Mitsubishi Electric Corp. (6503) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Mitsubishi Electric Corp.

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NIDEC Corp.

Why is Mitsubishi Electric Corp. ?

Weak Long Term Fundamental Strength with a 15.92% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Operating profit has grown by an annual rate 15.92% of over the last 5 years

With a growth in Net Profit of 20.78%, the company declared Very Positive results in Jun 26

The company has declared positive results for the last 2 consecutive quarters
OPERATING CASH FLOW(Y) Highest at JPY 771,125 MM
ROCE(HY) Highest at 10.01%
NET PROFIT(Q) Highest at JPY 109,817 MM

With ROE of 9.54%, it has a attractive valuation with a 2.98 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 60.76%, its profits have risen by 7.8% ; the PEG ratio of the company is 4
At the current price, the company has a high dividend yield of 0

Majority shareholders : FIIs

Consistent Returns over the last 3 years

Along with generating 60.76% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

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.

60.76%

972.91

41.92%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.45%

EBIT Growth (5y)

15.92%

EBIT to Interest (avg)

40.35

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.13

Sales to Capital Employed (avg)

1.28

Tax Ratio

20.22%

Dividend Payout Ratio

27.73%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

10.35%

ROE (avg)

7.66%

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

2.98

EV to EBIT

27.29

EV to EBITDA

17.95

EV to Capital Employed

3.17

EV to Sales

2.12

PEG Ratio

4.03

Dividend Yield

ROCE (Latest)

11.62%

ROE (Latest)

9.54%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly 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

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 771,125 MM

ROCE(HY)

Highest at 10.01%

NET PROFIT(Q)

Highest at JPY 109,817 MM

RAW MATERIAL COST(Y)

Fallen by -3.67% (YoY

CASH AND EQV(HY)

Highest at JPY 1,660,757 MM

DEBT-EQUITY RATIO (HY)

Lowest at -12.93 %

INVENTORY TURNOVER RATIO(HY)

Highest at 2.98 times

PRE-TAX PROFIT(Q)

Highest at JPY 142,613 MM

EPS(Q)

Highest at JPY 53.66

-2What is not working for the Company

INTEREST(Q)

At JPY 2,203 MM has Grown at 78.09%

Here's what is working for Mitsubishi Electric Corp.

Net Profit

Highest at JPY 109,817 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Operating Cash Flow

Highest at JPY 771,125 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Pre-Tax Profit

Highest at JPY 142,613 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

EPS

Highest at JPY 53.66

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 1,660,757 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -12.93 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 2.98 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -3.67% (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 2,203 MM has Grown at 78.09%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)