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Mitsubishi Electric
(6503)
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Rating:68Neutral
Price Target:
¥5,606.00
▼(-3.33% Downside)
Action:Reiterated
Date:08/01/26
The score is driven primarily by solid and improving financial health (better margins, strong balance sheet, improving ROE) tempered by moderate growth and cash-flow variability. Technicals are mildly positive based on moving averages, but valuation is a meaningful headwind due to the high P/E and low dividend yield.
Positive Factors
Low leverage and improving ROE
Very low leverage gives Mitsubishi Electric substantial financial flexibility to fund investment, withstand demand fluctuations, and pursue strategic initiatives without heavy debt obligations. Improving returns on equity also indicate that shareholder capital is being used more productively over time.
Negative Factors
Moderate revenue growth
Revenue growth is positive but modest, indicating that the company is expanding at a measured pace rather than benefiting from rapid demand acceleration. This can limit operating leverage, reduce the speed of earnings compounding, and make sustained improvement more dependent on margins and execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage and improving ROE
Very low leverage gives Mitsubishi Electric substantial financial flexibility to fund investment, withstand demand fluctuations, and pursue strategic initiatives without heavy debt obligations. Improving returns on equity also indicate that shareholder capital is being used more productively over time.
Read all positive factors
Mitsubishi Electric (6503) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥10.81T
Dividend Yield1.17%
Average Volume (3M)5.38M
Price to Earnings (P/E)24.8
Beta (1Y)1.39
Revenue Growth9.57%
EPS Growth18.11%
CountryJP
Employees150,000
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)207.56
Shares Outstanding2,113,201,700
10 Day Avg. Volume6,177,150
30 Day Avg. Volume5,383,480
Financial Highlights & Ratios
PEG Ratio0.90
Price to Book (P/B)2.28
Price to Sales (P/S)1.73
P/FCF Ratio26.87
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥7,100.00Price Target Upside22.43% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)265.38
Revenue Forecast (FY)¥6.42T
Mitsubishi Electric Business Overview & Revenue Model
Company Description
Mitsubishi Electric Corporation develops, manufactures, sells, and distributes electrical and electronic equipment in Japan, North America, rest of Asia, Europe, and internationally. It operates through Infrastructure, Industry & Mobility, Life, B...
How the Company Makes Money
Mitsubishi Electric primarily makes money by manufacturing and selling equipment and systems across multiple business domains, with revenue generally generated through (1) product sales, (2) large-scale system and project delivery, and (3) recurri...
Mitsubishi Electric Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
70
Positive
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.08T | 5.89T | 5.52T | 5.26T | 5.00T | 4.48T |
| Gross Profit | 2.09T | 1.89T | 1.69T | 1.55T | 1.41T | 1.26T |
| EBITDA | 742.36B | 766.78B | 598.52B | 512.47B | 476.19B | 458.86B |
| Net Income | 426.65B | 407.70B | 324.08B | 284.95B | 213.91B | 203.48B |
Balance Sheet | ||||||
| Total Assets | 7.25T | 7.36T | 6.38T | 6.17T | 5.58T | 5.11T |
| Cash, Cash Equivalents and Short-Term Investments | 929.15B | 731.61B | 757.33B | 765.38B | 645.87B | 727.18B |
| Total Debt | 337.98B | 363.28B | 462.29B | 501.29B | 505.05B | 394.71B |
| Total Liabilities | 2.53T | 2.73T | 2.30T | 2.30T | 2.22T | 2.01T |
| Stockholders Equity | 4.57T | 4.48T | 3.95T | 3.74T | 3.24T | 2.98T |
Cash Flow | ||||||
| Free Cash Flow | 536.87B | 379.83B | 261.92B | 239.72B | -8.85B | 126.31B |
| Operating Cash Flow | 771.13B | 575.99B | 455.90B | 415.48B | 166.71B | 282.37B |
| Investing Cash Flow | -412.21B | -344.40B | -206.16B | -105.47B | -150.38B | -117.56B |
| Financing Cash Flow | -305.94B | -304.72B | -250.92B | -228.76B | -117.72B | -238.63B |
Mitsubishi Electric Technical Analysis
Negative
5799.00
Price Trends
5425.84
Negative
5660.40
Negative
5509.56
Negative
Market Momentum
-53.59
Negative
44.48
Neutral
32.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6503, the sentiment is Negative. The current price of 5799 is above the 20-day moving average (MA) of 5172.34, above the 50-day MA of 5425.84, and above the 200-day MA of 5509.56, indicating a bearish trend. The MACD of -53.59 indicates Negative momentum. The RSI at 44.48 is Neutral, neither overbought nor oversold. The STOCH value of 32.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6503.
Mitsubishi Electric Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥2.14T | 20.51 | 14.09% | 1.44% | 10.40% | 15.01% | |
68 Neutral | ¥10.81T | 24.78 | 9.88% | 1.17% | 9.57% | 18.11% | |
68 Neutral | ¥9.50T | 43.45 | 38.53% | 0.75% | 27.94% | 99.60% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | ¥552.47B | 12.88 | 11.35% | 1.63% | 5.85% | 33.34% | |
63 Neutral | ¥1.25T | 34.48 | 7.43% | 1.46% | 5.82% | -37.13% | |
56 Neutral | ¥2.88T | 32.17 | 22.61% | 0.40% | 12.86% | 165.14% |
* Industrials Sector Average
JP:6503
Mitsubishi Electric
5,143.00
1,260.55
32.47%
JP:6504
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JP:6506
Yaskawa Electric
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753.63
18.70%
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2,676.51
97.81%
Mitsubishi Electric Corporate Events
Mitsubishi Electric Moves to Fully Acquire PCI Energy Solutions in Smart Energy Push
Aug 20, 2026
Mitsubishi Electric announced an agreement to wholly acquire PCI Energy Solutions as part of a broader push to strengthen its smart energy operations. The deal aligns with a defined smart energy strategy, suggesting PCI’s portfolio and custo...
Mitsubishi Electric to Acquire PCI Energy Solutions in USD1.4 Billion Smart Energy Expansion
Aug 20, 2026
Mitsubishi Electric has agreed to acquire 100% of PCI Energy Solutions for USD1.4 billion, turning the U.S. energy software specialist into a wholly owned subsidiary. The deal, signed on August 20, 2026 and expected to close later this year pendin...
Mitsubishi Electric Outlines Q1 FY2027 Results and Forecast Framework
Jul 31, 2026
Mitsubishi Electric released a briefing outlining its consolidated financial results for the first quarter of fiscal 2027, ending March 31, 2027. The document also presents key points, current financial performance, and forecasts alongside supplem...
Mitsubishi Electric Posts Strong Q1 FY2027 Results With Higher Profit and Equity Ratio
Jul 31, 2026
Mitsubishi Electric reported strong results for the first quarter of fiscal 2027, with revenue rising 14.0% year-on-year to ¥1,497.1 billion and operating profit up 24.6% to ¥139.5 billion, reflecting broad-based business momentum. Adjus...
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.