# Mitsubishi Electric (6503.JP)

Canonical: https://gigainvestors.com/s/6503.JP

Analysis as of: 2026-10-15T07:10:59.588Z. Financial observations: FY2013–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 4,915.00 per share; close as of 2026-10-15.

Estimated value: low JPY 1,822.98 per share, central JPY 2,212.43 per share, high JPY 2,532.81 per share. Buy at or below the central value JPY 2,212.43 per share. Valuation as of 2026-10-15T07:10:59.588Z; scenarios are not confidence intervals.

Expected annual return: 5.9% at the stated quote. About 5.9% 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: pass

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

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.12×

Chart: Operating margin; fiscal year observations.

- FY2018: 0.07×

- FY2019: 0.06×

- FY2020: 0.06×

- FY2021: 0.05×

- FY2022: 0.06×

- FY2023: 0.05×

- FY2024: 0.06×

- FY2025: 0.07×

- FY2026: 0.07×

### moat: fail

- ROIC median below threshold

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

- ROIC, median of available years: 10.1%

- ROIC, second-lowest year: 9.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.1%

- ROIC including acquisitions, ten-year median: 8.1%

- Typical minus recent gross margin: 0.8 pp

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2018: 13.0%

- FY2019: 11.9%

- FY2020: 11.7%

- FY2021: 9.3%

- FY2022: 9.0%

- FY2023: 8.1%

- FY2024: 9.3%

- FY2025: 10.1%

- FY2026: 10.3%

### economics: pass

- Owner earnings / net income, 5-yr: 0.85×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: JPY 1.21T

- Net income, five-year total: JPY 1.43T

- Working capital / revenue, annual change: 0.8 pp

- Working capital / revenue, change between three-year averages: 5.2 pp

- Working capital / revenue, final three-year average: 19.1%

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

- FY2022: 0.97×

- FY2023: 0.91×

- FY2024: 0.79×

- FY2025: 0.80×

- FY2026: 0.83×

### management: pass

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

- buybacks unrelated to price (informational)

- Per-share earnings: 106.43 to 155.70 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.4%

- Ordinary dilution, 5-year annual growth: -0.8%

- Market cap gain: JPY 6.83T

- Cumulative retained earnings: JPY 2.22T

- Diluted shares, 10-year annual growth: -0.4%

- Diluted shares, 5-year annual growth: -0.8%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 4.9%

- Per-share value change: JPY 49.27

- Per-share value, starting three-year median: JPY 106.43

- Per-share value, ending three-year median: JPY 155.70

- Buybacks concentrated in cheaper years (correlation): -1.00

- Average buyback yield: 0.6%

- Buyback history: 4 years

- Debt-funded buybacks: No

- Cumulative net income, 10 years: JPY 2.56T

- ROIC, last three-year median: 10.1%

Chart: Earnings per share; fiscal year observations.

- FY2017: JPY 98.07

- FY2018: JPY 119.19

- FY2019: JPY 105.65

- FY2020: JPY 103.41

- FY2021: JPY 90.03

- FY2022: JPY 95.41

- FY2023: JPY 101.30

- FY2024: JPY 135.74

- FY2025: JPY 155.70

- FY2026: JPY 198.31

### accounting: pass

- Sloan accruals: -2.3%

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.41×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.07×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -3.7%

- FY2018: 0.7%

- FY2019: -0.3%

- FY2020: -3.9%

- FY2021: -7.3%

- FY2022: -1.5%

- FY2023: 0.8%

- FY2024: -2.1%

- FY2025: -2.1%

- FY2026: -2.3%

## Holders

## Price story

Down 25% since May 2026 · sales +6.8%

Story as of 2026-10-16T10:00:14.468Z; price observation 2026-10-15.

Price needs cash profits to grow 14.5% a year for ten years

### Sales · FY2025–2026

sales +6.8%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YD3V.pdf; observed 2026-06-19.

- FY2017: JPY 4.24T 

- FY2018: JPY 4.44T 

- FY2019: JPY 4.52T 

- FY2020: JPY 4.46T 

- FY2021: JPY 4.19T 

- FY2022: JPY 4.48T 

- FY2023: JPY 5.00T 

- FY2024: JPY 5.26T 

- FY2025: JPY 5.52T 

- FY2026: JPY 5.89T 

### Gross margin · FY2026

gross margin 32.1%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YD3V.pdf; observed 2026-06-19.

- FY2018: 30.5% 

- FY2019: 29.5% 

- FY2020: 28.3% 

- FY2021: 28.0% 

- FY2022: 28.2% 

- FY2023: 28.1% 

- FY2024: 29.4% 

- FY2025: 30.6% 

- FY2026: 32.1% 

## Owner memo

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

### How it makes money

Annual sales are JPY 5.9 trillion.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YD3V.pdf (filed 2026-06-19); FY2026: revenue 5894747000000; grossProfit 1889498000000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 29.4% to 32.1% during 2024–26; it earns 10.1% on its capital.

- Source: https://query2.finance.yahoo.com/ws/fundamentals-timeseries/v1/finance/timeseries/6503.T (filed 2026-06-19); FY2024: grossProfit / revenue = 29.4%.

- Source: https://query2.finance.yahoo.com/ws/fundamentals-timeseries/v1/finance/timeseries/6503.T (filed 2026-06-19); FY2025: grossProfit / revenue = 30.6%.

- Source: https://query2.finance.yahoo.com/ws/fundamentals-timeseries/v1/finance/timeseries/6503.T (filed 2026-06-19); FY2026: grossProfit / revenue = 32.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-19); 10-year return on capital observations [[2018,0.12974673305948817],[2019,0.11887001792786232],[2020,0.11694165582581732],[2021,0.09316909689197891],[2022,0.0900844000129787],[2023,0.0807130374923004],[2024,0.09276270239334466],[2025,0.10068490556464818],[2026,0.10345317950592914]]; median 0.10068490556464818. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 28% gross margin through 2022 cost inflation.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YD3V.pdf (filed 2026-06-19); Gross margin observations: [[2021,0.28018436654003537],[2022,0.28246825046160634],[2023,0.28117486800751607]]; range within 2 percentage points.

### Where the cash goes

Reinvests 43.5% of cash earnings; paid dividends in 9 of 9 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-19); FY2018: growth capex 31920000000; upkeep 177272000000; owner earnings 271880000000. Growth capex / owner earnings = 0.11740473738414006.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-19); FY2019: growth capex 12488354472.10086; upkeep 205538645527.89914; owner earnings 187998354472.10086. Growth capex / owner earnings = 0.06642799883630973.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-19); FY2020: growth capex 0; upkeep 217197000000; owner earnings 161376000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-19); FY2021: growth capex 0; upkeep 188359000000; owner earnings 163101000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-19); FY2022: growth capex 0; upkeep 156062000000; owner earnings 198337000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-19); FY2023: growth capex 0; upkeep 175556000000; owner earnings 194236000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-19); FY2024: growth capex 8175000000; upkeep 200829000000; cash acquisitions 0; owner earnings 224031000000. Growth capex plus acquisitions / owner earnings = 0.03649048569171231.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-19); FY2025: growth capex 4643000000; upkeep 221428000000; cash acquisitions 0; owner earnings 258630000000. Growth capex plus acquisitions / owner earnings = 0.017952287050999497.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YD3V.pdf (filed 2026-06-19); FY2026: growth capex 8653000000; upkeep 233784000000; cash acquisitions 138883000000; owner earnings 339195000000. Growth capex plus acquisitions / owner earnings = 0.4349592417341058.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-19); Dividend observations: [[2018,68696000000],[2019,85871000000],[2020,85871000000],[2021,77283000000],[2022,85723000000],[2023,84524000000],[2024,96949000000],[2025,104316000000],[2026,113621000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://query2.finance.yahoo.com/ws/fundamentals-timeseries/v1/finance/timeseries/6503.T (filed 2026-06-19); FY2026: cash repurchases 101426000000 JPY.

### What could break it

"①経済安全保障に関わるリスクの高まり" (6503 filing, Jun 2026)

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YD3V.pdf (filed 2026-06-19); ①経済安全保障に関わるリスクの高まり

### What the price says

The price assumes cash profits grow 14.5% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-19); Ten-year compound average after fade. Initial solved rate 0.19602510669356354. Price 4915; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

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

- 2016-11: JPY 1,576.50 per share

- 2016-12: JPY 1,629.50 per share

- 2017-01: JPY 1,721.50 per share

- 2017-02: JPY 1,647.50 per share

- 2017-03: JPY 1,597.00 per share

- 2017-04: JPY 1,554.00 per share

- 2017-05: JPY 1,527.00 per share

- 2017-06: JPY 1,615.50 per share

- 2017-07: JPY 1,710.50 per share

- 2017-08: JPY 1,627.00 per share

- 2017-09: JPY 1,758.00 per share

- 2017-10: JPY 1,931.50 per share

- 2017-11: JPY 1,852.50 per share

- 2017-12: JPY 1,871.50 per share

- 2018-01: JPY 1,992.50 per share

- 2018-02: JPY 1,817.00 per share

- 2018-03: JPY 1,701.50 per share

- 2018-04: JPY 1,680.50 per share

- 2018-05: JPY 1,545.00 per share

- 2018-06: JPY 1,474.50 per share

- 2018-07: JPY 1,511.50 per share

- 2018-08: JPY 1,500.00 per share

- 2018-09: JPY 1,556.50 per share

- 2018-10: JPY 1,433.50 per share

- 2018-11: JPY 1,498.00 per share

- 2018-12: JPY 1,216.50 per share

- 2019-01: JPY 1,365.50 per share

- 2019-02: JPY 1,394.00 per share

- 2019-03: JPY 1,422.50 per share

- 2019-04: JPY 1,582.00 per share

- 2019-05: JPY 1,360.50 per share

- 2019-06: JPY 1,419.00 per share

- 2019-07: JPY 1,432.50 per share

- 2019-08: JPY 1,283.50 per share

- 2019-09: JPY 1,432.50 per share

- 2019-10: JPY 1,556.50 per share

- 2019-11: JPY 1,511.50 per share

- 2019-12: JPY 1,498.50 per share

- 2020-01: JPY 1,545.00 per share

- 2020-02: JPY 1,371.00 per share

- 2020-03: JPY 1,335.00 per share

- 2020-04: JPY 1,340.50 per share

- 2020-05: JPY 1,418.50 per share

- 2020-06: JPY 1,399.50 per share

- 2020-07: JPY 1,370.50 per share

- 2020-08: JPY 1,463.00 per share

- 2020-09: JPY 1,421.50 per share

- 2020-10: JPY 1,340.00 per share

- 2020-11: JPY 1,533.50 per share

- 2020-12: JPY 1,557.00 per share

- 2021-01: JPY 1,594.50 per share

- 2021-02: JPY 1,568.50 per share

- 2021-03: JPY 1,686.50 per share

- 2021-04: JPY 1,682.00 per share

- 2021-05: JPY 1,692.00 per share

- 2021-06: JPY 1,612.50 per share

- 2021-07: JPY 1,476.00 per share

- 2021-08: JPY 1,505.50 per share

- 2021-09: JPY 1,557.00 per share

- 2021-10: JPY 1,525.00 per share

- 2021-11: JPY 1,424.50 per share

- 2021-12: JPY 1,458.50 per share

- 2022-01: JPY 1,431.50 per share

- 2022-02: JPY 1,381.50 per share

- 2022-03: JPY 1,410.00 per share

- 2022-04: JPY 1,368.00 per share

- 2022-05: JPY 1,416.00 per share

- 2022-06: JPY 1,451.00 per share

- 2022-07: JPY 1,404.00 per share

- 2022-08: JPY 1,418.50 per share

- 2022-09: JPY 1,304.50 per share

- 2022-10: JPY 1,310.00 per share

- 2022-11: JPY 1,377.50 per share

- 2022-12: JPY 1,313.50 per share

- 2023-01: JPY 1,426.00 per share

- 2023-02: JPY 1,533.00 per share

- 2023-03: JPY 1,578.50 per share

- 2023-04: JPY 1,679.00 per share

- 2023-05: JPY 1,819.00 per share

- 2023-06: JPY 2,027.00 per share

- 2023-07: JPY 2,051.00 per share

- 2023-08: JPY 1,899.00 per share

- 2023-09: JPY 1,849.00 per share

- 2023-10: JPY 1,677.50 per share

- 2023-11: JPY 2,009.00 per share

- 2023-12: JPY 1,999.00 per share

- 2024-01: JPY 2,203.00 per share

- 2024-02: JPY 2,381.50 per share

- 2024-03: JPY 2,500.00 per share

- 2024-04: JPY 2,773.00 per share

- 2024-05: JPY 2,730.00 per share

- 2024-06: JPY 2,567.50 per share

- 2024-07: JPY 2,601.00 per share

- 2024-08: JPY 2,441.00 per share

- 2024-09: JPY 2,303.50 per share

- 2024-10: JPY 2,387.50 per share

- 2024-11: JPY 2,547.00 per share

- 2024-12: JPY 2,687.00 per share

- 2025-01: JPY 2,571.50 per share

- 2025-02: JPY 2,307.00 per share

- 2025-03: JPY 2,720.00 per share

- 2025-04: JPY 2,760.50 per share

- 2025-05: JPY 2,904.00 per share

- 2025-06: JPY 3,111.00 per share

- 2025-07: JPY 3,342.00 per share

- 2025-08: JPY 3,552.00 per share

- 2025-09: JPY 3,803.00 per share

- 2025-10: JPY 4,317.00 per share

- 2025-11: JPY 4,223.00 per share

- 2025-12: JPY 4,585.00 per share

- 2026-01: JPY 4,830.00 per share

- 2026-02: JPY 5,991.00 per share

- 2026-03: JPY 4,988.00 per share

- 2026-04: JPY 6,231.00 per share

- 2026-05: JPY 6,558.00 per share

- 2026-06: JPY 5,876.00 per share

- 2026-07: JPY 5,912.00 per share

- 2026-08: JPY 5,585.00 per share

- 2026-09: JPY 5,205.00 per share

- 2026-10: JPY 5,229.00 per share

## Annual estimated value (JPY per share)

- FY2022: low JPY 1,253.28 per share, central JPY 1,384.86 per share, high JPY 1,560.02 per share

- FY2023: low JPY 1,370.88 per share, central JPY 1,662.51 per share, high JPY 1,897.98 per share

- FY2024: low JPY 1,466.52 per share, central JPY 1,737.75 per share, high JPY 1,974.62 per share

- FY2025: low JPY 1,644.29 per share, central JPY 1,955.02 per share, high JPY 2,228.48 per share

- FY2026: low JPY 1,822.98 per share, central JPY 2,212.43 per share, high JPY 2,532.81 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 2026-10-15T07:10:59.588Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original EDINET filing](https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YD3V.pdf); period 2026-03-31, filed 2026-06-19.

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.

## Reported holder observations