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Mitsubishi UFJ Financial Group Inc (JP:8306)
:8306
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Mitsubishi UFJ Financial Group
(8306)
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Rating:76Outperform
Price Target:
¥2,769.00
▲(14.26% Upside)
Mitsubishi UFJ Financial Group's strong financial performance, positive earnings call, and solid technical indicators contribute to a favorable stock score. The company's profitability and efficiency are commendable, though high leverage and negative free cash flow are areas of concern. The stock's valuation is reasonable, and the upward trend in stock price further supports a positive outlook.
Mitsubishi UFJ Financial Group (8306) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
$27.15T
Dividend Yield3.02%
Average Volume (3M)37.76M
Price to Earnings (P/E)14.4
Beta (1Y)1.41
Revenue Growth-1.98%
EPS Growth6.56%
CountryJP
Employees140,000
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)65.52
Shares Outstanding12,067,711,000
10 Day Avg. Volume42,084,210
30 Day Avg. Volume37,758,953
Financial Highlights & Ratios
PEG Ratio0.29
Price to Book (P/B)1.14
Price to Sales (P/S)1.88
P/FCF Ratio-51.99
Enterprise Value/Market Cap0.58
Enterprise Value/Revenue1.30
Enterprise Value/Gross Profit2.25
Enterprise Value/Ebitda6.16
Forecast
1Y Price Target
$2,659.71Price Target Upside9.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Mitsubishi UFJ Financial Group 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 primarily through interest income from loans and advances, fees from various financial services, and trading income from its securities and investment banking operations. Key revenue streams include net interest income from its banking division, which consists of interest earned on loans minus interest paid on deposits. Additionally, MUFG earns significant fees from transaction services, asset management, and advisory services in investment banking. The group's global reach, coupled with strategic partnerships and alliances, enhances its ability to provide comprehensive financial solutions, thereby contributing to its earnings. Furthermore, the bank's focus on expanding its presence in emerging markets and digital banking services supports its growth and profitability.
Mitsubishi UFJ Financial Group Earnings Call Summary
Earnings Call Date:Nov 14, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 10, 2026
Earnings Call Sentiment Positive
The earnings call presented a strong performance for MUFG in the first half of FY'24, with record high net operating profits and net income, significant progress towards annual targets, and successful expense management. However, challenges in the treasury business, increased G&A expenses, and FX fluctuations were noted. Overall, the highlights significantly outweigh the lowlights.Q2-2025 Updates
Positive Updates
Record High Net Operating Profits
For the first half of FY'24, net operating profits were JPY1,305.3 billion, up by JPY219.5 billion year-on-year, marking the third consecutive year of record high first half profits.
Significant Increase in Net Income
Net income reached JPY1,258.1 billion, the highest profit since MUFG was established, and the first time profit exceeded JPY1 trillion in the first half.
Strong Progress Towards Annual Targets
Progress towards the JPY1.5 trillion target set at the beginning of the year is 83%, prompting an upward revision of the target for profits attributable to owners of parent to JPY1,750 billion.
Successful Expense Management
Expense ratio improved by 1.1 percentage points year-on-year to 55.1%, thanks to successful expense controls coupled with gross profit increase.
Increase in Dividends and Share Buybacks
Annual dividend forecast raised to JPY60, an increase of JPY19 compared to FY'23, along with additional share repurchase of up to JPY300 billion.
Negative Updates
Decline in Treasury Business Profits
Global markets business group's profits in the treasury business decreased due to the limited decline in US interest rates.
Increase in G&A Expenses
G&A expenses increased by JPY204.8 billion year-on-year due to overseas acquisitions, resource allocation for growth, and overseas compensation costs due to inflation.
Impact of FX Fluctuations
The FX impact resulted in a stronger Yen against the Dollar and weaker Yen against the Thai Baht, affecting gross profits and expenses.
Company Guidance
During the financial results briefing for the first half of the fiscal year ending March 31, 2025, Mitsubishi UFJ Financial Group (MUFG) provided updated performance metrics and revised targets. The Group recorded net operating profits of JPY1,305.3 billion, a year-on-year increase of JPY219.5 billion, marking its third consecutive year of record high first-half profits. Net income reached JPY1,258.1 billion, the highest since MUFG's establishment, and surpassed JPY1 trillion for the first time in the first half. Excluding changes in financial results closing dates for Morgan Stanley and Krungsri, profits increased by JPY391.5 billion. The Group achieved 83% progress towards its JPY1.5 trillion target set for the year. Key profit drivers included strong customer segment performance and gains on the sale of equity holdings. MUFG revised its net income target upwards by JPY250 billion to JPY1,750 billion and increased its annual dividend forecast to JPY60, alongside a JPY300 billion share repurchase plan. The Group's CET1 ratio stood at 11.2%, with a commitment to maintaining a target range of 9.5% to 10.5% while focusing on shareholder returns and intrinsic profit growth.Mitsubishi UFJ Financial Group Financial Statement Overview
Summary
Mitsubishi UFJ Financial Group demonstrates solid profitability and efficiency with strong profit margins and ROE. However, high leverage and negative free cash flow in the latest period pose potential risks. The company should focus on improving cash flow management and stabilizing revenue growth to enhance financial stability.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.75
Positive
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.70
Positive
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.65
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.25T | 12.43T | 10.89T | 8.43T | 5.25T | 5.33T |
| Gross Profit | 7.06T | 7.03T | 5.38T | 5.38T | 4.37T | 4.04T |
| EBITDA | 2.58T | 2.97T | 2.41T | 1.90T | 1.85T | 1.40T |
| Net Income | 1.90T | 1.86T | 1.49T | 1.12T | 1.13T | 777.02B |
Balance Sheet | ||||||
| Total Assets | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Cash, Cash Equivalents and Short-Term Investments | 94.09T | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Total Debt | 77.54T | 67.30T | 61.23T | 62.41T | 46.73T | 43.07T |
| Total Liabilities | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Stockholders Equity | 20.88T | 20.52T | 19.59T | 17.23T | 17.02T | 16.80T |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -450.29B | -10.31T | 13.03T | 9.46T | 34.51T |
| Operating Cash Flow | 0.00 | 6.42B | -9.84T | 13.43T | 9.84T | 34.90T |
| Investing Cash Flow | 0.00 | -186.95B | 3.99T | -10.68T | -2.20T | -10.14T |
| Financing Cash Flow | 0.00 | -861.12B | 8.31B | -977.14B | -1.08T | -436.07B |
Mitsubishi UFJ Financial Group Technical Analysis
Positive
2423.50
Price Trends
2327.31
Positive
2224.01
Positive
2046.93
Positive
Market Momentum
30.30
Negative
58.19
Neutral
72.39
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 2423.5 is above the 20-day moving average (MA) of 2371.05, above the 50-day MA of 2327.31, and above the 200-day MA of 2046.93, indicating a bullish trend. The MACD of 30.30 indicates Negative momentum. The RSI at 58.19 is Neutral, neither overbought nor oversold. The STOCH value of 72.39 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $15.69T | 13.37 | 9.09% | 3.00% | -1.43% | 21.70% | |
77 Outperform | $12.72T | 14.57 | 9.14% | 2.59% | -3.62% | 23.01% | |
76 Outperform | $27.15T | 14.44 | 9.01% | 3.02% | -1.98% | 6.56% | |
76 Outperform | ¥3.46T | 9.69 | 10.65% | 4.35% | -2.45% | 35.60% | |
72 Outperform | $3.49T | 15.28 | 8.37% | 1.76% | 8.28% | 28.63% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $6.22T | 14.83 | 4.49% | 3.30% | 2.17% | 9.55% |
* Financial Sector Average
JP:8306
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Mitsubishi UFJ Financial Group Corporate Events
MUFG Announces Strategic Stock Repurchase and Cancellation Plan
Nov 14, 2025
MUFG announced its decision to repurchase and cancel a portion of its common stock as part of its strategy to enhance shareholder returns and improve capital efficiency. The repurchase will involve up to 130 million shares, while 200 million shares will be canceled, reflecting MUFG’s commitment to maintaining a balance between solid equity capital and strategic growth investments. This move is expected to positively impact the company’s capital efficiency and shareholder value, while aligning with its market conditions and business performance.
The most recent analyst rating on (JP:8306) stock is a Hold with a Yen2700.00 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 and Dividend Forecasts for FY 2026
Nov 14, 2025
MUFG has revised its earnings target and dividend forecast for the fiscal year ending March 31, 2026, reflecting positive business performance trends. The company increased its earnings target by ¥100 billion to ¥2,100 billion, driven by improved customer segment performance and higher equity earnings from Morgan Stanley. Additionally, MUFG raised its year-end dividend forecast to ¥39.00 per share, aiming for a stable and sustainable increase in shareholder returns while maintaining disciplined capital management.
The most recent analyst rating on (JP:8306) stock is a Hold with a Yen2700.00 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 Semi-Annual Financial Results and Revises Forecasts
Nov 14, 2025
Mitsubishi UFJ Financial Group reported its financial results for the six months ended September 30, 2025, showing a slight increase in ordinary income but a decrease in ordinary profits compared to the previous year. The company revised its dividend forecasts and earnings target, reflecting its strategic adjustments amid economic uncertainties, which could impact stakeholders and market positioning.
The most recent analyst rating on (JP:8306) stock is a Hold with a Yen2700.00 price target. To see the full list of analyst forecasts on Mitsubishi UFJ Financial Group stock, see the JP:8306 Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.