The MoatNarrow moat

Mitsubishi Corporation (8058) — moat facet

Mitsubishi's moat is the scale to own pieces of the world's best resource assets and the discipline to sell what does not earn, and its return on equity has still fallen to 8.5%.

Mitsubishi Corporation's advantage is a combination rather than a single asset: the largest balance sheet among Japanese trading houses, stakes in scarce resource assets that rarely come up for sale, and a disciplined process for deciding what to keep. Its market value of ¥17.62 trillion1 is the largest of its peers2.

Return on equity, years to March-2.9%201610.9%20189.8%202015.0%202211.3%20248.5%2026Mitsubishi Corporation results; the 2016 bar is a loss
A loss in 2016, a peak in 2022-23, and a decline since.

The resource half of the moat is real and cyclical. Half of BMA, the world's largest steelmaking coal business3, a 14.9-million-tonne share of 116.5 million tonnes of LNG capacity4, and minority stakes in Escondida, Quellaveco, Anglo American Sur, Los Pelambres and Antamina5 are assets a new entrant could not assemble. They are also assets whose profit is set by prices: coal earned almost nothing in the latest year, and copper more than doubled6.

The non-resource half is a collection of businesses, from half of Lawson to a Norwegian salmon farmer and Thai truck distributors, managed as a portfolio. The company sets return targets for all 244 operating companies7.

The returns show the moat's limits. Return on equity was 8.5% in the year to March 20268, below the 12% target9, and adjusted net income, which strips out gains from selling assets, was ¥703.7 billion10. Equity-method profit of ¥467.9 billion was about 58% of net income1112.

The history of the equity-method line shows the resource cycle inside it. Mitsubishi's share of affiliates' profit was a loss of ¥175.4 billion in the year to March 201613, when the Metals group lost ¥360.7 billion on resource impairments14, and ¥467.9 billion in the latest year15. The same assets that make the moat hard to replicate are the ones that make its returns swing.

The company's own record over the previous plan is its best evidence: average ROE of 12.5% over the three years of Midterm Corporate Strategy 2024, and ¥0.7 trillion of free cash flow after shareholder returns16. The current plan's early years are below that.

The measure is adjusted net income. It grew about 3% in the latest year17; the company's plan requires much faster growth to reach ¥1.2 trillion of net income by the year to March 202818.

Moat trajectory: Holding steady

The resource assets are intact and the portfolio process is working, but returns fell for three years; the gas acquisition is a bet on reversing that.

The number that tests this moat
Reported
ROE against an assumed 8% cost of equity
8.5% against 8%, year to March 2026

Barely above an assumed cost of equity; the company's own target is 12% or more.

The 8% cost of equity is an assumption; stockanalysis estimates a WACC of 5.81%, and Mitsubishi publishes none.
Source: Mitsubishi Corporation results, year to March 2026 ↗
Aspects of the moat
DIG DEEPER 01
The Coal Engine That Stopped
Half of the world's largest steelmaking coal business earned ¥8.3 billion last year, and Mitsubishi has stopped telling investors how much a better…
DIG DEEPER 02
Fourteen Point Nine Million Tonnes of LNG
Mitsubishi's LNG portfolio is one of the largest held by any trading house, and it has just paid $7.5 billion for the gas to feed it.
DIG DEEPER 03
Lawson, Salmon and the Consumer Business
Mitsubishi's consumer businesses are a half-share of Lawson, a salmon farmer and a food wholesaler, and their best recent year was a revaluation gain.
DIG DEEPER 04
Capital Recycling and the ¥1 Trillion Buyback
Mitsubishi runs 244 companies against return targets and sells what misses them, and last year's return on equity still fell to 8.5%.
References
  1. ReportedIts market value of ¥17.62 trillion is the largest of its peers.
    Mitsubishi Corporation (TYO: 8058) market data - share price, market capitalisation 17.62T yen, trailing revenue, net income and EPS, P/E, forward P/E, dividend and yield, September 2026. — September 2026 · publ. 24 September 2026 · source ↗
  2. ReportedIts market value of ¥17.62 trillion is the largest of its peers.
    Mitsubishi Corporation (TYO: 8058) market-cap history and peer comparison - December year-end market values and the market values of ITOCHU, Mitsui & Co., Sumitomo, Marubeni and Toyota Tsusho. — 2021-2026 · publ. September 2026 · source ↗
  3. ReportedHalf of BMA, the world's largest steelmaking coal business, a 14.9-million-tonne share of 116.5 million tonnes of LNG capacity, and minority stakes in Escondida, Quellaveco, Anglo American Sur, Los Pelambres and Antamina are assets a new entrant could not assemble.
    Mitsubishi Corporation, Consolidated Financial Results for the year ended March 31, 2026 (IFRS) - the notes on significant investments: MDP and BMA, Lawson, Eneco, LNG Canada, Anglo American Sur and Quellaveco, with book values and ownership. — FY to March 2026 · publ. 1 May 2026 · source ↗
  4. ReportedHalf of BMA, the world's largest steelmaking coal business, a 14.9-million-tonne share of 116.5 million tonnes of LNG capacity, and minority stakes in Escondida, Quellaveco, Anglo American Sur, Los Pelambres and Antamina are assets a new entrant could not assemble.
    Mitsubishi Corporation, FY2025 results and FY2026 forecast presentation (1 May 2026) - the LNG, copper and steelmaking coal portfolios with stakes, capacities and production volumes, data centre capacity, the Thai and Indonesian automotive businesses, and Cermaq's salmon volumes. — FY to March 2026 · publ. 1 May 2026 · source ↗
  5. ReportedHalf of BMA, the world's largest steelmaking coal business, a 14.9-million-tonne share of 116.5 million tonnes of LNG capacity, and minority stakes in Escondida, Quellaveco, Anglo American Sur, Los Pelambres and Antamina are assets a new entrant could not assemble.
    Mitsubishi Corporation, FY2025 results and FY2026 forecast presentation (1 May 2026) - the LNG, copper and steelmaking coal portfolios with stakes, capacities and production volumes, data centre capacity, the Thai and Indonesian automotive businesses, and Cermaq's salmon volumes. — FY to March 2026 · publ. 1 May 2026 · source ↗
  6. ReportedThey are also assets whose profit is set by prices: coal earned almost nothing in the latest year, and copper more than doubled.
    Mitsubishi Corporation, FY2025 results and FY2026 forecast presentation (1 May 2026) - net income by segment and of major subsidiaries and affiliates, with ownership, and the forecast by segment. — FY to March 2026 · publ. 1 May 2026 · source ↗
  7. ReportedThe company sets return targets for all 244 operating companies.
    Mitsubishi Corporation, FY2024 results presentation - the review of Midterm Corporate Strategy 2024, the Enhance programmes covering all 244 operating companies, capital recycling, and the credit ratings. — FY to March 2025 · publ. 2 May 2025 · source ↗
  8. ReportedReturn on equity was 8.5% in the year to March 2026, below the 12% target, and adjusted net income, which strips out gains from selling assets, was ¥703.7 billion.
    Mitsubishi Corporation, Consolidated Financial Results for the year ended March 31, 2026 (IFRS) - the consolidated statements of income, financial position and cash flows, the eight-segment note, dividends and the forecast for the year to March 2027. — FY to March 2026 · publ. 1 May 2026 · source ↗
  9. ReportedReturn on equity was 8.5% in the year to March 2026, below the 12% target, and adjusted net income, which strips out gains from selling assets, was ¥703.7 billion.
    Mitsubishi Corporation, FY2025 results and FY2026 forecast presentation (1 May 2026) - Corporate Strategy 2027 targets, the three-year cash flow plan, divestitures, shareholder returns and leverage policy. — FY to March 2026 · publ. 1 May 2026 · source ↗
  10. ReportedReturn on equity was 8.5% in the year to March 2026, below the 12% target, and adjusted net income, which strips out gains from selling assets, was ¥703.7 billion.
    Mitsubishi Corporation, FY2025 results and FY2026 forecast presentation (1 May 2026) - Corporate Strategy 2027 targets, the three-year cash flow plan, divestitures, shareholder returns and leverage policy. — FY to March 2026 · publ. 1 May 2026 · source ↗
  11. ReportedEquity-method profit of ¥467.9 billion was about 58% of net income.
    Mitsubishi Corporation, Consolidated Financial Results for the year ended March 31, 2026 (IFRS) - the consolidated statements of income, financial position and cash flows, the eight-segment note, dividends and the forecast for the year to March 2027. — FY to March 2026 · publ. 1 May 2026 · source ↗
  12. Moat Explorer calcEquity-method profit of ¥467.9 billion was about 58% of net income.
    Moat Explorer calculation from Mitsubishi Corporation's reported figures. Equity-method profit over net profit: 467.9 / 800.5 = 58.5%. Mineral Resources plus Environmental Energy over segment total: (204.5 + 160.9) / 752.1 = 48.6%. Energy & Power (Environmental Energy plus Power Solution): 238.8 + 97.9 = 336.7 (year to March 2024), 198.6 - 15.6 = 183.0 (2025), 160.9 + 43.4 = 204.3 (2026). Other and adjustments: 51.2 - 9.2 = 42.0 (2025), 51.8 - 3.5 = 48.3 (2026). Trailing twelve months to June 2026: net profit 800.5 + 298.5 - 203.1 = 895.9; revenue 19,878.3; EPS 210.92 + 81.53 - 51.59 = 240.86. Progress against guidance: 298.5 / 1,100.0 = 27.1%. Share price change since March: 4,811 / 5,317 - 1 = -9.5%. Berkshire's market value over cost: 9,207 / 4,248 = 2.17 times; dividend on cost 273 / 4,248 = 6.4%. Mitsubishi Development profit: 190.2, 132.9, 8.3. Copper profit growth: 149.9 / 63.8 = 2.35 times. Segment profit over segment assets, year to March 2026: Mineral Resources 204.5 / 5,995.2 = 3.4%; Energy & Power 204.3 / 6,079.0 = 3.4%; Smart-Life Creation 91.0 / 2,745.5 = 3.3%; Food Industry 83.3 / 2,334.1 = 3.6%; Urban Development & Infrastructure 85.1 / 2,173.8 = 3.9%; Mobility 57.6 / 1,942.7 = 3.0%; Materials Solution 26.3 / 1,971.4 = 1.3%. Adjusted net income growth implied by guidance: (1,100.0 - 280.0) / 703.7 = 1.17. Split-adjusted dividend growth: 125 / 44 = 2.8 times. Buyback share of shares: 318.4 / 4,028.9 = 7.9%. Data-centre capacity growth: 168 / 29 = 5.8 times. Average buyback price: about ¥1,000,000 million / 318.4 million shares = about ¥3,141. Lawson return on carrying value: 28.8 / 502.6 = 5.7%. Copper profit excluding the Anglo American Sur reversal: 149.9 - 53.2 = 96.7. Interest cost of one percentage point on ¥5,746.9 billion: about ¥57 billion. Eneco goodwill cover: 167.0 / 31.0 = 5.4 years of profit. Aethon expected return: ¥50-60 billion on about ¥800 billion = 6-8%. Oil assumption effect: (78 - 70) x ¥2.4 billion = about ¥19 billion. Market value over adjusted net income: 17,620 / 703.7 = 25 times. Dividends paid: 408,458 / 289,692 = 1.41 (up 41%) while net income 800.5 / 964.0 = 0.83 (down 17%). MDP return on plant: 8.3 / 1,160.6 = 0.7%. — FY to March 2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in Mitsubishi Corporation's results, presentations and market data; operands shown in the source line.
  13. ReportedMitsubishi's share of affiliates' profit was a loss of ¥175.4 billion in the year to March 2016, when the Metals group lost ¥360.7 billion on resource impairments, and ¥467.9 billion in the latest year.
    Mitsubishi Corporation, Consolidated Financial Results for the year ended March 31, 2016 - the net loss and the impairment losses on resource-related assets in the Metals group. — FY to March 2016 · publ. May 2016 · source ↗
  14. ReportedMitsubishi's share of affiliates' profit was a loss of ¥175.4 billion in the year to March 2016, when the Metals group lost ¥360.7 billion on resource impairments, and ¥467.9 billion in the latest year.
    Mitsubishi Corporation, Consolidated Financial Results for the year ended March 31, 2016 - the net loss and the impairment losses on resource-related assets in the Metals group. — FY to March 2016 · publ. May 2016 · source ↗
  15. ReportedMitsubishi's share of affiliates' profit was a loss of ¥175.4 billion in the year to March 2016, when the Metals group lost ¥360.7 billion on resource impairments, and ¥467.9 billion in the latest year.
    Mitsubishi Corporation, Consolidated Financial Results for the year ended March 31, 2026 (IFRS) - the consolidated statements of income, financial position and cash flows, the eight-segment note, dividends and the forecast for the year to March 2027. — FY to March 2026 · publ. 1 May 2026 · source ↗
  16. ReportedThe company's own record over the previous plan is its best evidence: average ROE of 12.5% over the three years of Midterm Corporate Strategy 2024, and ¥0.7 trillion of free cash flow after shareholder returns.
    Mitsubishi Corporation, FY2024 results presentation - the review of Midterm Corporate Strategy 2024, the Enhance programmes covering all 244 operating companies, capital recycling, and the credit ratings. — FY to March 2025 · publ. 2 May 2025 · source ↗
  17. ReportedIt grew about 3% in the latest year; the company's plan requires much faster growth to reach ¥1.2 trillion of net income by the year to March 2028.
    Mitsubishi Corporation, FY2025 results and FY2026 forecast presentation (1 May 2026) - Corporate Strategy 2027 targets, the three-year cash flow plan, divestitures, shareholder returns and leverage policy. — FY to March 2026 · publ. 1 May 2026 · source ↗
  18. ReportedIt grew about 3% in the latest year; the company's plan requires much faster growth to reach ¥1.2 trillion of net income by the year to March 2028.
    Mitsubishi Corporation, FY2025 results and FY2026 forecast presentation (1 May 2026) - Corporate Strategy 2027 targets, the three-year cash flow plan, divestitures, shareholder returns and leverage policy. — FY to March 2026 · publ. 1 May 2026 · source ↗
Sources
Generated September 24, 2026