MITSUBISHI GAS CHEMICAL CO INC

Mitsubishi Gas Chemical manufactures and sells basic and fine chemicals, functional materials, and various products. The company operates through Basic Chemicals and Specialty Chemicals segments. Products include methanol, polyolefin beads, nylons, copper-clad laminates, hydrogen peroxide, and more. It also provides engineering plastics, foamed plastic, natural gas, iodine, and other materials. Additionally, the company offers real estate services, shipping, civil engineering work, machinery design and sales, and polymers.

Overview

Sector

Chemicals

Target Price

3584.1 JPY

Current Price

2599.0 JPY

Potential

38%

Strengths

With an appreciation Potential of 36.43%, based on our fundamental analysis, it suggests the stock may be undervalued.
Current Price to Earnings Ratio (11.23) is lower than the sector mean (34.88).
Price to book ratio (0.77) is lower than the sector mean (6.31).
EV/EBITDA (6.40) is lower than the sector mean (18.32).
EV/EBIT (10.96) is lower than the sector mean.
Price to free cash flow (6.78) is lower than the sector mean.

Weaknesses

The company have lower returns than the sector in which it operates. ROIC (8.69%) is significantly lower than the sector mean (15.25%).

Key Financial Data

Indicator	Value
PER	11.1
EV/EBITDA	6.3
Price/Free Cash Flow'	6.7
ROIC	8.7%
Net Debt/EBITDA	1.3