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Mitsubishi Chemical Holdings
(4188)
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Rating:57Neutral
Price Target:
¥1,230.00
▲(1.78% Upside)
Action:Reiterated
Date:08/01/26
The score is held back primarily by very weak current profitability and low returns alongside meaningful leverage, despite positive cash generation. Technicals are a relative positive with the share price above major moving averages, while valuation is mixed: a moderate dividend yield is offset by a negative P/E that signals poor earnings quality/visibility.
Positive Factors
Diversified end markets
Serving mobility, electronics, healthcare, food and packaging spreads demand risk across cyclical and secular growth sectors. This diversification supports more stable revenue mix and long-term resilience as weaknesses in one end market can be offset by strength in others, helping through cycles.
Negative Factors
Very thin profitability
Extremely low margins mean the company has minimal buffer against raw-material swings, price declines, or demand shocks. Low operating profitability limits reinvestment, weakens returns, and makes sustained improvement dependent on structural margin recovery or significant cost reductions.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified end markets
Serving mobility, electronics, healthcare, food and packaging spreads demand risk across cyclical and secular growth sectors. This diversification supports more stable revenue mix and long-term resilience as weaknesses in one end market can be offset by strength in others, helping through cycles.
Read all positive factors
Mitsubishi Chemical Holdings (4188) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.68T
Dividend Yield2.61%
Average Volume (3M)6.24M
Price to Earnings (P/E)―
Beta (1Y)1.07
Revenue Growth-7.96%
EPS Growth106.67%
CountryJP
Employees56,678
SectorBasic Materials
Sector Strength58
IndustryChemicals
Share Statistics
EPS (TTM)-30.09
Shares Outstanding1,441,467,200
10 Day Avg. Volume6,901,340
30 Day Avg. Volume6,237,190
Financial Highlights & Ratios
PEG Ratio-1.43
Price to Book (P/B)0.70
Price to Sales (P/S)0.33
P/FCF Ratio8.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥1,417.50Price Target Upside17.29% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)101.52
Revenue Forecast (FY)¥4.05T
Mitsubishi Chemical Holdings Business Overview & Revenue Model
Company Description
Established in 2005 and headquartered in Tokyo, Japan, Mitsubishi Chemical Group Corporation operates globally, offering a vast array of products and specialized services. The company's diverse portfolio includes advanced performance materials, fu...
How the Company Makes Money
Mitsubishi Chemical Holdings makes money primarily by selling chemical and materials products and related services through its group companies, generating revenue across multiple end markets and geographies.
Key revenue streams typically include:...
Mitsubishi Chemical Holdings Earnings Call Summary
Earnings Call Date:Feb 06, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:Oct 30, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed performance. Highlights included strong cost management and performance in industrial gases and healthcare. However, significant challenges were noted in specialty and basic materials, as well as ongoing struggles in the MMA and carbon businesses.Positive Updates
Strong Financial Performance Amid Industry Downturn
MCG delivered a better-than-forecast core operating income of JPY 183.9 billion, and a positive cash flow of JPY 165.7 million, despite the prolonged chemical industry downturn.
Negative Updates
Specialty Materials and Basic Materials Challenges
Sales in Specialty Materials decreased by 6%, with profits dropping by 69% year-on-year. Basic Materials recorded a loss of JPY 10.4 billion, with sales down 13%.
Read all updates
Q3-2024 Updates
Positive
Negative
Strong Financial Performance Amid Industry Downturn
MCG delivered a better-than-forecast core operating income of JPY 183.9 billion, and a positive cash flow of JPY 165.7 million, despite the prolonged chemical industry downturn.
Read all positive updates
Company Guidance
During the third quarter earnings call for Mitsubishi Chemical Group, several financial metrics were highlighted by the executives. The company's core operating income for the year-to-date reached JPY 183.9 billion, surpassing forecasts despite the challenging economic conditions in the chemical industry. Strong positive cash flow was reported at JPY 165.7 million, with cost reductions amounting to JPY 82 billion, exceeding the annual target of JPY 80 billion. The balance sheet showed continued improvement with a net debt-to-equity ratio of 1.2. Revenue declined by 5% year-on-year to JPY 3,245.1 billion, while core operating income saw a 3% year-on-year increase. Specialty Materials experienced a significant 69% drop in profit, while Industrial Gases and the Healthcare sector reported profit increases of 45% and 177%, respectively. The average exchange rate was JPY 143.8 to the dollar, and naphtha prices fell 15% year-on-year to JPY 67,900. The company maintained its full-year earnings forecast, emphasizing ongoing cost management and restructuring efforts.Mitsubishi Chemical Holdings Financial Statement Overview
Summary
Income Statement
47
Neutral
Balance Sheet
52
Neutral
Cash Flow
56
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.83T | 3.70T | 4.41T | 4.39T | 4.63T | 3.98T |
| Gross Profit | 1.14T | 1.07T | 1.28T | 1.15T | 1.24T | 1.11T |
| EBITDA | 359.48B | 310.45B | 481.62B | 561.06B | 468.97B | 564.03B |
| Net Income | 49.91B | 11.83B | 45.02B | 119.60B | 96.07B | 177.16B |
Balance Sheet | ||||||
| Total Assets | 5.88T | 5.88T | 5.89T | 6.10T | 5.77T | 5.57T |
| Cash, Cash Equivalents and Short-Term Investments | 445.09B | 527.10B | 326.14B | 294.92B | 297.22B | 245.79B |
| Total Debt | 1.85T | 1.89T | 2.18T | 2.34T | 2.38T | 2.29T |
| Total Liabilities | 3.38T | 3.46T | 3.61T | 3.83T | 3.79T | 3.73T |
| Stockholders Equity | 1.82T | 1.76T | 1.74T | 1.76T | 1.56T | 1.46T |
Cash Flow | ||||||
| Free Cash Flow | 123.47B | 152.20B | 238.31B | 196.46B | 96.16B | 102.02B |
| Operating Cash Flow | 411.13B | 436.29B | 552.85B | 465.15B | 355.19B | 346.87B |
| Investing Cash Flow | 133.87B | 124.47B | -275.43B | -263.53B | -250.52B | -134.89B |
| Financing Cash Flow | -429.93B | -375.21B | -246.65B | -224.28B | -57.90B | -330.17B |
Mitsubishi Chemical Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | ¥11.42T | 22.55 | 10.90% | 1.95% | 0.62% | -2.72% | |
65 Neutral | ¥976.80B | 9.21 | 10.37% | 2.73% | -5.54% | 995.46% | |
64 Neutral | ¥2.19T | 11.34 | 9.51% | 2.76% | 4.03% | 61.70% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
57 Neutral | ¥1.68T | -41.13 | 2.76% | 2.76% | -7.96% | 106.67% | |
57 Neutral | ¥2.91T | 48.68 | 8.14% | 0.40% | 1.40% | 57.40% | |
57 Neutral | ¥845.01B | 15.17 | 6.64% | 3.85% | -0.63% | 15.92% |
* Basic Materials Sector Average
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Mitsubishi Chemical Holdings Corporate Events
Mitsubishi Chemical Group Raises First-Half Earnings Outlook on Strong Semiconductor Demand
Jul 31, 2026
Mitsubishi Chemical Group has sharply raised its forecast for consolidated results in the first half of the fiscal year ending March 31, 2027, projecting higher sales revenue and profitability compared with its May guidance. Sales are now expected...
Mitsubishi Chemical Group Details Q1 FY2026 Operational and Segment Performance
Jul 31, 2026
Mitsubishi Chemical Group Corporation has released its operational summary for the first quarter of the fiscal year ending March 31, 2027, outlining consolidated financial performance and segment data. The report covers sales revenue, core operati...
Mitsubishi Chemical Group Delivers Profit Surge in First Quarter, Keeps Dividend Outlook Intact
Jul 31, 2026
Mitsubishi Chemical Group reported a strong start to the fiscal year ending March 2027, with first-quarter sales rising 14% year on year to ¥1,004.2 billion and core operating income more than doubling. Net income attributable to owners of th...
Mitsubishi Chemical Corrects Graphical Error in FY2026 Results Without Changing Financial Data
Jun 22, 2026
Mitsubishi Chemical Group has disclosed that its previously published consolidated financial results for the fiscal year ended March 31, 2026, and its operational summary for FY2025 contained misstatements in a graphical presentation of profitabil...
Mitsubishi Chemical Group Weighs Petrochemicals Spin‑off for Industry Restructuring
May 25, 2026
Mitsubishi Chemical Group said its core subsidiary Mitsubishi Chemical Corporation has begun considering spinning off its basic chemicals business, centered on petrochemicals, into a wholly owned subsidiary to prepare for future mergers and broade...
Mitsubishi Chemical Group Sets Year-End Dividend at ¥16 Per Share for FY2025
May 20, 2026
Mitsubishi Chemical Group Corporation’s board has approved a year-end dividend of ¥16 per share for the fiscal year ended March 31, 2026, matching the previous year’s level and bringing the annual dividend to ¥32 per share. T...
Mitsubishi Chemical Group Misses Profit Forecast After Impairments, Executives Cut Pay
May 13, 2026
Mitsubishi Chemical Group reported that sales for the year ended March 31, 2026 slightly exceeded its earlier forecast, but core operating income and net profit fell well short after sizable impairment losses. The write-downs related to Soarnol pr...
Mitsubishi Chemical Group Posts Profit Slump but Holds Dividend and Signals Earnings Rebound
May 13, 2026
Mitsubishi Chemical Group reported a 6.2% decline in sales revenue to ¥3.70 trillion for the year ended March 31, 2026, with core operating income down slightly but operating income plunging 78.8% as income before taxes nearly flatlined. Net ...
Mitsubishi Chemical Group Maps Out FY2026 Strategy With Chemicals Growth Investments
May 13, 2026
Mitsubishi Chemical Group Corporation has issued an operational summary for the fiscal year ended March 31, 2026, detailing consolidated financial statements, segment performance, and cash flow and balance sheet positions. The release highlights t...
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.