Mitani Sangyo Co., Ltd. (8285) AI Stock Analysis

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Mitani Sangyo Co., Ltd.

(TSE/TYO:8285)

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Rating:86Outperform

Price Target:JPY 963.00▲(45.91% Upside)

Action:reiterated

Date:08/06/26

The overall score of 86 is driven primarily by an exceptionally attractive valuation and surging free cash flow generation. Technical indicators confirm sustained bullish momentum across all key moving averages, while a highly conservative balance sheet bolsters fundamental stability, comfortably offsetting the inherent risks of thin profit margins.

Positive Factors

Steady Revenue GrowthConsistent revenue expansion across multiple years indicates broadening business activity across the company’s trading and solutions operations. The stronger 2026 growth rate supports continued investment capacity and suggests the recent improvement is more durable than a single-period rebound.

Negative Factors

Margin PressureRevenue growth has not fully translated into peak profitability because gross and EBITDA margins remain below earlier levels. Persistent margin pressure could limit earnings conversion, reduce the benefit of additional sales, and make future profit growth more dependent on continued volume expansion.

Mitani Sangyo Co., Ltd. (8285) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 40.39B
Dividend Yield: 2.12%
Average Volume (3M): 75.96K
Price to Earnings (P/E): 11.1
Beta (1Y): 0.82
Revenue Growth: 6.05%
EPS Growth: 22.61%
Country: Japan
Employees: 3,569
Sector: General
Sector Strength: 55
Industry: Conglomerates

Mitani Sangyo Co., Ltd. Business Overview & Revenue Model

Company Description

Mitani Sangyo Co., Ltd., a Japanese firm established in 1928 and headquartered in Kanazawa, maintains a diverse business portfolio with both domestic and international operations across multiple sectors. In the chemical domain, the company provides a...

How the Company Makes Money

Mitani Sangyo generates revenue primarily through (1) product sales and distribution margins from trading businesses (e.g., chemicals and other industrial/construction-related materials) and (2) service revenue from its information systems business (...

Mitani Sangyo Co., Ltd. Financial Statement Overview

Summary

Mitani Sangyo demonstrates a rapidly strengthening financial profile with consistent top-line growth, aggressive deleveraging, and surging free cash flow. While net profit margins remain structurally thin at 2-3%, excellent cash conversion and a highly conservative debt-to-equity ratio of 0.20 provide a solid operational foundation.

Income Statement

78Positive

Balance Sheet

86Very Positive

Cash Flow

88Very Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	119.24B	117.53B	103.07B	95.86B	90.42B	84.43B
Gross Profit	22.73B	21.84B	19.14B	17.70B	15.67B	14.69B
EBITDA	5.25B	5.47B	4.04B	3.78B	3.15B	3.34B
Net Income	4.40B	3.63B	2.44B	2.07B	960.00M	1.43B
Balance Sheet
Total Assets	101.61B	101.53B	94.45B	95.52B	86.81B	86.46B
Cash, Cash Equivalents and Short-Term Investments	8.08B	9.03B	8.45B	8.87B	7.53B	6.92B
Total Debt	11.68B	11.56B	17.77B	18.96B	21.38B	21.73B
Total Liabilities	44.14B	44.56B	46.87B	48.36B	45.19B	46.17B
Stockholders Equity	57.27B	56.77B	47.38B	47.01B	41.49B	40.16B
Cash Flow
Free Cash Flow	0	7.32B	2.36B	4.63B	2.41B	-330.00M
Operating Cash Flow	0	8.56B	4.24B	5.60B	3.66B	1.09B
Investing Cash Flow	0	-660.00M	-1.48B	-869.00M	-1.45B	-2.09B
Financing Cash Flow	0	-7.42B	-3.20B	-3.81B	-1.54B	993.00M

Mitani Sangyo Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price660.00

Price Trends

50DMA776.70Negative

100DMA735.47Negative

200DMA709.69Negative

Market Momentum

MACD-20.76Positive

RSI27.82Positive

STOCH17.11Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8285, the sentiment is Negative. The current price of 660.00 is below the 20-day moving average (MA) of 750.60, below the 50-day MA of 776.70, and below the 200-day MA of 709.69, indicating a bearish trend. The MACD of -20.76 indicates Positive momentum. The RSI at 27.82 is Positive, neither overbought nor oversold. The STOCH value of 17.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8285.

Mitani Sangyo Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:8285 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:8285	86Outperform	JPY 42.79B	11.07	―	2.12%	6.05%	22.61%
JP:8020	83Outperform	JPY 377.78B	9.94	―	3.16%	3.58%	38.29%
JP:8057	82Outperform	JPY 122.99B	9.79	―	3.19%	26.31%	26.96%
JP:8014	78Outperform	JPY 104.34B	8.38	―	3.84%	2.92%	28.84%
JP:8088	74Outperform	JPY 456.27B	6.06	―	2.43%	4.90%	122.37%
JP:8078	73Outperform	JPY 378.57B	8.91	9.62%	3.69%	6.42%	-11.53%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:8285 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:8285	Mitani Sangyo Co., Ltd.	660.00	153.82	30.39%
JP:8078	Hanwa Co., Ltd.	1787.00	526.54	41.77%
JP:8014	Chori Co., Ltd.	4165.00	457.53	12.34%
JP:8020	Kanematsu Corporation	2188.00	654.67	42.70%
JP:8057	Uchida Yoko Co., Ltd.	2384.00	412.32	20.91%
JP:8088	Iwatani Corporation	1938.00	353.78	22.33%

Mitani Sangyo Co., Ltd. Corporate Events

Mitani Sangyo Reports Higher First-Half Profit and Dividend

Nov 2, 2026

Mitani Sangyo Co., Ltd. reported consolidated net sales of ¥56.78 billion for the six months ended September 30, 2026, up 0.3% year on year, while operating profit rose 9.2% to ¥1.85 billion. Ordinary profit increased 4.8% to ¥2.389 bi...

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.

Date of analysis: Aug 06, 2026

Mitani Sangyo Co., Ltd. AI Stock Analysis