Mitsubishi Corp. (8058) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Nagase & Co., Ltd.

Hanwa Co., Ltd.

MonotaRO Co., Ltd.

Iwatani Corp.

Workman Co., Ltd.

Mitsubishi Corp.

Daiichikosho Co., Ltd.

Why is Mitsubishi Corp. ?

Poor Management Efficiency with a low ROCE of 4.99%

The company has been able to generate a Return on Capital Employed (avg) of 4.99% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Capital Employed (avg) of 4.99% signifying low profitability per unit of total capital (equity and debt)

High Debt company with Weak Long Term Fundamental Strength

Negative results in Jun 25

PRE-TAX PROFIT(Q) At JPY 114,955 MM has Fallen at -56.61%
NET PROFIT(9M) At JPY 540,233.44 MM has Grown at -37.93%
ROCE(HY) Lowest at 8.66%

With ROCE of 2.98%, it has a very attractive valuation with a 1.17 Enterprise value to Capital Employed

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 43.53%, its profits have risen by 3.1% ; the PEG ratio of the company is 1.5
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Mitsubishi Corp. should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Trading & Distributors)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Mitsubishi Corp. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Mitsubishi Corp.

43.53%

551.21

26.74%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.73%

EBIT Growth (5y)

0.73%

EBIT to Interest (avg)

6.76

Debt to EBITDA (avg)

3.66

Net Debt to Equity (avg)

0.33

Sales to Capital Employed (avg)

1.40

Tax Ratio

30.04%

Dividend Payout Ratio

42.20%

Pledged Shares

Institutional Holding

0.03%

ROCE (avg)

4.99%

ROE (avg)

12.06%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.23

EV to EBIT

39.33

EV to EBITDA

17.34

EV to Capital Employed

1.17

EV to Sales

0.78

PEG Ratio

1.50

Dividend Yield

0.01%

ROCE (Latest)

2.98%

ROE (Latest)

11.51%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-18What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY 114,955 MM has Fallen at -56.61%

NET PROFIT(9M)

At JPY 540,233.44 MM has Grown at -37.93%

ROCE(HY)

Lowest at 8.66%

INVENTORY TURNOVER RATIO(HY)

Lowest at 8.44%

RAW MATERIAL COST(Y)

Grown by 26.87% (YoY

NET SALES(Q)

Lowest at JPY 4,218,706 MM

Here's what is not working for Mitsubishi Corp.

Pre-Tax Profit

At JPY 114,955 MM has Fallen at -56.61%

over average net sales of the previous four periods of JPY 264,954.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 328,912.71 MM has Grown at -46.13%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Sales

At JPY 4,218,706 MM has Fallen at -9.36%

over average net sales of the previous four periods of JPY 4,654,400.25 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Pre-Tax Profit

Lowest at JPY 114,955 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Inventory Turnover Ratio

Lowest at 8.44% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Sales

Lowest at JPY 4,218,706 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Raw Material Cost

Grown by 26.87% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales