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

• Market Cap: ¥2.05T
• Dividend Yield: 3.2%
• Average Volume (3M): 2.75M
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.74
• 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: 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
• EPS Forecast (FY): 115.78
• Revenue Forecast (FY): ¥2.34T

• Rating: 72 Outperform
• Price Target: ¥1,585.00 ▲(17.36% 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

Revenue growth & improving margins

Sustained top-line expansion with improving gross and net margins indicates durable demand for leasing solutions and stronger pricing/operational efficiency. This supports reinvestment, earnings resilience across cycles and enhances capacity to absorb credit losses over the medium term.

Group integration and distribution

Close integration with a major banking group provides durable distribution, referral pipelines, and likely preferential funding access. These structural ties support stable origination, cross‑sell opportunities and competitive advantage versus independent lessors over multiple business cycles.

Improving free cash flow

Rising free cash flow signals improving cash conversion and stronger internal funding for growth, capex and debt service. Over months this reduces reliance on external funding, mitigates liquidity stress, and supports strategic investments or capital returns when sustained.

Negative Factors

High leverage

Significant leverage raises structural financial risk: higher interest burden, greater sensitivity to rate hikes, and constrained flexibility for opportunistic investments. Over time leverage can magnify earnings volatility and limit the firm's ability to withstand economic downturns.

Volatile operating cash flow

Persistent volatility and occasional negative operating cash flow undermine predictability of internal funding for leases and repayments. This stresses liquidity planning, increases dependence on markets, and elevates refinancing and rollover risk across the medium term.

Funding and residual-value sensitivity

Business economics are structurally tied to funding markets and asset residual values. Adverse moves in borrowing costs or weaker asset resale values compress net interest margins and lease returns, creating sustained earnings pressure if funding or secondary markets tighten.

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 makes money primarily by providing financing and asset-based services and earning spreads and fees over the life of those transactions. Key revenue streams typically include: (1) Lease income and related fees: The company purchases assets (or arranges for them to be purchased) and leases them to customers, earning periodic lease payments that embed a return on the asset and financing. Depending on product structure, earnings may include lease-related service fees and residual value outcomes at the end of the lease term (gains or losses on disposal/remarketing). (2) Interest income from financing and installment sales: Through loans and installment arrangements tied to equipment, vehicles, real estate, or other assets, the company earns interest and finance charges based on the principal advanced, funded by its own borrowing and funding programs; profitability is driven by the net interest margin (the spread between yields on assets and funding costs). (3) Fees from solutions and services: The company can earn origination, arrangement, advisory, servicing, and management fees by structuring transactions, providing asset management/administration, supporting customers’ procurement and lifecycle management (e.g., maintenance or disposition-related services where applicable), and offering other finance-related services. (4) Investment and structured finance returns: The company engages in structured finance and investment activities where returns may come from interest, dividends, and realized/unrealized gains, as well as arrangement/management fees when acting as a sponsor or manager; results are influenced by market conditions, credit performance, and valuation movements. (5) Real estate-related earnings: For real estate financing, leasing, or related services, earnings can include interest/lease income, arrangement and servicing fees, and gains/losses on property-related transactions when the company sells or revalues holdings. Significant factors that contribute to earnings include funding access and cost (e.g., ability to raise debt efficiently), credit quality and loss performance of counterparties, asset residual value management (especially in equipment/vehicle leasing), transaction volume and pricing discipline, and collaboration with group companies and partners (e.g., banks, vendors, dealers, and service providers) that support customer sourcing and product distribution. null

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	0.00	0.00	-47.13B	37.96B	186.22B	196.67B
Operating Cash Flow	0.00	0.00	-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: Neutral
• 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 Neutral. The current price of 1350.5 is below the 20-day moving average (MA) of 1459.43, below the 50-day MA of 1422.66, and above the 200-day MA of 1238.27, indicating a neutral trend. The MACD of -1.86 indicates Positive momentum. The RSI at 47.49 is Neutral, neither overbought nor oversold. The STOCH value of 59.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	76 Outperform	¥15.36B	9.57	―	3.57%	6.66%	13.62%
7164	73 Outperform	¥435.32B	16.35	14.42%	4.80%	10.39%	12.77%
8425	72 Outperform	¥397.28B	8.49	―	3.65%	21.22%	-2.77%
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%

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.