TSE:6503

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Mitsubishi Electric

Executive Summary

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


Snowflake Analysis

Flawless balance sheet second-rate dividend payer.


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: 6503 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.1%

6503

2.5%

JP Electrical

3.4%

JP Market


1 Year Return

-1.7%

6503

-4.1%

JP Electrical

0.6%

JP Market

Return vs Industry: 6503 exceeded the JP Electrical industry which returned -7% over the past year.

Return vs Market: 6503 matched the JP Market which returned -2.9% over the past year.


Shareholder returns

6503IndustryMarket
7 Day2.1%2.5%3.4%
30 Day4.3%10.6%7.2%
90 Day-4.8%-2.9%-1.6%
1 Year1.1%-1.7%-2.2%-4.1%3.2%0.6%
3 Year-3.4%-10.7%0.5%-5.2%6.9%-0.5%
5 Year-9.3%-19.5%6.9%-2.9%8.4%-3.5%

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?

13.18x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 6503 (¥1363.5) is trading above our estimate of fair value (¥1217.27)

Significantly Below Fair Value: 6503 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 6503 is poor value based on its PE Ratio (13.2x) compared to the Electrical industry average (12x).

PE vs Market: 6503 is good value based on its PE Ratio (13.2x) compared to the JP market (14.5x).


Price to Earnings Growth Ratio

PEG Ratio: 6503 is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: 6503 is overvalued based on its PB Ratio (1.2x) compared to the JP Electrical industry average (0.7x).


Next Steps

Future Growth

How is Mitsubishi Electric forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

7.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6503's forecast earnings growth (7.7% per year) is above the savings rate (0.05%).

Earnings vs Market: 6503's earnings (7.7% per year) are forecast to grow slower than the JP market (11.9% per year).

High Growth Earnings: 6503's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6503's revenue (2.6% per year) is forecast to grow slower than the JP market (3.2% per year).

High Growth Revenue: 6503's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6503's Return on Equity is forecast to be low in 3 years time (8.2%).


Next Steps

Past Performance

How has Mitsubishi Electric performed over the past 5 years?

-0.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6503 has high quality earnings.

Growing Profit Margin: 6503's current net profit margins (5%) are lower than last year (5%).


Past Earnings Growth Analysis

Earnings Trend: 6503's earnings have declined by -0.2% per year over the past 5 years.

Accelerating Growth: 6503's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6503 had negative earnings growth (-2.1%) over the past year, making it difficult to compare to the Electrical industry average (-17.8%).


Return on Equity

High ROE: 6503's Return on Equity (9.2%) is considered low.


Next Steps

Financial Health

How is Mitsubishi Electric's financial position?


Financial Position Analysis

Short Term Liabilities: 6503's short term assets (¥2,628.0B) exceed its short term liabilities (¥1,402.7B).

Long Term Liabilities: 6503's short term assets (¥2,628.0B) exceed its long term liabilities (¥468.2B).


Debt to Equity History and Analysis

Debt Level: 6503's debt to equity ratio (10.2%) is considered satisfactory.

Reducing Debt: 6503's debt to equity ratio has reduced from 18.5% to 10.2% over the past 5 years.

Debt Coverage: 6503's debt is well covered by operating cash flow (152.9%).

Interest Coverage: 6503 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

2.93%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 6503's dividend (2.93%) is higher than the bottom 25% of dividend payers in the JP market (1.52%).

High Dividend: 6503's dividend (2.93%) is low compared to the top 25% of dividend payers in the JP market (3.55%).


Stability and Growth of Payments

Stable Dividend: 6503's dividend payments have been volatile in the past 10 years.

Growing Dividend: 6503's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.7%), 6503'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?

2.1yrs

Average management tenure


CEO

Takeshi Sugiyama (63yo)

2.08yrs

Tenure

JP¥119,000,000

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 ($USD0.00) is below average for companies of similar size in the JP market ($USD1.88M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Takeshi Sugiyama
President2.08yrsJP¥119.00mno data
Yasuyuki Ito
Senior Vice Presidentno dataJP¥111.00m0.0021% ¥62.4m
Kei Uruma
Executive Officer2.08yrsJP¥125.00m0.0016% ¥49.3m
Tadashi Kawagoishi
Executive Officer of Accounting & Finance and Directorno datano data0.00034% ¥10.3m
Shinji Harada
Directorno datano data0.00043% ¥13.1m
Satoshi Matsushita
Senior Vice President0.33yrno data0.00045% ¥13.7m
Yoshihisa Hara
Managing Executive Officerno datano data0.000030% ¥913.2k

2.1yrs

Average Tenure

60yo

Average Age

Experienced Management: 6503's management team is considered experienced (2.1 years average tenure).


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: 6503
  • Exchange: TSE
  • Founded: 1921
  • Industry: Heavy Electrical Equipment
  • Sector: Capital Goods
  • Market Cap: JP¥3.044t
  • 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, nuclear power plant and power electronics equipment, motors, transformers, circuit breakers, gas insulated switchgears, switch controls, display devices, surveillance-system control and security systems, transmission and distribution ICT systems, large display devices, locomotive and rolling stock electrical equipment, 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, car electronics and mechatronics, car multimedia, and others. In addition, the company offers wireless and wired communications systems, network camera systems, satellite communications and radar equipment, satellites, antennas, missile and fire control systems, broadcasting and information systems equipment, data transmission devices, network security systems, systems integration products, and others; and power modules, high-frequency devices, optical and LCD devices, and others. Further, it provides air conditioners, chillers, showcases, compressors, refrigeration units, air-to-water heat pump boilers, ventilators, photovoltaic systems, hot water supply systems, IH cooking heaters, LED and fluorescent lamps, indoor lighting, LCD televisions, refrigerators, electric fans, dehumidifiers, air purifiers, cleaners, jar rice cookers, microwave ovens, and others. Additionally, the company offers procurement, logistics, real estate, advertising, finance, and other services. Mitsubishi Electric Corporation was founded in 1921 and is headquartered in Tokyo, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/27 14:52
End of Day Share Price2020/05/26 00:00
Earnings2020/03/31
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.