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 405 industry peers in the Banks industry. MFG has a bad profitability rating. Also its financial health evaluation is rather negative. MFG has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination!
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.
MFG had positive earnings in each of the past 5 years.
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 84.21% of its industry peers.
MFG has a Return On Equity of 7.76%. This is comparable to the rest of the industry: MFG outperforms 46.37% 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
MFG has a Profit Margin of 20.87%. This is comparable to the rest of the industry: MFG outperforms 41.10% of its industry peers.
In the last couple of years the Profit Margin of MFG has grown nicely.
The Operating Margin and Gross Margin are not available for MFG so they could not be analyzed.
| 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
The Debt to FCF ratio of MFG is 43.15, which is on the high side as it means it would take MFG, 43.15 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 43.15, MFG is not doing good in the industry: 80.95% of the companies in the same industry are doing better.
MFG has a Debt/Equity ratio of 6.07. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 6.07, MFG is doing worse than 99.50% 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
WACC6.34%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 36.35% over the past year.
The Earnings Per Share has been growing by 47.83% on average over the past years. This is a very strong growth
The Revenue has grown by 26.88% in the past year. This is a very strong growth!
The Revenue has been growing by 8.28% on average over the past years. This is quite good.
EPS 1Y (TTM)36.35%
EPS 3Y13.14%
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
The Earnings Per Share is expected to grow by 16.08% on average over the next years. This is quite good.
Based on estimates for the next years, MFG will show a quite strong growth in Revenue. The Revenue will grow by 10.78% on average per year.
EPS Next Y33.34%
EPS Next 2Y20.38%
EPS Next 3Y16.08%
EPS Next 5YN/A
Revenue Next Year18.8%
Revenue Next 2Y13.97%
Revenue Next 3Y10.78%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.96, the valuation of MFG can be described as very reasonable.
MFG's Price/Earnings ratio is a bit cheaper when compared to the industry. MFG is cheaper than 60.65% of the companies in the same industry.
MFG is valuated cheaply when we compare the Price/Earnings ratio to 29.62, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.85 indicates a reasonable valuation of MFG.
Based on the Price/Forward Earnings ratio, MFG is valued a bit cheaper than the industry average as 60.15% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, MFG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.96 | ||
| Fwd PE | 10.85 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, MFG is valued cheaply inside the industry as 86.72% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.09 | ||
| 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.
MFG's earnings are expected to grow with 16.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.36
PEG (5Y)0.25
EPS Next 2Y20.38%
EPS Next 3Y16.08%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.98%, MFG has a reasonable but not impressive dividend return.
MFG's Dividend Yield is comparable with the industry average which is at 3.19.
Compared to an average S&P500 Dividend Yield of 2.27, MFG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
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
MFG pays out 32.13% of its income as dividend. This is a sustainable payout ratio.
MFG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP32.13%
EPS Next 2Y20.38%
EPS Next 3Y16.08%
5.62
-0.17 (-2.94%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners41.99%
Inst Owner Change-90.65%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap70.81B
Analysts77.89
Price Target6.16 (9.61%)
Short Float %0.01%
Short Ratio1.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
Yearly Dividend92.64
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)4.39%
PT rev (3m)48.29%
EPS NQ rev (1m)-3.66%
EPS NQ rev (3m)-3.44%
EPS NY rev (1m)13.49%
EPS NY rev (3m)13.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)3.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.96 | ||
| Fwd PE | 10.85 | ||
| P/S | 2.68 | ||
| P/FCF | 7.09 | ||
| P/OCF | 5.9 | ||
| P/B | 1 | ||
| P/tB | 1.07 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.47
EY8.36%
EPS(NY)0.52
Fwd EY9.22%
FCF(TTM)0.79
FCFY14.11%
OCF(TTM)0.95
OCFY16.96%
SpS2.1
BVpS5.63
TBVpS5.24
PEG (NY)0.36
PEG (5Y)0.25
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
WACC6.34%
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 3Y13.14%
EPS 5Y47.83%
EPS Q2Q%27.87%
EPS Next Y33.34%
EPS Next 2Y20.38%
EPS Next 3Y16.08%
EPS Next 5YN/A
Revenue 1Y (TTM)26.88%
Revenue growth 3Y10.15%
Revenue growth 5Y8.28%
Sales Q2Q%-53.72%
Revenue Next Year18.8%
Revenue Next 2Y13.97%
Revenue Next 3Y10.78%
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