Want to see JP:7976 full AI Analyst Report?
Top Page
Mitsubishi Pencil Company, Limited
(7976)
Select Model
Select Model
Rating:77Outperform
Price Target:
¥3,172.00
▲(45.71% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by strong underlying financial strength (notably a conservative balance sheet and multi-year revenue growth), tempered by the sharp deterioration in free cash flow and the latest-year earnings cooling. Technical indicators add support with a clear uptrend and positive momentum, while valuation is acceptable but not especially cheap given the P/E and a moderate dividend yield.
Positive Factors
Conservative balance sheet
Very low historical leverage and expanding equity provide a durable financial buffer. This conservatism supports credit optionality, cushions cyclical demand swings, and permits strategic reinvestment or M&A without immediate solvency pressure even if near-term earnings weaken.
Negative Factors
Free cash flow deterioration
A shift to negative free cash flow is a durable concern: it reduces internal funding for capex, dividends or share buybacks and increases reliance on external financing. If sustained, it undermines liquidity cushions and constrains strategic flexibility over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low historical leverage and expanding equity provide a durable financial buffer. This conservatism supports credit optionality, cushions cyclical demand swings, and permits strategic reinvestment or M&A without immediate solvency pressure even if near-term earnings weaken.
Read all positive factors
Mitsubishi Pencil Company, Limited (7976) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥154.99B
Dividend Yield1.82%
Average Volume (3M)77.10K
Price to Earnings (P/E)22.2
Beta (1Y)0.47
Revenue Growth5.24%
EPS Growth-2.53%
CountryJP
Employees2,871
SectorIndustrials
Sector Strength72
IndustryBusiness Equipment & Supplies
Share Statistics
EPS (TTM)137.45
Shares Outstanding60,042,590
10 Day Avg. Volume74,810
30 Day Avg. Volume77,100
Financial Highlights & Ratios
PEG Ratio-0.43
Price to Book (P/B)0.86
Price to Sales (P/S)1.32
P/FCF Ratio-33.74
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)150.7
Revenue Forecast (FY)¥96.58B
Mitsubishi Pencil Company, Limited Business Overview & Revenue Model
Company Description
Mitsubishi Pencil Co., Ltd. is a Japanese enterprise specializing in the production and distribution of various writing tools. Its extensive catalog features a broad selection of items, such as traditional and colored pencils, smooth-gliding water...
How the Company Makes Money
Mitsubishi Pencil primarily makes money by manufacturing and selling writing instruments and stationery products. Its core revenue stream is product sales of branded writing instruments (e.g., ballpoint pens, gel pens, mechanical pencils, pencils,...
Mitsubishi Pencil Company, Limited Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 94.33B | 89.81B | 88.82B | 74.80B | 69.00B | 61.89B |
| Gross Profit | 46.27B | 43.41B | 46.84B | 38.45B | 33.95B | 30.67B |
| EBITDA | 16.75B | 15.15B | 16.64B | 17.02B | 13.10B | 10.80B |
| Net Income | 7.35B | 6.24B | 11.27B | 10.17B | 6.95B | 5.66B |
Balance Sheet | ||||||
| Total Assets | 200.86B | 183.00B | 176.88B | 146.01B | 130.80B | 123.79B |
| Cash, Cash Equivalents and Short-Term Investments | 48.18B | 37.07B | 41.35B | 57.91B | 48.07B | 45.24B |
| Total Debt | 29.06B | 14.90B | 12.16B | 3.47B | 4.17B | 4.85B |
| Total Liabilities | 61.73B | 42.57B | 46.17B | 29.14B | 25.79B | 26.12B |
| Stockholders Equity | 137.40B | 138.53B | 128.36B | 114.67B | 103.09B | 95.88B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -3.52B | 2.51B | 9.91B | 5.70B | 4.40B |
| Operating Cash Flow | 0.00 | 2.41B | 6.47B | 11.76B | 7.28B | 8.37B |
| Investing Cash Flow | 0.00 | -7.92B | -27.91B | -71.00M | -1.65B | -3.94B |
| Financing Cash Flow | 0.00 | -1.87B | 4.11B | -3.72B | -3.90B | -2.75B |
Mitsubishi Pencil Company, Limited Technical Analysis
Positive
2177.00
Price Trends
2724.03
Positive
2600.54
Positive
2405.06
Positive
Market Momentum
81.65
Negative
73.30
Negative
90.89
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7976, the sentiment is Positive. The current price of 2177 is below the 20-day moving average (MA) of 2859.45, below the 50-day MA of 2724.03, and below the 200-day MA of 2405.06, indicating a bullish trend. The MACD of 81.65 indicates Negative momentum. The RSI at 73.30 is Negative, neither overbought nor oversold. The STOCH value of 90.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7976.
Mitsubishi Pencil Company, Limited Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥154.99B | 22.19 | ― | 2.09% | 5.24% | -2.53% | |
77 Outperform | ¥383.53B | 17.43 | 8.43% | 2.95% | 9.28% | 17.72% | |
76 Outperform | ¥243.70B | 14.94 | ― | 2.56% | 6.53% | 13.54% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | ¥23.26B | 22.90 | ― | 1.88% | -1.27% | 135.35% | |
51 Neutral | ¥3.89B | 29.20 | ― | 2.03% | -1.38% | -64.66% | |
48 Neutral | ¥3.08B | -21.92 | ― | ― | -4.74% | 86.23% |
* Industrials Sector Average
JP:7976
Mitsubishi Pencil Company, Limited
3,050.00
1,073.05
54.28%
JP:7984
Kokuyo Co
909.40
24.01
2.71%
JP:7846
Pilot Corporation
2,036.00
553.26
37.31%
JP:7962
King Jim Co., Ltd.
814.00
-5.96
-0.73%
JP:7975
LIHIT LAB., INC.
1,148.00
9.53
0.84%
JP:7992
Sailor Pen Co., Ltd.
105.00
-24.00
-18.60%
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.