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Mizuho Financial Group Inc (JP:8411)
:8411
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Mizuho Financial Group
(OTC:8411)
62Neutral
Positive Factors
Dividend and Profit Guidance
Management announced its first share buyback of up to JPY100bn since 2008, raised dividends and FY24F net profit guidance to a record JPY820bn.
Earnings Performance
Mizuho Financial Group achieved a 3QFY24 net profit of JPY289.2bn, which was well above consensus, driven by higher lending income and robust fee income.
Share Buyback Plans
Mizuho's announcement of share buyback plans is expected to drive a re-rating of its price-to-book value, reflecting management's confidence in sufficient capital reserves for growth.
Negative Factors
Currency and Market Activities
Downside risks include a stronger yen, slower-than-expected growth in shareholder payouts, and weak capital market activities in the US.
Interest Rates and Monetary Policy
Downside risks include potential declines in domestic interest rates, changes in expectations for BOJ's monetary policy normalization, and worsening asset quality in Japan.
Mizuho Financial Group (8411) vs. S&P 500 (SPY)
Market Cap
$8.62T
Dividend Yield3.3%
Average Volume (3M)14.53M
Price to Earnings (P/E)9.8
Beta (1Y)1.24
Revenue Growth22.26%
EPS Growth36.36%
CountryJP
Employees51,212
SectorFinancial
Sector Strength88
IndustryBanks - Regional
Share Statistics
EPS (TTM)114.29
Shares Outstanding2,513,757,800
10 Day Avg. Volume10,220,290
30 Day Avg. Volume14,531,143
Financial Highlights & Ratios
PEG Ratio1.03
Price to Book (P/B)1.02
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5,000.00Price Target Upside36.31% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Mizuho Financial Group Business Overview & Revenue Model
Company DescriptionMizuho Financial Group, Inc., together with its subsidiaries, engages in banking, trust, securities, and other businesses related to financial services in Japan, the Americas, Europe, Asia/Oceania, and internationally. It operates through five segments: Retail & Business Banking Company, Corporate & Institutional Company, Global Corporate Company, Global Markets Company, and Asset Management Company. The company provides deposit products; syndicated, housing, and card loans; business matching services; and advisory services related to overseas expansions, and mergers and acquisitions-related services. It also offers consulting services, including asset management and asset succession; payroll services; and sells lottery tickets issued by prefectures and ordinance-designated cities. In addition, it offers financial solutions, such as bonds, mergers and acquisitions advisory, risk hedging products, etc. for corporate customers to meet their needs in fund-raising, investment management, and financial strategies; solutions based on their capital management, business strategy, and financial strategy; real estate agency services; advisory services and solutions, such as advice on proposals on various investment products to financial institutions; and financial services that include funding support and public bonds underwriting. Further, the company offers sales and trading services to meet needs for customers; investment products for individual customers; and consulting services for institutional investors. Additionally, the company provides products and services related to trust, securitization and structured finance, pension, and stock transfers; securities services; and research, private banking, and information technology-related services. Mizuho Financial Group, Inc. was incorporated in 2003 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyMizuho Financial Group generates revenue through various streams including interest income from loans and advances, fees from asset management services, and trading gains from securities. The company also earns significant income from its investment banking operations, which provide underwriting, advisory, and other financial services to corporate clients. Additionally, Mizuho has strategic partnerships and alliances that enhance its service offerings and expand its market reach. The group's diversified portfolio and global presence play a crucial role in its ability to maintain a stable revenue flow.
Mizuho Financial Group Financial Statement Overview
Summary
Income Statement
Balance Sheet
Cash Flow
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 3.59T | 3.12T | 2.72T | 2.71T | 2.63T | 2.48T | Gross Profit |
| 5.33T | 3.12T | 2.72T | 2.71T | 2.63T | 2.48T | EBIT |
| -2.22T | 1.03T | 607.42B | 425.53B | 478.83B | 453.34B | EBITDA |
| 767.77B | 1.03T | 945.90B | 769.51B | 819.14B | 775.45B | Net Income Common Stockholders |
| 867.62B | 678.99B | 555.53B | 530.48B | 471.02B | 448.57B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 64.77T | 71.17T | 65.83T | 50.14T | 47.98T | 41.07T | Total Assets |
| 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | Total Debt |
| 23.37T | 20.84T | 19.60T | 20.90T | 21.64T | 17.16T | Net Debt |
| -41.39T | -52.13T | -47.55T | -30.46T | -26.34T | -23.91T | Total Liabilities |
| 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | Stockholders Equity |
| 10.50T | 10.23T | 9.13T | 9.08T | 9.26T | 8.55T |
| Cash Flow | Free Cash Flow | ||||
| 0.00 | 1.63T | 8.68T | 4.78T | 16.40T | 1.67T | Operating Cash Flow |
| 0.00 | 1.88T | 8.87T | 4.92T | 16.61T | 1.90T | Investing Cash Flow |
| 0.00 | 1.98T | 6.61T | -1.86T | -9.76T | -5.81T | Financing Cash Flow |
| 0.00 | 1.95T | -611.14B | -522.06B | 40.82B | -281.85B |
Mizuho Financial Group Technical Analysis
Positive
3668.00
Price Trends
3800.48
Negative
3882.56
Negative
3500.60
Positive
Market Momentum
-53.59
Negative
53.92
Neutral
75.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8411, the sentiment is Positive. The current price of 3668 is above the 20-day moving average (MA) of 3425.00, below the 50-day MA of 3800.48, and above the 200-day MA of 3500.60, indicating a neutral trend. The MACD of -53.59 indicates Negative momentum. The RSI at 53.92 is Neutral, neither overbought nor oversold. The STOCH value of 75.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8411.
Mizuho Financial Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Performance Comparison
JP:8411
Mizuho Financial Group
3,668.00
705.35
23.81%
CCRDF
Concordia Financial Group
6.28
0.88
16.30%
MBFJF
Mitsubishi UFJ Financial Group
12.33
2.47
25.05%
NRSCF
Nomura Holdings
6.00
0.64
11.94%
SMFNF
Sumitomo Mitsui Financial Group
24.45
6.21
34.05%
JP:7173
Tokyo Kiraboshi Financial Group, Inc.
5,310.00
985.08
22.78%
Mizuho Financial Group Earnings Call Summary
Earnings Call Date:Feb 03, 2025
(Q2-2024)
| % Change Since: -13.56%|
Next Earnings Date:May 15, 2025
Earnings Call Sentiment Positive
The earnings call presents a positive financial outlook with significant achievements in growth and integration efforts, particularly with Greenhill and Rakuten. However, challenges remain in the asset and wealth management sector and rising expenses.Q2-2024 Updates
Positive Updates
Exceeded Medium-Term Business Plan Targets
Mizuho Financial Group exceeded their final target for FY 2025 ahead of time in the first half of the medium-term business plan.
Solid Financial Progress
Forecasted net business profit for FY24 is ¥1.17 trillion, up ¥100 billion.
Increase in Retail AUM and Accounts
Retail AUM increased by ¥4.9 trillion, and NISA accounts increased by 120,000.
Successful Greenhill Integration
Greenhill integration is progressing with 1,400 joint proposals made, 44 in the pipeline.
Positive Recognition and Awards
Ranked 7th in Forbes Japan's new best companies and 83rd in TIME's World Best Companies of 2024.
Negative Updates
Challenges in Asset and Wealth Management
The asset and wealth management sector is not performing as expected, with performance gaps compared to competitors.
Increased Expenses
Expenses are rising due to necessary investments in human resources and infrastructure.
Low PBR and Need for Revenue Stability
PBR as of end of October was 0.79, currently 0.86, with a need for stable revenue and competitive edge.
Company Guidance
In the recent investor presentation for the first half of fiscal year 2024, Mizuho Financial Group reported exceeding their final financial targets for FY 2025 ahead of schedule. The company announced a forecasted net business profit of ¥1.17 trillion for FY24, reflecting a ¥100 billion increase. Key strategic focuses include solidifying sustainable growth, enhancing competitive edge, and optimizing capital use. Mizuho emphasized improvements in asset profitability, noting a reduction of ¥1.1 trillion in low-profit deals and an increase of ¥1.6 trillion in high-profit business, with RORA rising from 3.1% to 3.3%. Additionally, the CET1 ratio reached 10.5%, allowing for a balanced approach to growth investments and shareholder returns. An important strategic move was the increased stake in Rakuten Securities to 49%, aimed at strengthening asset and wealth management capabilities. The group also highlighted the importance of operational stability, the need for a distinctive business portfolio, and initiatives to enhance their competitive edge, such as leveraging synergies with Greenhill.Mizuho Financial Group Corporate Events
Mizuho Financial Group Completes Stock Repurchase and Cancellation
Mar 3, 2025
Mizuho Financial Group has completed the repurchase of its common stock as per its Board of Directors’ resolution from November 2024. The company repurchased 4,479,400 shares for approximately ¥19.1 billion and plans to cancel 25,492,100 shares, which is about 1% of its total outstanding shares. This strategic move is expected to optimize the company’s capital structure and potentially enhance shareholder value.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.