We transfer five Japanese banks to a new coverage analyst with minor tweaks to our earnings forecasts that do not change our fair value estimates for the Tokyo-listed shares. Our fair value estimates for Mitsubishi UFJ Financial Group's, or MUFG, and Mizuho Financial Group's ADRs rise by 9% each to $12.25 and $4.61, respectively, due to 9% appreciation in the Japanese yen against the US dollar.
MUFG's status as Japan's largest bank stock makes it a recipient of favor for overseas investors who expect interest rates in Japan to rise.
MUFG’s ROE is lower than that of most large global banks, reflecting its exposure to the tough Japanese market and its conservative approach that sometimes prioritizes prudence over aggressive pursuit of returns.
|
Metric
|
MUFG
|
8316
|
MFG
|
|---|---|---|---|
Price/Earnings (Normalized) | 38.97 | 8.77 | 30.76 |
Price/Book Value | 0.94 | 0.80 | 0.79 |
Price/Sales | 2.87 | 0.88 | 2.36 |
Price/Cash Flow | — | 3.43 | — |
|
Metric
|
MUFG
|
8316
|
MFG
|
|---|---|---|---|
Quick Ratio | — | — | — |
Current Ratio | — | — | — |
Interest Coverage | — | — | — |
|
Metric
|
MUFG
|
8316
|
MFG
|
|---|---|---|---|
Return on Assets (Normalized) | 0.54% | 0.56% | 0.35% |
Return on Equity (Normalized) | 11.21% | 11.63% | 9.84% |
Return on Invested Capital (Normalized) | — | — | — |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
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United States