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.
SMFG historically achieved a higher return on equity than its megabank competitors MUFG and Mizuho and may be able to restore its advantage once one-time factors that disproportionately affected it during the pandemic have normalized.
SMFG's larger exposure to retail and small-business borrowers in Japan rather than large corporate borrowers pose risks for higher credit costs than peers as interest rates rise.
|
Metric
|
8316
|
MUFG
|
MFG
|
|---|---|---|---|
Price/Earnings (Normalized) | 8.77 | 38.97 | 30.76 |
Price/Book Value | 0.80 | 0.94 | 0.79 |
Price/Sales | 0.88 | 2.87 | 2.36 |
Price/Cash Flow | 3.43 | — | — |
|
Metric
|
8316
|
MUFG
|
MFG
|
|---|---|---|---|
Quick Ratio | — | — | — |
Current Ratio | — | — | — |
Interest Coverage | — | — | — |
|
Metric
|
8316
|
MUFG
|
MFG
|
|---|---|---|---|
Return on Assets (Normalized) | 0.56% | 0.54% | 0.35% |
Return on Equity (Normalized) | 11.63% | 11.21% | 9.84% |
Return on Invested Capital (Normalized) | — | — | — |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| JPMorgan Chase & Co
JPM
| Xspwhmqxr | Ngq | $598.0 Bil | |||
| Bank of America Corp
BAC
| Zczdybnrq | Yndll | $304.6 Bil | |||
| Wells Fargo & Co
WFC
| Twtmgyl | Fqs | $182.5 Bil | |||
| Royal Bank of Canada
RY
| Djqfmddj | Tddb | $175.7 Bil | |||
| HSBC Holdings PLC ADR
HSBC
| Hhxgynnp | Lzss | $163.3 Bil | |||
| Mitsubishi UFJ Financial Group Inc ADR
MUFG
| Pgcmwxbl | Ksg | $117.7 Bil | |||
| Citigroup Inc
C
| Kjynkfk | Yxqy | $115.2 Bil | |||
| The Toronto-Dominion Bank
TD
| Qgczzhvxwn | Kfnjj | $110.5 Bil | |||
| UBS Group AG
UBS
| Ttyzsqdw | Fhnff | $97.4 Bil | |||
| Banco Santander SA ADR
SAN
| Rhlnp | Ryrbk | $78.0 Bil |
United States