Mizuho Financial Group, Inc. Fundamental Analysis
Mizuho Financial Group, Inc. (MFG) shows moderate financial fundamentals with a PE ratio of 14.79, profit margin of 14.46%, and ROE of 11.37%. The company generates $8656.7B in annual revenue with moderate year-over-year growth of 9.47%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze MFG's fundamental strength across five key dimensions:
Efficiency Score
WeakMFG struggles to generate sufficient returns from assets.
Valuation Score
ExcellentMFG trades at attractive valuation levels.
Growth Score
ExcellentMFG delivers strong and consistent growth momentum.
Financial Health Score
ModerateMFG shows balanced financial health with some risks.
Profitability Score
WeakMFG struggles to sustain strong margins.
Key Financial Metrics
Is MFG Expensive or Cheap?
P/E Ratio
MFG trades at 14.79 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, MFG's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Mizuho Financial Group, Inc. at 1.63 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.67 times EBITDA. This is generally considered low.
How Well Does MFG Make Money?
Net Profit Margin
For every $100 in sales, Mizuho Financial Group, Inc. keeps $14.46 as profit after all expenses.
Operating Margin
Core operations generate 18.79 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.37 in profit for every $100 of shareholder equity.
ROA
Mizuho Financial Group, Inc. generates $0.41 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Mizuho Financial Group, Inc. generates limited operating cash flow of $589.88B, signaling weaker underlying cash strength.
Free Cash Flow
Mizuho Financial Group, Inc. produces free cash flow of $487.43B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $39.98 in free cash annually.
FCF Yield
MFG converts 2.63% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.79
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.002
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.63
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.14
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
5.88
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.37
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.004
vs 25 benchmark
ROCE
Return on capital employed
0.006
vs 25 benchmark
How MFG Stacks Against Its Sector Peers
| Metric | MFG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.79 | 19.38 | Better (Cheaper) |
| ROE | 11.37% | 804.00% | Weak |
| Net Margin | 14.46% | -7623.00% (disorted) | Strong |
| Debt/Equity | 5.88 | 1.07 | Weak (High Leverage) |
| Current Ratio | 1.37 | 609.22 | Neutral |
| ROA | 0.41% | -20946.00% (disorted) | Weak |
MFG outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Mizuho Financial Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
273.30%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
98.00%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-301.51%
Industry Style: Value, Dividend, Cyclical
Declining