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8425

Mizuho Leasing Company TSE:8425 Stock Report

Last Price

JP¥3.00k

Market Cap

JP¥145.1b

7D

-2.0%

1Y

-11.9%

Updated

14 May, 2022

Data

Company Financials +
8425 fundamental analysis
Snowflake Score
Valuation6/6
Future Growth2/6
Past Performance2/6
Financial Health4/6
Dividends4/6

8425 Stock Overview

Mizuho Leasing Company, Limited provides general leasing services in Japan and internationally.

Mizuho Leasing Company Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Mizuho Leasing Company
Historical stock prices
Current Share PriceJP¥3,000.00
52 Week HighJP¥3,845.00
52 Week LowJP¥2,831.00
Beta0.95
1 Month Change-1.48%
3 Month Change-9.91%
1 Year Change-11.89%
3 Year Change23.92%
5 Year Change23.05%
Change since IPO87.50%

Recent News & Updates

Shareholder Returns

8425JP Diversified FinancialJP Market
7D-2.0%-2.4%-3.6%
1Y-11.9%3.3%-3.3%

Return vs Industry: 8425 underperformed the JP Diversified Financial industry which returned 3.3% over the past year.

Return vs Market: 8425 underperformed the JP Market which returned -3.3% over the past year.

Price Volatility

Is 8425's price volatile compared to industry and market?
8425 volatility
8425 Average Weekly Movement3.6%
Diversified Financial Industry Average Movement4.3%
Market Average Movement4.5%
10% most volatile stocks in JP Market8.9%
10% least volatile stocks in JP Market2.5%

Stable Share Price: 8425 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 8425's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19471,795Shusaku Tsuharahttps://www.mizuho-ls.co.jp

Mizuho Leasing Company, Limited provides general leasing services in Japan and internationally. It operates through three segments: Leasing and Installment Sales, Finance, and Other. The company offers finance, operating, real estate, and auto leasing services; installment sales services; maintenance services for vehicle fleets; payment outsourcing services; and accounts receivable securitization services, as well as purchases notes receivables.

Mizuho Leasing Company Fundamentals Summary

How do Mizuho Leasing Company's earnings and revenue compare to its market cap?
8425 fundamental statistics
Market CapJP¥145.11b
Earnings (TTM)JP¥21.10b
Revenue (TTM)JP¥537.26b

6.9x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
8425 income statement (TTM)
RevenueJP¥537.26b
Cost of RevenueJP¥484.05b
Gross ProfitJP¥53.22b
Other ExpensesJP¥32.12b
EarningsJP¥21.10b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)436.11
Gross Margin9.90%
Net Profit Margin3.93%
Debt/Equity Ratio1,008.1%

How did 8425 perform over the long term?

See historical performance and comparison

Dividends

3.7%

Current Dividend Yield

25%

Payout Ratio

Valuation

Is Mizuho Leasing Company undervalued compared to its fair value and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 8425 (¥3000) is trading below our estimate of fair value (¥8246.2)

Significantly Below Fair Value: 8425 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 8425 is good value based on its PE Ratio (6.9x) compared to the JP Diversified Financial industry average (10.4x).

PE vs Market: 8425 is good value based on its PE Ratio (6.9x) compared to the JP market (12.1x).


Price to Earnings Growth Ratio

PEG Ratio: 8425 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 8425 is good value based on its PB Ratio (0.7x) compared to the JP Diversified Financial industry average (0.8x).


Future Growth

How is Mizuho Leasing Company forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


12.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 8425's forecast earnings growth (12% per year) is above the savings rate (0.02%).

Earnings vs Market: 8425's earnings (12% per year) are forecast to grow faster than the JP market (8% per year).

High Growth Earnings: 8425's earnings are forecast to grow, but not significantly.

Revenue vs Market: 8425's revenue (3.6% per year) is forecast to grow slower than the JP market (4.3% per year).

High Growth Revenue: 8425's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 8425's Return on Equity is forecast to be low in 3 years time (10.8%).


Past Performance

How has Mizuho Leasing Company performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


12.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 8425 has high quality earnings.

Growing Profit Margin: 8425's current net profit margins (3.9%) are lower than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: 8425's earnings have grown by 12.3% per year over the past 5 years.

Accelerating Growth: 8425's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 8425 had negative earnings growth (-8.2%) over the past year, making it difficult to compare to the Diversified Financial industry average (12.2%).


Return on Equity

High ROE: 8425's Return on Equity (9.4%) is considered low.


Financial Health

How is Mizuho Leasing Company's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 8425's short term assets (¥2,104.5B) exceed its short term liabilities (¥1,525.1B).

Long Term Liabilities: 8425's short term assets (¥2,104.5B) exceed its long term liabilities (¥941.8B).


Debt to Equity History and Analysis

Debt Level: 8425's net debt to equity ratio (1001.6%) is considered high.

Reducing Debt: 8425's debt to equity ratio has reduced from 1116.8% to 1008.1% over the past 5 years.

Debt Coverage: 8425's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 8425's interest payments on its debt are well covered by EBIT (24.5x coverage).


Balance Sheet


Dividend

What is Mizuho Leasing Company current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


3.67%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 8425's dividend (3.67%) is higher than the bottom 25% of dividend payers in the JP market (1.61%).

High Dividend: 8425's dividend (3.67%) is in the top 25% of dividend payers in the JP market (3.6%)


Stability and Growth of Payments

Stable Dividend: 8425's dividend payments have been volatile in the past 10 years.

Growing Dividend: 8425's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (24.5%), 8425's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: 8425 is paying a dividend but the company has no free cash flows.


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Shusaku Tsuhara (61 yo)

1.92yrs

Tenure

Mr. Shusaku Tsuhara serves as President and Chief Executive Officer at Mizuho Leasing Company, Limited (formerly known as IBJ Leasing Company, Limited) since June 2020. He serves as Executive Director of M...


Leadership Team

Experienced Management: 8425's management team is considered experienced (2.2 years average tenure).


Board Members

Experienced Board: 8425's board of directors are not considered experienced ( 2.4 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

Mizuho Leasing Company, Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Mizuho Leasing Company, Limited
  • Ticker: 8425
  • Exchange: TSE
  • Founded: 1947
  • Industry: Specialized Finance
  • Sector: Diversified Financials
  • Implied Market Cap: JP¥145.114b
  • Shares outstanding: 48.37m
  • Website: https://www.mizuho-ls.co.jp

Number of Employees


Location

  • Mizuho Leasing Company, Limited
  • 2-6 Toranomon 1-chome
  • Minato-ku
  • Tokyo
  • 105-0001
  • Japan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/14 00:00
End of Day Share Price2022/05/13 00:00
Earnings2021/12/31
Annual Earnings2021/03/31


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.