LSE:MEL

Stock Analysis Report

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Executive Summary

Mitsubishi Electric Corporation develops, manufactures, distributes, and sells electrical and electronic equipment worldwide. More Details


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

MELIndustryMarket
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 Year17.3%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 Year44.6%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

NamePositionTenureCompensationOwnership
Takeshi Sugiyama
President2.83yrsJP¥170.00m0.0033%
¥ 110.7m
Tadashi Kawagoishi
Executive Officer of Accounting & Finance and Directorno datano data0.00061%
¥ 20.5m
Takakazu Murozono
Executive Officer of Auditing2.83yrsno data0.00092%
¥ 31.0m
Shinji Harada
Directorno datano data0.00063%
¥ 21.2m
Yasuyuki Ito
Senior Vice Presidentno dataJP¥111.00m0.0027%
¥ 90.2m
Kei Uruma
Executive Officer0.67yrJP¥125.00m0.0022%
¥ 74.4m
Satoshi Matsushita
Senior Vice President1.08yrsno data0.00061%
¥ 20.5m
Hiroshi Onishi
Senior Vice Presidentno datano data0.0010%
¥ 33.6m
Yoshikazu Miyata
Senior Vice Presidentno datano data0.00085%
¥ 28.6m
Tadashi Matsumoto
Senior Vice Presidentno datano data0.00062%
¥ 20.9m
Yoshihisa Hara
Managing Executive Officerno datano data0.00029%
¥ 9.8m
Satoshi Kusakabe
Executive Officer0.33yrno data0.000090%
¥ 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

NamePositionTenureCompensationOwnership
Takeshi Sugiyama
President2.83yrsJP¥170.00m0.0033%
¥ 110.7m
Tadashi Kawagoishi
Executive Officer of Accounting & Finance and Directorno datano data0.00061%
¥ 20.5m
Shinji Harada
Directorno datano data0.00063%
¥ 21.2m
Kei Uruma
Executive Officer0.67yrJP¥125.00m0.0022%
¥ 74.4m
Kazunori Watanabe
Independent Outside Directorno datano data0.00025%
¥ 8.4m
Takashi Oyamada
Independent Outside Director1.67yrsno data0.000060%
¥ 2.0m
Masaki Sakuyama
Chairman of the Board2.83yrsJP¥220.00m0.0056%
¥ 187.8m
Hiroshi Obayashi
Independent Outside Directorno datano data0.00055%
¥ 18.5m
Mitoji Yabunaka
Independent Outside Directorno datano data0.00050%
¥ 16.8m
Takashi Sakamoto
Director0.67yrJP¥111.00m0.0024%
¥ 81.1m
Hiroko Koide
Independent Outside Directorno datano data0.00040%
¥ 13.5m
Masahiko Sagawa
Directorno datano data0.00052%
¥ 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6503TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1975
MELLSE (London Stock Exchange)YesCommon StockGBJPYJan 1975
MIE1DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1975
MIEL.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1975
MITS NBMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1975
MIEL.YOTCPK (Pink Sheets LLC)ADRUSUSDJan 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/27 19:24
End of Day Share Price2021/02/26 00:00
Earnings2020/12/31
Annual Earnings2020/03/31


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.