Fact based stock research
Mitsubishi (TSE:8058)
JP3898400001
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Mitsubishi stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 45 (worse than 55% compared with investment alternatives), Mitsubishi (Trading & Distribution, Japan) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Mitsubishi are low in value (priced high) with a consolidated Value Rank of 45 (worse than 55% of alternatives), and are riskily financed (Safety Rank of 34, which means above-average debt burdens) but show above-average growth (Growth Rank of 59). ...read more
RECOMMENDATION: A Combined Rank of 45, is a hold recommendation based on Mitsubishi's financial characteristics. As the company Mitsubishi shows low value with an Obermatt Value Rank of 45 (55% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 59% of comparable companies (Obermatt Growth Rank is 59). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 34 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Mitsubishi, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | Japan |
| Industry | Trading & Distribution |
| Index | TOPIX 100, Energy Efficient, Human Rights, Nikkei 225 |
| Size class | XX-Large |
18-Apr-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Mitsubishi
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 94 |
|
79 |
|
71 |
|
45 |
|
| GROWTH | ||||||||
| GROWTH | 43 |
|
95 |
|
55 |
|
59 |
|
| SAFETY | ||||||||
| SAFETY | 16 |
|
22 |
|
36 |
|
34 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
35 |
|
29 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
62 |
|
46 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 45 (worse than 55% compared with investment alternatives), Mitsubishi (Trading & Distribution, Japan) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Mitsubishi are low in value (priced high) with a consolidated Value Rank of 45 (worse than 55% of alternatives), and are riskily financed (Safety Rank of 34, which means above-average debt burdens) but show above-average growth (Growth Rank of 59). ...read more
RECOMMENDATION: A Combined Rank of 45, is a hold recommendation based on Mitsubishi's financial characteristics. As the company Mitsubishi shows low value with an Obermatt Value Rank of 45 (55% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 59% of comparable companies (Obermatt Growth Rank is 59). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 34 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Mitsubishi, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 94 |
|
79 |
|
71 |
|
45 |
|
| GROWTH | ||||||||
| GROWTH | 43 |
|
95 |
|
55 |
|
59 |
|
| SAFETY | ||||||||
| SAFETY | 16 |
|
22 |
|
36 |
|
34 |
|
| COMBINED | ||||||||
| COMBINED | 47 |
|
86 |
|
68 |
|
45 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 45 (worse than 55% compared with alternatives), Mitsubishi shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Mitsubishi. Price-to-Sales (P/S) is 53, which means that the stock price compared with what market professionals expect for future sales is lower than for 53% of comparable companies, indicating a good value concerning Mitsubishi's revenue size. The same is valid for expected Price-to-Profits (or Price / Earnings, P/E), more favorable than for 63% of alternatives. It is also positive for expected dividend yields with a Dividend Yield rank of 50 (dividends are expected to be higher than 50% of other stocks). But, compared with other companies in the same industry, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is higher than average, making the stock more expensive. Only 54% of all competitors have an even higher price compared with book capital which puts the Price-to-Capital Rank for Mitsubishi to 46. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 45, is a hold recommendation based on Mitsubishi's stock price compared with the company's operational size and dividend yields. A low level of book capital means that the company has a business that is leaner in assets than its competitors. For instance, the company could be leasing its production facilities or be more focussed on intellectual property, such as its brand and software, which is less visible in its book capital. If that is the case, the three good value ranks for Sales, Profits, and Dividends are reliable indicators for the stock price value. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 73 |
|
78 |
|
69 |
|
53 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 78 |
|
82 |
|
82 |
|
63 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 82 |
|
69 |
|
67 |
|
46 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 84 |
|
55 |
|
60 |
|
50 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 94 |
|
79 |
|
71 |
|
45 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 59 (better than 59% compared with alternatives), Mitsubishi shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Mitsubishi. Capital Growth has a rank of 75, which means that currently professionals expect the company to grow its invested capital more than 14% of its competitors. Investors welcomed this, visible in the Stock Returns rank of 93 (above 93% of alternative investments). But Sales Growth has only a rank of 22, which means that, currently, professionals expect the company to grow less than 78% of its competitors, and Profit Growth is also low at a rank of 14. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 59, is a buy recommendation for growth and momentum investors. This is an ambiguous picture. Revenue growth and capital growth are strong, but the growth in profit, which seems good, can also be an indication that growth momentum may be negative. The fact that stock returns have been above average doesn't help much, as stock returns are less reliable in showing a company’s future growth potential. Prices may perform well for the simple reason that investors were too pessimistic in the past and are now correcting their opinions and moving the stock price to a more reasonable level. As the growth picture is mixed for Mitsubishi, investors may want to look at value and sentiment indicators for a well-rounded picture of this stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 49 |
|
17 |
|
8 |
|
22 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 80 |
|
96 |
|
33 |
|
14 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
87 |
|
46 |
|
75 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 62 |
|
91 |
|
85 |
|
93 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 43 |
|
95 |
|
55 |
|
59 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 34 (better than 34% compared with alternatives), the company Mitsubishi has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Mitsubishi is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with all three metrics below average for Mitsubishi. Liquidity is at 44, meaning that the company generates less profit to service its debt than 56% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 42, meaning the company has an above-average debt-to-equity ratio. It has more debt than 58% of its competitors. Finally, Refinancing is at a rank of 27 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 73% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 34 (worse than 66% compared with alternatives), Mitsubishi has a financing structure that is riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of Mitsubishi because it may suffer significantly in case of future difficulties. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 8 |
|
8 |
|
44 |
|
42 |
|
| REFINANCING | ||||||||
| REFINANCING | 76 |
|
53 |
|
33 |
|
27 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 14 |
|
39 |
|
32 |
|
44 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 16 |
|
22 |
|
36 |
|
34 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
40 |
|
64 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
50 |
|
50 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
29 |
|
48 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
60 |
|
25 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
35 |
|
29 |
|
new |
|
Stock analysis by the purely fact based Obermatt Method for Mitsubishi from April 18, 2024.
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