Mitsubishi UFJ Financial Group (8306) AI Stock Analysis

• Market Cap: $22.21T
• Dividend Yield: 3.11%
• Average Volume (3M): 44.72M
• Price to Earnings (P/E): 12.3
• Beta (1Y): 1.30
• Revenue Growth: 10.56%
• EPS Growth: 28.68%
• Country: JP
• Employees: 140,000
• Sector: Financial
• Sector Strength: 79
• Industry: Banks - Diversified
• EPS (TTM): 10.17
• Shares Outstanding: 12,067,711,000
• 10 Day Avg. Volume: 39,584,189
• 30 Day Avg. Volume: 44,720,493
• PEG Ratio: 4.06
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.90
• 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: $2,161.73
• Price Target Upside: 10.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 75 Outperform
• Price Target: ¥2,195.00 ▲(11.73%Upside)

Mitsubishi UFJ Financial Group's stock is rated positively due to strong financial performance with high profit margins and effective equity utilization. Technical indicators suggest bullish momentum. Valuation appears reasonable with a good dividend yield. However, high leverage and challenges from rising credit costs and global market segment concerns temper the overall outlook.

Positive Factors

Dividends

FY24 dividend raised to JPY64/share; management sees higher dividends ahead.

Earnings

Management targets a new record net profit of JPY2tn in FY25F.

Share Repurchase

MUFG announced plans to repurchase approximately an additional JPY 300bn worth of MUFG shares during FY24F.

Negative Factors

Asset Quality

Worsening asset quality in Japan, US and rest of Asia poses a risk.

Currency Exchange

A stronger yen as well as higher capital requirements globally are considered downside risks.

Interest Rates

Downside risks include decline in US and domestic interest rates, changes in expectations for BOJ to normalise monetary policy.

Mitsubishi UFJ Financial Group Business Overview & Revenue Model

Company Description

Mitsubishi 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 Money

Mitsubishi UFJ Financial Group generates revenue through various financial services. The primary revenue streams include interest income from loans and advances, fees and commissions from banking and securities services, trading and investment gains, and asset management services. MUFG's banking division offers corporate and retail banking services, earning interest and fees from lending activities. The trust banking segment provides real estate and asset management services, contributing to fee income. Additionally, MUFG's securities business earns through trading, underwriting, and advisory services. The company also benefits from strategic partnerships and joint ventures, which enhance its service offerings and market presence. MUFG's global operations and diverse financial services portfolio enable it to maintain a robust revenue model in the financial industry.

Mitsubishi UFJ Financial Group Financial Statement Overview

Summary

Mitsubishi UFJ Financial Group exhibits strong profitability with a gross profit margin of 56.55% and a stable net profit margin of 14.98%. Solid ROE at 9.08% indicates effective equity use, but high leverage and negative free cash flow pose potential risks.

Income Statement

The company shows a strong gross profit margin of 56.55% and a stable net profit margin of 14.98% for the most recent year. Revenue growth has been volatile with significant fluctuations, but the overall trend is positive. EBIT and EBITDA margins indicate solid operational efficiency despite past downturns.

Balance Sheet

The debt-to-equity ratio is high at 4.35, suggesting substantial leverage. However, the equity ratio is stable at 4.97%, reflecting a balanced asset structure. Return on equity is strong at 9.08%, indicating effective utilization of equity capital.

Cash Flow

Operating cash flow is generally positive, but the free cash flow is negative for the latest period, raising concerns about capital expenditures and investment strategies. The operating cash flow to net income ratio is healthy, yet negative free cash flow growth suggests potential liquidity constraints.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
9.47T	12.43T	5.22T	4.00T	4.70T	4.63T
	Gross Profit
9.43T	7.03T	10.70T	6.06T	4.70T	4.63T
	EBIT
2.02T	1.86T	3.21T	1.15T	-432.06B	1.21T
	EBITDA
2.79T	1.86T	0.00	1.90T	0.00	1.40T
	Net Income Common Stockholders
1.94T	1.86T	1.49T	1.12T	1.13T	777.02B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.00T>	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
89.53T	89.40T	61.23T	47.28T	19.11T	18.09T
	Net Debt
-17.25T	-19.69T	-48.65T	-66.35T	-91.65T	-84.89T
	Total Liabilities
10.00T>	10.00T>	10.00T>	10.00T>	10.00T>	10.00T>
	Stockholders Equity
20.38T	20.52T	19.59T	17.23T	17.02T	16.80T
Cash Flow		Free Cash Flow
0.00	-450.29B	-10.31T	13.03T	9.25T	34.51T
	Operating Cash Flow
0.00	6.42B	-9.84T	13.43T	9.64T	34.90T
	Investing Cash Flow
0.00	-186.95B	-1.27T	-10.68T	-2.20T	-10.14T
	Financing Cash Flow
0.00	-861.12B	8.31B	-977.14B	-875.97B	-436.07B

Mitsubishi UFJ Financial Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1964.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8306, the sentiment is Positive. The current price of 1964.5 is below the 20-day moving average (MA) of 1968.00, above the 50-day MA of 1838.86, and above the 200-day MA of 1752.54, indicating a neutral trend. The MACD of 35.44 indicates Positive momentum. The RSI at 55.75 is Neutral, neither overbought nor oversold. The STOCH value of 30.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8306.

Mitsubishi UFJ Financial Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8306	75 Outperform	$22.21T	12.27	9.18%	3.11%	10.56%	28.68%
Sector *	64 Neutral	$12.83B	9.78	7.78%	16985.64%	12.26%	-7.81%
RSNHF		$20.32B	14.68	7.67%	1.86%	―	―
JPSTF		$37.50B	14.07	4.38%	3.60%	―	―
MZHOF		$68.45B	11.91	8.45%	3.32%	―	―
NRSCF		$18.15B	8.35	9.88%	6.18%	―	―
SMFNF		$96.64B	13.16	7.92%	3.11%	―	―

Mitsubishi UFJ Financial Group Corporate Events

MUFG Reports Progress on Stock Repurchase Program

Mitsubishi UFJ Financial Group (MUFG) has announced the progress of its common stock repurchase program, in which it has repurchased over 27 million shares at a cost exceeding ¥54 billion. This move is part of a larger initiative authorized by the Board of Directors to repurchase up to 175 million shares, valued at up to ¥250 billion, through market purchases on the Tokyo Stock Exchange. The repurchase is aimed at enhancing shareholder value and optimizing the company’s capital structure.

The most recent analyst rating on (JP:8306) stock is a Buy with a Yen2150.00 price target. To see the full list of analyst forecasts on Mitsubishi UFJ Financial Group stock, see the JP:8306 Stock Forecast page.

MUFG Announces Stock Repurchase to Enhance Shareholder Returns

MUFG has announced a decision to repurchase up to 175 million of its common shares, representing 1.52% of its total outstanding shares, with a maximum repurchase price of ¥250 billion. This move is part of MUFG’s strategy to enhance shareholder returns and improve capital efficiency, considering its business performance, capital situation, and market conditions.

The most recent analyst rating on (JP:8306) stock is a Buy with a Yen2150.00 price target. To see the full list of analyst forecasts on Mitsubishi UFJ Financial Group stock, see the JP:8306 Stock Forecast page.

MUFG Reports Strong Financial Growth for Fiscal Year 2025

MUFG reported a significant increase in its consolidated financial results for the fiscal year ending March 31, 2025, compared to the previous year. The rise in ordinary income, profits, and earnings per share was primarily driven by higher interest income from securities and receivables under resale agreements. This financial growth underscores MUFG’s strong market positioning and its ability to capitalize on interest income opportunities, potentially benefiting stakeholders and reinforcing its status as a leading financial group.

The most recent analyst rating on (JP:8306) stock is a Buy with a Yen2150.00 price target. To see the full list of analyst forecasts on Mitsubishi UFJ Financial Group stock, see the JP:8306 Stock Forecast page.

Mitsubishi UFJ Financial Group Reports Strong Fiscal Year 2025 Results

Mitsubishi UFJ Financial Group reported a significant increase in its financial performance for the fiscal year ended March 31, 2025, with a 14.6% rise in ordinary income and a 25% increase in profits attributable to owners of the parent. The company has also announced a higher dividend payout, reflecting its strong financial position and commitment to returning value to shareholders. These results indicate a positive impact on the company’s operations and its competitive positioning in the financial services industry.

The most recent analyst rating on (JP:8306) stock is a Buy with a Yen2150.00 price target. To see the full list of analyst forecasts on Mitsubishi UFJ Financial Group stock, see the JP:8306 Stock Forecast page.

MUFG Board Opposes Shareholder Proposals on Audit and Climate Policy

MUFG’s Board of Directors has decided to oppose shareholder proposals presented for the upcoming Annual General Meeting. The proposals involve amendments to the Articles of Incorporation related to financial risk audits and climate change transition plans. The Board argues that existing audit processes and disclosures are sufficient and that stipulating such matters in the Articles of Incorporation is unnecessary. Additionally, while MUFG acknowledges the importance of assessing clients’ climate transition plans, it does not believe these should solely dictate financing decisions, emphasizing a broader risk management approach.

The most recent analyst rating on (JP:8306) stock is a Buy with a Yen2150.00 price target. To see the full list of analyst forecasts on Mitsubishi UFJ Financial Group stock, see the JP:8306 Stock Forecast page.

MUFG Revises Earnings Target and Dividend Forecast for FY 2025

MUFG has revised its earnings target and dividend forecast for the fiscal year ended March 31, 2025, reflecting recent business performance trends. The company increased its earnings target by ¥110 billion to ¥1,860 billion due to one-time profits from the sale of equity holdings and loan loss provision reversals, despite a decrease in net operating profits. Additionally, MUFG raised its year-end dividend forecast from ¥35.00 to ¥39.00 per share, aiming for a stable increase in dividends through profit growth and maintaining a disciplined capital management approach.

Mitsubishi UFJ Expands with Zenhoren Acquisition

Mitsubishi UFJ Financial Group’s subsidiary, Mitsubishi UFJ NICOS Co., Ltd., has successfully completed a tender offer to acquire Zenhoren Co., Ltd., making it a consolidated subsidiary. This acquisition, effective April 10, 2025, enhances Mitsubishi UFJ’s strategic positioning in the rent liability guarantee and rent management risk hedging market, potentially impacting stakeholders by expanding its service offerings and market reach.

MUFG Completes Common Stock Repurchase

MUFG has completed the repurchase of its common stock as per the resolution passed by its Board of Directors in November 2024. The repurchase involved acquiring 30,078,300 shares at a total price of ¥59,475,588,658 through market purchases on the Tokyo Stock Exchange. This strategic move is part of MUFG’s ongoing efforts to optimize its capital structure and enhance shareholder value, reflecting its strong financial position and commitment to delivering long-term value to its stakeholders.