Mitsubishi UFJ Lease & Finance Company (8593) AI Stock Analysis

• Market Cap: $1.52T
• Dividend Yield: 3.79%
• Average Volume (3M): 3.19M
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.72
• Revenue Growth: 7.19%
• EPS Growth: 9.15%
• Country: JP
• Employees: 8,424
• Sector: Financial
• Sector Strength: 73
• Industry: Financial - Credit Services
• EPS (TTM): 17.62
• Shares Outstanding: 1,466,912,200
• 10 Day Avg. Volume: 3,243,530
• 30 Day Avg. Volume: 3,185,116
• PEG Ratio: -5.63
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 77 Outperform
• Price Target: ¥1,183.00 ▲(12.67%Upside)

The company's strong financial performance, driven by revenue growth and profitability, is the most significant factor in the stock's score. Technical analysis supports a positive outlook due to bullish momentum indicators. Valuation is reasonable with a solid dividend yield, though high leverage remains a concern.

Mitsubishi UFJ Lease & Finance Company Business Overview & Revenue Model

Company Description

Mitsubishi UFJ Lease & Finance Company Limited (8593) is a prominent Japanese financial institution specializing in leasing and financial services. The company operates across various sectors, including leasing, asset finance, and investment. It provides tailored financial solutions for a wide range of assets, such as real estate, transportation equipment, and industrial machinery, serving both domestic and international clients. The company's comprehensive suite of services is designed to support the capital needs of businesses and drive growth in multiple industries.

How the Company Makes Money

Mitsubishi UFJ Lease & Finance Company generates revenue primarily through leasing and financial services. The company earns income by leasing assets such as real estate, vehicles, and equipment to businesses, charging periodic lease payments over the lease term. Additionally, the company engages in asset finance, offering loans and financing solutions for asset acquisitions, which generates interest income. Investment activities, including equity investments and asset management, also contribute to its earnings. Strategic partnerships with other financial institutions and businesses further enhance its revenue streams by facilitating joint ventures and collaborative financial products.

Mitsubishi UFJ Lease & Finance Company Financial Statement Overview

Summary

Mitsubishi UFJ Lease & Finance Company demonstrates solid revenue growth and profitability with stable margins. The balance sheet shows a strong asset base but high leverage, which is a common trait in the financial sector but poses risks. Cash flow management appears challenged with zero free cash flow, emphasizing the need for improved cash generation strategies. Overall, the company is financially stable but should focus on enhancing cash flow productivity.

Income Statement

The income statement shows strong performance with a notable revenue growth rate of 6.50% TTM compared to the previous year, indicating solid business expansion. Gross profit margin remains stable at 21.98% TTM. The net profit margin improved to 6.27% TTM, reflecting enhanced profitability. However, EBIT margin at 8.78% TTM and EBITDA margin at 15.21% TTM indicate room for operational efficiency improvements.

Balance Sheet

The balance sheet reflects a robust equity base with a debt-to-equity ratio of 5.00 TTM, indicating significant leverage typical for the industry. Return on Equity (ROE) stands at 7.27% TTM, showing effective use of equity. The equity ratio is 15.16% TTM, signifying a moderate level of equity financing. While the company maintains a strong asset base, high leverage poses potential financial risk.

Cash Flow

Cash flow metrics highlight challenges in cash generation with a zero free cash flow TTM. Operating cash flow was also zero TTM, raising concerns about cash management. The absence of positive free cash flow affects the capacity to fund operations and investments. Historical data shows fluctuations, indicating potential volatility in cash flow generation.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
2.08T	1.95T	1.90T	1.77T	947.66B	923.77B
	Gross Profit
456.57B	380.10B	357.33B	334.66B	160.48B	181.96B
	EBIT
182.44B	146.18B	138.73B	114.09B	62.41B	91.85B
	EBITDA
316.05B	495.49B	488.83B	442.78B	214.22B	231.48B
	Net Income Common Stockholders
130.19B	123.84B	116.24B	99.40B	55.31B	70.75B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
284.39B	369.04B	592.90B	542.96B	299.71B	467.05B
	Total Assets
11.81T	11.15T	10.73T	10.33T	6.01T	6.29T
	Total Debt
8.94T	7.93T	7.69T	7.54T	4.62T	4.91T
	Net Debt
8.66T	7.56T	7.10T	7.00T	4.32T	4.44T
	Total Liabilities
10.00T	9.44T	9.18T	9.00T	5.19T	5.49T
	Stockholders Equity
1.79T	1.69T	1.53T	1.31T	808.47B	779.22B
Cash Flow		Free Cash Flow
0.00	-49.13B	37.96B	186.22B	196.67B	-256.53B
	Operating Cash Flow
0.00	-39.60B	46.75B	195.84B	199.31B	-252.20B
	Investing Cash Flow
0.00	143.34B	-127.32B	-107.88B	1.22B	-32.99B
	Financing Cash Flow
0.00	-222.98B	-8.95B	-192.16B	-372.81B	552.32B

Mitsubishi UFJ Lease & Finance Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1050.00
• 50DMA: Positive
• 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:8593, the sentiment is Positive. The current price of 1050 is above the 20-day moving average (MA) of 1048.52, above the 50-day MA of 1009.70, and above the 200-day MA of 1004.58, indicating a bullish trend. The MACD of 11.92 indicates Positive momentum. The RSI at 57.29 is Neutral, neither overbought nor oversold. The STOCH value of 35.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8593.

Mitsubishi UFJ Lease & Finance Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8593	77 Outperform	$1.52T	11.15	7.65%	3.79%	7.19%	9.15%
8425	75 Outperform	¥297.89B	6.87		5.09%	5.99%	6.17%
8572	75 Outperform	¥654.22B	20.40	4.89%	3.45%	7.81%	-39.49%
8570	73 Outperform	¥275.84B	14.18	4.16%	4.38%	9.27%	-6.56%
8591	72 Outperform	¥3.35T	10.07	8.65%	3.73%	2.15%	3.00%
Sector *	64 Neutral	$12.77B	9.71	7.85%	78.06%	12.07%	-7.97%
8566	63 Neutral	¥157.82B	10.00		3.94%	1.24%	38.84%

Mitsubishi UFJ Lease & Finance Company Corporate Events

Mitsubishi HC Capital’s Subsidiary Orders 50 Airbus A320neo Aircraft

Mitsubishi HC Capital Inc.’s subsidiary, JSA International U.S. Holdings, LLC, has announced an order for 50 A320neo Family aircraft from Airbus, aiming to enhance its aircraft leasing portfolio with more fuel-efficient models. This strategic move is expected to expand JSA’s business with global customers, contribute to sustainable growth, and lower CO2 emissions in the aviation industry.