One-glance verdict
Undervalued
$61.94 our estimate vs market $19.64
68% below our estimate, below the bear case
Fundamentals snapshot
Mitsubishi Motors Corporation
MMTOY · PNK · Consumer Cyclical · Auto Manufacturers
Current price
$19.64
52-week range
$18.76 - $30.37
Market cap
$2.63B
Balance sheet
Healthy
12.38x Strong cushion
Net debt $687.31M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 3.9% last year.
- Reward Free cash flow was positive in 3/10 years.
- Risk Stock trades 17211.3% above its 5-year average P/E.
- Risk Operating margin compressed from 7.7% to 1.6% over 3 years.
What this company does
Mitsubishi Motors Corporation
Mitsubishi Motors is a Japanese car company that sells vehicles like SUVs and pickup trucks all over the world. Most of its revenue (the total money brought in from sales) comes from selling cars, but it also earns money by providing financing and loans to the people who buy them. This is important because the financing business can provide a steady income stream, helping to balance out the natural ups and downs of the car sales market.
How the company got here
Mitsubishi's journey into cars began in 1917 with Japan's first series-production automobile, the Model A. The company officially formed as Mitsubishi Motors Corporation in 1970, spinning off from Mitsubishi Heavy Industries. A key turning point was a 1971 partnership with Chrysler, which helped introduce its cars to the American market, though often sold under Chrysler's brand names. After facing financial difficulties and a series of recalls, the company in 2016 became part of the Renault-Nissan-Mitsubishi Alliance, a strategic partnership that allows the companies to share technology and development costs.
What it actually does
Mitsubishi Motors designs, builds, and sells a range of vehicles that you would recognize on the street, from small cars to large SUVs. Their lineup includes well-known models like the Outlander SUV, the Eclipse Cross, and the Triton pickup truck. The company is also involved in developing electric and hybrid vehicles, reflecting a broader industry shift toward more environmentally friendly cars. In addition to selling cars, they also provide financing and leasing options to help customers purchase their vehicles.
Automobile Business
This is the core of the company, responsible for making and selling cars, trucks, and SUVs under the Mitsubishi brand. It generates the vast majority of the company's revenue (the total money earned from sales before subtracting costs). Customers for this segment are everyday people and businesses around the world, with a particularly strong presence in Southeast Asia. This part of the business includes everything from designing new models and manufacturing them in factories to marketing and selling them through a network of dealerships.
Financial Services
This smaller but important part of the company helps customers buy Mitsubishi cars. Instead of paying the full price upfront, a customer can get a loan or a lease directly from Mitsubishi's finance division. This makes it easier for people to afford a new vehicle and helps the automobile business sell more cars. This segment earns money by charging interest on the loans and from the fees associated with leasing agreements.
What management is betting on now
The company's current strategy, called "Momentum 2030," focuses heavily on growth in North America. A major part of this plan is electrification, meaning they will offer a wider range of hybrid and fully electric vehicles. Management is also betting on expanding their vehicle lineup, with plans to introduce new or completely refreshed models every year and even re-enter the pickup truck market in the U.S. through a collaboration with Nissan. They also aim to modernize the car-buying experience with more technology and expand their network of dealerships to reach more customers.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $61.94 vs current price $19.64
Our most-likely fair value is $61.94 a share — about 215.3% above today's price of $19.64, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net debt $687.3M. Interest coverage 12.4x.
Net debt
$687.31M
Interest coverage
12.38x
Mitsubishi Motors Corporation is healthier than 0 of 1 peers on balance-sheet leverage.
Healthy
Worse cushion
Baseline
Better cushion
MMTOY
BASELINE
Mitsubishi Motors Corporation
Total debt $2.67B Interest coverage 12.38x This is the baseline the peer rows are being compared against.
What you should know
The case for and against MMTOY
3 Rewards
2 Risks
Rewards
-
Revenue grew 3.9% last year.
-
Free cash flow was positive in 3/10 years.
-
Dividend yield is 3.2% with 2-year payout history.
Risks
-
Stock trades 17211.3% above its 5-year average P/E.
-
Operating margin compressed from 7.7% to 1.6% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
41.79x
Forward P/E
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P/B
4.57x
P/S
0.00x
EV/EBITDA
1.08x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
15.7%
Operating margin
1.6%
Net margin
0.4%
ROE
2.3%
ROA
2.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.43x
Current ratio
1.40x
Quick ratio
0.79x
Total debt
$2.67B
Total cash
$1.98B
Growth
How the business has been compounding
Revenue TTM
$18.75B
Revenue 5Y CAGR
5.6%
EPS TTM
0.47
EPS 5Y CAGR
-59.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$230.57M
Free CF TTM
$-561.96M
FCF margin
-3.0%
Dividend
Shareholder payout
Yield
3.2%
Payout ratio
129.9%
Last ex-div date
2026-03-31