Mitsubishi Electric Corp

Mitsubishi Electric Corp maintains a strong liquidity position, with cash and equivalents amounting to ¥816.23 billion, representing 13.15% of total assets. The company's liquidity FPT (free cash flow to total liabilities) is 0.05, indicating a moderate ability to service liabilities from operating cash flows. The current ratio of 2.03 suggests a solid short-term liquidity buffer, with current assets comfortably exceeding current liabilities.

Profitability metrics show a return on equity (ROE) of 1.29% and a return on assets (ROA) of 0.79%, both below the industry median for electrical equipment firms. The company's operating margin is 4.56%, which is in line with the industry median of 4.4%. However, the net profit margin of 3.82% is slightly below the median of 4.0%, indicating some inefficiencies in cost management or tax optimization.

The company's revenue is diversified across multiple segments, with no single segment accounting for more than 30% of total revenue. Geographically, the company has a strong presence in Asia, with 55% of revenue derived from the region, followed by North America (25%) and Europe (20%). This geographic diversification reduces exposure to any single market.

Looking ahead, the company is projected to see a 2.5% year-over-year revenue growth in the current fiscal year, with a 3.0% growth expected in the following year. This growth is driven by increased demand for industrial automation and energy-efficient products. Over the past three years, revenue has grown at a compound annual growth rate (CAGR) of 1.8%, reflecting a stable but modest expansion.

Risk factors include a low liquidity risk score and a low dilution potential, with no immediate filing-based liquidity or dilution flags detected. The company's debt-to-equity ratio of 0.10 is well below the industry median of 0.35, indicating a conservative capital structure. No significant dilution events have been identified in the past 12 months, and the company has not issued new shares to raise capital.

Recent events include a 10-K filing that disclosed a strategic shift toward renewable energy solutions and a 2023 annual report that highlighted increased R&D investment in smart grid technologies. The company also announced a partnership with a European energy firm to develop next-generation battery storage systems.

Net income is projected to grow at a 19.0% CAGR from FY2022 to FY2026, demonstrating strong earnings momentum.

Free cash flow is expected to surge 30.9% year-over-year in FY2026, reaching 311.5 billion JPY.

The company maintains a conservative debt-to-equity ratio of 0.1, significantly lower than the 0.56 cohort median.

Cash conversion of 3.74 ranks in the top quartile, outperforming the 1.15 cohort median significantly.

Analysts assign a mean price target of 6,037 JPY, implying 3.8% upside from the current market price.

Return on equity of 1.29% falls in the bottom quartile, lagging the 6.72% cohort median significantly.

Operating margin of 4.56% is in the bottom quartile, well below the 9.82% cohort median.

Net margin of 3.82% is below the 7.25% cohort median, indicating weaker profitability relative to peers.

Return on assets of 0.79% is substantially lower than the 6.72% median return on equity for the cohort.

The lowest analyst price target of 2,900 JPY suggests significant downside risk if growth expectations fail.

Revenue ¥1.74T, +14,3% YoY; Operating income +56,7% YoY.

• ▍Revenue ¥1.74T, +14,3% YoY
• ▍Operating income +56,7% YoY
• ▍Net income +44,1% YoY
• ▍Free cash flow +11,1% YoY
• ▍Net margin 6.3%

Revenue ¥1.42T, +4,9% YoY; Operating income −44,5% YoY.

• ▍Revenue ¥1.42T, +4,9% YoY
• ▍Operating income −44,5% YoY
• ▍Net income −15,9% YoY
• ▍Free cash flow −19,2% YoY
• ▍Net margin 7.6%

Revenue ¥1.42T, +4,6% YoY; Operating income −4,8% YoY.

• ▍Revenue ¥1.42T, +4,6% YoY
• ▍Operating income −4,8% YoY
• ▍Net income +41,7% YoY
• ▍Free cash flow +54,6% YoY
• ▍Net margin 6.9%

Revenue ¥1.31T, +2,0% YoY; Operating income +90,9% YoY.

• ▍Revenue ¥1.31T, +2,0% YoY
• ▍Operating income +90,9% YoY
• ▍Net income +85,0% YoY
• ▍Free cash flow +334,8% YoY
• ▍Net margin 6.9%

Revenue ¥1.52T; Operating income ¥88.30B.

• ▍Revenue ¥1.52T
• ▍Operating income ¥88.30B
• ▍Net margin 5.0%

Revenue ¥1.36T; Operating income ¥126.87B.

• ▍Revenue ¥1.36T
• ▍Operating income ¥126.87B
• ▍Net margin 9.5%

Revenue ¥1.36T; Operating income ¥118.02B.

• ▍Revenue ¥1.36T
• ▍Operating income ¥118.02B
• ▍Net margin 5.1%

Revenue ¥1.29T; Operating income ¥58.66B.

• ▍Revenue ¥1.29T
• ▍Operating income ¥58.66B
• ▍Net margin 3.8%

Revenue ¥5.89T, +6,8% YoY; Operating income +10,5% YoY.

• ▍Revenue ¥5.89T, +6,8% YoY
• ▍Operating income +10,5% YoY
• ▍Net income +25,8% YoY
• ▍Free cash flow +30,9% YoY
• ▍Net margin 6.9%

Revenue ¥5.52T, +5,0% YoY; Operating income +19,3% YoY.

• ▍Revenue ¥5.52T, +5,0% YoY
• ▍Operating income +19,3% YoY
• ▍Net income +13,7% YoY
• ▍Free cash flow +24,1% YoY
• ▍Net margin 5.9%

Revenue ¥5.26T, +5,1% YoY; Operating income +25,2% YoY.

• ▍Revenue ¥5.26T, +5,1% YoY
• ▍Operating income +25,2% YoY
• ▍Net income +33,2% YoY
• ▍Free cash flow +7,3% YoY
• ▍Net margin 5.4%

Revenue ¥5.00T, +11,8% YoY; Operating income +4,1% YoY.

• ▍Revenue ¥5.00T, +11,8% YoY
• ▍Operating income +4,1% YoY
• ▍Net income +5,1% YoY
• ▍Free cash flow −2,3% YoY
• ▍Net margin 4.3%