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

• Market Cap: ¥1.94T
• Dividend Yield: 3.2%
• Average Volume (3M): 2.75M
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.73
• Revenue Growth: 3.42%
• EPS Growth: 22.06%
• Country: JP
• Employees: 8,424
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): N/A
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥1,339.00 ▼(-0.85% Downside)

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

Revenue Growth

Sustained revenue growth from ¥947.66 billion in 2021 to ¥2,090.81 billion in 2025 indicates robust market demand and successful business expansion.

Profitability

Improved gross profit margin reflects efficient cost control, enhancing profitability and competitive positioning in the financial services sector.

Free Cash Flow Improvement

Improvement in free cash flow indicates enhanced cash management, supporting long-term investments and financial stability.

Negative Factors

High Leverage

High leverage can increase financial risk, potentially affecting the company's ability to invest in growth and manage economic downturns.

Cash Flow Volatility

Volatile cash flows can impact liquidity and financial flexibility, posing challenges in meeting short-term obligations and funding operations.

Reliance on Financing Activities

Dependence on external financing may limit strategic options and increase vulnerability to interest rate changes, affecting long-term sustainability.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: Negative
• RSI: Negative
• 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 1350.5 is above the 20-day moving average (MA) of 1310.58, above the 50-day MA of 1263.89, and above the 200-day MA of 1130.83, indicating a bullish trend. The MACD of 23.30 indicates Negative momentum. The RSI at 71.36 is Negative, neither overbought nor oversold. The STOCH value of 84.10 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
8591	80 Outperform	¥5.08T	12.12	10.32%	3.30%	6.21%	11.62%
8425	72 Outperform	¥406.26B	8.90	―	3.65%	21.22%	-2.77%
8593	72 Outperform	¥1.94T	11.95	8.92%	3.20%	3.42%	22.06%
8566	70 Outperform	¥185.87B	13.63	―	3.30%	7.36%	-3.80%
8572	69 Neutral	€801.17B	15.05	7.91%	3.48%	6.65%	-4.35%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8570	66 Neutral	¥380.52B	23.31	3.05%	3.04%	10.31%	-40.64%

Mitsubishi UFJ Lease & Finance Company Corporate Events

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.

Mitsubishi HC Capital Reports Strong Financial Growth in First Half of 2025

Mitsubishi HC Capital Inc. reported a notable increase in its consolidated financial results for the six months ending September 30, 2025, with a 5.4% rise in revenues and a significant 43.9% increase in net income attributable to owners of the parent compared to the previous year. The company’s strong performance is reflected in its improved earnings per share and a stable financial position, indicating robust growth and positive market positioning.

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.