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6503

Mitsubishi Electric TSE:6503 Stock Report

Last Price

JP¥1.34k

Market Cap

JP¥2.8t

7D

1.5%

1Y

-9.7%

Updated

04 Oct, 2022

Data

Company Financials +
6503 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance1/6
Financial Health6/6
Dividends3/6

6503 Stock Overview

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

Mitsubishi Electric Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Mitsubishi Electric
Historical stock prices
Current Share PriceJP¥1,343.50
52 Week HighJP¥1,629.00
52 Week LowJP¥1,225.50
Beta0.82
1 Month Change-3.07%
3 Month Change-7.79%
1 Year Change-9.68%
3 Year Change-5.82%
5 Year Change-24.97%
Change since IPO125.04%

Recent News & Updates

Shareholder Returns

6503JP ElectricalJP Market
7D1.5%-4.5%-1.2%
1Y-9.7%-16.4%-5.8%

Return vs Industry: 6503 exceeded the JP Electrical industry which returned -16.4% over the past year.

Return vs Market: 6503 underperformed the JP Market which returned -5.8% over the past year.

Price Volatility

Is 6503's price volatile compared to industry and market?
6503 volatility
6503 Average Weekly Movement3.4%
Electrical Industry Average Movement3.4%
Market Average Movement3.5%
10% most volatile stocks in JP Market7.4%
10% least volatile stocks in JP Market1.8%

Stable Share Price: 6503 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 6503's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1921145,696Kei 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?
6503 fundamental statistics
Market CapJP¥2.84t
Earnings (TTM)JP¥175.14b
Revenue (TTM)JP¥4.48t

16.2x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
6503 income statement (TTM)
RevenueJP¥4.48t
Cost of RevenueJP¥3.24t
Gross ProfitJP¥1.24t
Other ExpensesJP¥1.06t
EarningsJP¥175.14b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 28, 2022

Earnings per share (EPS)82.90
Gross Margin27.64%
Net Profit Margin3.91%
Debt/Equity Ratio10.7%

How did 6503 perform over the long term?

See historical performance and comparison

Dividends

3.0%

Current Dividend Yield

49%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 6503 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6503?

Other financial metrics that can be useful for relative valuation.

6503 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.6x
Enterprise Value/EBITDA6.1x
PEG Ratio1.7x

Price to Earnings Ratio vs Peers

How does 6503's PE Ratio compare to its peers?

6503 PE Ratio vs Peers
The above table shows the PE ratio for 6503 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average15.3x
6641 Nissin Electric
12.9x6.4%JP¥143.9b
6622 DAIHEN
9.2x8.1%JP¥93.5b
6507 Sinfonia TechnologyLtd
5.9x7.7%JP¥39.4b
6594 Nidec
33.4x13.7%JP¥4.8t
6503 Mitsubishi Electric
16.2x9.6%JP¥2.8t

Price-To-Earnings vs Peers: 6503 is expensive based on its Price-To-Earnings Ratio (16.2x) compared to the peer average (15.3x).


Price to Earnings Ratio vs Industry

How does 6503's PE Ratio compare vs other companies in the JP Electrical Industry?

Price-To-Earnings vs Industry: 6503 is expensive based on its Price-To-Earnings Ratio (16.2x) compared to the JP Electrical industry average (11.1x)


Price to Earnings Ratio vs Fair Ratio

What is 6503's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

6503 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio16.2x
Fair PE Ratio18x

Price-To-Earnings vs Fair Ratio: 6503 is good value based on its Price-To-Earnings Ratio (16.2x) compared to the estimated Fair Price-To-Earnings Ratio (18x).


Share Price vs Fair Value

What is the Fair Price of 6503 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6503 (¥1343.5) is trading below our estimate of fair value (¥1898.73)

Significantly Below Fair Value: 6503 is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Mitsubishi Electric forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


9.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6503's forecast earnings growth (9.6% per year) is above the savings rate (0.04%).

Earnings vs Market: 6503's earnings (9.6% per year) are forecast to grow faster than the JP market (8.5% per year).

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

Revenue vs Market: 6503's revenue (3.1% per year) is forecast to grow slower than the JP market (4.3% per year).

High Growth Revenue: 6503's revenue (3.1% 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 (8.1%).


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Past Performance

How has Mitsubishi Electric performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-5.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6503 has high quality earnings.

Growing Profit Margin: 6503's current net profit margins (3.9%) are lower than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: 6503's earnings have declined by 5.3% 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 (-26.1%) over the past year, making it difficult to compare to the Electrical industry average (11.5%).


Return on Equity

High ROE: 6503's Return on Equity (5.9%) is considered low.


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Financial Health

How is Mitsubishi Electric's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 6503's short term assets (¥3,073.9B) exceed its short term liabilities (¥1,597.7B).

Long Term Liabilities: 6503's short term assets (¥3,073.9B) exceed its long term liabilities (¥368.4B).


Debt to Equity History and Analysis

Debt Level: 6503 has more cash than its total debt.

Reducing Debt: 6503's debt to equity ratio has reduced from 16.2% to 10.7% over the past 5 years.

Debt Coverage: 6503's debt is well covered by operating cash flow (64.1%).

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


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


2.98%

Current Dividend Yield

Dividend Yield vs Market

Mitsubishi Electric Dividend Yield vs Market
How does Mitsubishi Electric dividend yield compare to the market?
SegmentDividend Yield
Company (Mitsubishi Electric)3.0%
Market Bottom 25% (JP)1.7%
Market Top 25% (JP)3.8%
Industry Average (Electrical)2.0%
Analyst forecast in 3 Years (Mitsubishi Electric)3.5%

Notable Dividend: 6503's dividend (2.98%) is higher than the bottom 25% of dividend payers in the JP market (1.68%).

High Dividend: 6503's dividend (2.98%) is low compared to the top 25% of dividend payers in the JP market (3.76%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (48.5%), 6503's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (168.9%), 6503's dividend payments are not well covered by cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Kei Uruma (63 yo)

2.33yrs

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

Kei Uruma's Compensation vs Mitsubishi Electric Earnings
How has Kei Uruma's remuneration changed compared to Mitsubishi Electric's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

JP¥175b

Mar 31 2022n/an/a

JP¥203b

Dec 31 2021n/an/a

JP¥234b

Sep 30 2021n/an/a

JP¥250b

Jun 30 2021n/an/a

JP¥237b

Mar 31 2021JP¥99mJP¥40m

JP¥193b

Dec 31 2020n/an/a

JP¥170b

Sep 30 2020n/an/a

JP¥179b

Jun 30 2020n/an/a

JP¥197b

Mar 31 2020n/an/a

JP¥222b

Dec 31 2019n/an/a

JP¥228b

Sep 30 2019n/an/a

JP¥216b

Jun 30 2019n/an/a

JP¥222b

Mar 31 2019n/an/a

JP¥227b

Dec 31 2018n/an/a

JP¥238b

Sep 30 2018n/an/a

JP¥243b

Jun 30 2018n/an/a

JP¥252b

Mar 31 2018n/an/a

JP¥272b

Dec 31 2017n/an/a

JP¥268b

Sep 30 2017n/an/a

JP¥253b

Jun 30 2017n/an/a

JP¥235b

Mar 31 2017n/an/a

JP¥210b

Dec 31 2016n/an/a

JP¥211b

Sep 30 2016n/an/a

JP¥224b

Jun 30 2016n/an/a

JP¥225b

Mar 31 2016JP¥125mJP¥37m

JP¥228b

Compensation vs Market: Insufficient data to establish whether Kei's total compensation is reasonable compared to companies of similar size in the JP market.

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


Leadership Team

Experienced Management: 6503's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: 6503's board of directors are not considered experienced ( 0.7 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

What is the ownership structure of 6503?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders729,5000.03%
State or Government27,847,0001.3%
Employee Share Scheme44,478,0002.1%
General Public945,807,13944.8%
Institutions1,093,684,55551.8%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 49.11% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
6.28%
BlackRock, Inc.
132,618,140¥178.2b22.77%0.03%
4.79%
Dodge & Cox
101,096,400¥135.8b11.36%0.54%
4.31%
Mitsubishi UFJ Trust and Banking Corporation, Asset Management Arm
91,106,100¥122.4b0%0.97%
3.88%
Meiji Yasuda Life Insurance Company, Asset Management Arm
81,862,000¥110.0b0%2.49%
3.76%
Sumitomo Mitsui Trust Asset Management Co., Ltd.
79,377,400¥106.6b0%0.57%
3.71%
Nomura Asset Management Co., Ltd.
78,476,200¥105.4b-0.41%0.34%
3.33%
The Vanguard Group, Inc.
70,351,701¥94.5b1.63%0.02%
2.11%
Mitsubishi Electric Corporation, ESOP
44,478,000¥59.8b0%no data
1.91%
First Eagle Investment Management, LLC
40,362,200¥54.2b0%0.65%
1.74%
Daiwa Asset Management Co. Ltd.
36,779,300¥49.4b0.06%0.34%
1.73%
Nikko Asset Management Co., Ltd.
36,614,400¥49.2b0%0.15%
1.72%
Nissay Asset Management Corporation
36,339,000¥48.8b0%0.5%
1.5%
T. Rowe Price Group, Inc.
31,739,500¥42.6b-0.92%0.03%
1.35%
Norges Bank Investment Management
28,521,928¥38.3b0%0.04%
1.32%
Norway
27,847,000¥37.4b0%no data
0.81%
Mitsubishi UFJ Kokusai Asset Management Co., Ltd.
17,149,600¥23.0b0%0.2%
0.79%
Amundi Asset Management
16,714,717¥22.5b191.57%0.05%
0.77%
Franklin Resources, Inc.
16,174,553¥21.7b-1.03%0.06%
0.71%
Geode Capital Management, LLC
15,051,111¥20.2b-1.61%0.02%
0.68%
MUFG Bank, Ltd.,Investment Banking Arm
14,411,185¥19.4b0%0.63%
0.48%
Fisher Asset Management, LLC
10,195,570¥13.7b2.03%0.07%
0.42%
Mitsubishi UFJ Trust and Banking Corporation, Retirement Benefit Trust
8,783,060¥11.8b0%5.27%
0.38%
MUFG Bank, Ltd., Retirement Benefit Trust
8,000,000¥10.7b0%1.84%
0.35%
Ruffer LLP
7,452,400¥10.0b0%0.71%
0.28%
Lazard Asset Management LLC
5,996,000¥8.1b-0.31%0.05%

Company Information

Mitsubishi Electric Corporation's 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
  • Implied Market Cap: JP¥2.838t
  • Shares outstanding: 2.11b
  • 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

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)ADR EACH REPR 2 ORD NPVUSUSDJan 1975
MIEMUN (Boerse Muenchen)ADR EACH REPR 2 ORD NPVDEEURJan 1975

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/04 00:00
End of Day Share Price2022/10/04 00:00
Earnings2022/06/30
Annual Earnings2022/03/31


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.