Mizuho Leasing Company, Limited (8425) AI Stock Analysis

• Market Cap: ¥347.86B
• Dividend Yield: 4.12%
• Average Volume (3M): 368.45K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 0.75
• Revenue Growth: 21.22%
• EPS Growth: -2.77%
• Country: JP
• Employees: 2,176
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 49.37
• Shares Outstanding: 282,666,300
• 10 Day Avg. Volume: 322,060
• 30 Day Avg. Volume: 368,446
• PEG Ratio: 1.03
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.41
• P/FCF Ratio: -0.71
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥1,425.00 ▲(15.01% Upside)

The stock's overall score is driven by strong valuation metrics and positive technical indicators. Financial performance is solid but impacted by high leverage and negative cash flows. The absence of earnings call and corporate events data limits further insights.

Mizuho Leasing Company, Limited Business Overview & Revenue Model

Company Description

Mizuho Leasing Company, Limited provides general leasing services in Japan and internationally. It operates through three segments: Leasing and Installment Sales, Finance, and Other. The company offers finance, operating, real estate, and auto leasing services; installment sales services; maintenance services for vehicle fleets; payment outsourcing services; and accounts receivable securitization services, as well as purchases notes receivables. It also provides sales promotion support services; support services for introduction of environmental and energy equipment; support services for subscription business; support services for entry into international markets; and cross border financing services, as well as engages in buying and selling pre-owned property and equipment; and the solar power business. The company was formerly known as IBJ Leasing Company, Limited and changed its name to Mizuho Leasing Company, Limited in October 2019. Mizuho Leasing Company, Limited was incorporated in 1947 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Mizuho Leasing generates revenue primarily through the leasing of equipment and real estate, charging clients fees for the use of these assets over a specified term. The company earns interest income from financing arrangements and loans provided to customers. Key revenue streams include operating leases, capital leases, and structured financing solutions. Additionally, Mizuho Leasing benefits from asset management services and advisory roles in various financial transactions. Strategic partnerships with manufacturers and industry players enhance its product offerings and market reach, further contributing to its earnings. The company's focus on diversified leasing portfolios allows for stable cash flows and risk mitigation.

Mizuho Leasing Company, Limited Financial Statement Overview

Summary

Mizuho Leasing Company demonstrates solid revenue growth and operational efficiency with stable profit margins. However, high leverage and negative cash flows pose financial risks despite strong ROE.

Income Statement

Mizuho Leasing Company has shown consistent revenue growth with a notable increase of 6% from the previous year. The company maintains a healthy gross profit margin of approximately 12.4% for the latest year, indicating efficient cost management. However, the net profit margin remains relatively steady at about 6.0%, suggesting limited improvement in profitability. The EBIT and EBITDA margins are stable, reflecting good operational performance.

Balance Sheet

The balance sheet exhibits a high debt-to-equity ratio, exceeding 8.3, which is typical for the industry but indicates significant leverage. The return on equity is robust at around 11%, showcasing effective use of equity to generate profit. However, the equity ratio stands at approximately 9.8%, highlighting potential financial risk due to high leverage.

Cash Flow

The cash flow statement reveals a challenging situation with negative operating and free cash flows, indicating cash outflows are exceeding inflows. The free cash flow to net income ratio is negative, which could constrain future growth or investment opportunities. However, financing activities have provided significant cash inflows, supporting liquidity needs.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	786.72B	695.42B	656.13B	529.70B	554.81B	497.85B
Gross Profit	89.47B	86.34B	73.62B	61.37B	54.53B	51.35B
EBITDA	70.51B	70.22B	57.96B	48.97B	35.10B	41.76B
Net Income	47.54B	42.04B	35.22B	28.40B	14.90B	21.77B
Balance Sheet
Total Assets	3.89T	3.90T	3.36T	2.95T	2.75T	2.60T
Cash, Cash Equivalents and Short-Term Investments	545.83B	507.77B	420.38B	356.70B	265.19B	242.01B
Total Debt	3.30T	3.30T	2.86T	2.56T	2.39T	2.26T
Total Liabilities	3.49T	3.50T	3.03T	2.68T	2.52T	2.39T
Stockholders Equity	383.19B	382.88B	308.90B	262.76B	219.44B	200.62B
Cash Flow
Free Cash Flow	-322.20B	-399.94B	-195.78B	-119.63B	-70.83B	-200.01B
Operating Cash Flow	-315.58B	-393.32B	-192.21B	-117.82B	-68.50B	-196.82B
Investing Cash Flow	-53.18B	-53.18B	-51.97B	-17.11B	-27.71B	-53.16B
Financing Cash Flow	457.13B	457.13B	266.52B	143.52B	99.81B	248.21B

Mizuho Leasing Company, Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1239.00
• 50DMA: Negative
• 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:8425, the sentiment is Neutral. The current price of 1239 is below the 20-day moving average (MA) of 1263.60, below the 50-day MA of 1272.82, and above the 200-day MA of 1099.74, indicating a neutral trend. The MACD of -8.97 indicates Positive momentum. The RSI at 42.06 is Neutral, neither overbought nor oversold. The STOCH value of 22.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8425.

Mizuho Leasing Company, Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8425	72 Outperform	¥347.86B	7.29	―	4.12%	21.22%	-2.77%
8593	72 Outperform	$1.73T	11.32	8.77%	3.44%	7.07%	19.73%
8566	70 Outperform	¥174.16B	11.15	―	3.19%	4.07%	12.68%
8572	69 Neutral	¥700.90B	13.32	8.40%	3.79%	7.25%	-0.63%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8253	67 Neutral	$591.42B	8.76	9.55%	3.17%	14.32%	-3.45%
8570	63 Neutral	$327.10B	23.08	3.05%	3.55%	10.31%	-40.64%

Mizuho Leasing Company, Limited Corporate Events

Mizuho Leasing to Acquire Significant Stake in TRE HOLDINGS

Mizuho Leasing Company, Limited has announced its decision to acquire a significant shareholding in TRE HOLDINGS CORPORATION, aiming to establish a strategic partnership. This acquisition is expected to strengthen existing businesses, create new opportunities, and enhance corporate value for both companies, positioning Mizuho Leasing as a major shareholder in TRE HOLDINGS.

The most recent analyst rating on (JP:8425) stock is a Buy with a Yen1300.00 price target. To see the full list of analyst forecasts on Mizuho Leasing Company, Limited stock, see the JP:8425 Stock Forecast page.

Mizuho Leasing and TRE HOLDINGS Forge Strategic Alliance to Boost Circular Economy Initiatives

Mizuho Leasing Company, Limited and TRE HOLDINGS CORPORATION have entered into a capital and business alliance to enhance their business growth and corporate value. Mizuho Leasing plans to acquire additional shares in TRE HOLDINGS, aiming to become a major shareholder with 10% of the voting rights, facilitating collaboration in building a circular economy and advancing decarbonization efforts.

The most recent analyst rating on (JP:8425) stock is a Buy with a Yen1300.00 price target. To see the full list of analyst forecasts on Mizuho Leasing Company, Limited stock, see the JP:8425 Stock Forecast page.