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Mizuho Financial Group (MFG)
NYSE:MFG
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Mizuho Financial
(NYSE:MFG)
66Neutral
Mizuho Financial (MFG) vs. S&P 500 (SPY)
Market Cap
$59.95B
Dividend Yield2.56%
Average Volume (3M)3.03M
Price to Earnings (P/E)9.8
Beta (1Y)1.11
Revenue Growth13.63%
EPS Growth27.77%
CountryUS
Employees51,212
SectorFinancial
Sector Strength86
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.46
Shares Outstanding12,568,789,000
10 Day Avg. Volume5,569,707
30 Day Avg. Volume3,028,796
Financial Highlights & Ratios
PEG Ratio0.35
Price to Book (P/B)N/A
Price to Sales (P/S)2.66
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Mizuho Financial Business Overview & Revenue Model
Company DescriptionMizuho Financial Group, Inc., together with its subsidiaries, engages in banking, trust, securities, and other businesses related to financial services in Japan, the Americas, Europe, Asia/Oceania, and internationally. It operates through five segments: Retail & Business Banking Company, Corporate & Institutional Company, Global Corporate Company, Global Markets Company, and Asset Management Company. The company provides deposit products; syndicated, housing, and card loans; business matching services; and advisory services related to overseas expansions, and mergers and acquisitions-related services. It also offers consulting services, including asset management and asset succession; payroll services; and sells lottery tickets issued by prefectures and ordinance-designated cities. In addition, it offers financial solutions, such as bonds, mergers and acquisitions advisory, risk hedging products, etc. for corporate customers to meet their needs in fund-raising, investment management, and financial strategies; solutions based on their capital management, business strategy, and financial strategy; real estate agency services; advisory services and solutions, such as advice on proposals on various investment products to financial institutions; and financial services that include funding support and public bonds underwriting. Further, the company offers sales and trading services to meet needs for customers; investment products for individual customers; and consulting services for institutional investors. Additionally, the company provides products and services related to trust, securitization and structured finance, pension, and stock transfers; securities services; and research, private banking, and information technology-related services. Mizuho Financial Group, Inc. was incorporated in 2003 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyMizuho Financial Group generates revenue through a diversified range of financial services. Its primary revenue streams include interest income from loans and advances, fees and commissions from investment banking and asset management services, and trading income from securities and foreign exchange transactions. The company also earns income through its trust banking operations, which involve managing and administering assets on behalf of clients. Mizuho's earnings are significantly influenced by interest rate fluctuations, economic conditions in Japan and globally, and its strategic partnerships and collaborations with other financial institutions. Additionally, the group leverages its international presence to tap into overseas markets, contributing to its revenue growth.
Mizuho Financial Financial Statement Overview
Summary
Mizuho Financial shows strong revenue growth and improved profitability. However, increasing leverage and negative cash flow are concerns. These issues need to be addressed for sustained financial health.Income Statement
Mizuho Financial has shown a significant increase in total revenue from 2023 to 2024, indicating robust growth. The net profit margin has improved, showcasing better profitability. However, the lack of detailed EBIT and EBITDA data limits a comprehensive margin analysis.75
Positive
Balance Sheet
The company's debt-to-equity ratio has increased, indicating higher leverage, which could be a risk. However, the return on equity has improved significantly, suggesting effective use of equity capital. The equity ratio has slightly decreased, reflecting increased liabilities.70
Positive
Cash Flow
Mizuho Financial's operating cash flow has turned negative in 2024, which is a concern. The free cash flow has also declined, indicating potential liquidity issues. The operating cash flow to net income ratio suggests that earnings are not fully converting to cash.60
Neutral
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 4.67T | 3.12T | 2.72T | 2.71T | 2.63T | 2.48T | Gross Profit |
| 6.01T | 7.98T | 2.72T | 2.71T | 2.63T | 2.48T | EBIT |
| 1.95T | 1.49T | 2.99T | 906.72B | 645.81B | 610.06B | EBITDA |
| 3.56T | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Net Income Common Stockholders |
| 723.10B | 678.99B | 555.53B | 530.48B | 471.02B | 448.57B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| -73.55T | 71.17T | 67.15T | 51.36T | 74.42T | 59.15T | Total Assets |
| 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | Total Debt |
| 61.24T | 20.84T | 19.60T | 20.90T | 21.64T | 17.16T | Net Debt |
| -11.73T | -52.13T | -47.55T | -30.46T | -26.34T | -23.91T | Total Liabilities |
| 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | Stockholders Equity |
| 10.23T | 10.23T | 9.13T | 9.08T | 9.26T | 8.55T |
| Cash Flow | Free Cash Flow | ||||
| 172.38B | 1.63T | 8.68T | 4.78T | 16.40T | 1.67T | Operating Cash Flow |
| 172.38B | 1.88T | 8.87T | 4.92T | 16.61T | 1.90T | Investing Cash Flow |
| 0.00 | 1.98T | 6.61T | -1.86T | -9.76T | -5.81T | Financing Cash Flow |
| 0.00 | -230.99B | -611.14B | -522.06B | 40.82B | -281.85B |
Mizuho Financial Technical Analysis
Negative
4.65
Price Trends
5.51
Negative
5.27
Negative
4.74
Negative
Market Momentum
0.02
Positive
39.73
Neutral
10.33
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MFG, the sentiment is Negative. The current price of 4.65 is below the 20-day moving average (MA) of 5.34, below the 50-day MA of 5.51, and below the 200-day MA of 4.74, indicating a bearish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 39.73 is Neutral, neither overbought nor oversold. The STOCH value of 10.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MFG.
Mizuho Financial Risk Analysis
Mizuho Financial disclosed 38 risk factors in its most recent earnings report. Mizuho Financial reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Mizuho Financial Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $107.74B | 18.43 | 18.52% | 0.66% | 24.97% | 13.74% | |
76 Outperform | $54.52B | 8.35 | 20.84% | 7.26% | -7.01% | 15.18% | |
73 Outperform | $60.22B | 11.07 | 11.10% | 4.17% | 7.24% | 7.51% | |
70 Neutral | $58.04B | 9.84 | 11.00% | 5.34% | 5.59% | 15.52% | |
66 Neutral | $59.95B | 9.82 | 8.56% | 2.56% | 13.63% | 27.77% | |
64 Neutral | $13.21B | 9.26 | 9.39% | 4.87% | 16.14% | -8.87% | |
55 Neutral | $46.52B | 10.63 | -0.11% | 5.84% | -26.77% | ― |
* Financial Sector Average
Performance Comparison
MFG
Mizuho Financial
4.65
0.66
16.54%
TFC
Truist Financial
35.39
0.42
1.20%
IBN
Icici Bank
31.34
5.96
23.48%
ITUB
Itau Unibanco
5.47
0.28
5.39%
PNC
PNC Financial
151.99
6.28
4.31%
USB
US Bancorp
37.86
-1.72
-4.35%
Mizuho Financial Earnings Call Summary
Earnings Call Date: Feb 3, 2025 | % Change Since: -15.15% | Next Earnings Date: May 15, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive picture with significant achievements in financial growth, strategic collaborations, and sustainability initiatives. However, challenges remain in areas such as asset and wealth management and rising costs, which the company aims to address moving forward.Highlights
Solid Financial Progress
Achieved steady profit growth with a forecast of net business profit for FY24 of ¥1.17 trillion, up ¥100 billion. Achieved solid growth in areas of focus, including AUM, which is steadily increasing.
Successful Collaborations and Investments
Completed acquisition of Greenhill, resulting in synergies and collaborations. Increased stake in Rakuten Securities to 49% to enhance asset management services.
Recognition and Awards
Ranked 7th in Forbes Japan's new best companies and 83rd in TIME's World Best Companies of 2024. Recognized for revenue increase, sustainability initiatives, and employee surveys.
Sustainability Initiatives
Steadily building up a track record with ¥34 trillion in sustainability finance. Announced a ¥2 trillion financing commitment for hydrogen projects.
Improved Asset Profitability
RORA increased from 3.1% to 3.3%. Cross-shareholdings reduced by ¥300 billion, and a reduction of ¥200 billion in the Employee Retirement Benefit Trust Fund.
Lowlights
Challenges in Asset and Wealth Management
Asset and wealth management is not going as well as expected, only achieving 50% of the target compared to competitors like Nomura and Daiwa.
Rising Costs
Expenses are on the rise due to the need for investments in human resources and infrastructure. Wages are rising, and there is a need for cost control.
Uncertainty in Global Markets
Concerns about geopolitical risks, potential interest rate increases, and inflation impacting the Americas portfolio.
Company Guidance
In the recent investor call, Mizuho Financial Group provided detailed guidance on its performance and strategic direction for the first half of fiscal year 2024. The Group reported a forecast of ¥1.17 trillion in net business profit for FY24, marking an increase of ¥100 billion. A significant focus was placed on sustainable growth, with investments in Greenhill, Rakuten, and Golub Capital. Asset profitability improved with a reduction of ¥1.1 trillion in low-profit deals and an increase of ¥1.6 trillion in high-profit business, boosting RORA from 3.1% to 3.3%. The firm is also dedicated to enhancing its competitive edge and operational stability through a new HR framework and culture reform efforts, which included 416 town hall meetings across 322 sites. Despite challenges in the asset and wealth management sector, Mizuho is optimistic about its strategic collaborations, such as with Rakuten Securities, and its ability to capture growth opportunities, especially in the burgeoning Japanese corporate sector and global markets.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.