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Mizuho Financial Group Inc ADR MFG

Morningstar Rating
$3.67 0.00 (0.00%)
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Company Report

Mizuho Earnings: Trading Income, Weak Yen Propel Bottom Line; Still Fairly Valued

Mizuho Financial Group's December-quarter cumulative net profit of JPY 642.3 billion is tracking ahead of our financial year March 2024 expectations due to higher trading income and a continued weak JPY. Following tweaks to our assumptions, we raise our full-year net profit estimate to JPY 745 billion from JPY 615 billion. Our fair value estimate rises to JPY 2,550 from JPY 2,490, but our ADR fair value estimate is lowered to $3.43 from $3.56, given the weaker JPY versus the USD since our last update. A weak yen will amplify Mizuho's earnings, given its overseas income. Mizuho's shares are currently fairly valued.

Price vs Fair Value

MFG is trading at a 7% premium.
Price
$3.67
Fair Value
$2.54
Uncertainty
Medium
1-Star Price
$4.43
5-Star Price
$6.40
Economic Moat
Hlclx
Capital Allocation
Dhhsxcndq

Bulls Say, Bears Say

Bulls

Mizuho has outlined aggressive cost-cutting plans that could surprise market expectations to the upside.

Bears

Mizuho's history of recurring systems troubles could prompt regulatory sanctions that hinder its ability to expand its business.

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News

Trading Information

Previous Close Price
$3.67
Day Range
$3.653.68
52-Week Range
$2.703.81
Bid/Ask
$3.65 / $3.72
Market Cap
$46.51 Bil
Volume/Avg
123 / 914,081

Key Statistics

Price/Earnings (Normalized)
14.72
Price/Sales
2.24
Dividend Yield (Trailing)
3.50%
Dividend Yield (Forward)
3.50%
Total Yield
4.17%

Company Profile

Mizuho Financial Group is roughly tied with megabank peer Sumitomo Mitsui Financial Group for the status as Japan’s second-largest bank after Mitsubishi UFJ Financial Group. As of March 2023, Mizuho’s market share of domestic loans was 6.7%, compared with 7.1% for SMFG and 8.1% for MUFG. In Japan, Mizuho has more of a corporate focus than SMFG, which has a larger retail business. Its overseas weighting is slightly smaller than that of MUFG. Unlike its two Japanese megabank peers that own foreign banks outright or hold noncontrolling stakes in local banks overseas, Mizuho expanded in recent years beyond its traditional Japanese borrowers, mainly through its core banking and securities units, focusing on the financing needs of global multinational corporations.
Sector
Financial Services
Industry
Banks - Regional
Stock Style Box
Large Value
Total Number of Employees
64,402

Competitors

Valuation

Metric
MFG
HSBC
MUFG
Price/Earnings (Normalized)
14.722.7710.51
Price/Book Value
0.660.830.84
Price/Sales
2.242.222.83
Price/Cash Flow
4.636.59
Price/Earnings
MFG
HSBC
MUFG

Financial Strength

Metric
MFG
HSBC
MUFG
Quick Ratio
Current Ratio
Interest Coverage
Quick Ratio
No chart available

Profitability

Metric
MFG
HSBC
MUFG
Return on Assets (Normalized)
0.34%0.79%0.43%
Return on Equity (Normalized)
9.59%12.91%9.33%
Return on Invested Capital (Normalized)
Return on Assets
MFG
HSBC
MUFG
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Banks - Regional Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
BNPQY
BNP Paribas ADRYhwvj$69.3 Bil
ITUB
Itau Unibanco Holding SA ADRZzbyz$65.6 Bil
USB
U.S. BancorpRftlk$63.6 Bil
PNC
PNC Financial Services Group IncJfcsjf$58.3 Bil
ISNPY
Intesa Sanpaolo ADRPxhtq$57.0 Bil
TFC
Truist Financial CorpWrcxpr$47.7 Bil
LYG
Lloyds Banking Group PLC ADRTrtctp$35.0 Bil
BBD
Bank Bradesco SA ADRLczw$28.5 Bil
DB
Deutsche Bank AGDdj$26.1 Bil

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