Why is Mitsubishi Electric Corp. ?
1
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 39.33
2
Poor long term growth as Operating profit has grown by an annual rate 8.95% of over the last 5 years
3
Flat results in Dec 25
- INTEREST(Q) At JPY 1,641 MM has Grown at 14.12%
- PRE-TAX PROFIT(Q) At JPY 83,736 MM has Fallen at -45.13%
- DEBTORS TURNOVER RATIO(HY) Lowest at 4.07 times
4
With ROE of 8.78%, it has a very attractive valuation with a 1.56 Price to Book Value
- 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 86.69%, its profits have risen by 16.8% ; the PEG ratio of the company is 1
- At the current price, the company has a high dividend yield of 0
5
Majority shareholders : Non Institution
6
Consistent Returns over the last 3 years
- Along with generating 86.69% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in each of the last 3 annual periods
How much should you hold?
- Overall Portfolio exposure to Mitsubishi Electric Corp. should be less than 10%
- Overall Portfolio exposure to Electronics & Appliances should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Mitsubishi Electric Corp. for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Mitsubishi Electric Corp.
86.69%
976.67
39.10%
Japan Nikkei 225
40.96%
1.35
28.28%
Quality key factors
Factor
Value
Sales Growth (5y)
4.35%
EBIT Growth (5y)
8.95%
EBIT to Interest (avg)
39.33
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.10
Sales to Capital Employed (avg)
1.31
Tax Ratio
22.68%
Dividend Payout Ratio
32.11%
Pledged Shares
0
Institutional Holding
0.07%
ROCE (avg)
9.80%
ROE (avg)
7.66%
Valuation Key Factors 
Factor
Value
P/E Ratio
18
Industry P/E
Price to Book Value
1.56
EV to EBIT
15.30
EV to EBITDA
9.63
EV to Capital Employed
1.62
EV to Sales
1.04
PEG Ratio
0.95
Dividend Yield
0.02%
ROCE (Latest)
10.59%
ROE (Latest)
8.78%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
No Trend
OBV
Bullish
Bullish
Technical Movement
4What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -4.64% (YoY
CASH AND EQV(HY)
Highest at JPY 1,582,077 MM
OPERATING PROFIT(Q)
Highest at JPY 198,254 MM
OPERATING PROFIT MARGIN(Q)
Highest at 13.93 %
-5What is not working for the Company
INTEREST(Q)
At JPY 1,641 MM has Grown at 14.12%
PRE-TAX PROFIT(Q)
At JPY 83,736 MM has Fallen at -45.13%
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.07 times
Here's what is working for Mitsubishi Electric Corp.
Operating Profit
Highest at JPY 198,254 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 13.93 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Cash and Eqv
Highest at JPY 1,582,077 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by -4.64% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Mitsubishi Electric Corp.
Interest
At JPY 1,641 MM has Grown at 14.12%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Pre-Tax Profit
At JPY 83,736 MM has Fallen at -45.13%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Debtors Turnover Ratio
Lowest at 4.07 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio






