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Mitsubishi UFJ (MUFG)
NYSE:MUFG
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Mitsubishi UFJ
(NYSE:MUFG)
70Outperform
Mitsubishi UFJ (MUFG) vs. S&P 500 (SPY)
Market Cap
$129.66B
Dividend Yield3.06%
Average Volume (3M)12.92M
Price to Earnings (P/E)10.6
Beta (1Y)1.08
Revenue Growth13.21%
EPS Growth-12.06%
CountryUS
Employees140,000
SectorFinancial
Sector Strength84
IndustryBanks - Diversified
Share Statistics
EPS (TTM)1.09
Shares Outstanding12,067,711,000
10 Day Avg. Volume13,886,896
30 Day Avg. Volume12,921,308
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)4.13
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Mitsubishi UFJ Business Overview & Revenue Model
Company DescriptionMitsubishi UFJ Financial Group, Inc. operates as the bank holding company for MUFG Bank, Ltd. that provides various financial services in Japan, the United States, Europe, Asia/Oceania, and internationally. It operates through Digital Service Business Group; Retail & Commercial Banking Business Group; Japanese Corporate & Investment Banking Business Group; Asset Management & Investor Services Business Group; Global Corporate & Investment Banking Business Group; Global Commercial Banking Business Group; and Global Markets Business Group segments. The company offers commercial banking, trust banking, and securities products and services to retail, and small and medium-sized enterprise customers. It also provides M&As and real estate-related services; digital-based financial services; credit cards; and trust banking and securities products and services, as well as engages in the lending, fund settlement, and foreign exchange businesses. In addition, it offers corporate, investment, and transaction banking services for large corporate and financial institutions; asset management and administration services for corporations and pension funds; loans, deposits, fund transfers, and investments services for retail, small and medium-sized enterprise, as well as corporate customers; fixed income instruments, currencies, equities, and other investment products; originates and distributes of financial products; and provides treasury services. Mitsubishi UFJ Financial Group, Inc. was founded in 1880 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyMUFG generates revenue through a diversified business model that includes interest income from loans and other financial products, fees from banking and investment services, and income from trading activities. The company's key revenue streams come from its commercial banking operations, which involve lending to individuals and businesses and generating interest income from these loans. Additionally, MUFG earns fees from asset management and investment banking services, including underwriting, advisory services, and brokerage operations. The group also benefits from strategic partnerships and alliances, such as its collaboration with Morgan Stanley, which enhances its global reach and service offerings. Furthermore, MUFG's international operations contribute significantly to its revenue, with a notable presence in the Americas, Asia, and Europe, allowing it to tap into diverse markets and economic conditions.
Mitsubishi UFJ Financial Statement Overview
Summary
Mitsubishi UFJ demonstrates strong revenue growth and profitability with a stable balance sheet, suggesting a well-capitalized and resilient financial structure. Despite these strengths, the cash flow analysis reveals areas of concern that need addressing to ensure sustained operational liquidity and long-term financial stability.Income Statement
Mitsubishi UFJ's income statement shows strong profitability with a stable net profit margin of 25.35% and revenue growth of 25.02% year-over-year, indicating robust business performance. However, the absence of EBIT and EBITDA data limits a comprehensive margin analysis. The company’s revenue growth trajectory is favorable, suggesting effective operational strategies.76
Positive
Balance Sheet
The balance sheet reflects a strong equity position with a debt-to-equity ratio of 1.31, indicating manageable leverage. Equity ratio stands at 4.85%, showcasing a healthy equity buffer. The return on equity is solid at 7.61%, highlighting efficient use of shareholder funds. The overall financial stability is reinforced by substantial cash reserves, suggesting sound financial health.82
Very Positive
Cash Flow
The cash flow analysis indicates a negative free cash flow growth rate, reflecting operational cash flow challenges. However, the operating cash flow to net income ratio is unfavorable at -6.61, suggesting cash flow issues relative to net earnings. The free cash flow to net income ratio is -6.92, emphasizing the need for cash flow improvement strategies.65
Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 7.72T | 5.88T | 6.06T | 4.70T | 4.63T | 5.02T | Gross Profit |
| 8.95T | 10.70T | 6.06T | 4.70T | 4.63T | 5.02T | EBIT |
| 1.79T | 0.00 | 3.86T | 1.96T | 962.09B | 749.05B | EBITDA |
| 7.04T | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Net Income Common Stockholders |
| 1.49T | 1.49T | 1.12T | 1.13T | 777.02B | 528.15B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 12.10T | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | Total Assets |
| 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | Total Debt |
| 0.00 | 25.75T | 47.28T | 19.11T | 18.09T | 44.91T | Net Debt |
| -12.10T | -84.13T | -66.35T | -91.65T | -84.89T | -33.42T | Total Liabilities |
| 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | Stockholders Equity |
| 10.55T | 19.59T | 17.23T | 17.02T | 16.80T | 15.99T |
| Cash Flow | Free Cash Flow | ||||
| 0.00 | -10.31T | 13.03T | 9.25T | 34.51T | 7.61T | Operating Cash Flow |
| 0.00 | -9.84T | 13.43T | 9.64T | 34.90T | 8.06T | Investing Cash Flow |
| 0.00 | -1.27T | -10.68T | -2.20T | -10.14T | -3.37T | Financing Cash Flow |
| 0.00 | 8.31B | -977.14B | -875.97B | -436.07B | -251.66B |
Mitsubishi UFJ Technical Analysis
Negative
11.59
Price Trends
12.78
Negative
12.27
Negative
11.31
Positive
Market Momentum
-0.50
Positive
40.34
Neutral
31.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MUFG, the sentiment is Negative. The current price of 11.59 is below the 20-day moving average (MA) of 13.05, below the 50-day MA of 12.78, and above the 200-day MA of 11.31, indicating a neutral trend. The MACD of -0.50 indicates Positive momentum. The RSI at 40.34 is Neutral, neither overbought nor oversold. The STOCH value of 31.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MUFG.
Mitsubishi UFJ Risk Analysis
Mitsubishi UFJ disclosed 26 risk factors in its most recent earnings report. Mitsubishi UFJ reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Mitsubishi UFJ Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $171.96B | 7.99 | 13.74% | 6.57% | 6.79% | 8.57% | |
78 Outperform | $83.45B | 9.80 | 8.86% | 2.56% | 8.69% | 50.61% | |
76 Outperform | $96.22B | 7.71 | 13.16% | 2.33% | 6.56% | 19.02% | |
70 Outperform | $129.66B | 10.59 | 9.70% | 3.06% | 13.21% | -12.06% | |
68 Neutral | $204.11B | 11.23 | 11.05% | 2.48% | 3.22% | 16.51% | |
65 Neutral | $116.02B | 10.37 | 6.04% | 3.58% | 8.20% | 49.26% | |
64 Neutral | $13.34B | 9.25 | 9.42% | 4.85% | 16.07% | -8.44% |
* Financial Sector Average
Performance Comparison
MUFG
Mitsubishi UFJ
11.59
1.93
19.98%
C
Citigroup
61.64
5.04
8.90%
HSBC
HSBC Holdings
49.89
12.71
34.19%
SMFG
Sumitomo Mitsui
12.91
1.39
12.07%
WFC
Wells Fargo
62.51
6.89
12.39%
SAN
Banco Santander SA
6.43
1.93
42.89%
Mitsubishi UFJ Earnings Call Summary
Earnings Call Date: Feb 4, 2025 | % Change Since: -5.70% | Next Earnings Date: May 19, 2025
Earnings Call Sentiment Positive
The earnings call primarily highlighted record net profits, strong growth in operating profits, and strategic advancements in digital transformation and start-up investments. However, it also acknowledged challenges such as increased expenses due to inflation and uncertainties in the foreign exchange market. Overall, the sentiment is positive with a strong focus on growth and shareholder returns.Highlights
Record Net Profits
Net profits for the first half of fiscal 2023 reached JPY 927.2 billion, marking a record high for an interim period since the inception of MUFG.
Strong Operating Profit Growth
Net operating profits in customer segments increased by more than JPY 200 billion, fully offsetting the drop in profits from the sale of Union Bank.
Digital Transformation and Expansion
MUFG has been expanding customer touch points through digital channels, seeing steady increases in online transactions and enhancing their online consultation services.
Strategic Investments and Support for Start-ups
Investment in start-ups now totals JPY 640 billion, with support for growth both in Japan and abroad.
Shareholder Returns and Capital Management
MUFG announced a share repurchase of up to JPY 400 billion and increased annual dividend per share by JPY 9 from last year.
Lowlights
Increased Expenses Due to Inflation
Expenses increased due to business expansion, inflation mostly outside of Japan, and yen depreciation.
Uncertainties in the External Environment
There are uncertainties in the foreign exchange market and considerations for improving the average cost of the bond portfolio.
Company Guidance
In the earnings call, MUFG reported a record high interim net profit of JPY 927.2 billion for the first half of fiscal 2023, with a full-year target of JPY 1.3 trillion in net profits and an ROE of 7.5% in sight. Year-over-year profits surged by approximately JPY 700 billion, driven by the absence of one-time losses from the previous year and enhanced customer segment earnings. Despite increased expenses due to business expansion and inflation, structural reforms, including the sale of Union Bank, kept costs in check. The bank maintained its CET1 ratio at 10.5%, announcing a dividend per share of JPY 41 and a JPY 400 billion share repurchase. MUFG's digital transformation efforts expanded customer touchpoints, while its strategic alliance with Morgan Stanley aimed to strengthen asset management and investment banking capabilities. Sustainability initiatives included a cumulative JPY 27.7 trillion in sustainable finance and new interim GHG emission targets. The bank is also enhancing human capital by doubling mid-career hires and promoting DEI initiatives, particularly increasing the ratio of women in management.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.