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Mitsubishi Pencil Company, Limited
(7976)
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Rating:77Outperform
Price Target:
¥3,751.00
▲(72.30% 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
Multi-year revenue growth
A sustained revenue uptrend indicates continued demand for the company’s products and expanding sales over multiple years. This provides a durable base for reinvestment, supports operating scale, and suggests the business is not relying solely on a single short-lived growth event.
Negative Factors
Negative free cash flow
The shift to negative free cash flow weakens the company’s ability to fund growth and shareholder returns from internally generated cash. If sustained, higher reinvestment needs or working-capital requirements could reduce financial flexibility despite the otherwise conservative balance sheet.
Read all positive and negative factors
Positive Factors
Negative Factors
Multi-year revenue growth
A sustained revenue uptrend indicates continued demand for the company’s products and expanding sales over multiple years. This provides a durable base for reinvestment, supports operating scale, and suggests the business is not relying solely on a single short-lived growth event.
Read all positive factors
Mitsubishi Pencil Company, Limited (7976) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥171.20B
Dividend Yield1.65%
Average Volume (3M)90.88K
Price to Earnings (P/E)24.0
Beta (1Y)0.49
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. Volume65,980
30 Day Avg. Volume90,876
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)172.1
Revenue Forecast (FY)¥96.83B
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
2912.52
Positive
2725.09
Positive
2498.01
Positive
Market Momentum
104.71
Negative
73.16
Negative
88.85
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 3141.60, below the 50-day MA of 2912.52, and below the 200-day MA of 2498.01, indicating a bullish trend. The MACD of 104.71 indicates Negative momentum. The RSI at 73.16 is Negative, neither overbought nor oversold. The STOCH value of 88.85 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥383.10B | 17.17 | 8.81% | 2.83% | 9.28% | 17.72% | |
77 Outperform | ¥171.20B | 24.05 | ― | 1.65% | 5.24% | -2.53% | |
76 Outperform | ¥254.53B | 15.47 | ― | 1.94% | 6.53% | 13.54% | |
66 Neutral | ¥22.84B | 22.57 | ― | 1.87% | -1.27% | 135.29% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
53 Neutral | ¥3.05B | -21.51 | ― | ― | -4.74% | 86.23% | |
51 Neutral | ¥3.97B | 29.73 | ― | 2.14% | -1.38% | -64.66% |
* Industrials Sector Average
JP:7976
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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.