free cash flow.

Negative Factors

Negative Free Cash Flow from Investments

Persistent negative free cash flow driven by heavy development and capex can constrain financial flexibility, forcing reliance on external financing or asset sales. Over a 2-6 month horizon, this can increase liquidity risk and raise financing costs if capital markets tighten or rates rise.

Moderate Leverage Typical of Real Estate

While leverage is managed, moderate debt exposure makes cash flows sensitive to interest rates and refinancing cycles. Adverse rate moves or tighter credit conditions could raise borrowing costs or compress spreads, increasing earnings volatility and pressure on project returns over several months.

Cyclicality and Geographic Concentration

Concentration in real estate, largely tied to Japan's metropolitan markets, leaves the company exposed to property cycle downturns, vacancy and rent pressures, and macro shifts. Overseas investments offer diversification, but domestic cyclical risk can materially affect cash flows and leasing fundamentals.

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: Negative

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 below the 20-day moving average (MA) of 25.36, above the 50-day MA of 24.48, and above the 200-day MA of 21.19, indicating a bullish trend. The MACD of 0.27 indicates Positive momentum. The RSI at 61.53 is Neutral, neither overbought nor oversold. The STOCH value of 85.02 is Negative, 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	$24.82B	21.40	9.79%	3.83%	7.06%	12.05%
EQR	70 Outperform	$23.44B	20.52	10.55%	4.52%	4.78%	24.74%
REG	70 Outperform	$13.17B	32.93	6.07%	4.15%	5.38%	3.13%
MITEY	68 Neutral	$30.02B	23.86	7.99%	0.94%	8.32%	12.91%
WY	66 Neutral	$18.63B	57.70	―	3.57%	-1.64%	-37.58%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
IRM	55 Neutral	$26.43B	167.23	―	3.98%	10.88%	51.13%