Mitachi Co., Ltd. (3321) AI Stock Analysis

Mitachi Co., Ltd.

(TSE/TYO:3321)

Select Model

Rating:70Outperform

Price Target:JPY 1,744.00▲(11.22% Upside)

Action:upgraded

Date:09/18/26

The overall score of 70 is driven primarily by very attractive valuation metrics (low P/E, high dividend yield) and bullish technical momentum. The company's financial performance is a secondary factor, with strong revenue growth from an acquisition being tempered by compressed profit margins. The balance sheet remains stable, and cash flow has recovered, supporting the positive outlook.

Positive Factors

Revenue and earnings expansionRevenue increased from ¥33.9B in 2021 to ¥120.3B in 2026, while net income rose from ¥0.67B to ¥2.13B. This expanding operating scale can support stronger supplier and customer relevance and provides a broader base for earnings over the next several quarters.

Negative Factors

Sharp increase in leverageDebt increased dramatically from the company’s historically low-leverage profile and remains elevated at roughly 60% of equity. This raises financial risk, increases the importance of sustained earnings and cash generation, and can constrain future capital allocation.

Mitachi Co., Ltd. (3321) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 12.63B
Dividend Yield: 5.05%
Average Volume (3M): 40.99K
Price to Earnings (P/E): 6.1
Beta (1Y): 1.03
Revenue Growth: 6.46%
EPS Growth: 2.52%
Country: Japan
Employees: 624
Sector: Technology
Sector Strength: 61
Industry: Hardware, Equipment & Parts

Mitachi Co., Ltd. Business Overview & Revenue Model

Company Description

Mitachi Co., Ltd., along with its affiliated entities, functions as an electronics trading enterprise, serving both domestic Japanese and global markets. The company's core business involves the distribution of a broad spectrum of electronic devices,...

How the Company Makes Money

Mitachi primarily makes money through (1) distribution/trading margins and (2) solution/service income tied to supporting manufacturers’ production and development needs. A core revenue stream is the sale of electronic components and related products...

Mitachi Co., Ltd. Financial Statement Overview

Summary

Financial performance is mixed. Revenue has tripled due to a transformative acquisition, but profitability margins are compressed (gross margin 5.0%, net margin 1.8%). The balance sheet is solid with manageable leverage (D/E 0.60), and cash flow rebounded strongly in 2026, indicating healthy cash conversion post-acquisition. Overall, strong top-line growth is offset by thin profitability.

Income Statement

58Neutral

Balance Sheet

68Positive

Cash Flow

62Positive

Financial statement breakdown
Breakdown	TTM	May 2025	May 2024	May 2023	May 2022	May 2021
Income Statement
Total Revenue	124.18B	120.33B	98.18B	38.90B	43.27B	42.52B
Gross Profit	6.19B	6.06B	5.29B	4.30B	5.34B	4.50B
EBITDA	3.17B	2.96B	2.62B	1.97B	2.71B	2.33B
Net Income	2.08B	2.13B	1.70B	1.22B	1.69B	1.47B
Balance Sheet
Total Assets	39.71B	40.94B	40.03B	20.13B	20.80B	20.21B
Cash, Cash Equivalents and Short-Term Investments	5.34B	5.21B	4.39B	3.12B	4.00B	2.64B
Total Debt	8.43B	10.80B	11.99B	579.44M	1.71B	1.86B
Total Liabilities	21.42B	23.01B	24.32B	5.64B	7.71B	8.58B
Stockholders Equity	18.24B	17.88B	15.68B	14.47B	13.09B	11.63B
Cash Flow
Free Cash Flow	2.32B	2.32B	-9.44B	801.79M	2.01B	-246.30M
Operating Cash Flow	2.48B	2.48B	-9.22B	951.28M	2.12B	-156.98M
Investing Cash Flow	-69.10M	-69.10M	-214.30M	-272.26M	-81.44M	-14.26M
Financing Cash Flow	-1.93B	-1.93B	10.77B	-1.64B	-653.72M	805.58M

Mitachi Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price1568.00

Price Trends

50DMA1708.54Negative

100DMA1689.52Negative

200DMA1852.74Negative

Market Momentum

MACD-37.83Positive

RSI34.49Neutral

STOCH20.65Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3321, the sentiment is Negative. The current price of 1568.00 is below the 20-day moving average (MA) of 1685.50, below the 50-day MA of 1708.54, and below the 200-day MA of 1852.74, indicating a bearish trend. The MACD of -37.83 indicates Positive momentum. The RSI at 34.49 is Neutral, neither overbought nor oversold. The STOCH value of 20.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3321.

Mitachi Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:3321 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6859	78Outperform	JPY 94.85B	15.54	―	2.71%	8.67%	11.23%
JP:6866	78Outperform	JPY 120.91B	15.44	―	2.48%	16.76%	35.84%
JP:7745	72Outperform	JPY 80.05B	14.40	―	2.05%	2.11%	-19.76%
JP:6853	71Outperform	JPY 18.86B	19.14	―	2.91%	2.51%	0.17%
JP:3321	70Outperform	JPY 12.64B	6.06	―	5.05%	6.46%	2.52%
JP:6626	68Neutral	JPY 26.31B	7.91	―	2.03%	3.68%	-4.84%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

* Technology Sector Average

Performance Comparison

JP:3321 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3321	Mitachi Co., Ltd.	1585.00	-54.18	-3.31%
JP:6626	Semitec Corporation	2314.00	-12.57	-0.54%
JP:6853	Kyowa Electronic Instruments Co., Ltd.	739.00	64.11	9.50%
JP:6859	Espec Corp.	4240.00	842.42	24.79%
JP:6866	Hioki E.E.Corporation	8860.00	3080.71	53.31%
JP:7745	A&D HOLON Holdings Company. Limited	2923.00	939.43	47.36%

Mitachi Co., Ltd. Corporate Events

Mitachi Posts Higher Sales but Lower Profits and Trims Dividend Outlook

Oct 2, 2026

Mitachi Co., Ltd. reported consolidated net sales of ¥31.6 billion for the three months ended August 31, 2026, up 13.9% year on year, while operating profit declined 3.8% and profit attributable to owners of parent fell 8.2%, pushing basic earni...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 18, 2026

Mitachi Co., Ltd. AI Stock Analysis