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

• Market Cap: $1.55T
• Dividend Yield: 3.69%
• Average Volume (3M): 2.73M
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.72
• Revenue Growth: 7.19%
• EPS Growth: 9.14%
• Country: JP
• Employees: 8,424
• Sector: Financial
• Sector Strength: 79
• Industry: Financial - Credit Services
• EPS (TTM): 17.62
• Shares Outstanding: 1,466,912,200
• 10 Day Avg. Volume: 2,483,210
• 30 Day Avg. Volume: 2,726,400
• 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: $1,183.67
• Price Target Upside: 9.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: ¥1,183.00 ▲(9.08%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 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 Company generates revenue through a multifaceted business model primarily centered around leasing and financial services. The company's core revenue streams include finance leases, operating leases, and installment sales, where they provide asset-based financing solutions to businesses and individuals. Additionally, the company earns income through interest from loans and other financial products tailored to meet the needs of clients across various sectors. Significant partnerships with global corporations and financial institutions enhance its service offerings and contribute to its earnings by expanding its customer base and facilitating large-scale projects. Furthermore, the company engages in joint ventures and collaborations to leverage expertise and enter new markets, further bolstering its revenue potential.

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
EBITDA	316.05B	495.49B	488.83B	442.78B	214.22B	231.48B
Net Income	130.19B	123.84B	116.24B	99.40B	55.31B	70.75B
Balance Sheet
Total Assets	11.81T	11.15T	10.73T	10.33T	6.01T	6.29T
Cash, Cash Equivalents and Short-Term Investments	284.39B	369.04B	592.90B	542.96B	299.71B	467.05B
Total Debt	8.94T	7.93T	7.69T	7.54T	4.62T	4.91T
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: 1084.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1084.5 is above the 20-day moving average (MA) of 1065.15, above the 50-day MA of 1048.08, and above the 200-day MA of 1010.75, indicating a bullish trend. The MACD of 10.62 indicates Negative momentum. The RSI at 65.69 is Neutral, neither overbought nor oversold. The STOCH value of 86.84 is Negative, 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	$1.55T	11.50	7.65%	3.69%	7.19%	9.14%
Sector *	58 Neutral	HK$91.33B	5.23	-3.21%	5.29%	7.36%	-55.21%
AK5	―	€3.87B	19.47	4.89%	3.29%	―	―
AEOJF	―	$1.93B	15.02	4.16%	4.20%	―	―
ORXCF	―	$24.46B	9.89	8.65%	2.42%	―	―
8425	75 Outperform	¥306.87B	7.07		4.94%	5.99%	6.60%
8566	61 Neutral	¥168.61B	10.77		3.66%	1.24%	38.84%

Mitsubishi UFJ Lease & Finance Company Corporate Events

Mitsubishi HC Capital Highlights Shareholder Structure and Independence

Mitsubishi HC Capital Inc. announced its controlling shareholder details, highlighting Mitsubishi UFJ Financial Group as the largest shareholder with 20.04% voting rights. The company emphasizes its independence by ensuring fair transactions and diversifying its funding sources, while maintaining strategic partnerships with Mitsubishi UFJ Financial Group and Mitsubishi Corporation.