Mitsubishi Electric
Market Cap
JP¥3.4t
Last Updated
2021/02/27 19:24 UTC
Data Sources
Company Financials +
Executive Summary
Mitsubishi Electric Corporation develops, manufactures, distributes, and sells electrical and electronic equipment worldwide. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet and good value.
Similar Companies
Share Price & News
How has Mitsubishi Electric's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MEL is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: MEL's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
-2.4%
MEL
-7.9%
GB Electrical
-2.3%
GB Market
1 Year Return
14.4%
MEL
165.4%
GB Electrical
1.1%
GB Market
Return vs Industry: MEL underperformed the UK Electrical industry which returned 162.4% over the past year.
Return vs Market: MEL exceeded the UK Market which returned -0.2% over the past year.
Shareholder returns
| MEL | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.4% | -7.9% | -2.3% |
| 30 Day | -4.7% | -12.9% | -0.1% |
| 90 Day | -0.04% | 31.6% | 4.2% |
| 1 Year | 17.3%14.4% | 166.9%165.4% | 7.1%1.1% |
| 3 Year | -3.6%-10.8% | 280.2%266.2% | 9.7%-3.4% |
| 5 Year | 44.6%28.3% | 450.5%419.4% | 36.9%10.5% |
Long-Term Price Volatility Vs. Market
How volatile is Mitsubishi Electric's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is Mitsubishi Electric undervalued compared to its fair value and its price relative to the market?
7.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MEL (¥1622) is trading below our estimate of fair value (¥1745.62)
Significantly Below Fair Value: MEL is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: MEL is good value based on its PE Ratio (19.8x) compared to the GB Electrical industry average (30x).
PE vs Market: MEL is good value based on its PE Ratio (19.8x) compared to the UK market (24x).
Price to Earnings Growth Ratio
PEG Ratio: MEL is poor value based on its PEG Ratio (1.1x)
Price to Book Ratio
PB vs Industry: MEL is good value based on its PB Ratio (1.3x) compared to the GB Electrical industry average (3x).
Next Steps
Future Growth
How is Mitsubishi Electric forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
18.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MEL's forecast earnings growth (18.1% per year) is above the savings rate (1%).
Earnings vs Market: MEL's earnings (18.1% per year) are forecast to grow slower than the UK market (23.3% per year).
High Growth Earnings: MEL's earnings are forecast to grow, but not significantly.
Revenue vs Market: MEL's revenue (4.1% per year) is forecast to grow slower than the UK market (7.3% per year).
High Growth Revenue: MEL's revenue (4.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MEL's Return on Equity is forecast to be low in 3 years time (9.6%).
Next Steps
Past Performance
How has Mitsubishi Electric performed over the past 5 years?
-3.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MEL has high quality earnings.
Growing Profit Margin: MEL's current net profit margins (4.1%) are lower than last year (5%).
Past Earnings Growth Analysis
Earnings Trend: MEL's earnings have declined by 3.5% per year over the past 5 years.
Accelerating Growth: MEL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: MEL had negative earnings growth (-25.3%) over the past year, making it difficult to compare to the Electrical industry average (20.1%).
Return on Equity
High ROE: MEL's Return on Equity (6.7%) is considered low.
Next Steps
Financial Health
How is Mitsubishi Electric's financial position?
Financial Position Analysis
Short Term Liabilities: MEL's short term assets (¥2,616.4B) exceed its short term liabilities (¥1,350.9B).
Long Term Liabilities: MEL's short term assets (¥2,616.4B) exceed its long term liabilities (¥454.0B).
Debt to Equity History and Analysis
Debt Level: MEL's debt to equity ratio (8.3%) is considered satisfactory.
Reducing Debt: MEL's debt to equity ratio has reduced from 18.9% to 8.3% over the past 5 years.
Debt Coverage: MEL's debt is well covered by operating cash flow (221.9%).
Interest Coverage: MEL earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is Mitsubishi Electric current dividend yield, its reliability and sustainability?
2.55%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MEL's dividend (2.55%) is higher than the bottom 25% of dividend payers in the UK market (1.48%).
High Dividend: MEL's dividend (2.55%) is low compared to the top 25% of dividend payers in the UK market (4.52%).
Stability and Growth of Payments
Stable Dividend: MEL's dividend payments have been volatile in the past 10 years.
Growing Dividend: MEL's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (63.1%), MEL's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.8yrs
Average management tenure
CEO
Takeshi Sugiyama (64 yo)
2.83yrs
Tenure
JP¥170,000,000
Compensation
Mr. Takeshi Sugiyama has been the Chief Executive Officer, Representative Executive Officer and President at Mitsubishi Electric Corporation since April 1, 2018. Mr. Sugiyama joined Mitsubishi Electric Cor...
CEO Compensation Analysis
Compensation vs Market: Takeshi's total compensation ($USD1.59M) is below average for companies of similar size in the UK market ($USD3.90M).
Compensation vs Earnings: Takeshi's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 2.83yrs | JP¥170.00m | 0.0033% ¥ 110.7m | |
| Executive Officer of Accounting & Finance and Director | no data | no data | 0.00061% ¥ 20.5m | |
| Executive Officer of Auditing | 2.83yrs | no data | 0.00092% ¥ 31.0m | |
| Director | no data | no data | 0.00063% ¥ 21.2m | |
| Senior Vice President | no data | JP¥111.00m | 0.0027% ¥ 90.2m | |
| Executive Officer | 0.67yr | JP¥125.00m | 0.0022% ¥ 74.4m | |
| Senior Vice President | 1.08yrs | no data | 0.00061% ¥ 20.5m | |
| Senior Vice President | no data | no data | 0.0010% ¥ 33.6m | |
| Senior Vice President | no data | no data | 0.00085% ¥ 28.6m | |
| Senior Vice President | no data | no data | 0.00062% ¥ 20.9m | |
| Managing Executive Officer | no data | no data | 0.00029% ¥ 9.8m | |
| Executive Officer | 0.33yr | no data | 0.000090% ¥ 3.0m |
2.8yrs
Average Tenure
60.5yo
Average Age
Experienced Management: MEL's management team is considered experienced (2.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 2.83yrs | JP¥170.00m | 0.0033% ¥ 110.7m | |
| Executive Officer of Accounting & Finance and Director | no data | no data | 0.00061% ¥ 20.5m | |
| Director | no data | no data | 0.00063% ¥ 21.2m | |
| Executive Officer | 0.67yr | JP¥125.00m | 0.0022% ¥ 74.4m | |
| Independent Outside Director | no data | no data | 0.00025% ¥ 8.4m | |
| Independent Outside Director | 1.67yrs | no data | 0.000060% ¥ 2.0m | |
| Chairman of the Board | 2.83yrs | JP¥220.00m | 0.0056% ¥ 187.8m | |
| Independent Outside Director | no data | no data | 0.00055% ¥ 18.5m | |
| Independent Outside Director | no data | no data | 0.00050% ¥ 16.8m | |
| Director | 0.67yr | JP¥111.00m | 0.0024% ¥ 81.1m | |
| Independent Outside Director | no data | no data | 0.00040% ¥ 13.5m | |
| Director | no data | no data | 0.00052% ¥ 17.5m |
1.2yrs
Average Tenure
64yo
Average Age
Experienced Board: MEL's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Mitsubishi Electric Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Mitsubishi Electric Corporation
- Ticker: MEL
- Exchange: LSE
- Founded: 1921
- Industry: Heavy Electrical Equipment
- Sector: Capital Goods
- Market Cap: JP¥3.365t
- Shares outstanding: 2.15b
- Website: https://www.mitsubishielectric.com
Number of Employees
Location
- Mitsubishi Electric Corporation
- Tokyo Building
- 2-7-3, Marunouchi
- Tokyo
- 100-8310
- Japan
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 6503 | TSE (The Tokyo Stock Exchange) | Yes | Common Stock | JP | JPY | Jan 1975 |
| MEL | LSE (London Stock Exchange) | Yes | Common Stock | GB | JPY | Jan 1975 |
| MIE1 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1975 |
| MIEL.F | OTCPK (Pink Sheets LLC) | Yes | Common Stock | US | USD | Jan 1975 |
| MITS N | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jan 1975 |
| MIEL.Y | OTCPK (Pink Sheets LLC) | ADR | US | USD | Jan 1975 |
Biography
Mitsubishi Electric Corporation develops, manufactures, distributes, and sells electrical and electronic equipment worldwide. The company offers turbine generators, hydraulic turbine generators, nuclear po...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/02/27 19:24 |
| End of Day Share Price | 2021/02/26 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/03/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.