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Mitsubishi Motors Corporation (JP:7211)
:7211
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Mitsubishi Motors
(OTC:7211)
70Outperform
Mitsubishi Motors (7211) vs. S&P 500 (SPY)
Market Cap
$581.18B
Dividend Yield3.58%
Average Volume (3M)10.79M
Price to Earnings (P/E)7.0
Beta (1Y)1.10
Revenue Growth-0.06%
EPS Growth-39.78%
CountryJP
Employees28,982
SectorConsumer Cyclical
Sector Strength58
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)5.90
Shares Outstanding1,460,476,800
10 Day Avg. Volume8,474,640
30 Day Avg. Volume10,788,286
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$374.77Price Target Upside-2.73% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering3
Mitsubishi Motors Business Overview & Revenue Model
Company DescriptionMitsubishi Motors Corporation, together with its subsidiaries, develops, produces, and sells passenger vehicles, and their parts and components in Japan, Europe, North America, Oceania, rest of Asia, and internationally. The company operates through Automobile Business and Financial Service Business segments. Its products include EVs, PHEVs, SUVs and pickup trucks, passenger vehicles and minivans, and Kei-cars under the Mitsubishi brand. The company is also involved in the automobile transport and maintenance activities; auto sales financing, leasing, rental, and sale; investigation, testing, and research related to automobiles; manufacturing of automobile engines and transmissions, and press parts; and wholesale trading activities. Mitsubishi Motors Corporation was incorporated in 1970 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyMitsubishi Motors generates revenue primarily through the sale of vehicles, parts, and accessories. The company operates through several key revenue streams: the sale of new vehicles, which includes passenger cars and SUVs; the sale of parts and accessories, which supports vehicle maintenance and customization; and after-sales services, which encompass repairs and maintenance. Additionally, Mitsubishi Motors benefits from its strategic partnerships and alliances, such as its participation in the Renault-Nissan-Mitsubishi Alliance, which enhances its competitive position through shared technology, platforms, and supply chains. The company's earnings are also influenced by its focus on emerging markets, where it seeks to expand its presence and capture growing consumer demand for automobiles.
Mitsubishi Motors Financial Statement Overview
Summary
Mitsubishi Motors has demonstrated robust revenue growth and has strong operational margins, indicating healthy performance. The balance sheet is stable with low leverage, but cash flow conversion remains a challenge, limiting cash generation relative to net income. Overall, financial statements suggest a strong recovery with room for improvement in cash flow management.Income Statement
Mitsubishi Motors has demonstrated robust revenue growth since 2021, with revenues increasing from 1.46 trillion JPY in 2021 to 2.79 trillion JPY in 2024. The TTM (Trailing-Twelve-Months) gross profit margin stands at 19.34%, indicating efficient cost management, while the net profit margin is 3.14%, which, although positive, suggests room for improvement in profitability. The EBIT and EBITDA margins are solid at 4.99% and 7.42% respectively, showcasing healthy operational performance.―
Balance Sheet
The company's balance sheet reflects a strong equity position with a stockholders' equity of 971.72 billion JPY, contributing to an equity ratio of 42.44% in the TTM period. The debt-to-equity ratio is moderate at 0.33, indicating a balanced approach to leveraging debt for growth. Return on equity (ROE) is 8.77%, showing satisfactory returns generated on shareholder investments. Overall, the balance sheet demonstrates financial stability with manageable leverage.72
Cash Flow
The TTM shows a positive free cash flow, albeit reduced compared to previous annual periods. The operating cash flow to net income ratio is 0.35, revealing a challenge in converting earnings into cash. The free cash flow to net income ratio is 0.04, suggesting limited cash generation relative to net income. Despite improvements since 2021, cash flow management remains an area for enhancement to support future growth projects.―
| Breakdown | ||||
| Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.79T | 2.46T | 2.04T | 1.46T | 2.27T | Gross Profit |
| 609.10B | 522.80B | 362.45B | 156.46B | 337.51B | EBIT |
| 190.97B | 190.50B | 87.33B | -95.32B | 12.79B | EBITDA |
| 255.32B | 232.53B | 154.88B | -226.99B | 82.48B | Net Income Common Stockholders |
| 154.71B | 168.73B | 74.04B | -312.32B | -25.78B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 674.23B | 595.96B | 511.50B | 455.72B | 399.61B | Total Assets |
| 2.45T | 2.20T | 1.93T | 1.86T | 1.94T | Total Debt |
| 492.36B | 428.28B | 480.53B | 483.32B | 299.39B | Net Debt |
| -181.88B | -167.68B | -30.97B | 27.61B | -100.22B | Total Liabilities |
| 1.41T | 1.37T | 1.30T | 1.33T | 1.15T | Stockholders Equity |
| 1.01T | 801.17B | 606.97B | 508.26B | 773.01B |
| Cash Flow | Free Cash Flow | |||
| 13.96B | 93.93B | 30.92B | -133.40B | -110.59B | Operating Cash Flow |
| 140.81B | 173.58B | 118.11B | -41.54B | 18.79B | Investing Cash Flow |
| -138.87B | -53.15B | -69.12B | -101.32B | -105.71B | Financing Cash Flow |
| 37.67B | -61.87B | -10.23B | 168.29B | 9.62B |
Mitsubishi Motors Technical Analysis
Neutral
385.30
Price Trends
402.10
Negative
422.15
Negative
415.79
Negative
Market Momentum
-1.43
Negative
53.72
Neutral
77.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7211, the sentiment is Neutral. The current price of 385.3 is above the 20-day moving average (MA) of 376.92, below the 50-day MA of 402.10, and below the 200-day MA of 415.79, indicating a neutral trend. The MACD of -1.43 indicates Negative momentum. The RSI at 53.72 is Neutral, neither overbought nor oversold. The STOCH value of 77.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7211.
Mitsubishi Motors Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Performance Comparison
JP:7211
Mitsubishi Motors
385.30
-71.15
-15.59%
GB:TYT
Toyota Motor
2,706.00
-757.70
-21.88%
FUJHF
SUBARU
17.24
-3.28
-15.98%
HNDAF
Honda Motor Co
10.20
-1.00
-8.93%
NSANF
Nissan Motor Co
2.50
-1.22
-32.80%
SZKMF
Suzuki Motor
12.81
1.71
15.41%
Mitsubishi Motors Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q3-2024)
| % Change Since: -15.02%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong performance in North America and the domestic market, along with notable achievements like the Design Car of the Year award and the start of overseas EV production. However, these positives were offset by global sales volume declines, challenges in the ASEAN region, and increased costs affecting profit, leading to a balanced overall sentiment.Q3-2024 Updates
Positive Updates
Increase in Net Sales and Operating Profit
Net sales increased 14% year-on-year to JPY 263.9 billion, and operating profit increased 4% year-on-year to JPY 160.1 billion with an OP margin of 7.8%.
North America and Domestic Market Growth
The North American market showed robust retail sales and increased fleet demand, with improved inventory levels and strong sales momentum for the OUTLANDER series. The domestic Japanese market also recorded a significant year-over-year increase due to resolving vehicle supply shortages.
Design Car of the Year Award
The Delica Mini won the Design Car of the Year award at Japan Car of the Year 2023-2024, marking the first time the company received this award.
First Overseas EV Production
The company started production of the L100EV, a light commercial electric vehicle, in Indonesia, indicating a strategic move to meet growing EV demand in the ASEAN region.
Negative Updates
Decrease in Global Sales Volume
Global sales volume decreased 7% year-on-year to 585,000 units, affected by transportation capacity issues and sluggish demand in certain regions.
Challenges in ASEAN Region
The ASEAN region faced lower-than-expected demand due to inflation, high interest rates, and intensified price competition, leading to an 8% year-on-year decrease in retail sales volume.
Profit Deterioration Due to Costs
Sales expenses and procurement costs negatively impacted operating profit by JPY 22.1 billion and JPY 29 billion, respectively, due to increased advertisement expenses, shipping costs, and inflation.
Thailand Market Struggles
The market in Thailand saw a 40% year-on-year decline in TIV, particularly affecting the pickup segment, due to strict automobile loan screening.
Company Guidance
During the third quarter of FY 2023 earnings call for Mitsubishi Motors, Kentaro Matsuoka outlined the company's financial performance and strategic initiatives. Despite resolving vehicle supply shortages caused by semiconductor and vessel constraints, demand remained below expectations in some regions. Mitsubishi achieved a 14% year-on-year increase in net sales to JPY 263.9 billion, while operating profit rose by 4% year-on-year to JPY 160.1 billion with an operating profit margin of 7.8%. Ordinary profit reached JPY 166 billion, and net income was JPY 102.8 billion, influenced by restructuring costs in China. Retail sales volume decreased by 7% year-on-year to 585,000 units due to logistical challenges and sluggish demand. The year-on-year operating profit improvement was driven by a JPY 64.7 billion increase from volume and mix/selling price, despite a JPY 22.1 billion reduction from increased sales expenses and a JPY 29 billion deterioration from shipping and factory costs. Additionally, R&D expenses grew by JPY 5.7 billion, and other expenses increased by JPY 17.8 billion. Currency fluctuations had a favorable effect of JPY 16.3 billion. The company plans to maintain its profit forecast amid a challenging business environment, while focusing on new product launches and a midterm plan to roll out 12 new models, including seven electrified vehicles, by 2025.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.