Mitsubishi UFJ Financial Group (8306) AI Stock Analysis

• Market Cap: ¥25.70T
• Dividend Yield: 2.91%
• Average Volume (3M): 41.22M
• Price to Earnings (P/E): 14.2
• Beta (1Y): 1.38
• Revenue Growth: 0.95%
• EPS Growth: 27.41%
• Country: JP
• Employees: 140,000
• Sector: Financial
• Sector Strength: 75
• Industry: Banks - Diversified
• EPS (TTM): 47.55
• Shares Outstanding: 12,067,711,000
• 10 Day Avg. Volume: 30,369,509
• 30 Day Avg. Volume: 41,220,479
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥2,480.00
• Price Target Upside: 12.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 75 Outperform
• Price Target: ¥2,551.00 ▲(15.93% Upside)

The overall stock score of 75 reflects strong technical momentum and a reasonable valuation, supported by solid financial performance. However, high leverage and negative free cash flow are potential risks that need to be addressed. The absence of recent earnings call data and corporate events limits further insights.

Positive Factors

Dividends

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

Profit Targets

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 downside risks.

Currency Strength

A stronger yen presents potential downside risks for the company.

Interest Rates

Downside risks include decline in US and domestic interest rates.

Mitsubishi UFJ Financial Group Business Overview & Revenue Model

Company Description

Mitsubishi UFJ Financial Group, Inc. (MUFG) is a prominent financial services company headquartered in Tokyo, Japan. It operates across various sectors, including commercial banking, trust banking, securities, credit cards, and asset management. As one of the largest financial groups in the world, MUFG offers a comprehensive range of financial products and services to retail, corporate, and institutional clients globally. The company is known for its strong presence in Japan and its extensive network of branches and subsidiaries across the Americas, Asia, and Europe.

How the Company Makes Money

Mitsubishi UFJ Financial Group generates revenue through multiple channels. Its primary revenue streams include interest income from its commercial and retail banking operations, which involves lending activities such as personal loans, mortgages, and corporate financing. The company also earns fees and commissions from its trust banking, securities brokerage, and asset management services. Additionally, MUFG benefits from its credit card business, which generates transaction fees and interest income. Strategic partnerships and investments, such as those with other financial institutions and technology firms, further enhance its revenue base by expanding its service offerings and customer reach. The company's earnings are also influenced by factors such as interest rate fluctuations, economic conditions, and regulatory changes, which can impact its lending and investment activities.

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.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	12.43T	12.43T	10.89T	8.43T	5.25T	5.33T
Gross Profit	7.03T	7.03T	5.38T	5.38T	4.37T	4.04T
EBITDA	2.25T	2.97T	2.41T	1.90T	1.85T	1.40T
Net Income	1.86T	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	10.00T>	10.00T>	10.00T>	10.00T>	10.00T>	10.00T>
Total Debt	89.40T	89.40T	25.75T	47.28T	19.11T	18.09T
Total Liabilities	10.00T>	10.00T>	10.00T>	10.00T>	10.00T>	10.00T>
Stockholders Equity	20.52T	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

• Technical Analysis Sentiment: Positive
• Last Price: 2200.50
• 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 2200.5 is below the 20-day moving average (MA) of 2249.35, above the 50-day MA of 2114.98, and above the 200-day MA of 1929.39, indicating a neutral trend. The MACD of 37.78 indicates Positive momentum. The RSI at 55.19 is Neutral, neither overbought nor oversold. The STOCH value of 31.10 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	¥25.70T	14.22	9.43%	2.91%	0.95%	27.41%
Sector *	68 Neutral	$18.05B	11.73	10.24%	3.73%	9.66%	1.70%
RSNHF	―	$23.48B	16.00	8.46%	1.60%	―	―
JPSTF	―	$45.99B	16.27	4.73%	3.09%	―	―
MZHOF	―	$81.90B	13.77	8.69%	2.87%	―	―
NRSCF	―	$21.08B	8.72	11.06%	3.71%	―	―
SMFNF	―	$106.22B	13.25	8.23%	6.05%	―	―

Mitsubishi UFJ Financial Group Corporate Events

Mitsubishi UFJ Financial Group Reports Interim Financial Results

Mitsubishi UFJ Financial Group announced the completion of an interim review of its quarterly consolidated financial statements for the three months ended June 30, 2025, under Japanese GAAP. The results showed a decline in ordinary income, ordinary profits, and profits attributable to owners compared to the previous year, reflecting challenges in the current economic and market environment. Despite this, the company maintains its earnings target for the fiscal year ending March 31, 2026, indicating a stable outlook amidst uncertainties.

Mitsubishi UFJ Financial Group Reports Q1 2025 Financial Results

Mitsubishi UFJ Financial Group reported a decline in ordinary income, ordinary profits, and profits attributable to owners for the three months ending June 30, 2025, compared to the previous year. Despite this, the company maintains its earnings target for the fiscal year ending March 31, 2026, highlighting its resilience amid economic uncertainties. The financial report also notes a stable equity-to-asset ratio and an increase in dividend forecasts, indicating a commitment to shareholder returns.

MUFG Completes Significant Stock Repurchase

Mitsubishi UFJ Financial Group (MUFG) has completed a significant repurchase of its common stock, acquiring 39,775,700 shares for approximately ¥80 billion through market purchases on the Tokyo Stock Exchange. This repurchase is part of a broader resolution by the Board of Directors to buy back up to 175 million shares, aiming to enhance shareholder value and optimize capital structure. The move reflects MUFG’s strategic efforts to strengthen its market position and deliver value to its stakeholders.

Mitsubishi UFJ Financial Group Aligns Fiscal Year-End for Timely Reporting

Mitsubishi UFJ Financial Group reported its consolidated financial results for the fiscal year ending March 31, 2025, under U.S. GAAP. The company made a significant change by aligning the fiscal year-end of its subsidiary, Bank of Ayudhya, with its own, which was applied retrospectively. The Group’s total revenue increased compared to the previous year, although net income slightly decreased. The financial condition showed an increase in total assets and shareholders’ equity, while cash flow from operating activities turned positive. These adjustments aim to enhance the timeliness and accuracy of financial reporting, potentially impacting stakeholders by providing more synchronized financial data.

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.