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MEL

Mitsubishi ElectricLSE:MEL Stock Report

Last Price

JP¥1.47k

Market Cap

JP¥3.1t

7D

-5.3%

1Y

-10.1%

Updated

19 Jan, 2022

Data

Company Financials +
MEL fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance3/6
Financial Health6/6
Dividends3/6

MEL Stock Overview

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

Mitsubishi Electric Competitors

NVIDIA

NasdaqGS:NVDA

US$626.7b

Cisco Systems

NasdaqGS:CSCO

US$248.4b

Broadcom

NasdaqGS:AVGO

US$232.8b

Intel

NasdaqGS:INTC

US$218.1b

Price History & Performance

Summary of all time highs, changes and price drops for Mitsubishi Electric
Historical stock prices
Current Share PriceJP¥1,470.00
52 Week HighJP¥1,806.55
52 Week LowJP¥1,422.00
Beta0.99
1 Month Change1.31%
3 Month Change-7.40%
1 Year Change-10.12%
3 Year Change8.67%
5 Year Change-13.51%
Change since IPO161.57%

Recent News & Updates

Shareholder Returns

MELGB ElectricalGB Market
7D-5.3%-8.9%-1.0%
1Y-10.1%-35.0%8.3%

Return vs Industry: MEL exceeded the UK Electrical industry which returned -32.6% over the past year.

Return vs Market: MEL underperformed the UK Market which returned 8.3% over the past year.

Price Volatility

Is MEL's price volatile compared to industry and market?
MEL volatility
MEL Average Weekly Movement2.9%
Electrical Industry Average Movement6.3%
Market Average Movement5.0%
10% most volatile stocks in GB Market10.7%
10% least volatile stocks in GB Market2.5%

Stable Share Price: MEL is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: MEL's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1921145,653Kei Urumahttps://www.mitsubishielectric.com/en/index.html

Mitsubishi Electric Corporation develops, manufactures, distributes, and sells electrical and electronic equipment worldwide. The company offers turbine generators, hydraulic turbine generators, nuclear power plant and power electronics equipment, motors, transformers, circuit breakers, gas insulated switchgears, switch controls, surveillance-system control and security systems, transmission and distribution ICT systems, large display devices, locomotive and rolling stock electrical equipment, wireless and wired communications systems, network camera systems, elevators, escalators, building security and management systems, and others. It also provides programmable logic controllers, inverters, servomotors, human-machine interfaces, hoists, magnetic switches, circuit breakers, time and power meters, uninterruptible power supply, industrial fans, computerized numerical controllers, electrical-discharge and laser processing machines, industrial robots, clutches, automotive electrical equipment, electric powertrain systems, car electronics and mechatronics, car multimedia, and others.

Mitsubishi Electric Fundamentals Summary

How do Mitsubishi Electric's earnings and revenue compare to its market cap?
MEL fundamental statistics
Market CapJP¥3.12t
Earnings (TTM)JP¥249.74b
Revenue (TTM)JP¥4.43t

12.5x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MEL income statement (TTM)
RevenueJP¥4.43t
Cost of RevenueJP¥3.15t
Gross ProfitJP¥1.28t
ExpensesJP¥1.03t
EarningsJP¥249.74b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 02, 2022

Earnings per share (EPS)117.57
Gross Margin28.94%
Net Profit Margin5.64%
Debt/Equity Ratio7.8%

How did MEL perform over the long term?

See historical performance and comparison

Dividends

2.7%

Current Dividend Yield

43%

Payout Ratio

Valuation

Is Mitsubishi Electric undervalued compared to its fair value and its price relative to the market?

23.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MEL (¥1470) is trading below our estimate of fair value (¥1929.3)

Significantly Below Fair Value: MEL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MEL is good value based on its PE Ratio (12.5x) compared to the UK Electrical industry average (20x).

PE vs Market: MEL is good value based on its PE Ratio (12.5x) compared to the UK market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: MEL is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: MEL is good value based on its PB Ratio (1.1x) compared to the GB Electrical industry average (3.6x).


Future Growth

How is Mitsubishi Electric forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

8.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MEL's forecast earnings growth (8.4% per year) is above the savings rate (0.9%).

Earnings vs Market: MEL's earnings (8.4% per year) are forecast to grow slower than the UK market (12.1% per year).

High Growth Earnings: MEL's earnings are forecast to grow, but not significantly.

Revenue vs Market: MEL's revenue (2.8% per year) is forecast to grow slower than the UK market (4.8% per year).

High Growth Revenue: MEL's revenue (2.8% 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%).


Past Performance

How has Mitsubishi Electric performed over the past 5 years?

-2.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MEL has high quality earnings.

Growing Profit Margin: MEL's current net profit margins (5.6%) are higher than last year (4.3%).


Past Earnings Growth Analysis

Earnings Trend: MEL's earnings have declined by 2.9% per year over the past 5 years.

Accelerating Growth: MEL's earnings growth over the past year (39.7%) exceeds its 5-year average (-2.9% per year).

Earnings vs Industry: MEL earnings growth over the past year (39.7%) underperformed the Electrical industry 63%.


Return on Equity

High ROE: MEL's Return on Equity (9.1%) is considered low.


Financial Health

How is Mitsubishi Electric's financial position?


Financial Position Analysis

Short Term Liabilities: MEL's short term assets (¥2,754.8B) exceed its short term liabilities (¥1,401.2B).

Long Term Liabilities: MEL's short term assets (¥2,754.8B) exceed its long term liabilities (¥400.8B).


Debt to Equity History and Analysis

Debt Level: MEL has more cash than its total debt.

Reducing Debt: MEL's debt to equity ratio has reduced from 19.8% to 7.8% over the past 5 years.

Debt Coverage: MEL's debt is well covered by operating cash flow (198.5%).

Interest Coverage: MEL earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Mitsubishi Electric current dividend yield, its reliability and sustainability?

2.72%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MEL's dividend (2.72%) is higher than the bottom 25% of dividend payers in the UK market (1.41%).

High Dividend: MEL's dividend (2.72%) is low compared to the top 25% of dividend payers in the UK market (4.06%).


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 reasonably low payout ratio (42.9%), MEL's dividend payments are well 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?

0.8yrs

Average management tenure


CEO

Kei Uruma (62 yo)

0.50

Tenure

JP¥99,000,000

Compensation

Mr. Kei Uruma had been President at Mitsubishi Electric Turkey A.S. since January 2013. Mr. Uruma has been Chief Executive Officer and President at Mitsubishi Electric Corp. since July 2021 and serves as i...


CEO Compensation Analysis

Compensation vs Market: Kei's total compensation ($USD866.55K) is below average for companies of similar size in the UK market ($USD3.97M).

Compensation vs Earnings: Kei's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: MEL's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: MEL's board of directors are not considered experienced ( 1.6 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 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
  • Implied Market Cap: JP¥3.122t
  • Shares outstanding: 2.12b
  • Website: https://www.mitsubishielectric.com/en/index.html

Number of Employees


Location

  • Mitsubishi Electric Corporation
  • Tokyo Building
  • 2-7-3, Marunouchi
  • Tokyo
  • 100-8310
  • Japan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/19 21:10
End of Day Share Price2022/01/19 00:00
Earnings2021/09/30
Annual Earnings2021/03/31


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.