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 398 industry peers in the Banks industry. MFG has a bad profitability rating. Also its financial health evaluation is rather negative. An interesting combination arises when we look at growth and value: MFG is growing strongly while it also seems undervalued. Finally MFG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
MFG had positive earnings in the past year.
In the past year MFG had a positive cash flow from operations.
Each year in the past 5 years MFG has been profitable.
In the past 5 years MFG always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of MFG (0.30%) is worse than 83.67% of its industry peers.
MFG's Return On Equity of 7.76% is in line compared to the rest of the industry. MFG outperforms 45.98% of its industry peers.
| 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
With a Profit Margin value of 20.87%, MFG perfoms like the industry average, outperforming 40.20% of the companies in the same industry.
MFG's Profit Margin has improved in the last couple of years.
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.
MFG has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for MFG remains at a similar level compared to 5 years ago.
MFG has a worse debt/assets ratio than last year.
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.
MFG has a Debt to FCF ratio of 43.15. This is amonst the worse of the industry: MFG underperforms 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.
Looking at the Debt to Equity ratio, with a value of 6.07, MFG is doing worse than 97.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.07 | ||
| Debt/FCF | 43.15 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC6.23%
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.
Measured over the past years, MFG shows a very strong growth in Earnings Per Share. The EPS has been growing by 47.83% on average per year.
The Revenue has grown by 26.88% in the past year. This is a very strong growth!
MFG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.28% yearly.
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
Based on estimates for the next years, MFG will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.66% on average per year.
Based on estimates for the next years, MFG will show a quite strong growth in Revenue. The Revenue will grow by 11.54% on average per year.
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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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 10.14.
Based on the Price/Earnings ratio, MFG is valued a bit cheaper than 72.86% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.87. MFG is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 9.10, the valuation of MFG can be described as very reasonable.
Based on the Price/Forward Earnings ratio, MFG is valued a bit cheaper than the industry average as 65.33% of the companies are valued more expensively.
MFG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.14 | ||
| Fwd PE | 9.1 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, MFG is valued cheaply inside the industry as 89.70% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.07 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
MFG's 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 3.76%.
MFG's Dividend Yield is a higher than the industry average which is at 3.53.
MFG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
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.
MFG has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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%
5.07
+0.12 (+2.42%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners41.99%
Inst Owner Change0.04%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap63.61B
Analysts78
Price Target13.06 (157.59%)
Short Float %0.01%
Short Ratio0.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
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)94.38%
PT rev (3m)121.35%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)-3.27%
EPS NY rev (1m)0.02%
EPS NY rev (3m)15.95%
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 | 10.14 | ||
| Fwd PE | 9.1 | ||
| P/S | 2.3 | ||
| P/FCF | 6.07 | ||
| P/OCF | 5.05 | ||
| P/B | 0.85 | ||
| P/tB | 0.92 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.5
EY9.86%
EPS(NY)0.56
Fwd EY10.99%
FCF(TTM)0.84
FCFY16.49%
OCF(TTM)1
OCFY19.82%
SpS2.21
BVpS5.94
TBVpS5.52
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
WACC6.23%
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