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Essential Insights Before Investing in Mitsubishi UFJ Financial (MUFG)

Now trading at a price of $15.93, Mitsubishi UFJ Financial has moved 3.8% so far today.

Mitsubishi UFJ Financial returned gains of 46.9% last year, with its stock price reaching a high of $16.16 and a low of $9.85. Over the same period, the stock outperformed the S&P 500 index by 30.5%. More recently, the company's 50-day average price was $13.89. Mitsubishi UFJ Financial Group, Inc. operates as a bank holding company that engages in a range of financial businesses in Japan, the United States, Europe, Asia/Oceania, and internationally. Based in Tokyo, Japan, the Large-Cap Finance company has 150,800 full time employees. Mitsubishi UFJ Financial has offered a 417.2% dividend yield over the last 12 months.

Increasing Revenues but Narrowing Margins:

2019 2020 2021 2022 2023 2024
Revenue (M) $1,486,883 $1,251,708 $1,823,406 $3,310,785 $4,102,477 $10,836,109
Interest Income (M) $1,030,417 $979,452 $1,166,734 $1,266,447 $1,490,149 $3,088,197
Operating Margins 49% 51% 49% 32% 32% 14%
Net Margins 52% 59% -56% 7% 26% 12%
Net Income (M) $776,900 $737,611 -$1,014,129 $233,873 $1,059,221 $1,266,933
Depreciation & Amort. (M) $166,988 $170,033 $167,943 $178,463 $187,064 $186,500
Diluted Shares (M) 12,856 12,852 12,501 12,037 11,698 11,655
Earnings Per Share $60.28 $57.19 -$81.27 $19.31 $90.33 $108.18
EPS Growth n/a -5.13% -242.11% 123.76% 367.79% 19.76%
Free Cash Flow (M) $1,047,575 $429,876 -$1,172 -$1,947,880 -$582,475 $897,112
CAPEX (M) $51,085 $52,473 $49,054 $47,850 $58,288 $131,724

Mitsubishi UFJ Financial Is Potentially Undervalued and Trades Below Its Graham Number:

Mitsubishi UFJ Financial has a trailing twelve month P/E ratio of 12.9, compared to an average of 15.92 for the Finance sector. Based on its EPS guidance of $1.03, the company has a forward P/E ratio of 13.5. The -44.1% compound average growth rate of Mitsubishi UFJ Financial's historical and projected earnings per share yields a PEG ratio of -0.29. This indicates that its shares are overvalued.In contrast, the market is likely undervaluing Mitsubishi UFJ Financial in terms of its equity because its P/B ratio is 0.01 while the sector average is 1.78. The company's shares are currently trading -99.2% above their Graham number.

Most of the Market Indicators on Mitsubishi UFJ Financial Are Negative:

The 2 analysts following Mitsubishi UFJ Financial have set target prices ranging from $13.8 to $15.30044 per share, for an average of $14.55 with a hold rating. The company is trading 9.5% away from its average target price, indicating that there is an analyst consensus of little upside potential.

Mitsubishi UFJ Financial has a very low short interest because 0.1% of the company's shares are sold short. Institutions own 3.2% of the company's shares, and the insider ownership rate stands at 0.0%, suggesting a small amount of insider investors. The largest shareholder is Fisher Asset Management, LLC, whose 1% stake in the company is worth $1,425,497,313.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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