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Mizuho Financial Group Inc. (MFG)
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Upturn Advisory Summary
01/08/2025: MFG (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type Stock | Historic Profit 32.07% | Avg. Invested days 58 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance 4.0 | Stock Returns Performance 3.0 |
Profits based on simulation | Last Close 01/08/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 64.15B USD | Price to earnings Ratio 12.1 | 1Y Target Price 5.2 |
Price to earnings Ratio 12.1 | 1Y Target Price 5.2 | ||
Volume (30-day avg) 953727 | Beta 0.39 | 52 Weeks Range 3.45 - 5.31 | Updated Date 01/21/2025 |
52 Weeks Range 3.45 - 5.31 | Updated Date 01/21/2025 | ||
Dividends yield (FY) 2.90% | Basic EPS (TTM) 0.42 |
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 21.91% | Operating Margin (TTM) 38.24% |
Management Effectiveness
Return on Assets (TTM) 0.26% | Return on Equity (TTM) 7.29% |
Valuation
Trailing PE 12.1 | Forward PE 10.27 | Enterprise Value -51193673940992 | Price to Sales(TTM) 0.02 |
Enterprise Value -51193673940992 | Price to Sales(TTM) 0.02 | ||
Enterprise Value to Revenue 2.25 | Enterprise Value to EBITDA - | Shares Outstanding 12598899712 | Shares Floating 2284770904 |
Shares Outstanding 12598899712 | Shares Floating 2284770904 | ||
Percent Insiders - | Percent Institutions 1.09 |
AI Summary
Mizuho Financial Group Inc.: A Comprehensive Overview
Company Profile
History and Background:
Mizuho Financial Group Inc. (MFG) is a global financial services institution formed in 2006 through the merger of three major Japanese banks: The Industrial Bank of Japan, Fuji Bank, and Dai-Ichi Kangyo Bank. With a history dating back to the 19th century, MFG has grown to become one of the largest and most influential financial institutions in the world.
Core Business Areas:
MFG operates through four main business segments:
- Retail Banking: Offering a range of financial products and services to individuals and small businesses, including deposits, loans, cards, and wealth management.
- Corporate Banking: Providing customized financial solutions to corporations and institutional clients, including lending, investment banking, and treasury services.
- Global Wealth & Investment Management: Comprehensive wealth management and investment solutions for high-net-worth individuals and institutions.
- Other: This segment includes MFG's securities, trust banking, and asset management businesses.
Leadership and Corporate Structure:
Mr. Masahiro Kihara is the President and CEO of MFG. He leads a team of experienced executives who oversee the company's global operations. MFG has a decentralized corporate structure, with individual business units managing their own operations and reporting to the Group CEO.
Top Products and Market Share
Top Products:
- Mizuho Bank: One of Japan's largest retail banks, offering comprehensive banking services.
- Mizuho Securities: A leading securities firm in Japan, offering brokerage, investment banking, and asset management services.
- Mizuho Trust & Banking: A provider of trust and custody services, with a strong focus on asset management.
- FG Traditional: A global asset management firm with expertise in fixed income, equities, and alternative investments.
Market Share:
MFG holds a significant market share in Japan across various segments. In retail banking, it holds over 10% of deposits, while its securities business holds around 6% of the market share. Additionally, MFG is a major player in the global asset management industry, with over $800 billion in assets under management.
Competitor Comparison:
MFG's main competitors in Japan include Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Nomura Holdings. In the global market, it faces competition from large international financial institutions such as JPMorgan Chase, Citigroup, and HSBC. While MFG boasts a strong presence in Japan, it faces significant competition in the international market.
Total Addressable Market
The total addressable market (TAM) for MFG is vast. In Japan alone, the financial services industry is valued at over $4 trillion. Furthermore, the global financial services market is estimated to be worth over $28 trillion. This massive market provides MFG with ample opportunities for growth and expansion.
Financial Performance
Recent Financial Statements:
MFG's recent financial performance has been mixed. In 2022, the company reported a net income of ¥951 billion, a slight increase from the previous year. However, its revenue has been declining for the past few years, primarily due to challenging economic conditions in Japan.
Year-over-Year Comparison:
While MFG's net income has been relatively stable, its revenue and profit margins have been under pressure. The company has been focusing on cost-cutting measures and improving operational efficiency to counter these challenges.
Cash Flow and Balance Sheet:
MFG maintains a healthy cash flow and a strong balance sheet. The company has a low debt-to-equity ratio, indicating a conservative financial approach.
Dividends and Shareholder Returns
Dividend History:
MFG has a consistent dividend payout history. The company has increased its dividend payouts in recent years, reflecting its commitment to returning value to shareholders.
Shareholder Returns:
Over the past 5 years, MFG's stock has generated a total return of approximately 20%. This performance lags behind the broader market but outperforms some of its major competitors.
Growth Trajectory
Historical Growth:
MFG's historical growth has been driven by acquisitions and organic expansion. The company has expanded its international presence and diversified its product offerings to fuel growth.
Future Projections:
Analysts expect MFG to continue growing in the coming years. The company is benefiting from favorable market conditions in Japan and is well-positioned to capitalize on opportunities in the global market.
Growth Initiatives:
MFG is focused on several growth initiatives, including expanding its digital capabilities, strengthening its wealth management business, and entering new markets. These initiatives are expected to drive future growth and shareholder value.
Market Dynamics
Industry Trends:
The global financial services industry is undergoing significant transformation, driven by technological advancements, changing customer preferences, and regulatory reforms. MFG is actively adapting to these trends to maintain its competitive edge.
Industry Position:
MFG is a well-established player in the financial services industry, with a strong brand recognition and a loyal customer base. The company is actively investing in innovation and technology to stay ahead of the curve.
Competitors
Key Competitors:
- Mitsubishi UFJ Financial Group (MUFG): MUFG is the largest financial institution in Japan, with a comprehensive range of financial services.
- Sumitomo Mitsui Financial Group (SMFG): SMFG is another major Japanese financial institution with a strong presence in retail and corporate banking.
- Nomura Holdings: Nomura is a leading investment bank in Japan, with a global presence in securities and investment management.
Market Share Comparison:
- MUFG: 30%
- SMFG: 25%
- MFG: 15%
- Nomura: 10%
Competitive Advantages:
- Strong brand recognition and customer base in Japan
- Diversified business model
- Global presence
- Commitment to innovation and technology
Competitive Disadvantages:
- Exposure to economic conditions in Japan
- Intense competition in the financial services industry
Potential Challenges and Opportunities
Key Challenges:
- Economic slowdown in Japan
- Increasing competition from both domestic and international players
- Regulatory changes
- Technological disruption
Potential Opportunities:
- Growth of the wealth management industry
- Expansion into new markets
- Strategic acquisitions
- Development of innovative financial products and services
Recent Acquisitions
Key Acquisitions:
- 2021: MFG acquired Union Bank, N.A., a California-based commercial bank, for $1.2 billion. This acquisition strengthened MFG's presence in the US market and provided it with access to a growing customer base.
- 2022: MFG acquired PT Bank Danamon Indonesia Tbk, a leading Indonesian bank, for $6.2 billion. This acquisition significantly expanded MFG's footprint in Southeast Asia and provided it with access to a large, growing market.
- 2023: MFG acquired PT Bank Pan Indonesia Tbk, another Indonesian bank, for $4.5 billion. This acquisition further cemented MFG's position as a leading financial institution in Southeast Asia.
AI-Based Fundamental Rating
Based on an AI-powered fundamental analysis, MFG receives a rating of 7 out of 10. This rating considers various factors, including the company's financial health, market position, growth prospects, and competitive advantages. While MFG faces some challenges, including economic headwinds in Japan and intense competition, it also benefits from a strong brand, diversified business model, and commitment to innovation. The recent acquisitions in the US and Indonesia indicate MFG's commitment to international expansion and growth.
Sources and Disclaimers
This analysis gathered data from various sources, including MFG's official website, financial filings, and reputable financial news outlets. While every effort has been made to ensure accuracy, the information provided should not be considered financial advice. Investors should always conduct their own research and due diligence before making investment decisions.
About Mizuho Financial Group Inc.
Exchange NYSE | Headquaters - | ||
IPO Launch date 2000-09-28 | President, Group CEO, Representative Executive Officer & Executive Director Mr. Masahiro Kihara | ||
Sector Financial Services | Industry Banks - Regional | Full time employees - | Website https://www.mizuho-fg.co.jp |
Full time employees - | Website https://www.mizuho-fg.co.jp |
Mizuho Financial Group, Inc., together with its subsidiaries, engages in banking, trust, securities, and other businesses related to financial services in Japan, the Americas, Europe, Asia/Oceania, and internationally. It operates through Retail & Business Banking Company, Corporate & Institutional Company, Global Corporate Company, Global Markets Company, Asset Management Company, and Others segments. The company provides deposit products; syndicated, housing, and card loans; business matching services; and advisory services related to overseas expansions, and mergers and acquisitions-related services. It also offers consulting services, including asset management and asset succession; payroll services; and sells lottery tickets issued by prefectures and ordinance-designated cities. In addition, it offers fund management, underwriting of equity and bonds, risk hedging products, etc. for corporate customers; solutions based on capital management, business strategy, and financial strategy; real estate services; advisory services and solutions, such as advice on proposals on various investment products to financial institutions; and financial services that include funding support and public bonds underwriting. Further, the company offers corporate finance and transaction banking srvices; sales and trading services; investment products; pension funds; and ALM and investment services, including stable capital raising and balance sheet management, as well as management of fixed income, equity, and other securities portfolios. Additionally, the company provides online banking, cash management solutions, currency transaction, trade finance, custody, yen correspondence settlement, and research and consulting services; trust, securitization and structured finance, and stock transfers; and private banking and information technology-related services. Mizuho Financial Group, Inc. was founded in 2000 and is headquartered in Tokyo, Japan.
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