Mitsui & Co (MITSY) AI Stock Analysis

• Market Cap: $112.77B
• Dividend Yield: 2.35%
• Average Volume (3M): 1.55K
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.62
• Revenue Growth: -0.56%
• EPS Growth: -6.81%
• Country: US
• Employees: 53,602
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 8.43
• Shares Outstanding: 145,287,080
• 10 Day Avg. Volume: 652
• 30 Day Avg. Volume: 1,551
• PEG Ratio: -0.71
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 0.57
• P/FCF Ratio: 12.45
• Enterprise Value/Market Cap: 202.21
• Enterprise Value/Revenue: 1.61
• Enterprise Value/Gross Profit: 17.26
• Enterprise Value/Ebitda: 21.98
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 37.57
• Revenue Forecast (FY): $92.00B

• Rating: 66 Neutral
• Price Target: $902.00 ▲(70.69% Upside)
• Action: Downgraded Date: 02/05/26
• Date: Action: Downgraded 02/05/26

The score is held back primarily by the sharp deterioration in TTM cash generation (negative free cash flow despite solid earnings). Offsetting that risk are a generally healthy income statement and balance sheet, plus strong technical uptrend signals. Valuation is reasonable with a moderate P/E and modest dividend yield.

Positive Factors

Diversified business model

Mitsui's multi-sector sōgō shōsha model—trading, invested operating businesses, and project participation—creates diversified revenue streams and reduces reliance on any single commodity or region. That structural diversification supports more stable cashflows and resilience over a 2–6 month horizon versus pure-play cyclicals.

Improved leverage and healthy returns

Leverage has materially improved from prior years, leaving Mitsui with manageable debt metrics for a large conglomerate and a sizeable equity base. This improved capital structure enhances financial flexibility for project funding or opportunistic investments and cushions volatility in earnings over the medium term.

Consistent revenue growth and steady margins

Top-line momentum with mid-single-digit TTM revenue growth and steady gross/net margins indicates enduring commercial strength in trading and invested operations. Sustained revenue growth and margin stability support recurring profitability and the ability to fund operations and investments over coming quarters.

Negative Factors

Weak cash conversion and negative FCF

Despite reported profitability, cash generation deteriorated materially and free cash flow turned negative, indicating earnings are not translating into liquid resources. Over several months this can limit capacity to fund capex, dividends or acquisitions without tapping debt or selling assets, weakening strategic optionality.

Earnings sensitive to business mix and cycles

Mitsui's margins and operating profits fluctuate with business mix and commodity cycles, producing uneven operating profitability across periods. This structural sensitivity introduces persistent earnings volatility and complicates forecasting cashflows and returns over the medium term for investors and management planning.

Material absolute debt and project risk

Even with improved leverage ratios, Mitsui carries a substantial absolute debt burden tied to large-scale project investments. In a downturn or prolonged commodity weakness, servicing and refinancing needs could constrain capital allocation, heightening downside risk to returns and strategic flexibility over coming quarters.

Mitsui & Co Business Overview & Revenue Model

Company Description

Mitsui & Co., Ltd. operates as a general trading company worldwide. The company engages in the manufacture, export, and import of iron and steel products; automotive components; operation of steel processing service centers; trading of automotive, electrical, special, and stainless steel; manufacture, repair, and fabrication of wind turbine towers and flanges; gas distribution businesses; and coal mining, power generation, ferrous alloy, infrastructure maintenance, and water pumping activities. It also explores, develops, and produces oil, natural gas, and LNG; trades in petroleum products, crude oil, coal, uranium, and LNG; offers FPSO/FSO, fright car, truck, and locomotive leasing services; sells electric power facilities; and develops railway and transportation infrastructures. The company engages in logistics businesses; wholesale, retail, rental, and finance of construction and mining equipment; multimodal transportation, warehousing, and rolling stock leasing; sale, purchase, and leasing of aircraft and aero engines; leasing and financing activities; and development, process, and marketing of underground resources, and recycling of surface resources. It also provides electric-arc-furnace, construction materials processing, construction flat-rolled steel, shapes, bars, wire rods, and steel structure materials; methanol, ammonia, chlor-alkali, industrial, gas, and basic chemicals; salt; performance, advanced, specialty, and living, and environmental materials; agrochemicals and fertilizers, and animal and human nutrition products; refined sugar, oils and fats, proteins, grains, and food and beverage products; contract food services; and healthcare products. The company offers mobile communications; commodity derivative trading; venture investment and asset management services; real estate development, management, leasing, and brokerage services; and ship charter operation services. Mitsui & Co., Ltd. was incorporated in 1947 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Mitsui & Co. makes money primarily through (1) trading and distribution margins, (2) earnings from invested/operated businesses (often consolidated subsidiaries or equity-method affiliates), and (3) resource and energy project cash flows. 1) Trading & distribution (merchanting) margins: Mitsui buys, sells, and arranges the movement of commodities and products across global supply chains. Revenue is generated from spreads between procurement and sales prices, commissions/fees for arranging transactions, and logistics-related services (e.g., shipping, storage, financing support). This applies across a wide range of products, including industrial materials, chemicals, metals, energy commodities, and consumer/lifestyle goods. 2) Earnings from business investments and operating companies: Beyond pure trading, Mitsui invests in and helps operate businesses in areas such as energy and resources development, infrastructure and industrial projects, chemicals and materials, and consumer/food-related businesses. It monetizes these positions through consolidated operating revenue and operating profit from subsidiaries it controls, and through equity-method income and dividends from affiliates where it has significant influence but not control. 3) Resource & energy project participation: Mitsui participates in upstream and midstream projects (e.g., natural resources and energy value chains). In these cases, it earns project-level returns tied to production volumes, realized commodity prices, and cost structures, and may receive dividends or profit distributions from project entities. These earnings can be cyclical and sensitive to commodity price movements. 4) Project development, structuring, and services: Mitsui also earns fees and returns by originating and structuring projects (including long-term offtake/marketing arrangements), arranging financing, and providing risk management and coordination among producers, end-users, logistics providers, and financial institutions. Significant factors affecting earnings include commodity price cycles, global demand/supply conditions, foreign exchange movements (given substantial overseas operations), and the performance of its operating subsidiaries and investees. Specific partnerships or counterparties are not available in this response and are therefore null.

Mitsui & Co Financial Statement Overview

Summary

Income statement and balance sheet are solid (revenue up 7.5% TTM, ~6.1% net margin, improved leverage with ~0.69 debt-to-equity), but the cash flow picture is a major drag: operating cash flow fell and free cash flow turned negative in TTM, indicating weak cash conversion despite profitability.

Income Statement

TTM (Trailing-Twelve-Months) revenue grew 7.5%, showing continued top-line momentum after a strong multi-year run (notably high growth in 2022–2023). Profitability remains solid with a ~6.1% net margin in TTM, broadly in line with the most recent annual period, but below the stronger profitability seen in 2022–2024 (~7.8–8.0% net margin). Gross margin is steady around ~9–10%, while operating profitability looks more mixed across periods, suggesting earnings sensitivity to business mix and cycle—good resilience, but not consistently expanding margins.

Balance Sheet

Leverage appears manageable for a diversified conglomerate: debt-to-equity is ~0.69 in TTM (improved from ~1.04 in 2021 and lower than 2022–2023), supported by a large equity base. Returns on equity are healthy at ~11.9% in TTM (similar to the latest annual), though down from peak levels in 2022–2023, implying normalized profitability. Overall balance sheet strength is solid, with the main watch item being the still-material absolute debt load and the potential for earnings cyclicality to pressure returns.

Cash Flow

Cash generation weakened materially in TTM: operating cash flow fell to ~724B and free cash flow turned negative (~-423B), with free cash flow also negative versus net income (about -0.51x). This is a clear deterioration versus the annual periods from 2021–2025, where free cash flow was consistently positive and generally covered a meaningful portion of earnings. The key risk is that recent earnings are not translating into cash in the latest TTM window, which can constrain flexibility if it persists.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	14.16T	14.66T	13.32T	14.31T	11.76T	8.01T
Gross Profit	1.32T	1.29T	1.32T	1.40T	1.14T	811.47B
EBITDA	1.04T	1.65T	1.28T	1.23T	1.08T	553.18B
Net Income	867.57B	900.34B	1.06T	1.13T	914.72B	335.46B
Balance Sheet
Total Assets	19.92T	16.81T	16.90T	15.38T	14.92T	12.52T
Cash, Cash Equivalents and Short-Term Investments	858.58B	979.75B	902.72B	1.40T	2.13T	1.10T
Total Debt	5.81T	4.84T	4.78T	5.04T	4.88T	4.75T
Total Liabilities	11.24T	9.05T	9.13T	8.82T	9.13T	7.69T
Stockholders Equity	8.43T	7.55T	7.54T	6.37T	5.61T	4.57T
Cash Flow
Free Cash Flow	-422.86B	671.37B	569.65B	819.47B	621.37B	557.01B
Operating Cash Flow	723.68B	1.02T	864.42B	1.05T	806.90B	772.70B
Investing Cash Flow	-1.14T	-161.99B	-427.55B	-178.34B	-181.19B	-322.47B
Financing Cash Flow	297.47B	-749.60B	-1.01T	-634.68B	-614.33B	-486.96B

Mitsui & Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 528.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MITSY, the sentiment is Positive. The current price of 528.43 is below the 20-day moving average (MA) of 742.40, below the 50-day MA of 692.84, and below the 200-day MA of 532.52, indicating a bullish trend. The MACD of 24.58 indicates Negative momentum. The RSI at 70.10 is Negative, neither overbought nor oversold. The STOCH value of 97.99 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MITSY.

Mitsui & Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SEB	72 Outperform	$4.84B	8.64	10.05%	0.21%	10.31%	―
IRS	70 Outperform	$1.17B	6.33	27.21%	8.97%	2.00%	―
CRESY	68 Neutral	$824.99M	8.56	23.42%	10.18%	-11.13%	―
MITSY	66 Neutral	$112.77B	17.20	10.89%	2.35%	-0.56%	-6.81%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GFF	62 Neutral	$3.24B	12.77	38.69%	1.01%	-3.95%	-74.65%
MDU	57 Neutral	$4.17B	20.95	6.94%	2.76%	-57.80%	-57.40%