Mitsubishi UFJ Financial Group, Inc. Fundamental Analysis
Mitsubishi UFJ Financial Group, Inc. Fundamental Analysis
Mitsubishi UFJ Financial Group, Inc. (MUFG) shows strong financial fundamentals with a PE ratio of 14.53, profit margin of 18.46%, and ROE of 11.53%. The company generates $13389.4B in annual revenue with strong year-over-year growth of 14.13%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze MUFG's fundamental strength across five key dimensions:
Efficiency Score
WeakMUFG struggles to generate sufficient returns from assets.
Valuation Score
ExcellentMUFG trades at attractive valuation levels.
Growth Score
ExcellentMUFG delivers strong and consistent growth momentum.
Financial Health Score
ModerateMUFG shows balanced financial health with some risks.
Profitability Score
ModerateMUFG maintains healthy but balanced margins.
Key Financial Metrics
Is MUFG Expensive or Cheap?
P/E Ratio
MUFG trades at 14.53 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, MUFG's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Mitsubishi UFJ Financial Group, Inc. at 1.58 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 14.63 times EBITDA. This signals the market has high growth expectations.
How Well Does MUFG Make Money?
Net Profit Margin
For every $100 in sales, Mitsubishi UFJ Financial Group, Inc. keeps $18.46 as profit after all expenses.
Operating Margin
Core operations generate 25.27 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.53 in profit for every $100 of shareholder equity.
ROA
Mitsubishi UFJ Financial Group, Inc. generates $0.56 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Mitsubishi UFJ Financial Group, Inc. generates strong operating cash flow of $8.54T, reflecting robust business health.
Free Cash Flow
Mitsubishi UFJ Financial Group, Inc. generates strong free cash flow of $8.21T, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $727.07 in free cash annually.
FCF Yield
MUFG converts 22.51% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.53
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.003
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.58
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.72
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.52
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.81
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.006
vs 25 benchmark
ROCE
Return on capital employed
0.009
vs 25 benchmark
How MUFG Stacks Against Its Sector Peers
| Metric | MUFG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.53 | 19.38 | Better (Cheaper) |
| ROE | 11.53% | 804.00% | Weak |
| Net Margin | 18.46% | -7623.00% (disorted) | Strong |
| Debt/Equity | 3.52 | 1.07 | Weak (High Leverage) |
| Current Ratio | 1.81 | 609.22 | Neutral |
| ROA | 0.56% | -20946.00% (disorted) | Weak |
MUFG outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Mitsubishi UFJ Financial Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
107.13%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
290.76%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-99.91%
Industry Style: Value, Dividend, Cyclical
Declining