Mizuho Leasing Company, Limited (8425) AI Stock Analysis

• Market Cap: ¥397.28B
• Dividend Yield: 3.65%
• Average Volume (3M): 368.45K
• Price to Earnings (P/E): 8.5
• Beta (1Y): 0.77
• Revenue Growth: 21.22%
• EPS Growth: -2.77%
• Country: JP
• Employees: 2,176
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 41.59
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 173.9
• Revenue Forecast (FY): ¥726.10B

• Rating: 72 Outperform
• Price Target: ¥1,608.00 ▲(13.80% Upside)
• Action: Reiterated Date: 10/23/25
• Date: Action: Reiterated 10/23/25

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.

Positive Factors

Strong revenue growth trend

Reported double-digit revenue growth indicates expanding leasing volumes and stronger origination activity. Sustained top-line expansion supports scale advantages in equipment financing, improves amortization of fixed costs, and underpins long-term earnings capacity if asset quality remains stable.

Effective equity returns (ROE)

A roughly 11% return on equity shows management extracts good profit from shareholder capital, reflecting profitable underwriting and pricing in leasing operations. Persistent ROE near this level supports reinvestment capacity and shareholder returns over multiple quarters.

Stable gross and operating margins

Consistent gross and operating margins point to disciplined cost management and margin resiliency in leasing services. Stable margins help preserve profitability through business cycles and support predictable cash generation from core leasing and financing activities.

Negative Factors

High leverage on balance sheet

Extremely high leverage increases sensitivity to interest rates and asset impairments; small credit losses or funding stress can erode equity quickly. Structural leverage limits capital flexibility and raises refinancing and regulatory risk over the medium term.

Negative operating and free cash flow

Persistent negative operating and free cash flow means core operations are not self-funding and require external financing. Reliance on financing inflows to support growth elevates refinancing risk and constrains the firm's ability to invest or absorb shocks without raising costly debt or equity.

Limited improvement in net profitability

A stagnant net margin near 6% signals constrained ability to convert revenue gains into bottom-line expansion. Over time this limits internal capital generation, dividend flexibility, and buffer against credit losses, especially given the company's high leverage and cash flow gaps.

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 primarily earns money through (1) leasing income and finance charges from customers using equipment leases and installment-style financing, (2) interest income and fees from loans and other credit/finance products tied to asset acquisition and working capital needs, and (3) gains, fees, and spreads associated with arranging and managing structured or asset-based finance transactions connected to leased/financed assets. In a typical leasing model, the company purchases an asset (or funds its purchase), leases it to a customer, and earns a spread between the lease/finance rate charged to the customer and the company’s own funding costs, plus various upfront/ongoing fees (e.g., arrangement, servicing, or contract-related fees). Additional earnings can come from asset disposition/residual value management when leased assets are sold or re-leased at the end of term, and from servicing/administrative fees on managed portfolios. Significant partnerships or specific counterparties contributing to earnings: null.

Mizuho Leasing Company, Limited Financial Statement Overview

Summary

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

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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	0.00	-399.94B	-195.78B	-119.63B	-70.83B	-200.01B
Operating Cash Flow	0.00	-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: Negative
• Last Price: 1413.00
• 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 Negative. The current price of 1413 is below the 20-day moving average (MA) of 1466.40, below the 50-day MA of 1465.12, and above the 200-day MA of 1290.47, indicating a neutral trend. The MACD of -14.61 indicates Positive momentum. The RSI at 41.38 is Neutral, neither overbought nor oversold. The STOCH value of 41.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
9763	76 Outperform	¥15.36B	9.57	―	3.57%	6.66%	13.62%
8425	72 Outperform	¥397.28B	8.49	―	3.65%	21.22%	-2.77%
8511	72 Outperform	¥171.27B	13.86	6.77%	3.66%	54.96%	-0.61%
8593	72 Outperform	¥2.05T	10.19	8.92%	3.20%	3.42%	22.06%
8591	72 Outperform	¥4.94T	10.66	10.32%	3.30%	6.21%	11.62%
8566	70 Outperform	¥185.26B	11.64	―	3.30%	7.36%	-3.80%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Mizuho Leasing Company, Limited Corporate Events

Mizuho Leasing Overhauls Executive Lineup to Sharpen Strategic Focus

Mizuho Leasing Company, Limited has announced a broad reshuffle of its leadership, including the promotion of Masahiko Abe to Deputy President and a series of changes to director and executive officer roles effective April 1, 2026. The moves realign oversight of key business units such as domestic sales departments, international business, investment operations, environmental energy, and risk management, signaling a strengthening of its organizational structure as it refines its focus on growth areas like medical and healthcare, cross-border M&A, and environmental solutions.

Several executives, including Koki Minami and Kenji Akiyama, have been elevated to managing executive officer positions with responsibility for sales departments and specialized sectors, while new executive officers have been appointed to head business promotion, credit risk management, treasury, and corporate business departments. The reorganization consolidates leadership in risk management and investment headquarters and adjusts regional and global mandates, which is likely aimed at improving governance, operational efficiency, and strategic execution across both domestic and international markets.

The most recent analyst rating on (JP:8425) stock is a Hold with a Yen1510.00 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 to Raise ¥17 Billion via AA- Rated Unsecured Bonds

Mizuho Leasing Company, Limited has resolved to issue its 34th and 35th series of unsecured straight corporate bonds, raising a total of ¥17 billion through a public offering in Japan, with no collateral or specific asset backing. The 34th bond is a five-year issue maturing in March 2031 with a coupon of 2.038%, while the 35th is a seven-year bond maturing in March 2033 at 2.343%, both priced at par and supported by a syndicate of major Japanese securities firms, and they have been assigned AA- ratings by leading domestic rating agencies, underscoring the company’s solid credit standing and access to long-term funding.

The most recent analyst rating on (JP:8425) stock is a Buy with a Yen1676.00 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 to Take Stake in Star Asia in Strategic Real Estate Alliance

Mizuho Leasing Company, Limited has approved a capital and business alliance with private real estate investment manager Star Asia Group LLC, alongside a third-party allotment capital increase that will make Star Asia an equity-method affiliate. The move aligns with Mizuho Leasing’s Medium-Term Management Plan 2025, aiming to strengthen its real estate business, expand stable profit sources, and deepen cooperation with an established player that has strong global investor relationships and vertically integrated real estate operations.

The two groups, which already have a financing and bridge-loan relationship, see a stable capital partnership as a way to grow their respective businesses and enhance corporate value. By tying up with Star Asia’s diversified Japanese real estate investment platform, including private funds, a listed REIT, and operating companies in hospitality and student housing, Mizuho Leasing is positioning itself to broaden its real estate footprint and reinforce its transition from a traditional leasing company to a broader platform company.

The most recent analyst rating on (JP:8425) stock is a Hold with a Yen1592.00 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 Posts Higher Sales and Profit for Nine Months, Confirms FY2026 Outlook and Higher Dividend

For the nine months ended December 31, 2025, Mizuho Leasing reported a 38.8% year-on-year jump in net sales to ¥639.8 billion, while operating profit slipped 1.0% to ¥35.3 billion and ordinary profit edged up 2.3% to ¥50.8 billion; profit attributable to owners of parent rose 13.7% to ¥40.7 billion, lifting basic earnings per share to ¥145.35. Total assets expanded to ¥4.18 trillion and the equity ratio improved slightly to 9.9%, while the company kept its full-year forecast unchanged, projecting a decline in operating and ordinary profit but a 7.0% rise in bottom-line profit to ¥45.0 billion; it also confirmed a higher annual dividend forecast of ¥50 per share and disclosed consolidation changes with two new subsidiaries and one deconsolidated entity, underscoring ongoing portfolio adjustments and a continued emphasis on shareholder returns despite modest profit pressure.

The most recent analyst rating on (JP:8425) stock is a Hold with a Yen1519.00 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 Secures Control of Japan Infrastructure Fund via Successful Tender Offer

Mizuho Leasing, through its wholly owned subsidiary ML Power Co., Ltd. and investment vehicle MM Power LLC, has successfully completed a tender offer for units of Japan Infrastructure Fund Investment Corporation, a listed infrastructure fund on the Tokyo Stock Exchange. The offer, conducted between November 7, 2025 and January 22, 2026 at ¥67,000 per unit, resulted in the purchase of 293,927 investment units, exceeding the minimum acceptance condition of 263,532 units. As a result, Japan Infrastructure Fund Investment Corporation is scheduled to become a consolidated and specified subsidiary of Mizuho Leasing on January 29, 2026, marking a significant expansion of the group’s presence in infrastructure asset management and potentially strengthening its position in Japan’s infrastructure investment market.

The most recent analyst rating on (JP:8425) stock is a Hold with a Yen1514.00 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 Unit Raises Price and Extends Tender Offer for Japan Infrastructure Fund

MM Power LLC, a wholly owned vehicle of Mizuho Leasing’s subsidiary ML Power, has amended the terms of its ongoing tender offer for investment units of Japan Infrastructure Fund Investment Corporation to improve the chances of a successful acquisition. The tender offer’s minimum acceptance threshold has been lowered from 66.67% to 60.00% of outstanding units, the offer price has been raised from JPY 65,000 to JPY 67,000 per unit, and the offer period has been extended to January 22, 2026, with the tender offeror indicating that no further changes are planned. In parallel, Mizuho Leasing plans to acquire a 49.0% stake in Japan Infrastructure Fund Advisors Co., Ltd. from Marubeni, Mizuho Bank and Mizuho Trust & Banking, consolidating control over both the fund and its advisor and reinforcing its strategic position in Japan’s infrastructure fund market.

The most recent analyst rating on (JP:8425) stock is a Buy with a Yen1425.00 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 Subsidiary to Acquire and Transfer ¥100 Billion Tokyo Logistics Hub as Short-Term Investment

Mizuho Leasing’s wholly owned real estate subsidiary, ML Estate Company, Limited, has decided to acquire and then transfer the large-scale Tokyo C-NX logistics facility in Koto-ku, Tokyo, for approximately ¥100 billion as a short-term asset investment. Tokyo C-NX, acquired from Nippon Express Co., Ltd. and to be transferred to JUL Special Purpose Company, is positioned as an advanced logistics hub serving as a gateway between Japan and global markets, suggesting Mizuho Leasing is actively using high-quality logistics real estate transactions to optimize its asset base and reinforce its role in structuring securitized, logistics-focused investments for institutional and other stakeholders.

The most recent analyst rating on (JP:8425) stock is a Buy with a Yen1425.00 price target. To see the full list of analyst forecasts on Mizuho Leasing Company, Limited stock, see the JP:8425 Stock Forecast page.