Mitsubishi Chemical Group Corporation (4188.T) stock analysis

In our weekly check, Mitsubishi Chemical Group Corporation is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 11 pass, warnings: 7, red flags: 6.

About Mitsubishi Chemical Group Corporation

Mitsubishi Chemical Group Corporation is a Basic Materials company (Chemicals) based in Japan, listed on JPX as 4188.T.

What our checks show for 4188.T

Red flags

• The net margin fell by 3.2 points over 5 years, to 1.3%: the company keeps less of each sale as profit.
• Revenue fell 6.2% a year over the last 3 years.
• Earnings per share fell 23.6% a year over the last 3 years.
• The net margin is only 1.3%: little room if costs rise.
• The stock has fallen as much as 76% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 4.8 years.

Warning signs

• Net debt is 3.9x a year of EBITDA (debt/equity 1.01). That limits room in a downturn and raises refinancing risk.
• Analysts expect only about 3.1% a year of growth in revenue.
• Net profit fell 19.6% a year over the last 3 years.
• Free cash flow is only 3.2% of revenue.
• The dividend takes 87% of profit: little cushion if profit falls.
• The price swings a lot: 37.8% annual volatility. Expect large ups and downs.
• Return on capital (ROCE) is only 7.4%.

Strengths

• Operating profit covers interest 9.6 times over.
• The gross margin is 29.8% and has risen by 1.8 points: pricing power is holding.
• Operating cash flow is 8.24x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 71.2% a year over the next years.
• Analysts expect the net margin to improve by 2.6 points from today's 1.3%.
• The share count fell by 7.4% in 2 years: the company buys back its own shares.

Next earnings report: 2026-11-04

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Questions

What grade does Mitsubishi Chemical Group Corporation (4188.T) have?

In our weekly check, Mitsubishi Chemical Group Corporation is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 11 pass, warnings: 7, red flags: 6. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 4188.T stock?

This week's biggest flags for Mitsubishi Chemical Group Corporation: Margins falling, Weak revenue growth, Weak EPS growth. In total 13 of 24 checks show a warning or a red flag.

What does Mitsubishi Chemical Group Corporation do?

Mitsubishi Chemical Group Corporation is a Basic Materials company (Chemicals) based in Japan, listed on JPX as 4188.T.

When does Mitsubishi Chemical Group Corporation report earnings next?

The next earnings report is expected on 2026-11-04. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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