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7211: Dividend Payout And Margin Outlook Will Support Stronger Share Performance

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7211
AnalystHighTarget
Not Invested
Published 30 Jun 2025

Update shared on 13 Dec 2025

Fair value Increased 0.58%
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AnalystHighTarget's Fair Value
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1Y
-8.8%
7D
3.3%

Analysts have raised their price target on Mitsubishi Motors by approximately ¥3.06 to reflect slightly faster expected revenue growth, improved profit margins, and a modestly higher future earnings multiple, despite a small uptick in the assumed discount rate.

What's in the News

  • Mitsubishi Motors announced a second quarter dividend of JPY 5.00 per share for the period ended September 30, 2025, with cash dividends scheduled for delivery on December 3, 2025 (company announcement).
  • The company revised its earnings guidance for the fiscal year ending March 31, 2026, now expecting net sales of JPY 2,820,000 million, operating profit of JPY 70,000 million, and profit attributable to owners of the parent of JPY 10,000 million, implying basic EPS of JPY 7.47 (company guidance).

Valuation Changes

  • The fair value estimate has risen slightly from approximately ¥528 to about ¥531 per share, reflecting modestly higher expected fundamentals.
  • The discount rate has increased marginally from 11.02 percent to 11.10 percent, implying a slightly higher required return applied to future cash flows.
  • The revenue growth assumption has been raised moderately from about 5.60 percent to roughly 6.08 percent, indicating a somewhat stronger top line outlook.
  • The net profit margin forecast has increased meaningfully from around 4.91 percent to about 5.84 percent, suggesting improved profitability expectations.
  • The future P/E multiple has edged up from roughly 4.86x to about 5.10x, signaling a modestly higher valuation being placed on projected earnings.

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Disclaimer

AnalystHighTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystHighTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystHighTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.