Mitsubishi UFJ (MUFG) AI Stock Analysis

• Market Cap: $200.49B
• Dividend Yield: 2.48%
• Average Volume (3M): 2.65M
• Price to Earnings (P/E): 16.4
• Beta (1Y): 1.20
• Revenue Growth: -1.09%
• EPS Growth: 8.53%
• Country: US
• Employees: 140,000
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): N/A
• Shares Outstanding: 11,867,711,000
• 10 Day Avg. Volume: 3,064,395
• 30 Day Avg. Volume: 2,651,626
• PEG Ratio: 0.45
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 1.91
• P/FCF Ratio: -52.84
• Enterprise Value/Market Cap: 89.66
• Enterprise Value/Revenue: 1.44
• Enterprise Value/Gross Profit: 2.50
• Enterprise Value/Ebitda: 6.81
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: $22.50 ▲(42.31% Upside)
• Action: Reiterated Date: 02/15/26
• Date: Action: Reiterated 02/15/26

The score is driven primarily by strong financial performance and a highly positive earnings call with raised targets and increased shareholder returns. Technicals are supportive but appear overextended, while valuation is reasonable but not compelling based on P/E and dividend yield.

Positive Factors

Profitability & Margins

MUFG's high gross (56.53%) and net (14.99%) margins reflect durable operating efficiency across diverse banking businesses. Sustained margin strength supports internal capital generation, funds strategic initiatives, and underpins a competitive return on equity that is likely to persist through normal market cycles.

Operating Cash Generation

An operating cash flow to net income ratio of 3.44 indicates the core banking franchise converts accounting profits into cash reliably. This durable cash generation bolsters liquidity, funds lending and client activities, and provides flexibility to support investments, risk buffers, and shareholder distributions over months.

Disciplined Capital Allocation

The dividend increase and large JPY300bn buyback signal management confidence and a willingness to return excess capital. When paired with explicit CET1 targets and upward guidance, this demonstrates a durable, shareholder-friendly capital allocation framework that balances growth, capital adequacy, and returns.

Negative Factors

High Leverage

A debt-to-equity ratio of 4.36 denotes significant financial leverage common in large banks but raises sensitivity to interest-rate shifts and funding stress. Persistently high leverage constrains flexibility, amplifies downside during stress periods, and requires careful capital management to sustain ratings and lending capacity.

Negative Free Cash Flow

Negative free cash flow and an FCF-to-net-income ratio of -2.42 indicate heavy capital deployment or investment absorbing cash. If sustained, this can pressure liquidity and limit the sustainability of buybacks/dividends or require higher external funding, increasing execution risk over the medium term.

Rising Overseas Credit Costs & FX Exposure

Increased credit costs at overseas subsidiaries and material FX impacts signal heightened asset-quality and translation risks from international growth. Structural exposure to Asian markets and currency moves can erode earnings resilience and require higher loan-loss provisioning, weighing on profitability over coming quarters.

Mitsubishi UFJ Business Overview & Revenue Model

Company Description

Mitsubishi 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 Money

MUFG 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 Financial Statement Overview

Summary

Strong revenue growth and solid profitability (gross margin 56.53%, net margin 14.99%) support a high score, but high leverage (debt-to-equity 4.36) and negative free cash flow temper it.

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.

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.

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.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	12.51T	12.43T	10.89T	8.43T	5.25T	5.33T
Gross Profit	7.20T	7.03T	5.38T	5.38T	4.37T	4.04T
EBITDA	2.64T	2.97T	2.41T	1.90T	1.85T	1.40T
Net Income	1.93T	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	0.00	10.00T>	10.00T>	10.00T>	10.00T>	10.00T>
Total Debt	80.57T	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	21.38T	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

• Technical Analysis Sentiment: Neutral
• Last Price: 15.81
• 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 MUFG, the sentiment is Neutral. The current price of 15.81 is below the 20-day moving average (MA) of 18.97, below the 50-day MA of 17.80, and above the 200-day MA of 15.53, indicating a neutral trend. The MACD of 0.20 indicates Positive momentum. The RSI at 42.38 is Neutral, neither overbought nor oversold. The STOCH value of 33.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MUFG.

Mitsubishi UFJ Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MUFG	77 Outperform	$200.49B	16.41	9.01%	2.48%	-1.09%	8.53%
SMFG	74 Outperform	$138.98B	14.93	9.84%	2.54%	-0.66%	23.90%
SAN	72 Outperform	$176.15B	12.10	13.08%	1.85%	-15.34%	16.71%
HSBC	71 Outperform	$306.67B	15.35	12.32%	4.14%	-9.54%	-22.46%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WFC	59 Neutral	$254.81B	13.02	11.85%	1.80%	-4.37%	26.41%
C	58 Neutral	$194.96B	15.76	6.72%	1.94%	-0.62%	105.57%

Mitsubishi UFJ Corporate Events

Mitsubishi UFJ Files Form 6-K Backing $3 Billion Senior Notes Issuance in U.S. Market

On January 14, 2026, Mitsubishi UFJ Financial Group, Inc. filed a Form 6-K with the U.S. Securities and Exchange Commission, incorporating legal opinions that support a new multi-tranche U.S. dollar senior notes issuance under its existing Form F-3 shelf registration. The filing includes Japanese and U.S. counsel opinions confirming that $350 million in senior callable floating rate notes due 2032, $1.15 billion in 4.505% senior callable fixed-to-fixed reset rate notes due 2032, and $1.5 billion in 5.057% senior callable fixed-to-fixed reset rate notes due 2037 will constitute valid and binding obligations of the company once issued and paid for, underscoring MUFG’s ongoing use of U.S. capital markets to fund its operations and maintain financial flexibility for global stakeholders.

The most recent analyst rating on (MUFG) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Mitsubishi UFJ stock, see the MUFG Stock Forecast page.

Mitsubishi UFJ Files September 2025 Half-Year Financial Review and Capital Update

On December 29, 2025, MUFG filed a Form 6-K with the U.S. Securities and Exchange Commission, providing a financial review and unaudited condensed consolidated financial statements for the six months ended September 30, 2025, along with updated information on its capitalization and indebtedness and related Inline XBRL materials. The filing outlines MUFG’s operating and risk environment for the period, noting a moderately expanding global economy alongside persistent inflation concerns, rate cuts and cautious policy easing by major central banks, Japan’s mixed growth and inflation dynamics, and rising corporate bankruptcies, factors that frame the group’s performance, capital adequacy, liquidity and market risk profile for investors and other stakeholders.

The most recent analyst rating on (MUFG) stock is a Buy with a $17.50 price target. To see the full list of analyst forecasts on Mitsubishi UFJ stock, see the MUFG Stock Forecast page.