Fact based stock research
Mitsubishi Estate (TSE:8802)

JP3899600005

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Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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Mitsubishi Estate stock research in summary

mec.co.jp

ANALYSIS: With an Obermatt Combined Rank of 28 (worse than 72% compared with investment alternatives), Mitsubishi Estate (Real Estate: Diversified Operations, Japan) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Mitsubishi Estate are low in value (priced high) with a consolidated Value Rank of 35 (worse than 65% of alternatives) and show below-average growth (Growth Rank of 39) but are safely financed (Safety Rank of 53), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 28, is a hold recommendation based on Mitsubishi Estate's financial characteristics. As the company Mitsubishi Estate's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 35) and low growth (Obermatt Growth Rank of 39), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. In this case, good financing practices (Obermatt Safety Rank of 53) are a positive sign, because it may allow the company to weather challenging times until the hoped-for cash flows materialize. This may be true for high-tech or biotechnology companies with enough cash to sustain prolonged business development. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and unattractive today. In such cases, the Obermatt Method has limited value, as it is based on facts we can observe today. If the facts lie all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that account for a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	35
Growth Rank	39
Safety Rank	53
Combined Rank	28

Country	Japan
Industry	Real Estate: Diversified Operations
Index	TOPIX 100, Human Rights, Nikkei 225
Size class	X-Large

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Mitsubishi Estate

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	73	35	30	35
GROWTH
GROWTH	35	5	23	39
SAFETY
SAFETY	39	56	55	53
SENTIMENT
SENTIMENT	n/a	87	12	^new
360° VIEW
360° VIEW	n/a	33	8	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Mitsubishi Estate is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	73	35	30	35
GROWTH
GROWTH	35	5	23	39
SAFETY
SAFETY	39	56	55	53
COMBINED
COMBINED	46	14	17	28

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Mitsubishi Estate the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 35 (worse than 65% compared with alternatives), Mitsubishi Estate shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half above average for Mitsubishi Estate. Price-to-Sales (P/S) is 65, which means that the stock price compared with what market professionals expect for future sales is lower than for 65% of comparable companies, indicating a good value concerning Mitsubishi Estate's revenue size. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio), which is more favorable than for 59% of alternatives (41% of peers have a higher ratio). But expected dividend yields with a Dividend Yield rank of 12 are lower than average (dividends are expected to be lower than 88% of other stocks) while the Price to Profit ratio (or Price to Earnings (P/E) ratio) is higher than average with a Price-to-Profit Rank of 44, making the stock more expensive compared with the company's expected profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 35, is a hold recommendation based on Mitsubishi Estate's stock price compared with the company's operational size and dividend yields. Low profits and low dividends as seen here for Mitsubishi Estate may indicate a restructuring phase. This could be transitory, making the company a good value when profits recover and dividends return to higher levels. If the stock price is compared with the size indicators for revenue and invested capital, it is on the lower side, making this stock a good value investment (apart from current profit and dividend expectations). We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	67	63	68	65
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	68	41	38	44
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	52	61	50	59
DIVIDEND YIELD
DIVIDEND YIELD	60	22	14	12
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	73	35	30	35

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Mitsubishi Estate; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 39 (better than 39% compared with alternatives), Mitsubishi Estate shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Mitsubishi Estate. Sales Growth has a rank of 56 which means that currently, professionals expect the company to grow more than 56% of its competitors. Capital Growth is also above 29% of competitors with a rank of 52. But Profit Growth only has a rank of 29, which means that currently professionals expect the company to grow its profits less than 71% of its competitors. And Stock Returns have also been below average with a rank of only 37. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 39, is a hold recommendation for growth and momentum investors. Profits are sometimes low if the company invests in the future. The positive revenue and capital investment outlook confirms such an interpretation. Both revenues and capital are solid growth indicators, and lower profits in such a case would be encouraging. But the investors see it differently by punishing the share price. Sometimes, Mister Market is not very reliable, because it is not uncommon for it to be volatile. Investors should look out for signs of growth expenditure that could justify low profit growth, and they may also find reasons why recent stock price developments don't confirm the growth outlook of operations. While operating growth indicators are not perfect, they are more reliable indicators for future performance than stock prices that can repeatedly surprise investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	33	32	18	56
PROFIT GROWTH
PROFIT GROWTH	29	26	30	29
CAPITAL GROWTH
CAPITAL GROWTH	n/a	25	38	52
STOCK RETURNS
STOCK RETURNS	63	29	69	37
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	35	5	23	39

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Mitsubishi Estate.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 53 (better than 53% compared with alternatives), the company Mitsubishi Estate has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Mitsubishi Estate is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above-average for Mitsubishi Estate. Refinancing is at 52, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 52% of its competitors. Liquidity is also good at 59, meaning the company generates more profit to service its debt than 59% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 46, which means the company has an above-average debt-to-equity ratio. It has more debt than 54% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 53 (better than 53% compared with alternatives), Mitsubishi Estate has a financing structure that is safer than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and Mitsubishi Estate could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. In the long-term, investors may have a debt challenge with Mitsubishi Estate and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	17	49	44	46
REFINANCING
REFINANCING	74	48	51	52
LIQUIDITY
LIQUIDITY	47	61	66	59
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	39	56	55	53

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Mitsubishi Estate and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	70	26	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	57	15	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	83	64	^new
MARKET PULSE
MARKET PULSE	n/a	58	41	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	87	12	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Mitsubishi Estate.
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