One-glance verdict
Undervalued
$62.95 our estimate vs market $19.64
69% 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 $676.34M. 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 Returns 2.3% on equity, ahead of 50% of its peers.
- Risk Stock trades 15546.8% 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 Corporation makes and sells cars, including electric vehicles and SUVs, all over the world. Their main money comes from selling these vehicles and also from their financial services business, which is like offering car loans. This matters because the sales of their cars directly show how well their main business is doing, and the financial services provide a steady stream of income.
How the company got here
Mitsubishi Motors Corporation has a long history, tracing its roots back to 1870 with a shipping company founded by Yataro Iwasaki. The company eventually expanded into various industries, including aviation and motors, and introduced its iconic three-diamond trademark in 1914. Mitsubishi made its first foray into car manufacturing in the early 20th century, producing Japan's first series-production automobile, the Model A, in 1917. After a period of focusing on military aircraft during World War II, Mitsubishi resumed vehicle production, introducing models like the Mizushima cargo vehicle and the Silver Pigeon scooter. The company officially incorporated as Mitsubishi Motors Corporation in 1970, and since 2016, it has been part of the Renault–Nissan–Mitsubishi Alliance.
What it actually does
Mitsubishi Motors Corporation designs, manufactures, and sells a variety of automobiles and related parts worldwide. Their product lineup includes passenger cars, electric and hybrid vehicles, minivans, and sport utility vehicles (SUVs). The company also engages in financial services related to automobiles, such as leasing and sales financing. Mitsubishi's vehicles are sold under the Mitsubishi brand name across Japan, North America, Europe, Asia, Oceania, and other international markets.
Automobile Business
This is the core of Mitsubishi Motors' operations, where the company designs, manufactures, and sells vehicles. They offer a range of vehicles including electric and hybrid cars, SUVs, pickup trucks, minivans, and smaller passenger cars, all under the Mitsubishi brand. This segment generates the vast majority of the company's revenue, with sales happening globally across various regions like Asia, North America, and Europe. Mitsubishi is actively working to expand and renew its vehicle lineup, with a focus on electrification and introducing new models.
Financial Services
Complementing its vehicle sales, Mitsubishi Motors also operates a financial services segment. This part of the business provides services such as automobile leasing and sales financing, helping customers purchase or use Mitsubishi vehicles. While a smaller contributor to overall revenue compared to the automobile business, these financial services support the sales of the company's cars and trucks.
What management is betting on now
Mitsubishi Motors is currently focused on its "Momentum 2030" strategy, particularly in North America, aiming for growth through electrification, an expanded vehicle lineup, modernized sales models, and dealer network expansion. They are investing in a mix of internal combustion, hybrid, and battery electric vehicles, with plans to launch new and refreshed models. The company is also strengthening products and technologies that embody its brand identity, focusing on markets where it has strong competitive advantages, and improving profitability by expanding value chain businesses. This includes a renewed focus on adventure-oriented and off-road-capable vehicles, and a re-entry into the pickup truck segment in North America through collaboration with Nissan.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $62.95 vs current price $19.64
Our most-likely fair value is $62.95 a share — about 220.5% above today's price of $19.64, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net debt $676.3M. Interest coverage 12.4x.
Net debt
$676.34M
Interest coverage
12.38x
Mitsubishi Motors Corporation's profit covers its interest bill about 12.4 times over. which is stronger than every peer shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
MMTOY
BASELINE
Mitsubishi Motors Corporation
Total debt $2.62B Interest coverage 12.38x This is the baseline the peer rows are being compared against.
Total debt $91.23B Interest coverage -4.96x -100% vs MMTOY This peer has almost no interest-payment cushion compared with MMTOY.
Total debt $58.30B Interest coverage 0.51x -96% vs MMTOY Carries about 24.3x less debt cushion than MMTOY.
Total debt $2.31B Interest coverage 2.85x -77% vs MMTOY Carries about 4.3x less debt cushion than MMTOY.
Total debt $58.29B Interest coverage -15.06x -100% vs MMTOY This peer has almost no interest-payment cushion compared with MMTOY.
Total debt $5.47B Interest coverage 4.71x -62% vs MMTOY Carries about 2.6x less debt cushion than MMTOY.
What you should know
The case for and against MMTOY
3 Rewards
2 Risks
Rewards
-
Revenue grew 3.9% last year.
-
Returns 2.3% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 3/10 years.
Risks
-
Stock trades 15546.8% 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)
37.77x
Forward P/E
—
P/B
4.54x
P/S
0.00x
EV/EBITDA
1.08x
PEG ratio
—
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
$2.62B
Total cash
$1.95B
Growth
How the business has been compounding
Revenue TTM
$18.45B
Revenue 5Y CAGR
5.6%
EPS TTM
0.52
EPS 5Y CAGR
-59.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$226.89M
Free CF TTM
$-552.98M
FCF margin
-3.0%
Dividend
Shareholder payout
Yield
3.2%
Payout ratio
120.1%
Last ex-div date
2026-03-31