Mizuho Leasing Company, Limited (8425) AI Stock Analysis

• Market Cap: ¥292.55B
• Dividend Yield: 4.13%
• Average Volume (3M): 434.89K
• Price to Earnings (P/E): 6.4
• Beta (1Y): 0.82
• Revenue Growth: -11.31%
• EPS Growth: 27.26%
• Country: JP
• Employees: 2,176
• Sector: Financial
• Sector Strength: 83
• Industry: Financial - Credit Services
• EPS (TTM): 163.74
• Shares Outstanding: 282,666,300
• 10 Day Avg. Volume: 248,570
• 30 Day Avg. Volume: 434,893
• PEG Ratio: 0.23
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Mizuho Leasing Company has strong profitability metrics and is undervalued with a low P/E ratio and high dividend yield. However, the high leverage and negative cash flow pose significant risks, while the technical analysis suggests bearish trends with no immediate signs of reversal.

Mizuho Leasing Company, Limited Business Overview & Revenue Model

Company Description

Mizuho Leasing Company, Limited (8425) is a prominent Japanese leasing company that operates in the financial services sector. The company primarily engages in leasing and installment sales of equipment and machinery, targeting sectors such as manufacturing, information technology, transportation, and healthcare. Additionally, Mizuho Leasing offers financial solutions including asset financing, operating leases, and value-added services to support the diverse needs of its corporate clients.

How the Company Makes Money

Mizuho Leasing makes money through a variety of revenue streams centered around its leasing and financial services offerings. The core of its revenue model is derived from leasing agreements, where the company earns income from the leasing of equipment and machinery to businesses across various industries. These leases can be operating leases or finance leases, generating both interest and principal repayments over the term of the lease. Additionally, Mizuho Leasing provides installment sales, allowing clients to purchase equipment over time, further contributing to its revenue. The company also benefits from offering ancillary financial services such as asset management and consulting, which enhance its service offerings and provide additional income streams. Strategic partnerships with equipment manufacturers, financial institutions, and corporate clients are significant factors that contribute to the company's earnings, allowing it to expand its customer base and market reach.

Mizuho Leasing Company, Limited Financial Statement Overview

Summary

Mizuho Leasing Company shows strong profitability and earnings growth, with improved margins. However, high leverage and negative cash flow present risks to financial flexibility and liquidity, necessitating better debt management and cash flow improvement.

Income Statement

Mizuho Leasing Company shows a strong performance with a significant increase in net income and EBIT margins in the TTM compared to the previous year. The Gross Profit Margin also improved, reflecting enhanced profitability. However, the revenue growth rate has fluctuated over the years, showing a decline from the previous period, which suggests some volatility in revenue generation.

Balance Sheet

The company's balance sheet indicates a high debt-to-equity ratio, suggesting a leveraged position, which is typical in the financial services industry. Stockholders' equity has been increasing, reflecting improved financial stability. The equity ratio shows a moderate portion of equity financing in the company's asset structure, but the high leverage poses a potential risk in economic downturns.

Cash Flow

Mizuho Leasing's cash flow statements reveal challenges, with persistent negative free cash flow and operating cash flow over the years. This indicates potential liquidity issues, although the financing activities seem to cover the shortfall. The absence of improvement in free cash flow growth rates is a concern for long-term financial health.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
656.13B	529.70B	554.81B	497.85B	539.24B
	Gross Profit
73.62B	61.37B	54.53B	51.35B	50.52B
	EBIT
39.51B	31.76B	17.89B	25.96B	26.27B
	EBITDA
57.96B	48.97B	35.10B	41.76B	41.38B
	Net Income Common Stockholders
35.22B	28.40B	14.90B	21.77B	17.51B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
420.38B	356.70B	265.19B	242.01B	244.66B
	Total Assets
3.36T	2.95T	2.75T	2.60T	2.35T
	Total Debt
2.76T	2.43T	2.27T	2.13T	1.88T
	Net Debt
2.70T	2.40T	2.25T	2.11T	1.86T
	Total Liabilities
3.03T	2.68T	2.52T	2.39T	2.15T
	Stockholders Equity
308.90B	262.76B	219.44B	200.62B	185.19B
Cash Flow		Free Cash Flow
-192.21B	-119.63B	-70.83B	-200.01B	-72.16B
	Operating Cash Flow
-192.21B	-117.82B	-68.50B	-196.82B	-69.13B
	Investing Cash Flow
-51.97B	-17.11B	-27.71B	-53.16B	-98.34B
	Financing Cash Flow
266.52B	143.52B	99.81B	248.21B	164.54B

Mizuho Leasing Company, Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1042.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8425, the sentiment is Positive. The current price of 1042 is above the 20-day moving average (MA) of 1007.00, above the 50-day MA of 1018.71, and above the 200-day MA of 1002.62, indicating a bullish trend. The MACD of 9.36 indicates Negative momentum. The RSI at 57.17 is Neutral, neither overbought nor oversold. The STOCH value of 91.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8425.

Mizuho Leasing Company, Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8591	71 Outperform	$3.10T	8.27	10.07%	4.42%	8.18%	43.83%
8424	68 Neutral	¥359.60B	9.37		3.78%	-0.85%	-20.57%
8439	67 Neutral	¥729.81B	8.34		3.90%	-1.12%	21.19%
8593	67 Neutral	¥1.44T	11.04	7.44%	4.26%	8.72%	17.56%
8425	67 Neutral	¥292.55B	6.36		4.13%	-11.31%	27.26%
Sector *	64 Neutral	$12.51B	9.81	7.92%	16985.69%	12.67%	-5.98%
8511	60 Neutral	¥142.14B	14.28	6.81%	5.03%	11.97%	41.59%

Mizuho Leasing Company, Limited Corporate Events

Mizuho Leasing Expands Real Estate Ventures with New Alliance

Mizuho Leasing Company has announced a strategic move involving the acquisition of shares in Nippon Steel Kowa Real Estate Co., Ltd., and the execution of a new capital and business alliance agreement. This development marks the termination of a previous business alliance agreement and aims to enhance collaboration in real estate development and leasing. The move is part of Mizuho’s broader strategy to expand its stable profit bases and create new business opportunities through partnerships, particularly focusing on sustainable urban development and renewable energy initiatives.

Mizuho Leasing Revises Earnings and Dividend Forecasts Upward

Mizuho Leasing Company, Limited announced a revision in its earnings and dividend forecasts for the fiscal year ending March 2025. The company reported an increase in sales assets in its real estate and environmental energy sectors, along with strong performance in overseas and aircraft businesses, leading to an upward revision of its consolidated ordinary profit and net income forecasts. Consequently, the company has decided to increase its year-end dividend per share, highlighting its commitment to enhancing shareholder returns by linking dividends to performance.

Mizuho Leasing’s Strategic Adjustments Boost Profitability Amid Revenue Decline

Mizuho Leasing Co., Ltd. reported its financial results for the nine months ending December 31, 2024, showing a decrease in revenues by 8.3% compared to the previous year, but significant growth in net income by 29.8%. This improvement in profitability despite lower revenues reflects strategic adjustments, including a stock split and changes in accounting policies, positioning the company for stable future growth.