Mitsubishi Electric Corp. Fundamental Analysis (JPX: 6503.T)
Mitsubishi Electric Corp. Fundamental Analysis (JPX: 6503.T)
Mitsubishi Electric Corp. (JPX: 6503.T) shows weak financial fundamentals with a PE ratio of 24.70, profit margin of 7.02%, and ROE of 9.88%. The company generates $6078.6B in annual revenue with moderate year-over-year growth of 5.02%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 64.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze 6503.T's fundamental strength across five key dimensions:
Efficiency Score
Weak6503.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent6503.T trades at attractive valuation levels.
Growth Score
Excellent6503.T delivers strong and consistent growth momentum.
Financial Health Score
Excellent6503.T maintains a strong and stable balance sheet.
Profitability Score
Weak6503.T struggles to sustain strong margins.
Key Financial Metrics
Is 6503.T Expensive or Cheap?
P/E Ratio
6503.T trades at 24.70 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 6503.T's PEG of 1.38 indicates fair valuation.
Price to Book
The market values Mitsubishi Electric Corp. at 2.29 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 14.93 times EBITDA. This signals the market has high growth expectations.
How Well Does 6503.T Make Money?
Net Profit Margin
For every $100 in sales, Mitsubishi Electric Corp. keeps $7.02 as profit after all expenses.
Operating Margin
Core operations generate 9.08 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.88 in profit for every $100 of shareholder equity.
ROA
Mitsubishi Electric Corp. generates $5.89 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Mitsubishi Electric Corp. produces operating cash flow of $771.08B, showing steady but balanced cash generation.
Free Cash Flow
Mitsubishi Electric Corp. produces free cash flow of $536.84B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $262.33 in free cash annually.
FCF Yield
6503.T converts 5.12% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
24.70
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.38
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.29
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.73
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.99
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How 6503.T Stacks Against Its Sector Peers
| Metric | 6503.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 24.70 | 28.27 | Better (Cheaper) |
| ROE | 9.88% | 1119.00% | Weak |
| Net Margin | 7.02% | -20989.00% (disorted) | Weak |
| Debt/Equity | 0.07 | 0.80 | Strong (Low Leverage) |
| Current Ratio | 1.99 | 21.75 | Neutral |
| ROA | 5.89% | -1330684.00% (disorted) | Weak |
6503.T outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Mitsubishi Electric Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
27.52%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
50.56%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
18.69%
Industry Style: Cyclical, Value, Infrastructure
High Growth