Mitsubishi UFJ Financial Group (8306) AI Stock Analysis

• Market Cap: ¥27.39T
• Dividend Yield: 3.02%
• Average Volume (3M): 37.76M
• Price to Earnings (P/E): 14.8
• Beta (1Y): 1.40
• Revenue Growth: -1.98%
• EPS Growth: 6.56%
• Country: JP
• Employees: 140,000
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): 65.52
• Shares Outstanding: 11,867,711,000
• 10 Day Avg. Volume: 42,084,210
• 30 Day Avg. Volume: 37,758,953
• PEG Ratio: 0.29
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 1.88
• P/FCF Ratio: -51.99
• 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: ¥2,631.99
• Price Target Upside: 7.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥2,769.00 ▲(13.04% 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 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

MUFG 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 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	12.25T	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

• Technical Analysis Sentiment: Positive
• Last Price: 2449.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 2449.5 is below the 20-day moving average (MA) of 2465.30, above the 50-day MA of 2379.40, and above the 200-day MA of 2091.91, indicating a neutral trend. The MACD of 24.04 indicates Positive momentum. The RSI at 51.03 is Neutral, neither overbought nor oversold. The STOCH value of 14.87 is Positive, 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
8411	77 Outperform	¥13.98T	13.98	9.14%	2.44%	-3.62%	23.01%
8316	77 Outperform	¥19.31T	14.00	9.09%	2.85%	-1.43%	21.70%
8306	76 Outperform	¥27.39T	14.84	9.01%	3.02%	-1.98%	6.56%
8604	76 Outperform	¥3.73T	10.43	10.65%	4.09%	-2.45%	35.60%
8308	72 Outperform	¥3.59T	14.77	8.37%	1.84%	8.28%	28.63%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7182	67 Neutral	¥7.31T	17.02	4.49%	2.86%	2.17%	9.55%

Mitsubishi UFJ Financial Group Corporate Events

MUFG Completes Stock Repurchase and Cancellation

MUFG has announced the progress and completion of its common stock repurchase and cancellation. The company repurchased 14,119,000 shares for ¥33.67 billion and completed the cancellation of 200,000,000 shares, which represents 1.66% of the total shares outstanding before cancellation. This move is part of MUFG’s strategic efforts to manage its capital structure and enhance shareholder value.

MUFG Corrects Stock Repurchase Notice

MUFG announced corrections to its previous notice on the repurchase and cancellation of common stock due to an error in the ratio of shares to be repurchased. The corrected ratio of aggregate shares to be repurchased is now 1.14% of total shares outstanding, excluding treasury stock, with the repurchase period remaining unchanged. This correction ensures accurate communication with stakeholders and maintains transparency in MUFG’s financial operations.

MUFG Announces Strategic Stock Repurchase and Cancellation Plan

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.

MUFG Revises Earnings and Dividend Forecasts for FY 2026

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.

Mitsubishi UFJ Financial Group Reports Semi-Annual Financial Results and Revises Forecasts

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.