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.
After years of system troubles and long delays in integrating its predecessor banks, expecations for Mizuho remain at a relatively low level, in our view, giving room for upside surprise as long as the group continues to perform reasonably well.
Despite improvement, Mizuho’s capital cushion remains somewhat less ample than that of MUFG and SMFG and many global systemically important banks.
|
Metric
|
8411
|
8316
|
MUFG
|
|---|---|---|---|
Price/Earnings (Normalized) | 30.92 | 8.47 | 39.12 |
Price/Book Value | 0.69 | 0.78 | 0.94 |
Price/Sales | 2.23 | 0.85 | 2.88 |
Price/Cash Flow | — | 3.32 | — |
|
Metric
|
8411
|
8316
|
MUFG
|
|---|---|---|---|
Quick Ratio | — | — | — |
Current Ratio | — | — | — |
Interest Coverage | — | — | — |
|
Metric
|
8411
|
8316
|
MUFG
|
|---|---|---|---|
Return on Assets (Normalized) | 0.35% | 0.56% | 0.54% |
Return on Equity (Normalized) | 9.84% | 11.63% | 11.21% |
Return on Invested Capital (Normalized) | — | — | — |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| BNP Paribas ADR
BNPQY
| Wvfgqbdnp | Wbm | $79.9 Bil | |||
| Intesa Sanpaolo ADR
ISNPY
| Qxtldhfq | Bkcwl | $77.2 Bil | |||
| PNC Financial Services Group Inc
PNC
| Ckymwqg | Zrksrcx | $72.8 Bil | |||
| U.S. Bancorp
USB
| Pyvkrwmmv | Sjwzd | $71.0 Bil | |||
| Itau Unibanco Holding SA ADR
ITUB
| Scxfpvn | Syyq | $61.8 Bil | |||
| Truist Financial Corp
TFC
| Bvhpcmktz | Gyszsj | $56.9 Bil | |||
| Mizuho Financial Group Inc ADR
MFG
| Xwkjchlk | Cgfz | $49.2 Bil | |||
| Lloyds Banking Group PLC ADR
LYG
| Xmkwsdxm | Zmqksn | $49.0 Bil | |||
| NatWest Group PLC ADR
NWG
| Frprjqtw | Brmch | $38.5 Bil | |||
| Deutsche Bank AG
DB
| Rmlw | Chs | $33.9 Bil |
United States