# Mitsui Kinzoku Company (5706.JP)

Canonical: https://gigainvestors.com/s/5706.JP

Analysis as of: 2026-10-15T07:10:40.971Z. Financial observations: FY2014–FY2026.

Listing currency: JPY. Reporting currency: JPY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: JPY 2,260.00 per share; close as of 2026-10-15.

Estimated value: low JPY 1,613.54 per share, central JPY 2,106.21 per share, high JPY 2,452.12 per share. Buy at or below the central value JPY 2,106.21 per share. Valuation as of 2026-10-15T07:10:40.971Z; scenarios are not confidence intervals.

Expected annual return: 9.5% at the stated quote. About 9.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; JP 10-year bond 2.9% + 4 points).

## Checklist

### understandable: fail

- 4 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 1

- Operating margin variation: 0.56×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.09×

- FY2018: 0.10×

- FY2019: 0.04×

- FY2020: 0.03×

- FY2021: 0.10×

- FY2022: 0.10×

- FY2023: 0.02×

- FY2024: 0.05×

- FY2025: 0.10×

- FY2026: 0.17×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 8.5%

- ROIC, second-lowest year: 2.3%

- Typical minus recent gross margin: -1.6 pp

- Typical gross margin (annual median): 19.4%

- Recent gross margin (lower of latest and 3-year median): 21.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 5.2%

- ROIC including acquisitions, ten-year median: 4.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 7.9%

- FY2018: 9.1%

- FY2019: 3.2%

- FY2020: 2.3%

- FY2021: 10.4%

- FY2022: 11.4%

- FY2023: 1.8%

- FY2024: 4.9%

- FY2025: 13.7%

- FY2026: 22.4%

### economics: pass

- Owner earnings / net income, 5-yr: 1.04×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: JPY 253B

- Net income, five-year total: JPY 243B

- Return on incremental invested capital: 53.4%

- Working capital / revenue, annual change: 0.3 pp

- Working capital / revenue, change between three-year averages: 2.4 pp

- Working capital / revenue, final three-year average: 36.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.12×

- FY2023: 1.21×

- FY2024: 1.08×

- FY2025: 1.01×

- FY2026: 0.99×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 7.9% vs 13.7%

- Per-share earnings: -12.40 to 1130.95 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.0%

- Ordinary dilution, 5-year annual growth: 0.0%

- Market cap gain: JPY 139B

- Cumulative retained earnings: JPY 235B

- Diluted shares, 10-year annual growth: 0.0%

- Diluted shares, 5-year annual growth: 0.0%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value change: JPY 1K

- Per-share value, starting three-year median: JPY -12.40

- Per-share value, ending three-year median: JPY 1K

- Buyback history: 0 years

- Debt-funded buybacks: No

- Acquisition spending: JPY 5.4B

- Cumulative net income, 10 years: JPY 311B

- ROIC, first three-year median: 7.9%

- ROIC, last three-year median: 13.7%

Chart: Earnings per share; fiscal year observations.

- FY2017: JPY 326.98

- FY2018: JPY -12.40

- FY2019: JPY 82.15

- FY2020: JPY 27.43

- FY2021: JPY 783.34

- FY2022: JPY 912.00

- FY2023: JPY 148.99

- FY2024: JPY 454.71

- FY2025: JPY 1K

- FY2026: JPY 2K

### accounting: pass

- Sloan accruals: 0.5%

- Receivables to sales index (DSRI): 0.98×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.96×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.02×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -1.1%

- FY2018: -10.2%

- FY2019: -6.9%

- FY2020: -6.4%

- FY2021: 2.9%

- FY2022: -1.3%

- FY2023: -5.5%

- FY2024: -7.7%

- FY2025: -1.8%

- FY2026: 0.5%

## Holders

## Price story

Down 56% since May 2026 · sales +6.5%

Story as of 2026-10-16T10:00:14.374Z; price observation 2026-10-15.

Price needs cash profits to grow 5.5% a year for ten years

### Sales · FY2025–2026

sales +6.5%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YBQV.pdf; observed 2026-06-24.

- FY2017: JPY 436B 

- FY2018: JPY 519B 

- FY2019: JPY 498B 

- FY2020: JPY 473B 

- FY2021: JPY 523B 

- FY2022: JPY 633B 

- FY2023: JPY 652B 

- FY2024: JPY 647B 

- FY2025: JPY 712B 

- FY2026: JPY 759B 

### Gross margin · FY2026

gross margin 26.7%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YBQV.pdf; observed 2026-06-24.

- FY2017: 20.0% 

- FY2018: 19.5% 

- FY2019: 14.7% 

- FY2020: 14.7% 

- FY2021: 20.3% 

- FY2022: 19.4% 

- FY2023: 12.2% 

- FY2024: 14.8% 

- FY2025: 21.1% 

- FY2026: 26.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Annual sales are JPY 758.5 billion.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YBQV.pdf (filed 2026-06-24); FY2026: revenue 758532000000; grossProfit 202647000000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 14.8% to 26.7% during 2024–26; it earns 8.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); FY2024: grossProfit / revenue = 14.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); FY2025: grossProfit / revenue = 21.1%.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YBQV.pdf (filed 2026-06-24); FY2026: grossProfit / revenue = 26.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); 10-year return on capital observations [[2017,0.07943131682017726],[2018,0.09088351701709614],[2019,0.03241488025353246],[2020,0.023208563619134218],[2021,0.10370590878504059],[2022,0.1144912524634963],[2023,0.018277885267169745],[2024,0.04945867615499141],[2025,0.1372331131198424],[2026,0.22371630476439855]]; median 0.08515741691863671. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 6.9% of cash earnings on expansion; earns 53.4% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); FY2017: growth capex 0; upkeep 36072000000; owner earnings 6431000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); FY2021: growth capex 0; upkeep 28572000000; owner earnings 49327000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); FY2022: growth capex 0; upkeep 25488000000; owner earnings 58519000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); FY2023: growth capex 0; upkeep 31150000000; owner earnings 10334000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); FY2024: growth capex 0; upkeep 31603000000; owner earnings 28067000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); FY2025: growth capex 0; upkeep 31392000000; owner earnings 65608000000. Growth capex / owner earnings = 0.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YBQV.pdf (filed 2026-06-24); FY2026: growth capex 6208000000; upkeep 29762000000; owner earnings 90614000000. Growth capex / owner earnings = 0.06851038470876465.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); Incremental return on capital 0.5341593073055869, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); Dividend observations: [[2017,3426000000],[2018,3997000000],[2019,3997000000],[2020,3997000000],[2021,3997000000],[2022,4853000000],[2023,6283000000],[2024,12000000000],[2025,9147000000],[2026,10867000000]]. Zero only counted when supported by a complete cash-flow statement.

### What the price says

The price assumes cash profits grow 5.5% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); Ten-year compound average after fade. Initial solved rate 0.06514612303796985. Price 2260; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share -447.8077549460002 → FY2026 1584.1042514491087. Closing-price date 2026-10-15.

## Monthly share-price history (JPY per share)

- 2016-11: JPY 266.00 per share

- 2016-12: JPY 296.00 per share

- 2017-01: JPY 317.00 per share

- 2017-02: JPY 371.00 per share

- 2017-03: JPY 379.00 per share

- 2017-04: JPY 376.00 per share

- 2017-05: JPY 441.00 per share

- 2017-06: JPY 439.00 per share

- 2017-07: JPY 483.00 per share

- 2017-08: JPY 584.00 per share

- 2017-09: JPY 583.00 per share

- 2017-10: JPY 587.00 per share

- 2017-11: JPY 634.00 per share

- 2017-12: JPY 659.00 per share

- 2018-01: JPY 610.00 per share

- 2018-02: JPY 539.00 per share

- 2018-03: JPY 483.00 per share

- 2018-04: JPY 465.50 per share

- 2018-05: JPY 477.00 per share

- 2018-06: JPY 471.50 per share

- 2018-07: JPY 441.50 per share

- 2018-08: JPY 318.50 per share

- 2018-09: JPY 329.00 per share

- 2018-10: JPY 319.50 per share

- 2018-11: JPY 259.30 per share

- 2018-12: JPY 227.70 per share

- 2019-01: JPY 255.30 per share

- 2019-02: JPY 270.00 per share

- 2019-03: JPY 283.90 per share

- 2019-04: JPY 287.60 per share

- 2019-05: JPY 230.00 per share

- 2019-06: JPY 257.60 per share

- 2019-07: JPY 253.20 per share

- 2019-08: JPY 222.90 per share

- 2019-09: JPY 255.30 per share

- 2019-10: JPY 306.50 per share

- 2019-11: JPY 275.10 per share

- 2019-12: JPY 292.40 per share

- 2020-01: JPY 263.40 per share

- 2020-02: JPY 258.90 per share

- 2020-03: JPY 180.70 per share

- 2020-04: JPY 205.00 per share

- 2020-05: JPY 232.20 per share

- 2020-06: JPY 218.80 per share

- 2020-07: JPY 220.90 per share

- 2020-08: JPY 254.80 per share

- 2020-09: JPY 254.50 per share

- 2020-10: JPY 261.50 per share

- 2020-11: JPY 295.80 per share

- 2020-12: JPY 378.50 per share

- 2021-01: JPY 363.50 per share

- 2021-02: JPY 371.00 per share

- 2021-03: JPY 384.00 per share

- 2021-04: JPY 371.50 per share

- 2021-05: JPY 323.50 per share

- 2021-06: JPY 308.00 per share

- 2021-07: JPY 310.50 per share

- 2021-08: JPY 334.00 per share

- 2021-09: JPY 313.50 per share

- 2021-10: JPY 326.00 per share

- 2021-11: JPY 293.00 per share

- 2021-12: JPY 313.50 per share

- 2022-01: JPY 321.00 per share

- 2022-02: JPY 336.50 per share

- 2022-03: JPY 335.50 per share

- 2022-04: JPY 330.00 per share

- 2022-05: JPY 340.50 per share

- 2022-06: JPY 317.00 per share

- 2022-07: JPY 317.00 per share

- 2022-08: JPY 330.00 per share

- 2022-09: JPY 304.00 per share

- 2022-10: JPY 301.00 per share

- 2022-11: JPY 313.50 per share

- 2022-12: JPY 308.50 per share

- 2023-01: JPY 344.50 per share

- 2023-02: JPY 335.50 per share

- 2023-03: JPY 321.50 per share

- 2023-04: JPY 323.00 per share

- 2023-05: JPY 305.50 per share

- 2023-06: JPY 330.90 per share

- 2023-07: JPY 335.80 per share

- 2023-08: JPY 372.20 per share

- 2023-09: JPY 379.50 per share

- 2023-10: JPY 389.90 per share

- 2023-11: JPY 454.00 per share

- 2023-12: JPY 433.50 per share

- 2024-01: JPY 458.70 per share

- 2024-02: JPY 441.20 per share

- 2024-03: JPY 472.60 per share

- 2024-04: JPY 496.80 per share

- 2024-05: JPY 507.60 per share

- 2024-06: JPY 513.90 per share

- 2024-07: JPY 502.90 per share

- 2024-08: JPY 468.40 per share

- 2024-09: JPY 488.00 per share

- 2024-10: JPY 493.10 per share

- 2024-11: JPY 467.50 per share

- 2024-12: JPY 466.70 per share

- 2025-01: JPY 460.80 per share

- 2025-02: JPY 425.50 per share

- 2025-03: JPY 434.50 per share

- 2025-04: JPY 387.30 per share

- 2025-05: JPY 495.00 per share

- 2025-06: JPY 503.90 per share

- 2025-07: JPY 645.00 per share

- 2025-08: JPY 1,052.50 per share

- 2025-09: JPY 1,150.50 per share

- 2025-10: JPY 1,576.00 per share

- 2025-11: JPY 1,783.00 per share

- 2025-12: JPY 1,763.50 per share

- 2026-01: JPY 2,037.00 per share

- 2026-02: JPY 3,691.00 per share

- 2026-03: JPY 2,804.00 per share

- 2026-04: JPY 4,235.00 per share

- 2026-05: JPY 5,163.00 per share

- 2026-06: JPY 4,255.00 per share

- 2026-07: JPY 3,095.00 per share

- 2026-08: JPY 2,934.50 per share

- 2026-09: JPY 2,291.50 per share

- 2026-10: JPY 2,643.00 per share

## Annual estimated value (JPY per share)

- FY2023: low JPY 2,218.50 per share, central JPY 2,491.13 per share, high JPY 2,854.05 per share

- FY2024: low JPY 6,311.78 per share, central JPY 7,937.18 per share, high JPY 9,214.53 per share

- FY2025: low JPY 14,580.87 per share, central JPY 18,544.07 per share, high JPY 21,582.01 per share

- FY2026: low JPY 16,138.33 per share, central JPY 21,065.88 per share, high JPY 24,525.62 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T07:10:40.971Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original EDINET filing](https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YBQV.pdf); period 2026-03-31, filed 2026-06-24.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.