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Mitsubishi Ufj Financial (MUFG)
NYSE:MUFG
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Mitsubishi UFJ
(NYSE:MUFG)
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Rating:77Outperform
Price Target:
$17.50
â–²(10.69% Upside)
Mitsubishi UFJ's strong financial performance and positive earnings call are the primary drivers of its stock score. While technical indicators show moderate bullish momentum, high leverage and cash flow challenges are areas to watch. The stock is fairly valued with a modest dividend yield.
Positive Factors
Record High Profits
Achieving record high profits for three consecutive years indicates strong operational efficiency and market demand, supporting long-term growth.
Increased Shareholder Returns
Enhancing shareholder returns through dividends and buybacks reflects financial strength and commitment to shareholder value, likely boosting investor confidence.
Strategic Debt Issuance
Issuing senior callable notes enhances financial flexibility, allowing for strategic investments and debt management, bolstering long-term competitiveness.
Negative Factors
High Leverage
High leverage can increase financial risk, especially in volatile markets, potentially limiting the company's ability to invest in growth opportunities.
Negative Free Cash Flow
Negative free cash flow suggests liquidity challenges, which could constrain operational flexibility and investment capacity over the long term.
Challenges in Global Markets
Decreased profits in global markets highlight potential exposure to international economic fluctuations, affecting revenue stability and growth prospects.
Mitsubishi UFJ (MUFG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$177.55B
Dividend Yield2.48%
Average Volume (3M)4.21M
Price to Earnings (P/E)14.3
Beta (1Y)1.20
Revenue Growth-1.09%
EPS Growth8.53%
CountryUS
Employees140,000
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)0.42
Shares Outstanding11,867,711,000
10 Day Avg. Volume3,216,064
30 Day Avg. Volume4,212,148
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 Cap58.33
Enterprise Value/Revenue0.85
Enterprise Value/Gross Profit1.47
Enterprise Value/Ebitda4.02
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Mitsubishi UFJ Business Overview & Revenue Model
Company DescriptionMitsubishi UFJ Financial Group, Inc. operates as the bank holding company for MUFG Bank, Ltd. that provides various financial services in Japan, the United States, Europe, Asia/Oceania, and internationally. It operates through Digital Service Business Group; Retail & Commercial Banking Business Group; Japanese Corporate & Investment Banking Business Group; Asset Management & Investor Services Business Group; Global Corporate & Investment Banking Business Group; Global Commercial Banking Business Group; and Global Markets Business Group segments. The company offers commercial banking, trust banking, and securities products and services to retail, and small and medium-sized enterprise customers. It also provides M&As and real estate-related services; digital-based financial services; credit cards; and trust banking and securities products and services, as well as engages in the lending, fund settlement, and foreign exchange businesses. In addition, it offers corporate, investment, and transaction banking services for large corporate and financial institutions; asset management and administration services for corporations and pension funds; loans, deposits, fund transfers, and investments services for retail, small and medium-sized enterprise, as well as corporate customers; fixed income instruments, currencies, equities, and other investment products; originates and distributes of financial products; and provides treasury services. Mitsubishi UFJ Financial Group, Inc. was founded in 1880 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyMUFG generates revenue primarily through its diverse financial services portfolio. Key revenue streams include interest income from loans and advances made to businesses and consumers, fees and commissions from investment banking activities, asset management, and advisory services. The bank also earns income from trading and investment activities, including proprietary trading and capital markets transactions. Significant partnerships and global presence allow MUFG to tap into various markets, increasing its customer base and transaction volumes. Additionally, MUFG benefits from synergies within its various business lines, which enhances operational efficiency and profitability.
Mitsubishi UFJ Earnings Call Summary
Earnings Call Date:Nov 14, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 10, 2026
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 strong financial health with robust revenue growth and profitability metrics. The balance sheet is solid, though high leverage is a concern. Cash flow management needs improvement due to high capital expenditures affecting free cash flow.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 | 12.25T | 12.43T | 10.89T | 8.43T | 5.25T | 5.33T |
| Gross Profit | 7.06T | 7.03T | 5.38T | 5.38T | 4.37T | 4.04T |
| EBITDA | 2.58T | 2.97T | 2.41T | 1.90T | 1.85T | 1.40T |
| Net Income | 1.90T | 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 | 94.09T | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Total Debt | 77.54T | 89.40T | 61.23T | 62.41T | 46.73T | 18.09T |
| Total Liabilities | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Stockholders Equity | 20.88T | 20.52T | 19.59T | 17.23T | 17.02T | 16.80T |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -450.29B | -10.31T | 13.03T | 9.46T | 34.51T |
| Operating Cash Flow | 0.00 | 6.42B | -9.84T | 13.43T | 9.84T | 34.90T |
| Investing Cash Flow | 0.00 | -186.95B | 3.99T | -10.68T | -2.20T | -10.14T |
| Financing Cash Flow | 0.00 | -861.12B | 8.31B | -977.14B | -1.08T | -436.07B |
Mitsubishi UFJ Technical Analysis
Positive
15.81
Price Trends
15.47
Positive
15.42
Positive
14.35
Positive
Market Momentum
0.11
Positive
53.79
Neutral
43.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MUFG, the sentiment is Positive. The current price of 15.81 is below the 20-day moving average (MA) of 15.90, above the 50-day MA of 15.47, and above the 200-day MA of 14.35, indicating a bullish trend. The MACD of 0.11 indicates Positive momentum. The RSI at 53.79 is Neutral, neither overbought nor oversold. The STOCH value of 43.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $299.15B | 15.70 | 11.56% | 1.80% | -4.37% | 26.41% | |
78 Outperform | $272.79B | 16.80 | 8.66% | 4.14% | -9.54% | -22.46% | |
77 Outperform | $177.55B | 14.31 | 9.01% | 2.48% | -1.09% | 8.53% | |
76 Outperform | $125.46B | 13.57 | 9.09% | 2.54% | -0.66% | 23.90% | |
72 Outperform | $175.08B | 11.84 | 12.54% | 1.85% | -15.34% | 16.71% | |
68 Neutral | $217.50B | 17.09 | 6.88% | 1.94% | -0.62% | 105.57% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
MUFG
Mitsubishi UFJ
15.95
4.48
39.06%
C
Citigroup
121.56
52.48
75.97%
HSBC
HSBC Holdings
79.58
32.87
70.37%
SMFG
Sumitomo Mitsui
19.70
5.27
36.52%
WFC
Wells Fargo
95.30
25.70
36.93%
SAN
Banco Santander SA
11.88
7.49
170.62%
Mitsubishi UFJ Corporate Events
Mitsubishi UFJ Issues $3 Billion in Senior Callable Notes
Sep 12, 2025
On September 12, 2025, Mitsubishi UFJ Financial Group, Inc. announced the issuance of $3 billion in senior callable notes, with varying rates and maturities, as part of a strategic financial maneuver. This move is expected to strengthen the company’s financial position and provide flexibility in managing its debt portfolio, potentially impacting stakeholders by enhancing the company’s market competitiveness and operational capabilities.
Mitsubishi UFJ Issues $1 Billion Perpetual Debt Securities
Sep 12, 2025
On September 12, 2025, Mitsubishi UFJ Financial Group, Inc. announced the issuance of $1 billion in 6.35% Fixed Rate Resetting Perpetual Subordinated Debt Securities. This issuance, under an underwriting agreement dated September 2, 2025, is part of the company’s strategic financial operations to strengthen its capital base. The securities are expected to enhance the company’s financial flexibility and support its growth initiatives, potentially impacting stakeholders by reinforcing the group’s financial stability and market position.
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.