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

• Market Cap: ¥2.15T
• Dividend Yield: 3.2%
• Average Volume (3M): 2.75M
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.76
• Revenue Growth: 3.42%
• EPS Growth: 22.06%
• Country: JP
• Employees: 8,424
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 32.16
• Shares Outstanding: 1,466,912,200
• 10 Day Avg. Volume: 3,529,260
• 30 Day Avg. Volume: 2,751,843
• PEG Ratio: 1.17
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.69
• P/FCF Ratio: -5.45
• 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): 113.25
• Revenue Forecast (FY): ¥2.31T

• Rating: 72 Outperform
• Price Target: ¥1,659.00 ▲(22.84% Upside)
• Action: Upgraded Date: 11/01/25
• Date: Action: Upgraded 11/01/25

The company's strong financial performance, particularly in revenue growth and profitability, is the primary driver of the score. However, high leverage and cash flow volatility are significant risks. Technical indicators suggest mild bullish momentum, and the valuation is fair with a decent dividend yield.

Positive Factors

Consistent revenue growth and improving margins

Sustained top-line growth with improving gross margins indicates durable demand for leasing products and better cost control. That combination supports predictable core earnings, strengthens reinvestment capacity, and provides a buffer through business cycles for the next several quarters.

Strong profitability and earnings quality

High income-statement scores and stable EBIT/EBITDA margins reflect operational efficiency and pricing discipline. Durable profitability improves internal cash generation, supports dividends and loss-absorption, and reduces dependence on volatile one-time gains over a multi-quarter horizon.

Access to MUFG group distribution and diversified product mix

Integration with MUFG provides stable origination channels, cross-selling, and potential funding support. Combined with diverse leasing/finance products (equipment, vehicles, real estate), this reduces customer concentration risk and supports steady new-business flow over time.

Negative Factors

Elevated leverage and debt intensity

High leverage raises sensitivity to interest-rate moves and market stress, constraining capital flexibility and increasing refinancing risk. For a finance/lease provider, elevated debt levels can magnify losses from credit or residual-value shocks and strain regulatory or liquidity buffers.

Volatile operating cash flows and financing reliance

Inconsistent operating cash generation forces dependence on external funding for origination and asset rollovers. That structural volatility heightens vulnerability to market funding dislocations and can limit growth or require tighter lending standards across multiple quarters.

Residual-value and funding-cost sensitivity of leasing model

Leasing margins and returns depend on accurately forecasting residual values and stable funding costs. Adverse shifts in equipment values or higher funding rates can compress spreads and cause realization losses, a persistent structural risk for an asset-backed finance business.

Mitsubishi UFJ Lease & Finance Company Business Overview & Revenue Model

Company Description

Mitsubishi HC Capital Inc., together with its subsidiaries, engages in the lease, installment sale, and other financing activities in Japan, North America, Europe, the Middle and Near East, Asia/Oceania, and internationally. The company operates through Customer Business, Account Solution, Vendor Solution, LIFE, Real Estate, Environment & Renewable Energy, Aviation, Logistics, Mobility, and Others segments. It offers finance solutions for corporations, government agencies, and vendors; provides sales finance through collaboration with vendors; develops, operates, and leases logistics and commercial facilities; and engages in the community development, food, agriculture, living essentials industry, and non-life insurance businesses. The company also offers real estate securitization finance, as well as engages in the real estate investment, asset management, and leasing activities; and power generation through renewable energy, as well as provision of environment-related equipment leasing and financing services. In addition, it provides aircraft, aircraft engine, marine container, railway freight car, and auto leasing services; and medical equipment leasing and finance, and social infrastructure investment and finance services. Further, the company offers trust and settlement services. Mitsubishi HC Capital Inc. was incorporated in 1971 and is based in Tokyo, Japan.

How the Company Makes Money

Mitsubishi UFJ Lease & Finance generates revenue through several key streams: primarily, it earns income from leasing activities, where it leases equipment and vehicles to clients for a fee over a specified term. This leasing income is a stable revenue source as clients typically enter into long-term contracts. The company also makes money through interest income from financing solutions and loans, where it charges interest on the funds provided to clients. Additionally, it engages in asset management services, earning fees for managing investments and providing advisory services. Strategic partnerships with manufacturers and other financial institutions enhance its product offerings and market reach, further contributing to its earnings.

Mitsubishi UFJ Lease & Finance Company Financial Statement Overview

Summary

The company exhibits strong revenue growth and profitability, with a solid income statement. However, high leverage and inconsistent cash flows pose risks, despite improvements in free cash flow.

Income Statement

The company has demonstrated strong revenue growth with a consistent upward trend in total revenue over the years, increasing from ¥947.66 billion in 2021 to ¥2,090.81 billion in 2025. Gross profit margin has also improved, indicating effective cost management. Net profit margin and EBITDA margin have shown positive trends, reflecting overall profitability and operational efficiency. The EBIT margin maintained stability, supporting solid earnings quality.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicative of significant leverage which poses a potential risk. However, the company has maintained a stable equity ratio, suggesting a reasonable buffer against liabilities. Return on equity has shown positive performance but is somewhat constrained by the high leverage. Overall, the financial position is stable but carries the risk of high debt levels.

Cash Flow

Cash flow analysis indicates fluctuations in operating cash flow with negative results in recent years, which could affect liquidity. Despite this, free cash flow has shown improvement, suggesting better cash management. The operating cash flow to net income ratio is concerning, as is the high reliance on financing activities. While there are positive indicators, the volatility in cash flows warrants attention.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.15T	2.09T	1.95T	1.90T	1.77T	947.66B
Gross Profit	500.61B	462.64B	380.10B	357.33B	334.66B	160.48B
EBITDA	432.09B	576.41B	495.49B	511.02B	481.81B	214.22B
Net Income	153.25B	135.17B	123.84B	116.24B	99.40B	55.31B
Balance Sheet
Total Assets	11.56T	11.76T	11.15T	10.73T	10.33T	6.01T
Cash, Cash Equivalents and Short-Term Investments	319.86B	316.13B	369.04B	592.90B	542.96B	299.71B
Total Debt	8.78T	8.88T	8.50T	8.30T	8.14T	4.72T
Total Liabilities	9.78T	9.96T	9.44T	9.18T	9.00T	5.19T
Stockholders Equity	1.77T	1.79T	1.69T	1.53T	1.31T	808.47B
Cash Flow
Free Cash Flow	-265.26B	-265.26B	-47.13B	37.96B	186.22B	196.67B
Operating Cash Flow	-258.28B	-258.28B	-49.13B	46.75B	195.84B	199.31B
Investing Cash Flow	-96.98B	-96.98B	143.34B	-127.32B	-107.88B	1.22B
Financing Cash Flow	353.63B	353.63B	-222.98B	-8.95B	-192.16B	-372.81B

Mitsubishi UFJ Lease & Finance Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1350.50
• 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 1350.5 is below the 20-day moving average (MA) of 1457.25, below the 50-day MA of 1382.81, and above the 200-day MA of 1205.90, indicating a bullish trend. The MACD of 38.94 indicates Positive momentum. The RSI at 63.14 is Neutral, neither overbought nor oversold. The STOCH value of 33.03 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
9763	81 Outperform	¥16.40B	11.49	―	3.57%	6.66%	13.62%
8591	76 Outperform	¥5.84T	12.97	10.32%	3.30%	6.21%	11.62%
7164	73 Outperform	¥436.97B	13.35	14.42%	4.80%	10.39%	12.77%
8425	72 Outperform	¥423.67B	9.00	―	3.65%	21.22%	-2.77%
8593	72 Outperform	¥2.15T	11.72	8.92%	3.20%	3.42%	22.06%
8566	70 Outperform	¥189.88B	14.20	―	3.30%	7.36%	-3.80%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Mitsubishi UFJ Lease & Finance Company Corporate Events

Mitsubishi HC Capital Posts Strong Nine-Month Profit Surge and Confirms Higher Dividend

Mitsubishi HC Capital reported consolidated revenues of ¥1.66 trillion for the nine months ended December 31, 2025, up 6.9% year on year, with operating income surging 41.3% and net income attributable to owners of the parent jumping 55.1% to ¥134.97 billion, driving earnings per share to ¥94.01. The company’s total assets rose to ¥12.52 trillion and net assets to ¥1.93 trillion, while it confirmed an annual dividend forecast increase to ¥45 per share and maintained its full-year profit guidance, underscoring solid capital accumulation and earnings momentum for shareholders and creditors.

The most recent analyst rating on (JP:8593) stock is a Buy with a Yen1637.00 price target. To see the full list of analyst forecasts on Mitsubishi UFJ Lease & Finance Company stock, see the JP:8593 Stock Forecast page.

Mitsubishi HC Capital to Dissolve Shanghai Subsidiary for Strategic Realignment

Mitsubishi HC Capital Inc. has decided to dissolve its subsidiary, MHC Management (Shanghai) Co., Ltd., as part of a strategic initiative to concentrate management resources and enhance capital efficiency. The dissolution is expected to have minimal impact on the company’s financial forecasts, and the liquidation process is planned to be completed by March 31, 2027.

The most recent analyst rating on (JP:8593) stock is a Buy with a Yen1339.00 price target. To see the full list of analyst forecasts on Mitsubishi UFJ Lease & Finance Company stock, see the JP:8593 Stock Forecast page.