Mitsui Chemicals (MITUY) AI Stock Analysis

Mitsui Chemicals

(Other OTC:MITUY)

Select Model

Rating:66Neutral

Price Target:$15.00▲(13.24% Upside)

Action:reiterated

Date:08/10/26

The score is anchored by steady-but-not-top-tier financial performance: improving operating margins and positive free cash flow are offset by thin/volatile net margins, meaningful leverage (debt-to-equity ~0.94), and pressured/uneven cash generation. Technicals are supportive with price above key moving averages and positive MACD, while valuation is reasonable (P/E ~12.3) with a solid dividend yield (~3.2%), adding to the overall attractiveness.

Positive Factors

Diversified specialty materials portfolioExposure to multiple end markets reduces dependence on any single customer or application. The mix of specialty, electronics, mobility, and healthcare materials can support more resilient demand and create opportunities for long-term product qualification.

Negative Factors

Meaningful leverage limits flexibilityDebt is close to shareholders' equity, leaving less flexibility if chemical demand, pricing, or operating rates weaken. Higher leverage can also constrain investment capacity and increase the importance of maintaining stable cash generation.

Mitsui Chemicals (MITUY) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $4.97B
Dividend Yield: 3.50%
Average Volume (3M): 613
Price to Earnings (P/E): 11.7
Beta (1Y): 0.71
Revenue Growth: -6.50%
EPS Growth: 333.40%
Country: US
Employees: 16,967
Sector: Basic Materials
Sector Strength: 61
Industry: Chemicals

Mitsui Chemicals Business Overview & Revenue Model

Company Description

Mitsui Chemicals, Inc. is a global chemical company with diverse operations spanning several key sectors, including mobility, healthcare, food and packaging, and fundamental chemical materials. The company's Mobility division focuses on developing ad...

How the Company Makes Money

Mitsui Chemicals primarily makes money by manufacturing chemical and materials products and selling them to business customers (B2B) under supply contracts and ongoing customer relationships. Revenue is generated across multiple product groups, typic...

Mitsui Chemicals Earnings Call Summary

Earnings Call Date:Feb 03, 2025(Q3-2024)|% Change Since:23.89%|Next Earnings Date:Nov 10, 2026

Earnings Call SentimentNegative

The earnings call highlighted growth in the Mobility Solutions segment and strong cash flow improvements, but these were overshadowed by significant declines in overall revenue, particularly in Basic & Green Materials, and continuing challenges in the semiconductor and smartphone markets. The forecast was also downgraded, indicating ongoing difficulties.

Positive Updates

Mobility Solutions Growth

Operating income before special items for the Mobility Solutions segment increased by JPY 2.1 billion year-over-year to JPY 41.0 billion, mainly due to growth in solar cell encapsulant materials and recovery in automotive applications.

Negative Updates

Overall Revenue Decline

Sales revenue for the April to December period was JPY 1.2745 trillion, a decrease of JPY 154.4 billion versus the same period last year. Operating income before special items decreased by JPY 37.9 billion.

Company Guidance

During the Mitsui Chemicals earnings call for the third quarter of fiscal year 2023, CFO Nakajima provided guidance indicating a challenging period due to sluggish demand in key markets and falling raw material prices, leading to a year-over-year decline in sales and profits. The company revised its full-year forecast for operating income before special items from JPY 112.0 billion to JPY 93.0 billion, and net income was adjusted downward to JPY 50.0 billion, partly due to restructuring losses. Despite these challenges, the annual dividend remains projected at JPY 140 per share. Significant declines in semiconductor and smartphone markets impacted the ICT solutions segment, while the Life & Healthcare segment struggled with inventory adjustments. Mobility Solutions showed resilience with a forecasted operating income increase to JPY 57.0 billion, driven by growth in solar cell materials and automotive recovery. Overall, Mitsui Chemicals anticipates a JPY 20.9 billion decrease in profit for the year, with free cash flows expected to be positive at JPY 24.0 billion.

Mitsui Chemicals Financial Statement Overview

Summary

Mid-cycle fundamentals with improving operating trends but notable risk factors. Revenue is up (+3.0% TTM) and profitability improved versus the latest annual period (operating margin ~6.6% TTM vs ~5.2% FY2026; EBITDA margin ~12.9% vs ~11.4%). However, net margin remains thin (~3.8% TTM) and historically volatile. Leverage is meaningful (debt-to-equity ~0.94 TTM) and cash flow is uneven: free cash flow is positive (~¥53.8B) but down sharply (~-36% TTM), with modest cash conversion (~30% of net income) and limited debt coverage (OCF/total debt ~0.26).

Income Statement

67Positive

Balance Sheet

62Positive

Cash Flow

52Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2026	Mar 2025	Mar 2024	Mar 2023
Income Statement
Total Revenue	1.78T	1.81T	1.77T	1.75T	1.88T	1.61T
Gross Profit	382.25B	388.29B	403.46B	370.80B	381.49B	378.74B
EBITDA	151.60B	186.12B	202.22B	183.24B	182.81B	216.99B
Net Income	15.08B	32.24B	36.45B	50.00B	82.94B	109.99B
Balance Sheet
Total Assets	2.11T	2.15T	2.16T	2.22T	2.07T	1.93T
Cash, Cash Equivalents and Short-Term Investments	180.51B	209.23B	183.91B	249.51B	262.72B	224.65B
Total Debt	749.27B	737.98B	743.40B	756.76B	738.25B	666.09B
Total Liabilities	1.15T	1.18T	1.17T	1.23T	1.18T	1.13T
Stockholders Equity	829.90B	848.28B	868.48B	862.85B	786.83B	712.65B
Cash Flow
Free Cash Flow	89.48B	62.09B	89.86B	7.35B	-36.62B	-23.63B
Operating Cash Flow	206.13B	200.50B	225.83B	161.34B	101.24B	92.58B
Investing Cash Flow	-141.26B	-165.01B	-145.41B	-123.94B	-106.34B	-205.23B
Financing Cash Flow	-63.43B	-74.44B	-78.00B	-26.02B	2.54B	89.22B

Mitsui Chemicals Technical Analysis

Technical Analysis SentimentNegative

Last Price13.25

Price Trends

50DMA13.56Negative

100DMA13.45Negative

200DMA13.35Negative

Market Momentum

MACD-0.07Negative

RSI47.23Neutral

STOCH87.00Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MITUY, the sentiment is Negative. The current price of 13.25 is below the 20-day moving average (MA) of 13.30, below the 50-day MA of 13.56, and below the 200-day MA of 13.35, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 47.23 is Neutral, neither overbought nor oversold. The STOCH value of 87.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MITUY.

Mitsui Chemicals Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

MITUY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MITUY	66Neutral	$4.91B	11.69	7.58%	3.50%	-6.50%	333.40%
DD	62Neutral	$18.91B	304.46	0.34%	1.71%	-34.44%	―
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
DOW	60Neutral	$25.12B	-27.54	-4.50%	4.03%	4.16%	20.86%
CE	56Neutral	$5.41B	-4.62	-28.81%	0.24%	-2.28%	27.94%
HUN	55Neutral	$1.69B	-9.69	-6.28%	3.63%	0.65%	45.36%
BAK	41Neutral	$465.20M	-0.48	46.16%	―	-1.40%	2.39%

* Basic Materials Sector Average

Performance Comparison

MITUY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
MITUY	Mitsui Chemicals (OTC)	13.25	1.42	11.96%
CE	Celanese	49.30	12.33	33.34%
BAK	Braskem Sa	1.16	-1.29	-52.65%
HUN	Huntsman	9.64	1.87	24.05%
DD	DuPont de Nemours, Inc.	140.05	37.78	36.94%
DOW	Dow Inc.	34.70	12.56	56.75%

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 10, 2026

Mitsui Chemicals AI Stock Analysis