TSE:8306

Stock Analysis Report

Mitsubishi UFJ Financial Group

Executive Summary

Mitsubishi UFJ Financial Group, Inc., a bank holding company, provides financial services in Japan and internationally.


Snowflake Analysis

Excellent balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Mitsubishi UFJ Financial Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8306's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.1%

8306

-7.7%

JP Banks

-4.3%

JP Market


1 Year Return

-26.6%

8306

-29.4%

JP Banks

-14.8%

JP Market

Return vs Industry: 8306 exceeded the JP Banks industry which returned -29.4% over the past year.

Return vs Market: 8306 underperformed the JP Market which returned -14.8% over the past year.


Shareholder returns

8306IndustryMarket
7 Day3.1%-7.7%-4.3%
30 Day-14.7%-10.0%-7.4%
90 Day-27.6%-27.4%-20.4%
1 Year-22.8%-26.6%-26.1%-29.4%-12.6%-14.8%
3 Year-31.0%-38.3%-31.7%-38.7%-1.0%-8.0%
5 Year-36.8%-46.7%-39.7%-48.9%-0.1%-11.0%

Price Volatility Vs. Market

How volatile is Mitsubishi UFJ Financial Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Mitsubishi UFJ Financial Group undervalued compared to its fair value and its price relative to the market?

21.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 8306 (¥415.6) is trading below our estimate of fair value (¥529.49)

Significantly Below Fair Value: 8306 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 8306 is poor value based on its PE Ratio (12.5x) compared to the Banks industry average (7.1x).

PE vs Market: 8306 is poor value based on its PE Ratio (12.5x) compared to the JP market (11.8x).


Price to Earnings Growth Ratio

PEG Ratio: 8306 is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: 8306 is overvalued based on its PB Ratio (0.3x) compared to the JP Banks industry average (0.2x).


Next Steps

Future Growth

How is Mitsubishi UFJ Financial Group forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

8.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 8306's forecast earnings growth (8.3% per year) is above the savings rate (-0.09%).

Earnings vs Market: 8306's earnings (8.3% per year) are forecast to grow slower than the JP market (9.1% per year).

High Growth Earnings: 8306's earnings are forecast to grow, but not significantly.

Revenue vs Market: 8306's revenue (0.5% per year) is forecast to grow slower than the JP market (3.3% per year).

High Growth Revenue: 8306's revenue (0.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 8306's Return on Equity is forecast to be low in 3 years time (5%).


Next Steps

Past Performance

How has Mitsubishi UFJ Financial Group performed over the past 5 years?

-12.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8306 has a large one-off loss of ¥365.1B impacting its December 31 2019 financial results.

Growing Profit Margin: 8306's current net profit margins (11%) are lower than last year (28%).


Past Earnings Growth Analysis

Earnings Trend: 8306's earnings have declined by -12.2% per year over the past 5 years.

Accelerating Growth: 8306's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 8306 had negative earnings growth (-65.2%) over the past year, making it difficult to compare to the Banks industry average (5.4%).


Return on Equity

High ROE: 8306's Return on Equity (2.5%) is considered low.


Next Steps

Financial Health

How is Mitsubishi UFJ Financial Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: 8306's level of assets compared to its equity is moderate.

Allowance for Bad Loans: 8306 has a low allowance for bad loans.

Low Risk Liabilities: 8306's liabilities are made up of primarily low risk sources of funding.

Loan Level: 8306 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 8306's loans are broadly funded by customer deposits.

Level of Bad Loans: 8306 has an appropriate level of bad loans (1%)


Next Steps

Dividend

What is Mitsubishi UFJ Financial Group's current dividend yield, its reliability and sustainability?

6.02%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 8306's dividend (6.02%) is higher than the bottom 25% of dividend payers in the JP market (1.76%).

High Dividend: 8306's dividend (6.02%) is in the top 25% of dividend payers in the JP market (4.09%)


Stability and Growth of Payments

Stable Dividend: 8306's dividends per share have been stable in the past 10 years.

Growing Dividend: 8306's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (70.6%), 8306's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.0yrs

Average management tenure


CEO

Hironori Kamezawa (58yo)

no data

Tenure

JP¥116,000,000

Compensation

Mr. Hironori Kamezawa is President and Group CEO at Mitsubishi UFJ Financial Group, Inc.since April 1, 2020 and has been Director since 2019. . Mr. Kamezawa served as Deputy President until April 1, 2020.  ...


CEO Compensation Analysis

Compensation vs Market: Hironori's total compensation ($USD1.06M) is below average for companies of similar size in the JP market ($USD1.82M).

Compensation vs Earnings: Insufficient data to compare Hironori's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Nobuyuki Hirano
Chairman & Corporate Executive1yrJP¥174.00m0.00062% ¥33.2m
Hironori Kamezawa
Presidentno dataJP¥116.00m0.00020% ¥10.7m
Kanetsugu Mike
Deputy Chairman of the Boardno dataJP¥181.00m0.00038% ¥20.3m
Saburo Araki
Deputy Chairman & Representative Corporate Executive Officer1.83yrsJP¥131.00m0.0016% ¥87.7m
Kenji Yabuta
Sr. Managing Corp. Exe. Officer & Group Head of Japanese Corp. & Invst Banking Business Groupno dataJP¥119.00m0.00030% ¥16.1m
Iwao Nagashima
Deputy Chairmanno datano data0.00063% ¥33.7m
Tetsuya Yonehana
Senior Managing Corporate Executive & Group CFOno datano datano data
Hiroki Kameda
Managing Corporate Executive1yrno data0.00032% ¥17.1m
Yoshitaka Shiba
Senior Managing Corporate Executiveno datano datano data
Taka Saka
Senior IR Managerno datano datano data

1.0yrs

Average Tenure

58.5yo

Average Age

Experienced Management: 8306's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Nobuyuki Hirano
Chairman & Corporate Executive1yrJP¥174.00m0.00062% ¥33.2m
Hironori Kamezawa
Presidentno dataJP¥116.00m0.00020% ¥10.7m
Kanetsugu Mike
Deputy Chairman of the Boardno dataJP¥181.00m0.00038% ¥20.3m
Saburo Araki
Deputy Chairman & Representative Corporate Executive Officer1.83yrsJP¥131.00m0.0016% ¥87.7m
Iwao Nagashima
Deputy Chairmanno datano data0.00063% ¥33.7m
Tsutomu Okuda
Lead Independent Outside Directorno datano data0.00020% ¥10.7m
Akio Mimura
Member of Global Advisory Boardno datano datano data
Haruka Matsuyama
Outside Director5.83yrsno data0.000030% ¥1.6m
Akira Yamate
Outside Director4.83yrsno datano data
Mariko Fujii
Outside Director0.83yrno datano data

1.4yrs

Average Tenure

63.5yo

Average Age

Experienced Board: 8306's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Mitsubishi UFJ Financial Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mitsubishi UFJ Financial Group, Inc.
  • Ticker: 8306
  • Exchange: TSE
  • Founded: 1880
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: JP¥5.350t
  • Shares outstanding: 12.87b
  • Website: https://www.mufg.jp

Number of Employees


Location

  • Mitsubishi UFJ Financial Group, Inc.
  • 7-1, Marunouchi 2-chome
  • Chiyoda-ku
  • Tokyo
  • 100-8330
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MUFG NBMV (Bolsa Mexicana de Valores)ADR EACH REP 1 ORD NPVMXMXNSep 1989
MUFGNYSE (New York Stock Exchange)ADR EACH REP 1 ORD NPVUSUSDSep 1989
MFZADB (Deutsche Boerse AG)ADR EACH REP 1 ORD NPVDEEURSep 1989
MFZABST (Boerse-Stuttgart)ADR EACH REP 1 ORD NPVDEEURSep 1989
MBFJ.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDApr 2001
8306TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYApr 2001
MFZDB (Deutsche Boerse AG)YesCommon StockDEEURApr 2001

Biography

Mitsubishi UFJ Financial Group, Inc., a bank holding company, provides financial services in Japan and internationally. The company’s Retail & Commercial Banking Business Group segment offers commercial banking, trust banking, and securities products and services to retail, and small and medium-sized enterprise customers. Its Japanese Corporate & Investment Banking Business Group segment provides transaction banking, investment banking, trust banking, and securities services, as well as advanced financial solutions for large corporations. The company’s Global Corporate & Investment Banking Business Group segment offers corporate, investment, and transaction banking services for large corporate and financial institutions. Its Global Commercial Banking Business Group segment provides retail and commercial banking services, including loans, deposits, fund transfers, investments, and asset management services for local retail, small and medium-sized enterprise, and corporate customers. The company’s Asset Management & Investor Services Business Group segment offers asset management and administration services for corporations and pension funds, such as pension fund management and administration, advice on pension structures, and payments to beneficiaries, as well as investment trusts for retail customers. Its Global Markets Business Group segment sells and trades in fixed income instruments, currencies, equities, and other investment products; originates and distributes of financial products; and provides treasury services comprising asset and liability management. The company offers its services through a network of branches and automatic teller machines. Mitsubishi UFJ Financial Group, Inc. was founded in 1880 and is headquartered in Tokyo, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 14:48
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.