Mitsubishi Electric Stock price
Compare with Peer Group
📊 Peer Group
📈 What is it?
The peer group consists of the companies with the most similar business model. They serve as a benchmark for putting a stock into context.
🧮 How is it selected?
Based on similarity of business model, meaning companies from the same industry with comparable products and a similar customer base. That's the only way to compare apples to apples.
🏛️ Why does it matter?
Whether a stock is cheap or expensive is best judged by comparison. A P/E of 18 or an EV/FCF of 20 can look cheap or expensive depending on the yardstick. The peer group gives you the most accurate one: companies with a similar business model that operate under the same conditions.
🎯 What does it mean for investors?
When a metric sits below the peer average, the stock is valued more cheaply relative to its competitors, and above the average more expensively. A discount to the peer group can be an opportunity, but it can also have a reason (for example lower growth). The comparison is a starting point, not a verdict.
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Invest better with AI
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👉 More detailed insights
👉 Exclusive perspectives on opportunities & risks
👉 Clear answers to your questions
Invest better with AI
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👉 More detailed insights
👉 Exclusive perspectives on opportunities & risks
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Key metrics
📘 Market Capitalization
📈 What is it?
Market capitalization shows how much a company is currently worth on the stock market.
🧮 How is it calculated?
🏛️ Why is it important?
It helps classify companies by size (Large, Mid, Small Cap) and indicates their market presence and relative stability.
🧮 Calculation
🎯 What does this mean for investors?
- Large-cap companies tend to be more stable, often pay dividends, but may grow more slowly.
- Smaller firms may offer higher growth potential but come with more volatility.
- Market capitalization is a useful indicator of company size — but not a measure of whether a stock is undervalued or overvalued.
📘 Enterprise Value (EV)
📈 What is it?
Enterprise Value represents the total cost to acquire a company — including its debt and excluding its cash reserves.
🧮 How is it calculated?
(= Market Cap + Net Debt)
🏛️ Why is it important?
EV gives a more complete picture of a company's value than market cap alone and is used in key valuation ratios like EV/FCF or EV/Sales.
🧮 Calculation
🎯 What does this mean for investors?
- Enterprise Value shows the true cost of buying a company, including all financial obligations.
- It is more accurate than just looking at market cap, especially when comparing companies with different levels of debt or cash.
- Professional investors prefer EV-based multiples because they better reflect the company’s full financial footprint.
📘 Net Debt
📈 What is it?
Net Debt shows how much debt remains after subtracting a company’s available cash reserves.
🧮 How is it calculated?
🏛️ Why is it important?
It indicates how dependent a company is on borrowed money and how easily it can service its debt in the short term.
🧮 Calculation
🎯 What does this mean for investors?
- Low or negative net debt signals financial strength and flexibility.
- Companies with strong cash positions are better positioned in crises.
- High net debt increases financial risk — especially in environments with rising interest rates or economic downturns.
📘 Cash
📈 What is it?
Cash represents all liquid assets a company can access immediately — including cash, bank deposits, and short-term investments.
🧮 How is it calculated?
🏛️ Why is it important?
It reflects a company’s financial flexibility and resilience — enabling investments, buybacks, or buffer in downturns.
🧮 Calculation
🎯 What does this mean for investors?
- A strong cash position means greater room for maneuver and crisis resistance.
- Cash-rich companies can invest, pay down debt, or repurchase shares.
- But excess idle cash might indicate a lack of growth opportunities.
📘 Shares Outstanding
📈 What is it?
Shares outstanding represent the total number of a company’s shares currently held by investors — excluding treasury stock.
🧮 How is it calculated?
🏛️ Why is it important?
It’s the basis for key metrics like Earnings Per Share (EPS), Market Capitalization, or the Price/Earnings ratio (P/E).
🧮 Calculation
🎯 What does this mean for investors?
- Fewer shares in circulation typically increase earnings per share — making each share more valuable.
- Share buybacks reduce the number of shares and boost per-share metrics.
- Issuing new shares does the opposite — diluting shareholder value and lowering per-share figures.
📘 Price-to-Earnings Ratio (P/E)
📈 What is it?
The P/E ratio shows how many times a company's earnings per share are reflected in its current share price — in other words, how "expensive" the stock appears relative to its profits.
🧮 How is it calculated?
🏛️ Why is it important?
The P/E ratio is one of the most widely used valuation metrics. It helps investors assess whether a stock appears cheap or expensive compared to its earnings power.
🧮 Calculation
📊 P/E (TTM) = Based on earnings from the last 12 months (Trailing Twelve Months):🎯 What does this mean for investors?
- A low P/E may indicate undervaluation — or signal underlying issues.
- A high P/E may reflect strong growth expectations — or an overvalued stock.
📘 Price-to-Sales Ratio (P/S)
📈 What is it?
The P/S ratio shows how much investors are paying for $1 of the company’s revenue – regardless of profitability.
🧮 How is it calculated?
🏛️ Why is it important?
P/S is especially useful for evaluating growth companies or businesses not yet profitable. It reflects how the market values the company’s sales.
🧮 Calculation
Market Cap = ¥10.14t | Revenue (TTM) = ¥6.29t
Market Cap = ¥10.14t | Estimated Revenue = ¥6.49t
🎯 What does this mean for investors?
- A low P/S may indicate undervaluation — or low profitability.
- A high P/S can reflect strong growth expectations — or excessive optimism.
- Especially helpful when evaluating companies where profits are low, volatile, or negative.
📘 Enterprise Value to Sales (EV/Sales)
📈 What is it?
EV/Sales shows how much investors are paying for $1 of revenue — considering not just equity, but also debt and cash. It’s the capital structure–adjusted version of the P/S ratio.
🧮 How is it calculated?
🏛️ Why is it important?
It’s ideal for comparing companies with different levels of debt. It reflects a company's true cost relative to its revenue.
🧮 Calculation
Enterprise Value = ¥9.46t | Revenue (TTM) = ¥6.29t
Enterprise Value = ¥9.46t | Forward Revenue = ¥6.49t
🎯 What does this mean for investors?
- EV/Sales allows for capital structure–neutral company comparisons.
- A lower ratio may indicate undervaluation; a higher one may signal strong growth expectations or overvaluation.
- Especially helpful when evaluating high-growth companies with low or negative earnings.
📘 Enterprise Value to Free Cash Flow (EV/FCF) | ex SBC
📈 What is it?
EV/FCF compares a company’s enterprise value with its free cash flow. The metric therefore shows the multiple of current free cash flow at which a company is valued. EV/FCF ex SBC additionally accounts for stock-based compensation (SBC). While SBC does not represent a direct cash outflow, issuing shares as compensation can dilute existing shareholders. Therefore, SBC is deducted from free cash flow in this adjusted version.
🧮 How is it calculated?
EV/FCF ex SBC = Enterprise Value ÷ (Free Cash Flow (TTM) − SBC)
🏛️ Why is it important?
EV/FCF provides a valuation based on free cash flow and therefore complements earnings-based valuation metrics such as the P/E ratio. The ex SBC version additionally accounts for the economic impact of stock-based compensation and provides a more conservative view from a shareholder perspective.
🧮 Calculation
🎯 What does this mean for investors?
- A low EV/FCF means that enterprise value is low relative to current free cash flow. The reasons should always be considered in the context of the company and its industry.
- A high EV/FCF means that enterprise value is high relative to current free cash flow. This can, for example, reflect high growth expectations or temporarily weak cash generation.
- When SBC is positive and adjusted free cash flow remains positive, EV/FCF ex SBC is generally higher than the standard EV/FCF.
- The metric is particularly useful for companies with relatively stable and predictable cash flows.
- If free cash flow is negative or very low, EV/FCF has limited usefulness and should not be interpreted like a standard valuation multiple.
📘 Price-to-Book Ratio (P/B)
📈 What is it?
The P/B ratio compares a company’s market value to its book value — showing how much investors are paying for each dollar of net assets.
🧮 How is it calculated?
🏛️ Why is it important?
P/B is commonly used for asset-heavy industries like banks or industrials. It helps assess whether a stock is trading above or below its net asset value.
🧮 Calculation
🎯 What does this mean for investors?
- A P/B below 1 may signal undervaluation — or weak profitability.
- A P/B above 1 implies the market expects future value creation (e.g., brand, IP, growth).
- Best used for companies with tangible assets and strong balance sheets.
📘 Dividend per Share (DPS)
📈 What is it?
Dividend per Share shows how much cash a company pays out to shareholders for each share they own – usually on an annual or quarterly basis.
🧮 How is it calculated?
🏛️ Why is it important?
DPS is the absolute value of the payout per share – crucial for income-focused investors and dividend strategies.
🧮 Calculation
🎯 What does this mean for investors?
- A stable or growing DPS often signals a strong, shareholder-friendly business.
- DPS alone doesn’t tell you how attractive the payout is – the stock price also matters (→ see Dividend Yield).
- Long-term dividend growth is often a hallmark of high-quality companies – like the dividend aristocrats.
📘 Dividend Yield
📈 What is it?
Dividend yield shows how large a company’s dividend is in relation to its current share price.
🧮 How is it calculated?
🏛️ Why is it important?
It allows investors to compare dividend payouts across stocks, regardless of price or payout size.
🧮 Calculation
🎯 What does this mean for investors?
- A stable yield can reflect reliable distributions.
- Comparing 1Y and 5Y yield shows whether dividend growth keeps pace with stock price appreciation.
- A low yield isn’t always negative – it can signal strong past performance or growth focus.
📘 Dividend Growth
📈 What is it?
Dividend growth shows how much a company has increased its dividend per share over time.
🧮 How is it calculated?
5Y: Compound Annual Growth Rate (CAGR)
🏛️ Why is it important?
Consistently rising dividends are often a sign of financial strength and shareholder orientation – especially relevant for long-term investors.
🧮 Calculation
🎯 What does this mean for investors?
- Stable dividend growth is a sign of sustainable earning power.
- High dividend growth can significantly boost your total return:
- If a company pays $1 in dividends and increases it by 15% annually over 5 years, you’ll receive $2 per share in year 5 – twice as much as at the start!
📘 Payout Ratio
📈 What is it?
The payout ratio shows what percentage of a company’s earnings (per share) is distributed to shareholders as dividends.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess whether the dividend is sustainable – especially in relation to the company’s profitability.
🧮 Calculation
🎯 What does this mean for investors?
- A low payout ratio means the company retains more earnings for reinvestment – typical for growth companies.
- A moderate payout (e.g. 25–50%) indicates a healthy balance between returns and reinvestment.
- High payout ratios may seem attractive but can carry risk if earnings decline.
📘 Consecutive Dividend Increases
📈 What is it?
This metric shows how many consecutive years a company has raised its dividend per share – without any cuts or pauses.
🧮 How is it calculated?
(Special dividends are not considered.)
🏛️ Why is it important?
A long track record of increases reflects financial strength, consistency, and shareholder commitment.
🎯 What does this mean for investors?
- A long dividend increase streak builds confidence – especially in volatile markets.
- Such companies are seen as reliable and income-friendly investments.
- The longer the streak, the stronger the company’s dividend discipline.
📘 Revenue
📈 What is it?
Revenue shows how much a company earns in total from selling its products and services – the gross income before any costs are deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Revenue is one of the key figures to assess a company’s size, market position, and growth potential.
🧮 Calculation
🎯 What does this mean for investors?
- Growing revenue indicates rising demand and can be an early signal of future earnings growth.
- Comparing actual and expected revenue reveals trends in the market environment and analyst sentiment.
- Note: Strong revenue alone isn’t enough – margins and profitability matter just as much.
📘 EBITDA
📈 What is it?
EBITDA stands for “Earnings Before Interest, Taxes, Depreciation, and Amortization.” It reflects a company’s operating profit before the effects of financing, taxes, and accounting depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
EBITDA is widely used to evaluate a company’s operating performance – especially across capital-intensive sectors or international comparisons.
🎯 What does this mean for investors?
- A high or growing EBITDA indicates strong operational profitability – independent of taxes, interest, or accounting methods.
- It’s especially useful for comparing companies across sectors or geographies.
- Important: EBITDA is not a net income figure – it excludes key costs like depreciation and interest.
📘 EBIT
📈 What is it?
EBIT stands for “Earnings Before Interest and Taxes.” It reflects a company’s operating profit after depreciation, but before interest and tax expenses.
🧮 How is it calculated?
🏛️ Why is it important?
EBIT is a core profitability metric that shows how well the company performs in its main business operations – independent of capital structure and tax environment.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT indicates strong profitability from the company’s core business – before financial and tax effects.
- It allows better comparison between companies with different debt levels or tax structures.
- Compared to EBITDA, EBIT already accounts for depreciation and reflects capital intensity more clearly.
📘 Net Income
📈 What is it?
Net income is the company’s total profit – the amount left after all expenses, taxes, interest, and depreciation have been deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Net income is the most comprehensive measure of a company’s profitability – showing how much actual profit remains after all business and financing costs.
🧮 Calculation
🎯 What does this mean for investors?
- Growing net income indicates that the company is managing all of its costs efficiently.
- It directly influences valuation metrics like P/E ratio and the company’s dividend capacity.
- Over time, net income trends reveal how resilient and profitable the business model really is.
📘 Free Cash Flow (FCF) | ex SBC
📈 What is it?
Free cash flow shows how much cash remains after a company has covered its operating and capital expenditures. FCF ex SBC additionally deducts stock-based compensation (SBC) to adjust the cash flow for the effect of non-cash SBC.
🧮 How is it calculated?
Free Cash Flow ex SBC = Operating Cash Flow − SBC − Capital Expenditures (CAPEX)
🏛️ Why is it important?
FCF reflects a company’s actual financial strength – independent of reported accounting earnings. It shows how much flexibility a company has for dividends, share buybacks, or debt reduction. FCF ex SBC also deducts stock-based compensation and shows how much cash generation remains after SBC.
🎯 What does this mean for investors?
- High free cash flow indicates that a company has strong financial strength – independent of reported earnings.
- It is often a solid basis for sustainable dividends and share buybacks.
- Declining FCF can be a warning sign, even if reported earnings remain stable.
📘 Revenue Growth
📈 What is it?
Revenue growth shows how much a company’s sales have changed compared to the previous year – both on a trailing basis (TTM) and based on forward projections.
🧮 How is it calculated?
Forward = (Expected revenue ÷ Revenue in prior year − 1) × 100
Forward growth is based on analyst estimates for the current fiscal year.
🏛️ Why is it important?
Rising revenue signals growing demand, business expansion, and market share gains – especially important for growth-oriented companies.
🧮 Calculation
🎯 What does this mean for investors?
- Growth is the engine of long-term value creation – especially in tech and growth sectors.
- What matters is not just current growth, but its sustainability.
- Forward projections reflect whether analysts expect continued momentum – or a slowdown.
📘 EBITDA Growth
📈 What is it?
EBITDA growth shows how much a company’s operating profit (before interest, taxes, depreciation, and amortization) has increased or decreased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBITDA ÷ EBITDA from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
Growing EBITDA indicates improving operational profitability – regardless of financing or accounting effects.
🎯 What does this mean for investors?
- Strong EBITDA growth signals operational efficiency and scalability – especially during growth phases.
- EBITDA growth can be an early indicator of margin and earnings expansion – but should be assessed alongside revenue and EBIT.
📘 EBIT Growth
📈 What is it?
EBIT growth shows how much a company’s operating profit (after depreciation, but before interest and taxes) has increased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBIT ÷ EBIT from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
EBIT growth is a direct indicator of a company’s business performance – taking into account capital intensity through depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- Rising EBIT signals improving operating profitability – even after accounting for depreciation.
- It’s especially important for evaluating companies with significant capital expenditures.
- Combined with revenue and EBITDA growth, EBIT growth provides a well-rounded view of operational progress.
📘 Net Income Growth
📈 What is it?
Net income growth shows how much a company’s bottom-line profit has increased or decreased compared to the previous year – both on a trailing basis (TTM) and based on analyst projections.
🧮 How is it calculated?
Forward = (Expected net income ÷ Net income from prior year − 1) × 100
The forward estimate reflects analysts’ expectations for the current fiscal year.
🏛️ Why is it important?
Net income is the ultimate measure of profitability. Growing net income signals stronger efficiency, cost control, and sustainable earnings power.
🧮 Calculation
🎯 What does this mean for investors?
- Stronger net income boosts valuation, dividend potential, and investor confidence.
- If profits stall while revenue grows, it may signal margin pressure.
📘 Free Cash Flow Growth
📈 What is it?
Free cash flow (FCF) growth shows how a company’s available cash – after covering operating expenses and capital expenditures – has changed compared to the previous year.
🧮 How is it calculated?
🏛️ Why is it important?
Free cash flow reflects real financial strength. Growing FCF indicates more flexibility for dividends, share buybacks, and reinvestment.
🎯 What does this mean for investors?
- Declining FCF may point to rising investments, increasing costs, or weaker operating performance.
- Especially for dividend investors, FCF growth is critical – since dividends are paid from actual available cash.
- A negative trend isn't always bad, but it deserves closer attention.
📘 Gross Margin
📈 What is it?
Gross margin shows how much of a company’s revenue remains after deducting the direct costs of goods sold (like materials and production). It represents the company’s “raw profit” before fixed costs, taxes, and interest.
🧮 How is it calculated?
Or simply: Gross Margin = Gross Profit ÷ Revenue × 100
🏛️ Why is it important?
Gross margin indicates how efficiently a company can produce or procure what it sells. It is a key measure of product-level profitability and pricing power.
🧮 Calculation
🎯 What does this mean for investors?
- A high gross margin suggests strong pricing power and efficient production.
- Falling margins may signal rising input costs or competitive pressure.
- Compared to peers, gross margin offers insights into the quality of a business model.
📘 EBITDA Margin
📈 What is it?
The EBITDA margin shows how much of a company’s revenue remains as operating profit before interest, taxes, depreciation, and amortization.It reflects operating efficiency without being distorted by financing or accounting factors.
🧮 How is it calculated?
🏛️ Why is it important?
The EBITDA margin reveals how much operating income a company generates per dollar of revenue – independent of capital structure and tax effects.
🎯 What does this mean for investors?
- A high EBITDA margin reflects strong core profitability – before accounting distortions.
- It allows for effective comparisons across companies and sectors.
- A stable or growing margin signals efficient cost control and business scalability.
📘 EBIT Margin
📈 What is it?
The EBIT margin shows what percentage of revenue remains as operating profit after depreciation but before interest and taxes.
🧮 How is it calculated?
🏛️ Why is it important?
The EBIT margin reflects a company’s core profitability while accounting for capital intensity (e.g. machinery, infrastructure). It’s especially useful for comparing businesses with different levels of depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT margin shows that the company remains efficient even after factoring in depreciation.
- It’s especially relevant for capital-intensive industries.
- Stable or rising EBIT margins over time are a strong indicator of pricing power and business quality.
📘 Net Margin
📈 What is it?
Net margin shows how much of a company’s revenue remains as bottom-line profit after deducting all costs, interest, taxes, and depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
Net margin reflects a company’s overall efficiency – across operations, financing, and taxation. It shows how much actual profit is generated from each dollar of revenue.
🧮 Calculation
🎯 What does this mean for investors?
- A high net margin means the company is not only strong operationally but also manages financing and taxes efficiently.
- Peer comparisons reveal business quality and competitiveness.
- Declining margins despite revenue growth can be a red flag for rising costs or inefficiencies.
📘 Free Cash Flow Margin | ex SBC
📈 What is it?
The Free Cash Flow Margin shows how much free cash flow a company generates relative to its revenue. In simplified terms, free cash flow is calculated as operating cash flow minus capital expenditures. The Free Cash Flow Margin ex SBC additionally accounts for stock-based compensation (SBC). While SBC does not represent a direct cash outflow, issuing shares as compensation can dilute existing shareholders. Therefore, SBC is deducted from free cash flow in this adjusted metric.
🧮 How is it calculated?
Free Cash Flow Margin ex SBC = (Free Cash Flow − SBC) ÷ Revenue × 100
🏛️ Why is it important?
The Free Cash Flow Margin shows how efficiently a company converts its revenue into free cash flow. Strong free cash flow can provide financial flexibility for dividends, share buybacks, debt repayment, or further investments. The ex SBC version additionally accounts for the economic impact of stock-based compensation and therefore provides a more conservative view of cash generation from a shareholder perspective.
🎯 What does this mean for investors?
- A high Free Cash Flow Margin shows that a company converts a high proportion of its revenue into free cash flow.
- This can provide greater financial flexibility for dividends, share buybacks, debt repayment, or investments.
- The Free Cash Flow Margin ex SBC additionally accounts for potential shareholder dilution from stock-based compensation.
- The long-term trend is particularly important. Declining margins can, for example, result from higher investments, changes in working capital, or weaker operating performance.
📘 Equity Ratio
📈 What is it?
The equity ratio indicates what portion of a company’s total assets is financed by shareholders’ equity – in other words, how much it relies on its own capital.
🧮 How is it calculated?
🏛️ Why is it important?
A high equity ratio reflects financial strength and stability, especially during downturns. It’s a key indicator of a company’s solvency and long-term risk profile.
🧮 Calculation
🎯 What does this mean for investors?
- Companies with high equity ratios are generally more resilient and less dependent on external debt.
- Low equity ratios can signal higher risk or aggressive financial strategies.
- Important: Always assess the equity ratio in combination with the return on equity (ROE). This shows not just how stable the company is – but also how efficiently it uses shareholder capital.
📘 Return on Equity (ROE)
📈 What is it?
Return on equity (ROE) shows how efficiently a company uses its shareholders’ equity to generate profit. In other words: how much net income is earned per dollar of equity.
🧮 How is it calculated?
🏛️ Why is it important?
ROE is a core profitability metric. It helps investors understand whether a company delivers attractive returns on the capital provided by its shareholders.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROE indicates that the company is using its capital efficiently and profitably.
- It’s especially meaningful for capital-intensive businesses or firms with high equity bases.
- Important: A very high ROE can also result from high debt levels – always interpret it alongside the equity ratio to assess financial health.
📘 Return on Capital Employed (ROCE)
📈 What is it?
ROCE measures how efficiently a company generates profits from its total capital – including both equity and interest-bearing debt.
🧮 How is it calculated?
It evaluates the return on all capital employed, regardless of how it’s financed.
🏛️ Why is it important?
ROCE is ideal for comparing companies with different financing structures. It shows how well management uses capital to create value for both shareholders and creditors.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROCE means the company uses its capital efficiently – regardless of whether it's funded by debt or equity.
- The higher the ROCE compared to peers, the more value the company creates with its invested capital.
- Especially relevant for capital-intensive sectors like industrials, energy, or infrastructure.
📘 Return on Invested Capital (ROIC)
📈 What is it?
ROIC measures how efficiently a company generates returns from the capital invested in its core operations – regardless of whether the capital comes from equity or debt.
🧮 How is it calculated?
- NOPAT = Net Operating Profit After Taxes
- Invested Capital = Operating assets minus non-interest-bearing liabilities
🏛️ Why is it important?
ROIC is one of the most accurate indicators of capital efficiency. Unlike return on equity, it is not distorted by leverage and shows how much value is created for all capital providers.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROIC shows how effectively a company uses the capital that is truly invested in its core operations.
- Unlike ROCE, ROIC focuses only on the capital that is actively used to run the business – and that requires a return (i.e. interest-bearing).
- Especially useful when comparing companies with large amounts of excess cash or non-interest-bearing liabilities – giving a more realistic picture of capital efficiency.
📘 Leverage Ratio (Debt-to-Equity)
📈 What is it?
The leverage ratio indicates how much a company relies on interest-bearing debt (such as loans and bonds) relative to its shareholders’ equity.
🧮 How is it calculated?
🏛️ Why is it important?
This ratio helps assess a company’s financial structure and risk profile. High leverage can enhance returns – but also increases exposure to interest rate changes and financial stress.
🧮 Calculation
🎯 What does this mean for investors?
- A low leverage ratio signals financial strength and independence.
- A higher ratio can improve returns in good times but increases risk during downturns or rising interest rate periods.
- 👉 Always interpret in the context of industry, capital intensity, and interest rate environment.
📘 Earnings per share (EPS)
📈 What is it?
Earnings per Share (EPS) shows how much profit is attributable to a single share – and is one of the most important metrics for evaluating a company's performance.
🧮 How is it calculated?
The diluted share count reflects potential new shares that could be issued through options, convertible bonds, or other rights.
🏛️ Why is it important?
EPS is the basis for many key valuation metrics like P/E ratio, PEG ratio, or payout ratio. It enables comparisons of profitability across companies, regardless of their size.
🧮 Calculation
🎯 What does this mean for investors?
- EPS captures per-share profitability and is especially useful for comparisons over time or with analyst estimates.
- Rising EPS may signal consistent growth or share buybacks.
- Important: Always use diluted EPS for more realistic valuations – especially in companies with stock-based compensation.
📘 Free cash flow per share (FCF per share)
📈 What is it?
Free Cash Flow per Share shows how much free cash flow a company generates per outstanding share – after investments, but before dividends or debt repayments.
🧮 How is it calculated?
Free cash flow is calculated as operating cash flow minus capital expenditures (CapEx).
🏛️ Why is it important?
FCF per Share reveals how much real cash is available per share – useful for dividends, buybacks, or reducing debt. Unlike net income, free cash flow is harder to manipulate and often seen as a more reliable metric.
🎯 What does this mean for investors?
- High FCF per share signals strong financial flexibility.
- It shows how much capital the company can effectively reinvest or return to shareholders.
- Particularly relevant for dividend payers and capital-efficient businesses.
📘 Short interest
📈 What is it?
Short interest indicates how many shares of a company are currently sold short – that is, borrowed and sold by investors who expect the price to decline.
🧮 How is it calculated?
It reflects the percentage of a company’s shares that are being shorted relative to the total shares available.
🏛️ Why is it important?
Short interest serves as a sentiment indicator: A high value may signal skepticism or bearish expectations – but also increases the potential for a short squeeze if prices rise unexpectedly.
🎯 What does this mean for investors?
- Low short interest usually indicates market confidence in the company.
- High short interest can be a warning sign – or an opportunity if sentiment shifts.
- Especially relevant in volatile markets or ahead of key earnings releases.
📘 Employees
📈 What is it?
The employee count shows how many people a company employs worldwide – offering insights into its size, structure, and business model.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess operational scale, labor intensity, and cost structure. Combined with revenue and profit, it enables key metrics like revenue per employee or productivity.
🧮 Calculation
🎯 What does this mean for investors?
- A high headcount can signal operational complexity – but also significant growth capacity.
- Revenue per employee is a key indicator of efficiency.
- Especially useful for comparing tech, industrial, or service-heavy companies.
📘 Revenue per employee
📈 What is it?
Revenue per employee indicates how much revenue a company generates on average per employee – a key measure of efficiency and productivity.
🧮 How is it calculated?
The employee count is typically taken from the most recent annual report.
🏛️ Why is it important?
This metric helps compare business models – especially between labor-intensive and technology-driven companies. A high value suggests automation, operational efficiency, or strong value creation per head.
🧮 Calculation
🎯 What does this mean for investors?
- A high revenue per employee indicates a scalable and margin-strong business model.
- A low figure may reflect labor-intensive operations or lower value-add.
- Especially helpful when comparing tech companies to industrial or service sectors.
Mitsubishi Electric Stock Analysis
Analyst Opinions
23 Analysts have issued a Mitsubishi Electric forecast:
Analyst Opinions
23 Analysts have issued a Mitsubishi Electric forecast:
Mitsubishi Electric Events
Past Events
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JUL
31
Q1 2027 Earnings Call
3 months ago
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|
FEB
3
Q3 2026 Earnings Call
9 months ago
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OCT
31
Q2 2026 Earnings Call
about one year ago
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StocksGuide Free
Mitsubishi Electric — Q1 2027 Earnings Call
1. Management Discussion
This time, we'd like to now start the financial results briefing of Q1 of fiscal year ending March 2027 of Mitsubishi Electric. Let me introduce the speaker today, Executive Officer, CFO, Kenichiro Fujimoto. Mr. Fujimoto, please start.
[Interpreted] This is Fujimoto of Mitsubishi Electric. Thank you very much for attending this financial results briefing. First of all, I'd like to express deepest condolences to the victims of 2026 Kumamoto earthquake and extend heartfelt sympathies to affected people. Entire Mitsubishi Electric Group sincerely pray for swift recovery of affected areas and will start the initiative to support the people who are affected. In relation to the Kumamoto earthquake, let me share with you the current status of our business.
We have 2 production sites in Kumamoto for Semiconductor & Device business. There were no significant impact on buildings, processes that completed the equipment inspection and start-up gradually resumed the operations since yesterday. Now let me start my explanation on the fiscal '27 Q1 consolidated financial results. Please turn to Page 4. Those are the key points of the financial results. Driven by the growing demand and others, Q1 revenue increased year-on-year in all segments, especially Industry, Mobility and Life segments. This was the record high Q1 revenue, JPY 1,497.1 billion. In FA Systems, Defense & Space Systems, Air Conditioning Systems and Home Products, the business scale increased and there were price improvements in mass production businesses, and there was a weaker yen effect.
Adjusted OP grew JPY 50.4 billion year-on-year to JPY 144.3 billion, which was a record high as Q1. As for full year fiscal '27 forecast, in Factory Automation System, AI and semiconductor-related demand increased, leading to bigger business scale and the yen weakened in Q1. So the previous forecast is revised upward by JPY 70 billion, revenue of JPY 6.27 trillion and adjusted OP of JPY 620 billion, up JPY 30 billion from the initial forecast.
Page 6, this is the results of the Q1. As explained, revenue was up 14% year-on-year. Adjusted OP up 54%. The net profit attributable to MEC stockholders increased 21% year-on-year to JPY 109.8 billion, the highest number as Q1. Page 7. So, this shows the waterfall chart showing the Q1 revenue and adjusted OP year-on-year changes. The weaker yen pushed up the revenue by JPY 85 billion and pushed up the operating profit by JPY 22 billion.
Excluding the FX impact, there were price -- procurement price increased, revenue in FA System, Defense Space System, AC System and Home Products increased and also there were price improvements in mass production businesses. And there was an effect of the next-day support program implemented last fiscal year. The AOP increased by JPY 28.5 billion. This shows the consolidated statement of financial position and cash flow. Total assets declined by JPY 109.2 billion from the end of last fiscal year.
Inventories increased with the progress of construction in the individual production businesses, but there is a progress in collection of the account receivables. Total equity increased by JPY 88.6 billion from the end of last fiscal year. The MEC stockholders' equity was JPY 4,571.15 billion (sic) [ JPY 4,571.5 billion ] , up JPY 87.2 billion from the end of last fiscal year, reflecting the dividend payment of JPY 61.4 billion, but the booking of JPY 109.8 billion in net profit.
And the percentage of this against the total asset increased to 63.1%, plus 2.2 points. Next is the free cash flow. There were increase in the expenses of the inventories, but with the higher net profit and also the return of the retirement benefit trust assets, the free cash flow -- excuse me, the cash flow from operating activities was an inflow of JPY 388.6 billion, up JPY 195.1 billion. There was an increase in the tangible fixed assets. And as a result, the cash flow from investing activities increased JPY 67.7 billion year-on-year.
And free cash flow was positive JPY 301.5 billion, up JPY 127.4 billion year-on-year. Next is year-on-year comparison of revenue and operating profit by segment. Revenue increased in all segments. AOP increased in all segments, except for Digital Innovation. I would explain the details on the following pages by segment. And sub-segment-wise numbers will be shown in supplementary materials on Page 20.
Please turn to Page 10. I'll start with Infrastructure segment. Demand continued to be robust across all businesses. And for the whole segment, orders, revenue, and adjusted operating profit were up year-over-year. In Public Utility Systems, while orders was up year-over-year, thanks to large orders for UPS systems in North America, revenue fell due to a decline in the domestic transport business. Adjusted operating profit was also down year-over-year due to changes in our project portfolio and absence of one-off factors, which was present in the prior year.
In Energy Systems, orders was up year-over-year, driven primarily by the domestic power generation business. Both revenue and adjusted operating profit were up year-over-year, thanks to the growth of our substation business in North America, among others. In Defense & Space Systems, while orders was down year-over-year, last year, we had large projects in the Defense Systems business, revenue rose by, sorry, 37% year-over-year, thanks to increased production capacity and adjusted operating profit was also up year-over-year.
Please turn to Page 11 for Industry & Mobility segment. In FA Systems, driven by increased demand for AI and semiconductor-related products in China, Japan, Taiwan and elsewhere, orders rose by 42% and revenue grew by 30% year-over-year. Adjusted operating profit was also up year-over-year, driven by higher revenue and price improvements despite factors such as rising procurement costs. In Automotive Equipment, despite a decline in car multimedia in North America, both revenue and adjusted operating profit were up year-over-year, driven by weaker yen and price improvements.
Please turn to Page 12 for Life segment. In Building Systems, orders, revenue, and adjusted operating profit were up year-over-year, driven by the weaker yen and the consolidation of an affiliate in the Middle East as a subsidiary. In Air Conditioning & Systems and Home Products (sic) [ Air Conditioning Systems & Home Products ], despite decline in North America, revenue was up year-over-year due to the weaker yen and solid demand for air conditioning equipment in Europe as well as in Japan.
Adjusted operating profit was up year-over-year, driven by the weaker yen, increased revenue due to higher demand and price improvements despite a rise in procurement costs. Please turn to Page 13. In Digital Innovation, demand remained firm, driven by system upgrades and digital transformation, resulting in higher orders and revenue year-over-year, while adjusted operating profit stayed flat. In Semiconductor and Device, demand stayed robust for products such as optical devices for data center communications. Orders was up 53% year-over-year for the whole segment due to growth in telecom optical devices and the power semiconductors for industrial as well as commercial use -- consumer use.
Both revenue and adjusted operating profit were up year-over-year, driven by stronger demand and weaker yen. Please turn to Page 14. Revenue by customer location. Revenue increased year-over-year in both domestic and overseas markets. Domestic revenue grew led by Defense & Space Systems, and the number was up 9% year-over-year. Overseas revenue rose by 18% year-over-year, driven by growth in China and Asia, primarily in FA Systems and in Europe, in Air Conditioning Systems & Home Products business.
The overseas ratio increased by 2 percentage points to 57%. Please turn to Page 16. Full year forecast for fiscal '27 has been revised from the previous announcement to project higher revenue and profit to revenue of JPY 6.27 trillion and adjusted operating profit of JPY 620 billion. FX assumptions from Q2 onwards remain unchanged at JPY 150 to the U.S. dollar, JPY 175 to the euro and JPY 21.5 to the Chinese yuan.
Revenue and adjusted operating profit by segment for the current forecast are disclosed in the supplement on Page 21. The forecast has been revised upwards for both revenue and profit to reflect higher growth in demand for AI and semiconductors in the FA Systems segment in China and Japan as well as higher revenue in Energy Systems in North America and weaker yen in Q1 compared to our assumption. Impact of the earthquake in Kumamoto Prefecture on our business performance is expected to be limited. That concludes my presentation.
[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]
Mitsubishi Electric — Q3 2026 Earnings Call
1. Management Discussion
It is time. So we would like to begin Mitsubishi Electric Corporation's consolidated financial results briefing for the third quarter of fiscal 2026. So allow me to introduce today's speaker, Executive Officer and CFO, Mr. Kenichiro Fujimoto. Mr. Fujimoto, please begin.
This is Fujimoto from Mitsubishi Electric. Thank you for joining our financial results briefing today. I will now explain the consolidated financial results summary for Mitsubishi Electric's third quarter of fiscal year 2026.
So please turn to Page 3. These are the key points of my presentation. I will cover the results for the third quarter of fiscal year '26, which will be referred to as Q3. Revenue reached a record high of JPY 1,423.5 billion for the 3-month period of Q3, driven primarily by business volume expansion from increased demand in the Infrastructure business area and the Factory Automation Systems business.
Operating profit, excluding the impact of the Next-Stage Support Program for personnel structure optimization reached JPY 144.7 billion, driven by increased sales and the results of ongoing efforts to increase profitability and efficiency across all businesses. The operating profit margin of 10.2% marked a record high for the 3-month period of Q3, resulting in increased revenue and profits over the same period last year.
The Next-Stage initiatives third quarter results, including the accelerated implementation at subsidiaries amounted to JPY 74.3 billion. Operating profit, including this impact, was JPY 70.3 billion. Furthermore, both revenue and profit on a net basis, excluding the impact of Next-Stage, reached record highs for the cumulative 9 months through Q3.
The full year fiscal year '26 earnings forecast reflects strong performance in the Infrastructure BA and FA Systems segment as well as changes in exchange rates. Revenue is projected to increase by JPY 900 billion over the previous forecast to JPY 5,760 billion.
Operating profit on a net basis, excluding the impact of Next-Stage, is projected at JPY 500 billion, an increase of JPY 30 billion from the previous forecast of JPY 470 billion. Operating profit, including the Next-Stage impact is forecast at JPY 400 billion, down JPY 30 billion from the previous forecast.
Our projection for the impact of Next-Stage has been revised from JPY 40 billion to JPY 100 billion. This reflects the accelerated implementation of the program at subsidiaries originally anticipated for next fiscal year and beyond. We will secure performance by implementing steady growth investments alongside measures to improve profitability and efficiency.
Now please turn to Page 5. This shows the group's performance for the 3 months of Q3. Revenue increased by JPY 66.7 billion year-on-year to JPY 1,423.5 billion, surpassing Q3 fiscal year '25 to reach the highest ever. Operating income, excluding the impact of Next-Stage, increased by JPY 17.8 billion year-on-year to JPY 144.7 billion, another record high. And operating margin improved by 0.8 percentage points year-on-year to a record 10.2%.
Now please turn to Page 5. This page shows the results for the first 9 months of the fiscal year. Revenue of JPY 4,156 billion, operating profit of JPY 369 billion on a real basis, excluding the impact of Next-Stage and the operating margin of 8.9%, all set new highs for the first 9 months of the fiscal year. Net profit also reached the highest ever, even including the impact of Next-Stage.
Please refer to Page 7. This waterfall chart shows the year-on-year changes in revenue and operating profit for the 3 months of the third quarter, as explained earlier. Despite the impact of a logistics subsidiary share transfer in the same period of the previous fiscal year, we achieved a significant year-on-year growth in both revenue and operating income on a real basis, excluding the impact of Next-Stage due to the weak yen, increased AI and smartphone-related demand in the FA Systems business, expansion of the infrastructure BA accompanying growth in UPS and power substation-related businesses for data centers in North America as well as in the Defense business in addition to price improvements and cost reductions.
Please see Page 8. This shows the fluctuation in revenue and operating profit for the first 9 months of the fiscal year. The foreign exchange rate negatively impacted revenue by JPY 5 billion and profit by JPY 11 billion. However, if you exclude the Next-Stage impact on a real basis, revenue and profit both increased year-on-year, primarily due to expanded business volume.
Please turn to Page 9 now. This is the consolidated statement of profit or loss for the third quarter 3 months. The cost of sales ratio improved by 1.7 percentage points compared to the same period last year, driven by the weak yen effect and improvements in the FA Systems segment and the Semiconductor & Devices group.
Selling, general and administrative expenses increased year-on-year, primarily due to an approximately JPY 6 billion increase in yen-denominated amount resulting from the weak yen. However, the SG&A ratio improved by 0.5 percentage points.
Other income expenses in the same period last year posted a gain on the sale of shares in a logistics subsidiary. While this year, we have recognized the expenses from the Next-Stage initiative. The deterioration in financial income expenses resulted from the recognition of currency gains due to a sharp yen depreciation in the same period last year.
The improvement in investment profits accounted for using the equity method includes the impact of the fair value assessment of existing equity interest in AG MELCO Elevator Company Limited, which was made a subsidiary in the Building Systems segment.
Please refer to Page 10 for the consolidated statement of profit or loss for the 9-month period of the first 3 quarters.
Now please skip to Page 11. Turning now to the consolidated statement of financial position. First, assets increased by JPY 284.2 billion over the end of the previous fiscal year. Inventories increased by JPY 125.5 billion due to the impact of yen depreciation and progress in construction of the made-to-order business. We will continue to work on improving asset efficiency such as by optimizing inventory placements.
Equity capital increased by JPY 225.4 billion over the end of the previous fiscal year. Of this, equity attributable to parent company shareholders, despite the impact of dividend payouts and the repurchase of shares, increased by JPY 212.4 billion to JPY 4.162 trillion over the end of the previous fiscal year, driven by a net profit of JPY 298.2 billion and the impact of currency conversion of the net assets of overseas subsidiaries due to the weak yen.
The ratio of equity attributable to parent company shareholders to total assets increased by 0.6 percentage points from the end of the previous fiscal year to 62.5%.
Please turn to Page 12 for the consolidated cash flows for the cumulative 9-month period. Cash flow from operating activities was an inflow of JPY 342.9 billion, an increase of JPY 34.7 billion year-on-year, primarily due to recording of net profit.
Cash flow from investing activities resulted in an outflow of JPY 138.4 billion, a JPY 4.4 billion increase in outflows. This was due to higher expenditures for acquisitions, which are weighted proceeds from the sale of securities. As a result, free cash flow was an inflow of JPY 204.4 billion, increase of JPY 30.2 billion year-on-year.
Turn to Page 13, please. I will now explain revenue and operating profit by segment for the 3 months of the quarter. During this period, all business areas, except Semiconductor & Device sales growth, while all business areas recorded profit increase.
On the next page, for the 9-month period up till quarter -- third quarter, revenue grew in all business areas, except Industry & Mobility and Semiconductor & Device Profit increased in all segments, except Life. The Next-Stage impact is included in Eliminations and Corporate. Details for each segment are on the following pages. A full list of segment's figures is available in the supplementary information on Page 23 and 24.
Skipping one page, please see Page 15. For the Infrastructure business area, all subsegments recorded year-on-year increase in both revenue and profit. In Public Utility Systems segment, order intake sales and profit all exceeded the previous year. This was driven by strong UPS business for overseas data centers and steady domestic transportation project.
And for Energy Systems segment, demand remains solid due to data center expansions, particularly in North America, orders revenue and profit all exceeded previous year. In third quarter, specifically, the operating margin improved due to the higher proportion of high-margin project.
In Defense & Space Systems segment, order intake, revenue and operating profit exceeded previous year due to expanding demand. Order intake remained high, and backlog has been increasing since the end of the fiscal half. And we expect steady growth in both sales revenue and profit going forward.
Page 16 discovers Industry & Mobility business area. In the Factory Automation Systems segment, driven by demand for smartphones and machine tools in China as well as continued AI-related capital investment in Japan and China, order revenue rose Y-o-Y basis. And due to higher revenue -- excuse me, the sales volume, price improvements and cost reductions, operating profit also increased from last year.
And Automotive Equipment segment, the sales fell year-on-year due to lower sales in Japanese automakers in China and decreased car multimedia for North Americas. However, profit increased through price improvements and cost reductions.
Page 17, please. This is Life business area. The Building Systems segment saw growth in order revenue and operating profit, led by increase in domestic renovation project.
The Air Conditioning Systems & Home Products segment, sales in North America fell as a rebound from last year's rush demand ahead of the recent transition. However, overall sales rose due to demand growth in Japan and Europe and weaker yen. And operating profit was impacted by rising material cost and stronger Thai baht and declined on a year-on-year basis.
Page 18, please. This is Digital Innovation segment. Demand remained solid with order revenue and profit all exceeded the previous year. The Semiconductor & Device segment, order rose due to the growth in power semiconductor for railways and power transitions and optical devices for the data centers. Revenue was flat year-on-year, but operating profit increased due to an improved sales mix, driven by optical devices.
Page 19, please. The revenue by location of customers for third quarter. While overseas sales were boosted by the weak [ yen ] and demand for Air Conditioning System & Home Product in Europe. And domestic revenue also grew, led by Infrastructure. And consequently, the overseas sales ratio over consolidated revenue remained at 51%.
Page 21, please. This is full year forecast for FY '26 -- fiscal '26. We have revised our revenue forecast upward by JPY 90 billion to JPY 5.76 trillion. Core operating profit is expected to increase by JPY [ 30 ] billion to JPY 500 billion, excluding Next-Stage impact. The segment, we revised the higher revenue and profit for Infrastructure business area, expected to expand.
And Factory Automation Systems was also revised upward, reflecting the weak [ yen] and continued demand growth. However, for Air Conditioning System & Home Products segment, we lowered the volume outlook for North America. While revenue will rise now, we expect a profit decline. We will also raise the forecast for Automotive Equipment and Business System for higher profit and revenue and for a profit forecast for Semiconductor & Device segment as well.
So this concludes my presentation.
Mitsubishi Electric — Q3 2026 Earnings Call
Mitsubishi Electric — Q2 2026 Earnings Call
1. Management Discussion
It's time to start the Mitsubishi Electric FY '26 Second Quarter Financial Results Briefing. Let me introduce the speaker, our Executive Managing Director, Officer, CFO, Kenichiro Fujimoto. So Fujimoto-san, please proceed.
Thank you. I'm Fujimoto from Mitsubishi Electric. Thank you for joining our earnings results briefing today. So let me explain the consolidated financial results for our second quarter of FY '26 year ending March 31, 2026. Please move to Page 3.
These are the highlights. Despite the impact of a stronger yen, particularly against the U.S. dollars during the first half of FY '26, revenue increased to JPY 2,732.5 billion and operating profit reaching JPY 224.3 billion, both record high, thanks to sales growth making -- mainly in the Infrastructure and the ongoing effort of profitability and efficiency improvements.
The FY '26 full year outlook projects revenue of JPY 5.67 trillion, JPY 270 billion higher than the previous forecast, reflecting the sales growth in the Infrastructure and the revised assumption of a weaker yen. And operating profit is projected at JPY 430 billion, no change from the previous announcement, incorporating increased retirement costs under the Next-Stage Support Program while reflecting increased sales, the FX impact and the realization of price pass-through for U.S. tariff. The -- excluding the retirement alliance income, it is JPY 40 billion increase from the previous announcement.
The interim dividend has been increased by JPY 5 from the previous yen (sic) [ year ], setting a record high of JPY 25 per share. The year-end dividend is planned to be JPY 30, resulting in an annual dividend of JPY 55. We will continue to return profits from our business growth to our shareholders.
Please move to Page 5. This is our group's first half performance. As mentioned before, revenue reached JPY 2,732.5 billion, an increase of JPY 88.9 billion year-over-year, exceeding the first half of FY '25 and set a new record high. Operating income increased by JPY 47.6 billion year-on-year, JPY 224.3 billion, higher than the first half of FY '25, setting a record high. The operating profit margin improved by 1.5 percentage point to 8.2%. Profit -- this also -- operating income is setting a record high, better than FY '18.
Page 6. In the second quarter, Q2 of FY '26, both revenue and income after tax reached record high for Q2. Operating income decreased due to a factor that boosted operating income in Q2 of the previous year and decrease in unrealized gains on inventories related to the intra-group transaction against the sharp appreciation of yen.
Please go to Page 7. So the waterfall chart shows the year-on-year change in the revenue and operating profit for the first half. The stronger yen resulted in JPY 31 billion decrease in revenue and JPY 15 billion decrease in operating profit. Excluding the impact of FX, revenue and operating profit increased due to growth in scale in the Infrastructure and FA Systems, price improvements in the Industry & Mobility and air conditioning systems, home products and gains on the transfer of subsidiary shares.
Please go to Page 8. I now focus on items not previously explained in consolidated statement. The cost of sales was 68.3%, improvement of 1.0 point from the 69.3% in the same period of the previous year. Although each business was impacted by stronger yen, efforts to improve pricing, profitability and efficiency are yielding results. SG&A expenses increased by JPY 27.1 billion year-on-year. This was due to increased personnel and R&D costs due to accelerating AI adoption and S&D business growth.
Regarding nonoperating side, the Q2 of last year saw a sharp yen appreciation leading to FX losses. This fiscal year, the yen remained weak, particularly against the euro, resulting in JPY 25.1 billion improvement in expense compared to the last year.
Please refer to Page 10. This is a consolidated financial position. First, the assets increased by JPY 69 billion compared to the end of the last year. Inventories increased by JPY 23.5 billion due to the weaker yen against the euro and Thai baht. In the made-to-order business, inventories increased due to the project progress, but in the mass production business, inventory optimization led a decrease compared to the year end of the last year. Capital increased by JPY 104.5 billion compared to the end of the last year, of which equity attributable to the owners of the parent increased by JPY 98.2 billion to JPY 4,047.9 billion, reflecting the net income of JPY 189.3 billion for the first half, while we had dividends paid to shareholders and share buyback. The ratio to total asset increased by 0.9 percentage point to 62.8%.
Please refer to Page 11. Cash flow from operating activities increased by JPY 73.2 billion to JPY 344.7 billion due to higher net income for the first half. Cash flow from investment decreased by JPY 71.7 billion, primarily due to higher proceeds from the sales of the securities and subsidiary shares. As a result, free cash flow increased by JPY 145 billion to JPY 297.9 billion.
Please turn to Page 12. From here, I will explain revenue and operating profit by segment. While Infrastructure posted year-on-year increase in both revenue and profit, Industry & Mobility as well as Semiconductor & Device posted decrease in revenue and increase in profit, and Life and Digital Innovation recorded increase in revenue and decrease in profit. We will provide a detailed explanation of each segment from the next page onward, and the table showing results by each subsegment is available on Page 21 in the supplementary materials.
Please turn to Page 13. First, Infrastructure segment. In Public Utility Systems, transportation systems, public utility systems businesses in Japan as well as the UPS business for overseas markets performed well and revenue increased year-on-year. Operating profit also increased year-on-year, mainly due to increased revenue, a shift in project portfolio and the recognition of onetime gains. In Energy Systems, both revenue and operating profit increased year-on-year, mainly due to the expansion of the power transmission and distribution businesses in Japan and overseas. In Defense & Space Systems, both revenue and operating profit increased year-on-year due to increased demand for the defense systems. We will continue to focus on the steady execution of construction projects and secure revenue and earnings steadily in the second half of the year.
Please turn to Page 14 for Industry & Mobility. In factory Automation Systems, both orders and revenue increased year-on-year as demand related to smartphones and industrial machinery in China and capital expenditures mainly for AI-related semiconductors in Japan, China and Taiwan continued to grow in the second quarter. Operating profit also increased year-on-year due to increased revenue and the improvements in product prices. In Automotive Equipment, revenue decreased year-on-year, primarily due to the impact of lower sales volume by Japanese car manufacturers in China and the decrease in car multimedia for North America, but operating profit increased year-on-year due to improvements in product prices and reduced expenses.
Please turn to Page 15 for Life segment. In Building Systems, both orders and revenue increased year-on-year, mainly due to an increase in the domestic renewal businesses and operating profit also increased year-on-year. In Air Conditioning systems & Home Products, revenue increased year-on-year due to robust demand for air conditioning systems in North America and Japan, along with signs of recovery in demand in Europe despite the impact of the strong yen. Operating profit decreased year-on-year despite higher revenue, mainly due to the impact of foreign exchange rates and the upfront investment into development, among others.
Please refer to Page 16. In Digital Innovation, both orders and revenue increased year-on-year due to robust demand for system upgrades and digital transformation-related efforts, but operating profit decreased year-on-year, mainly due to expenses related to the integration of affiliated companies. In Semiconductor & Device, demand for optical communication devices for data centers remained strong despite the stagnation in demand for power modules. Orders decreased year-on-year due to decrease in orders for power modules. Revenue decreased year-on-year due to decreases in power modules used for industrial and automotive applications despite an increase in optical communication devices. Operating profit, however, increased year-on-year due to an improved profitability resulting from an increase in sales of optical communication devices and the effective cost control.
Please refer to Page 17. This page shows revenue by location of customers. Overseas revenue increased by JPY 27.6 billion or 102% of the same period of the previous year to JPY 1,447.2 billion due to increased demand in Infrastructure and Life in North America as well as increased demand in Factory Automation Systems in China and Asia despite decreases in Automotive Equipment in China and North America. On the other hand, revenue in Japan increased by JPY 61.2 billion or 105% of the same period of the previous year. As a result, the ratio of overseas revenue to consolidated revenue was 53%, down 0.7 percentage points year-on-year.
Please refer to Page 19 for the full year forecast for the fiscal year 2026. Revenue is expected to increase by JPY 270 billion from the previous forecast, up to JPY 5,670 billion due to increase in demand for Infrastructure and Factory Automation Systems in China and Asia as well as increase in demand for air conditioning systems centered on North America and Europe, along with the revision of the foreign exchange rate assumption to a weaker yen. Operating profit is expected to be JPY 430 billion, unchanged from the previous forecast as increase in profit in each business segment is factored in while incorporating JPY 40 billion of retirement costs as a corporate expense associated with the Next-Stage Support Program.
Revisions were made from the previous forecast by segment, with increase in revenue and profit forecasted for each subsegment in Infrastructure due to increase in volume and increase in revenue and profit for each subsegment in Industry & Mobility, driven by higher volume in Factory Automation Systems as well as weaker yen and increase in profit in Semiconductor & Device due to weaker yen, among other factors. The forecast for revenue and operating profit by segment is on Page 23 in supplementary materials. That concludes my explanation.
[Statements in English on this transcript were spoken by an interpreter present on the live call.]
Mitsubishi Electric — Q2 2026 Earnings Call
Financial data from Mitsubishi Electric
Revenue
Revenue is the sum of all sales generated by a company, e.g. for its products or services.
Revenue (TTM) metric explainedDirect Costs
Direct costs are the costs incurred directly in connection with the manufacture of the product or service.
Gross Profit
Gross Profit indicates how much of the revenue remains in the company after deducting direct production costs. If the percentage share of sales is calculated, this is referred to as the gross margin.
Gross Profit metric explainedSelling and Administrative Expenses
Selling, general and administrative expenses (SG&A) include all expenses for marketing and sales as well as the general administration of the company.
Research and Development Expense
Research and development costs (R&D) provide information on how much the company invests in the research and development of its products. The costs are particularly interesting as a percentage of revenue and in comparison to direct competitors.
EBITDA
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the company's earnings before interest, taxes, depreciation and amortization. The EBITDA margin is calculated as a percentage of sales.
Depreciation and Amortization
Depreciation represents reductions in the value of the company's assets (e.g. due to wear and tear on machinery).
EBIT (Operating Income)
EBIT (Earnings Before Interest and Taxes) is the company's profit before interest and taxes, also known as the operating income. The EBIT Margin is calculated as a percentage of sales at
.
Net Profit
Net Profit represents the profit or loss after deduction of all costs.
Net Profit metric explainedStocksGuide Premium
| Sep '26 |
+/-
%
|
||
| Revenue | 6,287,390 6,287,390 |
12%
12%
100%
|
|
| - Direct Costs | 4,191,100 4,191,100 |
9%
9%
67%
|
|
| Gross Profit | 2,096,290 2,096,290 |
20%
20%
33%
|
|
| - Selling and Administrative Expenses | 1,454,859 1,454,859 |
8%
8%
23%
|
|
| - Research and Development Expense | - - |
-
-
|
|
| EBITDA | - - |
-
-
|
|
| - Depreciation and Amortization | - - |
-
-
|
|
| EBIT (Operating Income) EBIT | 566,841 566,841 |
29%
29%
9%
|
|
| Net Profit | 515,386 515,386 |
31%
31%
8%
|
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In millions JPY.
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Mitsubishi Electric Stock News
Company Profile
Mitsubishi Electric Corp. engages in the manufacture, development, and sale of electric and electronic equipment. It operates in the following business segments: Energy and Electric Systems, Industrial Automation Systems, Information and Communication Systems, Electronic Devices, Home Appliances, and Others. The Energy and Electric Systems segment offers power and transportation systems, elevators, escalators, and supervisory control systems. The Industrial Automation Systems segment covers industrial automation products and systems, measurement and control systems, automotive and electronic products, and car multimedia systems. The Information and Communication Systems segment includes wireless, closed circuit television, space, and satellite communication systems, antennas, radar devices, and information communications network systems. The Electronic Devices segment provides power, high frequency, and optical devices; and liquid crystal displays. The Home Appliances segment covers air-conditioning and photovoltaic power generation systems, televisions, recorders, and players. The Others segment comprises of material procurement, logistics, real estate, advertising, and financial services. The company was founded on January 15, 1921 and is headquartered in Tokyo, Japan.
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| Head office | Japan |
| CEO | Mr. Uruma |
| Employees | 150,386 |
| Founded | 1921 |
| Website | www.mitsubishielectric.co.jp |
