Mizuho Financial (MFG) AI Stock Analysis

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Mizuho Financial

(NYSE:MFG)

Rating:65Neutral

Price Target:―

Mizuho Financial's overall score reflects strong revenue growth and improved profitability, offset by increasing leverage and negative cash flow. The stock's valuation is attractive, though technical indicators suggest caution. Effective debt management and improved cash flow are essential for future performance.

Mizuho Financial (MFG) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$69.71B

Dividend Yield2.38%

Average Volume (3M)3.26M

Price to Earnings (P/E)12.1

Beta (1Y)0.96

Revenue Growth13.63%

EPS Growth27.77%

CountryUS

Employees51,212

SectorFinancial

Sector Strength78

IndustryBanks - Regional

Share Statistics

EPS (TTM)0.02

Shares Outstanding12,568,789,000

10 Day Avg. Volume5,081,828

30 Day Avg. Volume3,264,817

Financial Highlights & Ratios

PEG Ratio-0.11

Price to Book (P/B)0.10

Price to Sales (P/S)0.00

P/FCF Ratio-0.32

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 Earnings Call Summary

Earnings Call Date:May 15, 2025

(Q2-2024)

% Change Since: 7.22%|

Next Earnings Date:Jul 31, 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.

Q2-2024 Updates

Positive Updates

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.

Negative Updates

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.

Mizuho Financial Financial Statement Overview

Summary

Mizuho Financial demonstrates strong revenue growth and improved profitability, yet faces challenges with increasing leverage and negative cash flow. Effective debt management and cash generation improvements are critical for financial stability.

Income Statement

Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Neutral

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.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	8.76T	3.12T	2.72T	2.71T	2.63T
Gross Profit	3.78T	2.97T	2.72T	2.71T	2.63T
EBITDA	1.40T	0.00	0.00	0.00	0.00
Net Income	885.43B	678.99B	555.53B	530.48B	471.02B
Balance Sheet
Total Assets	10.00T>	10.00T>	10.00T>	10.00T>	10.00T>
Cash, Cash Equivalents and Short-Term Investments	10.00T>	71.17T	67.15T	51.36T	74.42T
Total Debt	60.89T	20.84T	19.60T	20.90T	21.64T
Total Liabilities	10.00T>	10.00T>	10.00T>	10.00T>	10.00T>
Stockholders Equity	10.44T	10.23T	9.13T	9.08T	9.26T
Cash Flow
Free Cash Flow	-4.17T	1.63T	8.68T	4.78T	16.40T
Operating Cash Flow	-3.82T	1.88T	8.87T	4.92T	16.61T
Investing Cash Flow	3.79T	1.98T	6.61T	-1.86T	-9.76T
Financing Cash Flow	-299.03B	-230.99B	-611.14B	-522.06B	40.82B

Mizuho Financial Technical Analysis

Technical Analysis Sentiment

Positive

Last Price5.64

Price Trends

50DMA

5.46

Positive

100DMA

5.37

Positive

200DMA

5.12

Positive

Market Momentum

MACD

0.03

Negative

RSI

58.75

Neutral

STOCH

84.87

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MFG, the sentiment is Positive. The current price of 5.64 is above the 20-day moving average (MA) of 5.54, above the 50-day MA of 5.46, and above the 200-day MA of 5.12, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 58.75 is Neutral, neither overbought nor oversold. The STOCH value of 84.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MFG.

Mizuho Financial Risk Analysis

Mizuho Financial disclosed 39 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 (68)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PNC	80 Outperform	$77.74B	13.43	11.19%	4.13%	3.83%	22.68%
ITUB	74 Outperform	$64.16B	8.96	20.65%	6.56%	-6.74%	5.13%
IBN	74 Outperform	$118.06B	18.90	17.47%	0.70%	17.32%	12.99%
USB	73 Outperform	$71.19B	10.94	11.66%	4.37%	0.84%	32.55%
TFC	69 Neutral	$57.95B	12.04	8.13%	5.81%	18.25%	―
Sector *	68 Neutral	$16.89B	11.69	9.78%	3.90%	11.76%	-7.55%
MFG	65 Neutral	$69.71B	12.10	8.45%	2.38%	13.63%	27.77%

* Financial Sector Average

Performance Comparison

MFG

Mizuho Financial

5.64

1.14

25.33%

TFC

Truist Financial

44.73

2.66

6.32%

IBN

Icici Bank

34.22

5.32

18.41%

ITUB

Itau Unibanco

6.39

1.21

23.36%

PNC

PNC Financial

196.03

23.65

13.72%

USB

US Bancorp

45.78

2.21

5.07%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: May 02, 2025