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Mitsubishi UFJ (MUFG)
NYSE:MUFG
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Mitsubishi UFJ
(NYSE:MUFG)
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Rating:74Outperform
Price Target:
$17.00
â–²(12.36% Upside)
Mitsubishi UFJ's overall stock score is driven by strong financial performance and positive technical indicators. The company's solid revenue growth and profitability metrics are key strengths, although high leverage and negative free cash flow warrant caution. The stock's reasonable valuation and positive market momentum further support its attractiveness.
Mitsubishi UFJ (MUFG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$170.88B
Dividend Yield1.38%
Average Volume (3M)3.25M
Price to Earnings (P/E)13.8
Beta (1Y)1.12
Revenue Growth0.82%
EPS Growth28.48%
CountryUS
Employees140,000
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)0.32
Shares Outstanding12,067,711,000
10 Day Avg. Volume3,378,736
30 Day Avg. Volume3,253,120
Financial Highlights & Ratios
PEG Ratio0.45
Price to Book (P/B)1.16
Price to Sales (P/S)1.91
P/FCF Ratio-52.84
Enterprise Value/Market Cap0.20
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda0.01
Forecast
1Y Price Target
$17.00Price Target Upside12.36% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Mitsubishi UFJ Business Overview & Revenue Model
Company DescriptionMitsubishi UFJ Financial Group (MUFG) is one of the largest financial groups in Japan and a leading global financial institution. It operates through various sectors, including commercial banking, trust banking, securities, and asset management. The core products and services offered by MUFG encompass a wide array of financial solutions, such as corporate and retail banking, investment banking, wealth management, and global markets services. With a strong international presence, MUFG serves clients across the globe, leveraging its comprehensive financial expertise and innovative solutions.
How the Company Makes MoneyMUFG generates revenue through multiple key streams. Primarily, the company earns income from net interest income, which is derived from lending activities, where it provides loans to individuals and corporations at interest rates higher than its borrowing costs. Additionally, MUFG generates fee-based income through its investment banking services, which include underwriting, advisory services, and asset management. The company also benefits from trading and investment activities within its global markets division, which involves trading securities, foreign exchange, and derivatives. Significant partnerships with corporations and institutions enhance its capabilities and lead to increased business opportunities, while its extensive network of branches and digital banking services contributes to customer acquisition and retention, further bolstering its earnings.
Mitsubishi UFJ Earnings Call Summary
Earnings Call Date:Aug 04, 2025
(Q2-2025)
| Next Earnings Date:Nov 14, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with record high profits and an upward revision of earnings targets. Shareholder returns were increased with higher dividend forecasts and share repurchases. However, the performance in global markets and the impact of FX fluctuations presented challenges. Overall, the positive highlights significantly outweighed the lowlights.Q2-2025 Updates
Positive Updates
Record High Profits
Net operating profits were JPY 1,305.3 billion, up by JPY 219.5 billion year-on-year, marking the third consecutive year of record high first half profits. Net income reached JPY 1,258.1 billion, the highest profit since MUFG was established.
Revised Upward Earnings Targets
The company revised its net income target upwards by JPY 250 billion to JPY 1,750 billion for FY'24, due to strong growth in customer segments and progress in equity holdings sales.
Increased Shareholder Returns
Annual dividend forecast raised to JPY 60, an increase of JPY 10 against the initial forecast, with additional share repurchase of up to JPY 300 billion.
Improved Expense Ratio
Expense ratio improved by 1.1 percentage points year-on-year to 55.1% due to successful expense controls and gross profit increase.
Reduction in Equity Holdings
Significant reduction in equity holdings, with sales reaching JPY 170 billion in the first half, and an agreed amount to be sold reaching over 60% of the revised target.
Negative Updates
Challenges in Global Markets
Profits in the global markets business group decreased due to limited decline in US interest rates, though it is trending in line with fiscal year expectations.
Impact of Yen Fluctuations
The FX impact was significant, with a stronger yen against the dollar and a weaker yen against the Thai Baht, affecting gross profits and expenses.
Overseas Credit Costs
Credit costs increased at overseas subsidiaries due to business expansion in Asia and economic slowdown in the region, although within expectations.
Company Guidance
During the call, Mitsubishi UFJ Financial Group (MUFG) provided detailed guidance for the first half of fiscal year 2024, highlighting key financial metrics and future targets. The group reported a record high net operating profit of JPY1,305.3 billion, a year-on-year increase of JPY219.5 billion, marking the third consecutive year of record profits for the first half. Net income also reached an unprecedented JPY1,258.1 billion, the first time it exceeded JPY1 trillion in the first half. The company revised its fiscal year 2024 profit target upwards to JPY1,750 billion, reflecting an 83% progress towards its initial target. The increase in profits was driven by strong customer segment performance and significant gains from the sale of equity holdings. MUFG also announced an increase in its annual dividend forecast to JPY60 and plans for an additional JPY300 billion share repurchase, with a focus on maintaining a CET1 ratio within the target range of 9.5% to 10.5%. The bank aims to achieve a return on equity (ROE) of around 9% ahead of schedule, with plans to revise its medium to long-term targets to reflect ongoing growth and profitability improvements.Mitsubishi UFJ Financial Statement Overview
Summary
Mitsubishi UFJ demonstrates solid financial health with strong revenue growth and profitability metrics. The balance sheet shows a well-managed equity position, albeit with high leverage. Cash flow management needs attention due to high capital expenditures affecting free cash flow. The company is well-positioned in its industry but should monitor debt levels and liquidity closely.Income Statement
Mitsubishi UFJ has shown a strong revenue growth trend over the past years, with a notable increase of 14.12% in the latest annual report. The gross profit and net profit margins are robust at 56.53% and 14.99% respectively, indicating efficient cost management and profitability. EBIT and EBITDA margins are healthy, reflecting stable operational performance.85
Very Positive
Balance Sheet
The company maintains a solid equity position with an equity ratio of 4.97%, although high leverage is evident with a debt-to-equity ratio of 4.36. The return on equity of 9.08% is competitive within the industry, showing effective utilization of shareholder funds. However, the high debt levels could pose financial risks in volatile markets.78
Positive
Cash Flow
Cash flow management presents mixed results. The operating cash flow to net income ratio is 3.44, showing strong cash generation capability. However, the free cash flow has been negative, indicating heavy capital expenditures impacting cash reserves. The free cash flow to net income ratio is -2.42, suggesting potential liquidity challenges.72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.11T | 12.43T | 10.89T | 8.43T | 5.25T | 5.33T |
| Gross Profit | 7.03T | 7.03T | 5.38T | 5.38T | 4.37T | 4.04T |
| EBITDA | 2.54T | 2.97T | 2.41T | 1.90T | 1.85T | 1.40T |
| Net Income | 1.85T | 1.86T | 1.49T | 1.12T | 1.13T | 777.02B |
Balance Sheet | ||||||
| Total Assets | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Cash, Cash Equivalents and Short-Term Investments | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Total Debt | 82.98T | 89.40T | 25.75T | 62.41T | 19.11T | 18.09T |
| Total Liabilities | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Stockholders Equity | 20.02T | 20.52T | 19.59T | 17.23T | 17.02T | 16.80T |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -450.29B | -10.31T | 13.03T | 9.25T | 34.51T |
| Operating Cash Flow | 0.00 | 6.42B | -9.84T | 13.43T | 9.64T | 34.90T |
| Investing Cash Flow | 0.00 | -186.95B | -1.25T | -10.68T | -2.20T | -10.14T |
| Financing Cash Flow | 0.00 | -861.12B | -2.77T | -977.14B | -1.08T | -436.07B |
Mitsubishi UFJ Technical Analysis
Neutral
15.13
Price Trends
15.40
Negative
14.58
Positive
13.56
Positive
Market Momentum
-0.12
Positive
45.44
Neutral
29.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MUFG, the sentiment is Neutral. The current price of 15.13 is below the 20-day moving average (MA) of 15.55, below the 50-day MA of 15.40, and above the 200-day MA of 13.56, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 45.44 is Neutral, neither overbought nor oversold. The STOCH value of 29.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MUFG.
Mitsubishi UFJ Risk Analysis
Mitsubishi UFJ disclosed 24 risk factors in its most recent earnings report. Mitsubishi UFJ 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
Mitsubishi UFJ Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $228.01B | 13.17 | 10.69% | 4.94% | -2.96% | -13.66% | |
74 Outperform | $170.88B | 13.80 | 9.43% | 1.38% | 0.82% | 28.48% | |
74 Outperform | $148.82B | 10.42 | 12.85% | 2.34% | -14.74% | 17.03% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $101.67B | 12.49 | 8.23% | 1.77% | 0.67% | 11.85% | |
66 Neutral | $252.82B | 12.99 | 11.56% | 1.91% | -4.18% | 26.41% | |
62 Neutral | $176.91B | 14.21 | 6.88% | 2.29% | -0.63% | 105.57% |
* Financial Sector Average
MUFG
Mitsubishi UFJ
15.13
4.57
43.28%
C
Citigroup
99.78
37.44
60.06%
HSBC
HSBC Holdings
66.41
24.77
59.49%
SMFG
Sumitomo Mitsui
15.69
2.73
21.06%
WFC
Wells Fargo
86.46
23.96
38.34%
SAN
Banco Santander SA
9.87
5.00
102.67%
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.