MIZUHO FINANCIAL GROUP-ADR (MFG) Stock Fundamental Analysis
NYSE:MFG - New York Stock Exchange, Inc. - US60687Y1091 - ADR - Currency: USD
We assign a fundamental rating of 4 out of 10 to MFG. MFG was compared to 397 industry peers in the Banks industry. MFG has a bad profitability rating. Also its financial health evaluation is rather negative. MFG is evaluated to be cheap and growing strongly. This does not happen too often! Finally MFG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
MFG had positive earnings in the past year.
MFG had a positive operating cash flow in the past year.
Each year in the past 5 years MFG has been profitable.
Each year in the past 5 years MFG had a positive operating cash flow.
1.2 Ratios
MFG's Return On Assets of 0.30% is on the low side compared to the rest of the industry. MFG is outperformed by 83.67% of its industry peers.
The Return On Equity of MFG (7.76%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.3% | ||
| ROE | 7.76% | ||
| ROIC | N/A |
ROA(3y)0.23%
ROA(5y)0.22%
ROE(3y)6.19%
ROE(5y)5.78%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
MFG has a Profit Margin of 20.87%. This is comparable to the rest of the industry: MFG outperforms 40.20% of its industry peers.
In the last couple of years the Profit Margin of MFG has grown nicely.
MFG does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 20.87% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y2.55%
PM growth 5Y36.41%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
MFG does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, MFG has about the same amount of shares outstanding.
Compared to 5 years ago, MFG has about the same amount of shares outstanding.
Compared to 1 year ago, MFG has a worse debt to assets ratio.
2.2 Solvency
MFG has a debt to FCF ratio of 43.15. This is a negative value and a sign of low solvency as MFG would need 43.15 years to pay back of all of its debts.
The Debt to FCF ratio of MFG (43.15) is worse than 85.93% of its industry peers.
A Debt/Equity ratio of 6.07 is on the high side and indicates that MFG has dependencies on debt financing.
The Debt to Equity ratio of MFG (6.07) is worse than 97.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.07 | ||
| Debt/FCF | 43.15 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC6.21%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
MFG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.35%, which is quite impressive.
The Earnings Per Share has been growing by 47.83% on average over the past years. This is a very strong growth
MFG shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.88%.
Measured over the past years, MFG shows a quite strong growth in Revenue. The Revenue has been growing by 8.28% on average per year.
EPS 1Y (TTM)36.35%
EPS 3Y13.3%
EPS 5Y47.83%
EPS Q2Q%27.87%
Revenue 1Y (TTM)26.88%
Revenue growth 3Y10.15%
Revenue growth 5Y8.28%
Sales Q2Q%-53.72%
3.2 Future
MFG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.66% yearly.
The Revenue is expected to grow by 11.54% on average over the next years. This is quite good.
EPS Next Y35.68%
EPS Next 2Y21.61%
EPS Next 3Y17.66%
EPS Next 5YN/A
Revenue Next Year17.42%
Revenue Next 2Y13.78%
Revenue Next 3Y11.54%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
MFG is valuated reasonably with a Price/Earnings ratio of 10.04.
74.62% of the companies in the same industry are more expensive than MFG, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of MFG to the average of the S&P500 Index (28.18), we can say MFG is valued rather cheaply.
MFG is valuated reasonably with a Price/Forward Earnings ratio of 8.90.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MFG indicates a somewhat cheap valuation: MFG is cheaper than 66.08% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.81. MFG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.04 | ||
| Fwd PE | 8.9 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, MFG is valued cheaper than 90.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.93 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as MFG's earnings are expected to grow with 17.66% in the coming years.
PEG (NY)0.28
PEG (5Y)0.21
EPS Next 2Y21.61%
EPS Next 3Y17.66%
5. Dividend
5.1 Amount
MFG has a Yearly Dividend Yield of 3.70%.
Compared to an average industry Dividend Yield of 3.50, MFG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, MFG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.7% |
5.2 History
The dividend of MFG has a limited annual growth rate of 4.29%.
MFG has paid a dividend for at least 10 years, which is a reliable track record.
As MFG did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)4.29%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
32.13% of the earnings are spent on dividend by MFG. This is a low number and sustainable payout ratio.
MFG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP32.13%
EPS Next 2Y21.61%
EPS Next 3Y17.66%
4.92
0 (0%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners41.99%
Inst Owner Change0.81%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap61.73B
Analysts78
Price Target13.06 (165.45%)
Short Float %0.06%
Short Ratio2.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.7% |
Yearly Dividend0.13
Dividend Growth(5Y)4.29%
DP32.13%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)42.41%
Min EPS beat(2)39.87%
Max EPS beat(2)44.95%
EPS beat(4)4
Avg EPS beat(4)43.12%
Min EPS beat(4)9.35%
Max EPS beat(4)78.29%
EPS beat(8)7
Avg EPS beat(8)26.74%
EPS beat(12)9
Avg EPS beat(12)18.97%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)22.92%
Min Revenue beat(2)21.93%
Max Revenue beat(2)23.9%
Revenue beat(4)4
Avg Revenue beat(4)166.83%
Min Revenue beat(4)21.93%
Max Revenue beat(4)394.74%
Revenue beat(8)8
Avg Revenue beat(8)157.18%
Revenue beat(12)12
Avg Revenue beat(12)138.01%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)81.22%
PT rev (3m)112.05%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)0.24%
EPS NY rev (1m)0.02%
EPS NY rev (3m)4.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-1.16%
Revenue NY rev (3m)-1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.04 | ||
| Fwd PE | 8.9 | ||
| P/S | 2.25 | ||
| P/FCF | 5.93 | ||
| P/OCF | 4.94 | ||
| P/B | 0.84 | ||
| P/tB | 0.9 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.49
EY9.96%
EPS(NY)0.55
Fwd EY11.24%
FCF(TTM)0.83
FCFY16.85%
OCF(TTM)1
OCFY20.26%
SpS2.19
BVpS5.89
TBVpS5.47
PEG (NY)0.28
PEG (5Y)0.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.3% | ||
| ROE | 7.76% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 20.87% | ||
| GM | N/A | ||
| FCFM | 37.84% |
ROA(3y)0.23%
ROA(5y)0.22%
ROE(3y)6.19%
ROE(5y)5.78%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y2.55%
PM growth 5Y36.41%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.07 | ||
| Debt/FCF | 43.15 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 159.06% | ||
| Cap/Sales | 7.65% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 181.26% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC6.21%
ROIC/WACCN/A
Cap/Depr(3y)112.68%
Cap/Depr(5y)123.73%
Cap/Sales(3y)5.14%
Cap/Sales(5y)6.32%
Profit Quality(3y)901.22%
Profit Quality(5y)1311.2%
High Growth Momentum
Growth
EPS 1Y (TTM)36.35%
EPS 3Y13.3%
EPS 5Y47.83%
EPS Q2Q%27.87%
EPS Next Y35.68%
EPS Next 2Y21.61%
EPS Next 3Y17.66%
EPS Next 5YN/A
Revenue 1Y (TTM)26.88%
Revenue growth 3Y10.15%
Revenue growth 5Y8.28%
Sales Q2Q%-53.72%
Revenue Next Year17.42%
Revenue Next 2Y13.78%
Revenue Next 3Y11.54%
Revenue Next 5YN/A
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-47.6%
FCF growth 3Y-53.7%
FCF growth 5YN/A
OCF growth 1Y-40.41%
OCF growth 3Y-51.59%
OCF growth 5YN/A