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Mitsubishi UFJ (MUFG)
NYSE:MUFG
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Mitsubishi UFJ
(NYSE:MUFG)
65Neutral
Mitsubishi UFJ (MUFG) vs. S&P 500 (SPY)
Market Cap
$151.75B
Dividend Yield1.74%
Average Volume (3M)8.03M
Price to Earnings (P/E)12.9
Beta (1Y)1.05
Revenue Growth13.21%
EPS Growth-12.06%
CountryUS
Employees140,000
SectorFinancial
Sector Strength85
IndustryBanks - Diversified
Share Statistics
EPS (TTM)0.07
Shares Outstanding12,067,711,000
10 Day Avg. Volume6,037,821
30 Day Avg. Volume8,031,469
Financial Highlights & Ratios
PEG Ratio1.09
Price to Book (P/B)1.20
Price to Sales (P/S)0.00
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
Positive
13.54
Price Trends
12.72
Positive
12.44
Positive
11.51
Positive
Market Momentum
0.24
Negative
67.63
Neutral
94.67
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MUFG, the sentiment is Positive. The current price of 13.54 is above the 20-day moving average (MA) of 12.54, above the 50-day MA of 12.72, and above the 200-day MA of 11.51, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 67.63 is Neutral, neither overbought nor oversold. The STOCH value of 94.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $116.86B | 8.34 | 13.25% | 2.17% | 0.27% | 19.44% | |
80 Outperform | $206.83B | 10.87 | 10.30% | 5.57% | -1.91% | -6.79% | |
78 Outperform | $247.90B | 13.69 | 11.05% | 2.03% | 3.51% | 16.51% | |
74 Outperform | $92.53B | 12.09 | 7.92% | 2.30% | 8.69% | 50.61% | |
65 Neutral | $151.75B | 12.90 | 9.18% | 1.74% | 13.21% | -12.06% | |
64 Neutral | $141.42B | 11.96 | 6.30% | 2.92% | 2.97% | 87.82% | |
64 Neutral | $12.82B | 9.83 | 7.68% | 17000.34% | 12.38% | -5.56% |
* Financial Sector Average
Performance Comparison
MUFG
Mitsubishi UFJ
13.54
3.80
39.01%
C
Citigroup
75.72
14.63
23.95%
HSBC
HSBC Holdings
58.87
17.32
41.68%
SMFG
Sumitomo Mitsui
14.35
1.71
13.53%
WFC
Wells Fargo
76.18
16.90
28.51%
SAN
Banco Santander SA
7.84
2.77
54.64%
Mitsubishi UFJ Earnings Call Summary
Earnings Call Date:May 15, 2025
(Q4-2024)
| % Change Since: 2.58%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Positive
The earnings call highlights significant positive achievements, such as record high net operating profit and increased profits attributable to owners, alongside improvements in expense ratios and shareholder returns. However, there are notable challenges, including a decrease in global markets profit, increased credit costs, and a decline in the CET1 ratio. Despite these challenges, the overall sentiment is slightly positive given the strong financial performance and strategic shareholder return initiatives.Q4-2024 Updates
Positive Updates
Record High Net Operating Profit
Net operating profit increased ¥249.4 billion to ¥1,843.7 billion, a record high, offsetting the impact of the sale of MUB.
Increase in Profits Attributable to Owners of Parent
Profits attributable to owners of parent increased by ¥374.2 billion year-on-year to ¥1,490.7 billion, the highest profit in MUFG history.
Significant Improvement in Expense Ratio
Expense ratio improved significantly to 61%, down 3.5 percentage points from the same period last year due to gross profit growth and successful expense control.
Dividend Increase and Share Repurchase
Dividend per common stock forecast is set at ¥50, an increase of ¥9 for two consecutive years. Additionally, repurchase of own shares up to ¥100 billion was resolved.
Strong Increase in Net Operating Profit in Customer Segments
Total net operating profit of Customer segments rose sharply by ¥470.3 billion due to an increase in lending, deposit interest income, and fee income.
Negative Updates
Decrease in Global Markets Profit
Global Markets posted a decrease in profit due to an increase in foreign currency funding costs in treasury business and significant impact of portfolio rebalancing.
Increase in Credit Costs
Total credit cost amounted to ¥497.9 billion, reflecting the absence of the reversal of reserves in the previous year and an increase in overseas allowances, including the impact of acquisitions and individual company factors.
Decline in CET1 Ratio
CET1 ratio declined by approximately 50 basis points quarter-on-quarter to 10.1%, partly due to technical factors and foreign currency translation reserve changes.
Reduction Target in Equity Holdings
Target for reduction in equity holdings decreased from ¥500 billion to ¥350 billion, citing negotiation challenges and remaining bedrock brands.
Company Guidance
In the recent Mitsubishi UFJ Financial Group briefing, Mr. Jun Togawa, the Group CFO, presented the financial highlights for the fiscal year ended March 31, 2024. Key metrics included a ¥229.5 billion year-on-year increase in gross profits and a notable growth in net fees and commissions by approximately ¥130 billion, attributed primarily to foreign loans and the Wealth Management business. Despite inflationary pressures and the impact of a weaker yen, G&A expenses decreased by ¥19.9 billion, improving the expense ratio to 61%. The net operating profit rose by ¥249.4 billion, reaching a record high of ¥1,843.7 billion. The profits attributable to owners of the parent surged by ¥374.2 billion to ¥1,490.7 billion, marking the highest profit in the company's history. Additionally, the ROE stood at 8.5%, or 8.1% when excluding certain effects. The CET1 ratio was reported at 10.1%, and the company outlined a target ROE of around 9% by the end of the new medium-term business plan, with a financial target for FY '24 set at ¥1.5 trillion profits attributable to owners of the parent. Shareholder returns included a forecasted dividend per common stock of ¥50, alongside a share repurchase plan of up to ¥100 billion.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.