Stock Analysis: Mitsubishi Chemical

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Mitsubishi Chemical Group (MTLHY) is a holdings company, which manufactures and sells chemicals, plastics, and pharmaceuticals.

It organizes itself into three segments based on product. The Industrial Materials segment, which generates the majority of revenue, sells chemicals and polymers, including industrial gases, petrochemicals, thermoplastics, polyethylene, and polypropylene.

The Performance Products segment sells electronics and designed materials, including LED lighting and equipment, specialty chemicals, polyester and industrial films, and fibers.

The Health Care segment sells pharmaceuticals to treat autoimmune diseases, diabetes and kidney diseases, central nervous system treatments, and vaccines.

The majority of revenue comes from Japan.

Mitsubishi Chemical Group Corporation was incorporated in 2005 and is headquartered in Tokyo, Japan.

Three key data points gauge

Mitsubishi Chemical Group or any dividend paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three keys also best tell whether any company has made, is making, and will make money.


MTLHY Price

Share price fell 17.5% in the past year from $31.04 to $25.60, as of Tuesday’s market close.

In the past 3 years the company’s share price has ranged from $21.90 to $40.44. Its all-time high price of $58.82 was reached January 16, 2018.

If shares trade in the range of $23.50 to $32.50 this next year, the recent $25.60 share price might grow to $26.60. Of course, MTLHY shares could also drop about the same $1.00 estimated amount, or more.

My $1.00 price upside estimate is based on the company’s average annual stock price gains over the past ten years.


MTLHY Dividend

Mitsubishi Chemical Group has paid variable semi-annual dividends since December 2010. The company’s most recent SA dividend of $0.54 was declared September 9th for shareholders of record prior to September 30th and the dividend was paid December 17th. A forward looking annual dividend of $1.08 yields 4.22% per Tuesday’s closing price.


MTHLY Returns

Putting it all together, a $2.08 estimated annual gross gain per share shows up by adding Mitsubishi Chemical Group’s annual $1.08 dividend to the estimated price upside of $1.00, totaling that $2.08 estimated gross gain.

A little under $1000 buys 39 shares at Tuesday’s $25.6026 share price.

A $10 broker fee (if charged), collected half at purchase and half at sale, might take about $0.26 per share out of the $2.08 gross-gain to give us a net gain of $1.82 X 39 shares = $70.98 for about a 7% estimated net gain on the year.

Furthermore, the $42.20 annual estimated dividend income from $1k invested in MTLHY is 1.65 times greater than the $25.60 single-share price. By these numbers, MTLHY may be an ideal materials dividend dog.

Therefore, you may want to pounce on Mitsubishi Chemical Group Corp.

It is a soon to be 20 year-old variable semi-annual dividend paying chemicals, plastics and pharmaceutical manufacturing company with a 15 year dividend record.

The exact track of Mitsubishi Chemical Group future price and dividend will entirely be determined by market action and company finances.

Remember the best measure of stock value is through direct ownership of shares.


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Disclosure: This article was compiled by Rydlun & Co., LLC from data derived from www.ycharts. com; www.finance.yahoo.com; analyst median target price by YCharts.

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