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
Positive results in Jun 25
- RAW MATERIAL COST(Y) Fallen by -8.09% (YoY)
- DEBT-EQUITY RATIO (HY) Lowest at -11.66 %
- PRE-TAX PROFIT(Q) At JPY 114,529 MM has Grown at 62.41%
3
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 76.23%, 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
4
Consistent Returns over the last 3 years
- Along with generating 76.23% 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 buy?
- 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.
76.23%
888.81
36.23%
Japan Nikkei 225
28.54%
1.11
25.75%
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)
1.32
Tax Ratio
22.68%
Dividend Payout Ratio
32.11%
Pledged Shares
0
Institutional Holding
0.15%
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
Bullish
Bullish
RSI
Bearish
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Bullish
Bullish
OBV
Mildly Bullish
No Trend
Technical Movement
5What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -8.09% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at -11.66 %
PRE-TAX PROFIT(Q)
At JPY 114,529 MM has Grown at 62.41%
NET PROFIT(Q)
At JPY 90,926 MM has Grown at 85.04%
-4What is not working for the Company
INTEREST(HY)
At JPY 11,569 MM has Grown at 162.51%
Here's what is working for Mitsubishi Electric Corp.
Pre-Tax Profit
At JPY 114,529 MM has Grown at 62.41%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 90,926 MM has Grown at 85.04%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Debt-Equity Ratio
Lowest at -11.66 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -8.09% (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 11,569 MM has Grown at 162.51%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)






