Mizuho Leasing Company, Limited (8425) AI Stock Analysis

• Market Cap: ¥364.71B
• Dividend Yield: 3.62%
• Average Volume (3M): 482.56K
• Price to Earnings (P/E): 7.6
• Beta (1Y): 0.79
• Revenue Growth: 19.11%
• EPS Growth: 8.89%
• Country: JP
• Employees: 2,176
• Sector: Financial
• Sector Strength: 75
• Industry: Financial - Credit Services
• EPS (TTM): 54.39
• Shares Outstanding: 282,666,300
• 10 Day Avg. Volume: 369,020
• 30 Day Avg. Volume: 482,556
• 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: ¥1,300.00
• Price Target Upside: 0.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: ¥1,300.00 ▲(0.23% Upside)

Mizuho Leasing Company scores well due to its attractive valuation and strong technical indicators, despite financial risks from high leverage and negative cash flows. The lack of earnings call and corporate events data means these factors are not considered.

Mizuho Leasing Company, Limited Business Overview & Revenue Model

Company Description

Mizuho Leasing Company, Limited is a leading Japanese financial services company specializing in leasing and financing solutions. The company operates primarily in the leasing sector, providing a wide range of products and services including equipment leasing, real estate leasing, and other financial services. Mizuho Leasing serves various industries such as transportation, construction, IT, and healthcare, offering customized solutions to meet the diverse needs of its clients.

How the Company Makes Money

Mizuho Leasing Company, Limited generates revenue through its leasing and financing operations. The primary revenue streams include lease payments from clients for equipment and real estate leasing agreements, as well as interest income from financing services. The company collaborates with various industries to offer tailored financial solutions and maintains partnerships with manufacturers and vendors to provide comprehensive leasing options. Additionally, Mizuho Leasing leverages its expertise in asset management and consulting services to enhance its earnings potential. Key factors contributing to the company's revenue include the expansion of its client base, diversification of its leasing portfolio, and strategic partnerships that enable access to new markets and customer segments.

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	695.42B	695.42B	656.13B	529.70B	554.81B	497.85B
Gross Profit	86.34B	86.34B	73.62B	61.37B	54.53B	51.35B
EBITDA	67.89B	70.22B	57.96B	48.97B	35.10B	41.76B
Net Income	42.04B	42.04B	35.22B	28.40B	14.90B	21.77B
Balance Sheet
Total Assets	3.90T	3.90T	3.36T	2.95T	2.75T	2.60T
Cash, Cash Equivalents and Short-Term Investments	507.77B	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	3.50T	3.50T	3.03T	2.68T	2.52T	2.39T
Stockholders Equity	382.88B	382.88B	308.90B	262.76B	219.44B	200.62B
Cash Flow
Free Cash Flow	-322.20B	-322.20B	-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: Positive
• Last Price: 1297.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8425, the sentiment is Positive. The current price of 1297 is above the 20-day moving average (MA) of 1255.15, above the 50-day MA of 1162.78, and above the 200-day MA of 1054.47, indicating a bullish trend. The MACD of 37.00 indicates Positive momentum. The RSI at 74.68 is Negative, neither overbought nor oversold. The STOCH value of 67.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥364.71B	7.65		3.62%	19.11%	8.89%
Sector *	68 Neutral	$18.05B	11.73	10.24%	3.73%	9.66%	1.70%
AK5	―	€4.28B	13.03	8.40%	―	―	―
AEOJF	―	$2.20B	19.95	3.09%	4.18%	―	―
CSASF	―	$4.00B	9.54	9.55%	3.45%	―	―
MIUFF	―	$11.86B	11.48	8.77%	3.05%	―	―
8566	61 Neutral	¥178.17B	11.35		3.13%	4.07%	12.68%

Mizuho Leasing Company, Limited Corporate Events

Mizuho Leasing Announces JPY 20 Billion Bond Issuance

Mizuho Leasing Company, Limited has announced the issuance of its 31st Unsecured Straight Corporate Bonds, amounting to JPY 20 billion, with a 1.408% interest rate and a maturity date set for July 16, 2030. This strategic financial move aims to strengthen the company’s capital structure and enhance its market position, with the bonds being publicly offered in Japan and rated AA- by two major rating agencies.

Mizuho Leasing Maintains Independence Amidst Strong Shareholder Influence

Mizuho Leasing Company, Limited announced its relationship with controlling shareholders, primarily Mizuho Financial Group, which holds 23.62% of voting rights, and Marubeni Corporation with 20.02%. Despite these affiliations, Mizuho Leasing maintains operational independence, engaging in transactions like acquiring corporate bonds from Mizuho Financial Group without any operational restraints or financial support.

Mizuho Leasing Announces Board Changes to Enhance Governance

Mizuho Leasing Company, Limited announced changes in its board of directors, with the appointment of Haruyuki Urata and Jiro Itai as new outside directors. These changes, set to be formalized at the upcoming Annual General Meeting, reflect the company’s strategic move to strengthen its governance and leverage the extensive experience of its new directors, potentially impacting its operational and strategic direction.

Mizuho Leasing Boosts Year-End Dividend Amid Strong Financial Performance

Mizuho Leasing Company, Limited announced an increase in its year-end dividend to ¥27 per share, surpassing previous forecasts. This decision reflects the company’s successful achievement of its Medium-term Management Plan 2025 financial targets ahead of schedule, and its strategy to increase the dividend payout ratio to 30%, enhancing shareholder returns.

Mizuho Leasing Reports Strong Financial Growth for FY 2025

Mizuho Leasing Co., Ltd. reported a significant increase in its consolidated financial results for the fiscal year ended March 31, 2025, with net sales rising by 6% and operating profit increasing by 23.9%. The company also enacted a five-for-one stock split, impacting its earnings per share calculations. Despite a decrease in comprehensive income, the company’s financial position strengthened, with total assets and net assets both showing substantial growth. The announcement reflects Mizuho Leasing’s robust performance and strategic financial management, positioning it well within the industry and indicating positive implications for stakeholders.