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AGING Analysis Report
Aug 3, 2026
8 days ago · 100% complete
For AI assistants & researchers — machine-readable summary of this page

What this page is: Delvantic's full research page for Mitsubishi UFJ Financial Group, Inc. (MUFG) — AI-driven forensic equity research: mechanical valuation models (DCF, EPV, anchored-PE, scenario) plus three independent AI lenses (Quality / Value / Sentiment). Everything below is rendered server-side; you are not missing content that requires JavaScript. All scores are predictions and research opinions, not financial advice.

Our current read (analysis of 2026-08-11): Designation Gem · Cairn score +39 (−100…+100 Quality+Value blend) · Quality 41 · Value 37 · Sentiment 1 (timing only, not weighted) · Composite fair value $43.53 vs $22.45 at analysis

Page map (sections in order; each card carries a stable reference-name attribute you can cite):

  • profile-header / price-overview — company profile, live quote, market cap
  • extended-analysisthe core: three AI lens reads with findings, scores, and the analyst memo
  • future-predictions — our forward price-band predictions
  • market-narrative / ai-findings / gpt-critique — narrative context, cross-model findings, and an adversarial critique of our own analysis (near the end of the document)
  • Members-only sections (render as login gates for anonymous readers): price-history, income-trend, key-metrics, financials (statement tables), insider-trading. The analysis above is public; the raw data tables require a free account.

More for machine readers: site briefing at /llms.txt · any ticker resolves at delvantic.com/stock/TICKER · raw inputs are public-company filings and market data (via licensed data feeds); every model, score, lens read, and prediction on this page is Delvantic's own analysis.

Mitsubishi UFJ Financial Group, Inc.

MUFG NYSE GICS Category PDF
Financial Services · Banks - Diversified
Chiyoda, 100-8330, Japan mufg.jp Updated Aug 3, 12:01am
Price
$22.45
Market Cap
$253.2B
Employees
150,800
Beta
0.31
Avg Volume
3,427,060
Last Dividend
$86.00
CEO
Mr. Junichi Hanzawa

Mitsubishi UFJ Financial Group, Inc. Sponsored ADR represents an interest in Mitsubishi UFJ Financial Group, Inc., a Japanese bank holding and financial services company headquartered in Tokyo. The group provides a broad spectrum of financial services, including commercial and retail banking, corporate and investment banking, trust banking, securities brokerage, asset management, leasing, and consumer finance. It serves individuals, small and medium-sized enterprises, large corporations, financial institutions, and public-sector entities. The company operates through diversified business segments such as retail and commercial banking, corporate banking, global banking, trust assets, and credit card and consumer finance operations. Its offerings span deposits, lending, payment and settlement services, foreign exchange, trade finance, project and structured finance, as well as investment products like mutual funds and structured notes. Mitsubishi UFJ Financial Group, Inc. Sponsored ADR allows international investors to gain exposure to one of Japan’s largest and most globally connected financial groups, which plays a central role in capital intermediation, cross-border financing, and investment services across Asia, the Americas, and Europe.

Runs with full report Generated: Aug 3, 2026 12:14am
Earnings Schedule
Checked daily · calendar updated Aug 11
No upcoming print on the calendar yet — companies typically confirm a few weeks ahead. Last print was Aug 3, 2026.
EPS surprise history — vs analyst consensus · 5 prints of vendor history
+9.8%
Jan '26
-3.3%
Feb '26
-150.0%
Mar '26
+70.0%
May '26
+32.4%
Aug '26
Print date EPS est. EPS actual Revenue est. Revenue actual
Aug 3, 2026 $0.34 $0.45 +32.4%
May 15, 2026 $0.20 $0.34 +70.0%
Mar 24, 2026 $-0.40 $-1.00 -150.0%
Feb 4, 2026 $0.30 $0.29 -3.3%
Jan 7, 2026 $1.94 $2.13 +9.8%

Green = beat the estimate, red = missed. An earnings print is the fastest way a thesis changes — our designations should be re-read after each one.

Recent SEC Filings
Last updated: Aug 2, 2026 3:34pm (8d ago)
Filed Form Document
Aug 7, 2026 13F-HR View
Aug 6, 2026 6-K View
Aug 4, 2026 F-N View
Aug 4, 2026 F-3ASR View
Aug 3, 2026 4 View
Aug 3, 2026 6-K View
Jul 24, 2026 6-K View
Jul 21, 2026 N-PX View
Jul 15, 2026 SCHEDULE 13D/A View
Jul 15, 2026 4 View
Jul 15, 2026 4 View
Jul 15, 2026 4 View

Filings link to the SEC’s EDGAR system. Annual/quarterly reports (10-K, 10-Q, 20-F) carry the full story; 8-K/6-K current reports are the fastest signal that something material happened.

Price Overview
Price at report time
$22.45
as of Aug 3, 12:18am (8d ago)
Change · Aug 3
-0.05 (-0.22%)
Day Range
$22.35 – $22.65
52-Week Range
$13.62 – $23.25
50-Day MA
$20.73
200-Day MA
$17.94
Volume
4,723,900.00
Right now · live
loading…
 
Real-time — the change above is the move since the report (over 8d).
Share Structure
Outstanding 11,287,605,929.00
Float 11,181,916,602.00
Free Float 99.1%
High free float — 99.1% of shares trade freely, ~0.9% held by insiders/institutions
Very liquid — most shares trade freely. Low insider ownership can mean less management alignment, but makes large position sizing straightforward.
Price History (1 Year)
Last updated: Aug 3, 2026 12:21am (8d ago)
Revenue & Net Income Trend
The directional story — useful even when net income is negative.
Last updated: Jul 31, 2026 9:12am (11d ago)
Why there are no quarterly figures for Mitsubishi UFJ Financial Group, Inc.

This company does not file structured financial statements with the U.S. SEC, so quarterly figures aren't available from our filings-based data engine. Annual figures shown here come from the sources that do cover it.

Revenue
The top line — total sales before any costs or taxes are subtracted. A measure of how much business the company is doing.
Net Income
The bottom line — profit left after subtracting all expenses, interest, and taxes from revenue. Reflects accounting profitability, but includes non-cash items like depreciation, so it isn't the same as cash earned.
Operating Cash Flow
The real cash generated by the day-to-day business — selling products, paying suppliers, collecting from customers. Calculated from net income by adding back non-cash items and adjusting for timing (unpaid bills, unsold inventory). When OCF consistently lags net income, the reported profit may not be converting to real money.
Period Revenue Net Income Net Margin YoY/QoQ
Key Metrics
TD Twelve Data statement HEX SEC filing
Industry comparison last run: Aug 3, 2026 12:12am
P/E Ratio (Price per dollar of earnings)
HEX
Stock Price / EPS (Diluted)
16.87
Stock Price: $22.45
EPS (Diluted): 1.33
P/B Ratio (Price vs net asset value)
HEX
Stock Price / Book Value Per Share
1.97
Stock Price: $22.45
Total Equity: $130.58B
Shares: 11,430,860,883
EV/EBITDA (Total value vs operating profit)
HEX
Enterprise Value / EBITDA
Market Cap: $253.17B
Total Debt: $0.00
Cash: $566.31B
EBITDA: N/A
EBITDA not available
Enterprise Value (Takeover price (cap + debt - cash))
HEX
Market Cap + Total Debt - Cash
-$310.7B
Market Cap: $253.17B
Total Debt: $0.00
Cash: $566.31B
Gross Margin (Revenue left after direct costs)
HEX
Gross Profit / Revenue
Gross Profit: N/A
Revenue: $74.36B
Missing from API: Gross Profit
Operating Margin (Revenue left after all operations)
HEX
Operating Income / Revenue
19.9%
Operating Income: $14.82B
Revenue: $74.36B
Net Margin (Revenue left as actual profit)
HEX
Net Income / Revenue
14.6%
Net Income: $10.84B
Revenue: $74.36B
ROE (Profit from shareholder equity)
HEX
Net Income / Total Equity
8.3%
Net Income: $10.84B
Total Equity: $130.58B
ROIC (Profit from all invested capital)
HEX
NOPAT / Invested Capital
-2.8%
Operating Income: $14.82B
Tax Rate: 18.8%
Equity: $130.58B
Total Debt: $0.00
Cash: $566.31B
Zero debt — invested capital = equity minus cash (very efficient)
Current Ratio (Can it pay short-term bills)
HEX
Current Assets / Current Liabilities
Current Assets: N/A
Current Liabilities: N/A
Missing from API: Current Assets, Current Liabilities
Debt/Equity (Leverage — debt vs equity)
HEX
Total Debt / Total Equity
0.00
Short-Term Debt: $0.00
Long-Term Debt: $0.00
Total Debt: $0.00
Total Equity: $130.58B
Zero debt — this company carries no debt obligations. Strongest possible score.
Rev/Share (Top-line per share)
HEX
Revenue / Shares Outstanding
$6.51
Revenue: $74.36B
Shares: 11,430,860,883
Book Value/Share (Net assets per share)
HEX
(Total Assets - Total Liabilities) / Shares
$11.42
Total Equity: $130.58B
Shares: 11,430,860,883
FCF/Share (Real cash generated per share)
HEX
(Operating Cash Flow + CapEx) / Shares
$-2.01
Operating CF: -$21.09B
CapEx: -$1.90B
Shares: 11,430,860,883
CapEx is negative (outflow) — added to OCF to get FCF
Div Yield (Annual income from holding)
TD
Last Annual Dividend / Stock Price
383.1%
Last Dividend: $86.00
Stock Price: $22.45
Payout Ratio (Earnings paid out as dividends)
HEX
Dividends Paid / Net Income
Dividends Paid: N/A
Net Income: $10.84B
Dividends paid not available in cash flow statement
Industry Benchmarks
Last run: Aug 3, 2026 12:11am
Compares MUFG against LLM-researched typical ranges for its industry. One research call per industry, cached indefinitely — every stock in the same industry reuses the same baseline.
Income Statement (Annual)
Last updated: Jul 31, 2026 9:12am (11d ago)
Metric 2024 2025 2025 2025 2026
Revenue $62.5B $67.9B $67.9B $67.9B $74.4B
Cost of Revenue
Gross Profit
Operating Expenses $18.4B $20.3B $20.3B $20.3B $22.7B
Operating Income $11.5B $9.8B $9.8B $9.8B $14.8B
Net Income $8.3B $7.9B $7.9B $7.9B $10.8B
EBITDA
EPS $1.04 $1.00 $1.00 $1.04 $1.34
EPS (Diluted) $1.04 $1.00 $1.00 $1.03 $1.33
Balance Sheet (Annual)
Last updated: Jul 31, 2026 9:12am (11d ago)
Metric 2022 2023 2024 2025 2026
Cash & Equivalents $696.2B $714.6B $689.4B $684.9B $566.3B
Total Current Assets
Total Assets $2.3T $2.4T $2.5T $2.5T $2.7T
Current Liabilities
Long-Term Debt
Total Liabilities $2.2T $2.3T $2.4T $2.4T $2.5T
Total Equity $102.1B $103.2B $115.8B $120.6B $130.6B
Retained Earnings
Cash Flow (Annual)
Last updated: Jul 31, 2026 9:13am (11d ago)
Metric 2022 2023 2024 2025 2026
Operating Cash Flow $5.7B $13.2B -$9.3B $6.4B -$21.1B
Capital Expenditure -$645.2M -$729.2M -$712.5M -$825.4M -$1.9B
Free Cash Flow $5.1B $12.5B -$10.1B $5.6B -$23.0B
Acquisitions (net)
Net Debt Issued / (Repaid) -$5.1B $21.1B -$4.9B -$119.6B -$1.6B
Dividends Paid
Stock Buybacks -$993.3M -$2.8B -$2.5B -$2.6B -$3.1B
Net Change in Cash $48.8B $18.4B -$25.2B -$5.1B -$118.6B
Growth Trends (YoY %)
Last updated: Jul 31, 2026 9:12am (11d ago)
Metric 2025 2025 2025 2026
Revenue Growth +8.6% +0.0% +0.0% +9.5%
Gross Profit Growth
Operating Income Growth -15.0% +0.0% +0.0% +51.1%
Net Income Growth -4.6% +0.0% +0.0% +36.5%
EBITDA Growth
Dividend History (Last 20)
Last updated: Jul 31, 2026 9:13am (11d ago)
Date Dividend Declaration Record Payment
2025-03-31 $0.27
2024-09-30 $0.17
2024-03-27 $0.13
2020-03-30 $0.12
2007-09-26 $0.06
2006-09-27 $0.04
2006-03-28 $0.03
2005-09-27 $0.02
2005-03-28 $0.05
2004-03-26 $0.05
2003-03-26 $0.03
2002-09-25 $0.05
2002-03-26 $0.04
Insider Trading (Recent)
Last updated: Aug 3, 2026 12:14am (8d ago)
Type codes PPurchase SSale AAward / grant MOption exercise FIn-kind (tax) CConversion GGift DReturn to issuer
All SEC Form 4 codes
Open market
P Purchase
Open-market or private purchase of shares.
S Sale
Open-market or private sale of shares.
Compensation (Rule 16b-3)
A Award / grant
Grant or award of securities (RSUs, options, etc.) under Rule 16b-3.
D Return to issuer
Securities disposed back to the company under Rule 16b-3.
F In-kind (tax)
Shares withheld or delivered to pay the option-exercise price or tax — not an open-market sale.
I Discretionary
Discretionary transaction under an employee plan — Rule 16b-3(f).
M Option exercise
Exercise or conversion of a derivative (option/RSU) into shares — exempt.
Derivatives
C Conversion
Conversion of a derivative security into the underlying shares.
E Short expiration
Expiration of a short derivative position.
H Long expiration
Expiration or cancellation of a long derivative position with value received.
O OTM exercise
Exercise of an out-of-the-money derivative.
X ITM exercise
Exercise of an in-the-money or at-the-money derivative.
Other exempt
G Gift
Bona fide gift of securities.
L Small acquisition
Small acquisition under Rule 16a-6.
W Inheritance
Acquisition or disposition by will or the laws of descent.
Z Voting trust
Deposit into or withdrawal from a voting trust.
Other
J Other
Other acquisition or disposition (explained in a Form 4 footnote).
K Equity swap
Transaction in an equity swap or similar instrument.
U Tender / buyout
Disposition via tender of shares in a change-of-control transaction.

Compensation-plan codes (A, D, F, M) are routine and rarely directional. Open-market P (buy) and S (sale) carry the most signal.

Date Insider Type Shares Price Value
2026-07-30 MITSUBISHI UFJ FINANCIAL GROUP INC D-Return to issuer 414,396.00 $213.28 $88.4M
2026-07-15 KAMEZAWA HIRONORI J-Other 76,300.00 $0.00 $0
2026-07-15 KAMEZAWA HIRONORI C-Conversion 152,700.00 $0.00 $0
2026-07-14 Ochi Toshiki J-Other 46,800.00 $0.00 $0
2026-07-14 Ochi Toshiki C-Conversion 93,836.00 $0.00 $0
2026-07-14 Seki Hiroyuki J-Other 63,700.00 $0.00 $0
2026-07-14 Seki Hiroyuki C-Conversion 127,402.00 $0.00 $0
2026-07-14 Kobayashi Makoto J-Other 10,300.00 $0.00 $0
2026-07-14 Kobayashi Makoto C-Conversion 20,736.00 $0.00 $0
2026-07-14 KAMEZAWA HIRONORI J-Other 32,900.00 $0.00 $0
2026-07-14 KAMEZAWA HIRONORI C-Conversion 65,914.00 $0.00 $0
2026-07-14 Kanie Norio J-Other 5,400.00 $0.00 $0
2026-07-14 Kanie Norio C-Conversion 10,826.00 $0.00 $0
2026-07-14 Sakurai Takayuki J-Other 500.00 $0.00 $0
2026-07-14 Sakurai Takayuki C-Conversion 1,191.00 $0.00 $0
2026-07-14 Tsukiyama Keitaro J-Other 16,700.00 $0.00 $0
2026-07-14 Tsukiyama Keitaro C-Conversion 33,408.00 $0.00 $0
2026-07-14 Mike Kanetsugu J-Other 79,400.00 $0.00 $0
2026-07-14 Mike Kanetsugu C-Conversion 158,826.00 $0.00 $0
2026-07-01 Hanzawa Junichi A-Award 11,220.00 $0.00 $0
Deep Analysis
Last run: Aug 5, 2026 2:27:05 am

Pre-flight intelligence scans the company first, then routes to the right analytical methods.

0 Company Classification — What type of company is this?
1 Industry Landscape — Where is the industry headed?
2 Company Momentum — Where is this company trending?
3 Forward Projection — 1Y & 2Y projected metrics (requires Layer 1 + 2)
4a DCF Valuation — Present value of future cash flows
4b Earnings Power Value — Floor value — worth with zero growth
4c Anchored PE — Industry PE adjusted for growth differential
4d Reverse DCF — What growth is the market pricing in?
4e Revenue-Based DCF — For growth/narrative companies (skip if mature earner)
Not applicable for Mature Earner companies
4f Anchored P/S — Price-to-Sales peer comparison (skip if mature earner)
Not applicable for Mature Earner companies
4g Scenario Analysis — Bull / Base / Bear (skip if mature earner)
Not applicable for Mature Earner companies
4h Dividend Discount Model — For dividend/income stocks only
Not applicable for Mature Earner companies
4i Book Value Analysis — For deep value / turnaround stocks only
Not applicable for Mature Earner companies
4j Insider Activity — Are insiders buying or selling?
4f Cash Flow Quality — How trustworthy is the FCF?
4g Debt Maturity Risk — Can it handle its debt?
4h Macro Environment — Rates, market valuation, volatility
4i Sector Intelligence — How does this company compare within its sector?
4j Revenue Confidence — How reliable is the growth projection?
4k Sensitivity Analysis — How fragile is the fair value estimate?
4l Sector Demand Cycle — Is the sector in a boom, steady state, or contraction?
5 AI Investigation — Adaptive research engine (Claude)
5b Thesis Evaluation — What does the market believe? (narrative/platform stocks only)
Not applicable for Mature Earner companies
6 Valuation Synthesis — Weighted verdict from all methods (requires Layer 4)
Narrative Economics
The story the market is telling about this stock — the intangible X-factor (founder mythology, cult dynamics, TAM-of-imagination) that moves price beyond what cash flows alone explain. After Shiller, Narrative Economics.
No narrative profile yet for MUFG — it's generated by the pipeline (market-narrative step).
Claude Reading
Independent analyst synthesis · claude-opus-4-7 · generated 2026-08-03 00:20:28
Verdict Fairly valued near $22 — synthesis $43 target is a bank-OCF modeling artifact; real fair value $20-25, own for the 3.8% yield and residual BoJ normalization, not for multi-bagger upside.

The raw data here is genuinely strange and the models are papering over it. The "annual income" table shows four rows in a row at $67.90B rev / $7.94B NI (2025-03, 2025-06, 2025-09), which is clearly the same fiscal-year figure repeated — MUFG reports on a March fiscal year. So the real trajectory is FY2024 $62.5B → FY2025 $67.9B → FY2026 $74.4B revenue, and NI $8.3B → $7.9B → $10.8B. That's ~19% revenue growth over two years and ~30% NI growth, which for a Japanese megabank is genuine BoJ-normalization operating leverage, not a fluke. The 36.5% recent earnings YoY is real. ROE at 8.3% is still mediocre by global bank standards (US money-centers run 11-13%), but it's up meaningfully from the sub-6% ROEs MUFG posted through the ZIRP decade.

The synthesis verdict of $43 fair value (+89% upside) is almost certainly garbage and should be dismissed. A DCF on a bank using operating cash flow of -$21B is meaningless — banks' OCF swings wildly with loan book and deposit changes and doesn't represent distributable earnings. The "poor cash flow quality" flag and negative EV/revenue both stem from the same misapplication: standard non-financial valuation frameworks don't work on balance-sheet-driven businesses. For MUFG the right anchors are P/B (1.97x on 8.3% ROE), P/E (16.9x), and dividend yield (3.8%). At 1.97x book with an 8.3% ROE, the implied cost of equity is ~4.2% — that's rich, not cheap. Peer Japanese megabanks (SMFG, Mizuho) trade closer to 0.9-1.1x book. Either MUFG's P/B here is stale/mismeasured, or the stock is actually expensive relative to peers, not the 47% discount the narrative model claims.

The Market Forces "value trap" call and the Narrative model's "anchored, minimal intensity, durable cynicism" read are the two most honest pieces in the file, and they contradict the synthesis. I side with Market Forces directionally but not on the "correctly priced" conclusion — MUFG has actually been one of the best-performing large banks globally over the past three years precisely because the BoJ rate normalization thesis is playing out. NII expansion is real; the 16.8% earnings CAGR proves it. The contrarian argument against my own read: this is a late-cycle rate-normalization trade. BoJ policy rate is ~0.5%, terminal expectations maybe 0.75-1.0%. Most of the NIM expansion is already in the numbers. If yen strengthens materially (which typically accompanies further BoJ tightening), USD-denominated ADR holders get hit on translation even if JPY earnings hold. The insider "J-Other/C-Conversion" activity is administrative (likely trust/ESOP conversion, not directional selling) — no signal there.

My verdict: MUFG is roughly fairly valued to modestly rich here, not deeply undervalued. At $22.45, 1.97x book, 16.9x earnings, 3.8% yield — you're paying a full price for a bank whose ROE has structurally improved from 6% to 8% but is unlikely to reach 11%+ without further rate hikes that would also crimp the yen carry and loan demand. Fair value is probably $20-25, centered near current price. The 89% upside claim from the synthesis engine is a valuation-model artifact from bank OCF being negative and revenue-multiple frameworks misfiring — ignore it. The value-trap framing from Market Forces is directionally right on the structural headwinds (demographics, deflation risk if BoJ overshoots, CRE exposure in US via MUFG's Union Bank legacy and current MUAH holdings) but wrong that the market has already fully priced this — the recent price action and earnings momentum suggest the market is still catching up to normalization. For a US-based dividend investor, 3.8% yield + low-single-digit organic growth is a reasonable but not exciting proposition. I dissent from the synthesis "undervalued at $43" and lean fair-value with a slight bearish tilt versus consensus that thinks Japan bank re-rating has legs.

GPT Reading
Independent reading · gpt-5.4 · generated 2026-08-03 00:20:44
Verdict Overvalued at $22.45 — recent profit improvement is real, but 1.97x book and 16.9x earnings overstate a bank still only generating 8.3% ROE; fair value looks closer to $17-$19.

At $22.45, MUFG does not read to me like a 2x-book, high-teens P/E bank that deserves a scarcity premium; it reads like a good franchise whose recent earnings uplift is being overcapitalized. The core fact pattern is solid but not spectacular: revenue rose from $62.50B in 2024 to $67.90B in 2025 and $74.36B in 2026, while net income moved from $8.32B to $7.94B to $10.84B. That last year is clearly the best in the set, but the profitability it implies is still only 8.3% ROE on $130.58B of equity and 0.41% ROA. For a globally systemic bank, 8.3% ROE is improvement, not evidence of a structurally transformed earnings engine. Paying 1.97x book for an 8%-ish ROE bank is hard to justify unless you think returns are about to move materially higher and stay there. The current multiple implies something closer to durable low-teens returns than the data actually show.

What stands out most is the tension between the valuation models calling the stock dramatically undervalued and the accounting/economic quality of the reported performance. The “cheapness” argument is built on earnings and book value, but the latest annual cash flow shows operating cash flow of negative $21.09B and free cash flow of negative $22.99B. For banks, conventional FCF is a noisy and often misleading metric because balance-sheet flows swamp industrial-style cash conversion, so I would not treat negative FCF as dispositive. But I also would not ignore it while simultaneously taking a DCF that spits out nearly 90% upside at face value. Add in a reported negative EV/revenue anomaly and duplicate annual rows in the income table, and the right conclusion is not “the stock is obviously half price”; it is “be very careful about model outputs here.” When the primary valuation case depends on noisy inputs and the actual headline profitability is only moderate, I fade the heroic upside math.

The business is plainly improving. Operating income reached $14.82B in 2026 versus $11.55B in 2024, and operating margin improved to 19.9%. Net income jumping 36.5% year over year is real progress, and a 3.8% dividend yield gives investors paid patience. But that is exactly why I think the market already understands the story. A $253B market cap against $10.84B of net income is a full price for a bank still earning less than 10% on equity. If I crudely anchor on what would be more normal for a mature diversified bank with this return profile, something like 1.2x-1.5x book or roughly 10x-13x earnings feels more defendable than 1.97x and 16.9x. On $130.58B of equity, 1.3x-1.5x book would imply equity value around $170B-$196B, materially below today’s $253B. That points to a share price more in the mid-to-high teens than the low twenties.

The strongest case against my read is that I may be underestimating how much earnings power is still to come if Japanese rate normalization continues. If 2026’s $10.84B net income is not a peak but an early step, today’s 16.9x trailing P/E can compress quickly. A move from 8.3% ROE toward 11%-13% ROE would make 2x book much less offensive, especially for a fortress-scale institution with $566.31B of cash and a sticky domestic franchise. The revenue trend is also better than the usual Japan-bank stereotype: 4.7% CAGR over the period and 9.5% recent growth are healthy for a mature megabank. A bull would also rightly argue that Western investors have chronically undervalued Japanese financials for decades, so what looks optically rich versus book may simply reflect a regime change in rates and capital returns. I weigh that evidence less heavily because the reported numbers do not yet show that regime change flowing through to truly high-quality double-digit returns on equity.

What would change my mind is simple: if MUFG can put up another 12-18 months showing net income sustained above roughly $11.5B-$12.5B while lifting ROE to at least 10%-11% without a deterioration in capital, then the current price becomes much easier to defend and even modestly attractive. I would also want to see cleaner evidence that the earnings uplift is not just accounting noise or one-time balance-sheet benefit masked by bank cash-flow complexity. Conversely, if earnings slip back toward the 2024-2025 range of about $8B while book-value multiple stays near 2x, the stock is plainly over-earning in the market’s imagination. Right now, I think investors are paying for the normalized future before MUFG has fully earned it in the numbers.

Grok Reading
Independent reading · grok-4.5 · generated 2026-08-03 00:21:20
Verdict Fairly valued around $22–24; 1.97x book and 17x earnings already price mid-cycle ROE improvement, 3.8% yield is the main support

MUFG at $22.45 is a bank that has already been paid for the Japan re-rating story. Fiscal 2026 revenue of $74.36B and net income of $10.84B mark a clear step-up from the prior run-rate near $68B and $7.9B, delivering a 9.5% revenue lift and 36.5% earnings jump with operating and net margins of 19.9% and 14.6%. That is real improvement, not accounting noise, and the 16.8% earnings CAGR confirms the multi-year turn higher as BoJ policy leaves the zero bound. Yet ROE is still only 8.3% and ROA a wafer-thin 0.41%. At 1.97x book and 16.9x trailing earnings, the market is already capitalizing a mid-teens ROE that has not arrived. A diversified megabank earning high-single-digit returns on equity does not deserve nearly 2x tangible capital unless rate normalization and fee income push sustainable ROE toward 12%; until that is demonstrated, the multiple is full. The $566B cash pile and fortress deposit franchise are genuine, but they are already inside the $253B market cap. Negative operating cash flow of –$21B and FCF of –$23B look alarming on a corporate template, though for a balance-sheet lender they largely reflect loan growth rather than earnings fiction; still, they strip away any claim that this is a cash-compounding machine at a bargain.

The valuation synthesis calling for $42–43 (nearly 4x book) is disconnected from bank economics and should be ignored. Equally, the pure value-trap read underweights the fact that earnings power has already moved from roughly $8B to nearly $11B and that a 3.83% dividend yield supplies a tangible income floor while the market waits for further NIM expansion. Structural Japan headwinds—demographics, still-low absolute rates, regulatory drag—are real and durable, which is why foreign investors have kept a multi-decade discount on the sector; they do not, however, erase the cyclical earnings recovery now visible in the numbers.

The strongest opposing case is straightforward: if BoJ normalization continues and MUFG converts its rate-sensitive book into a sustained 11–12% ROE, today’s 1.97x P/B becomes ordinary rather than rich, the 16.9x P/E compresses via earnings growth rather than multiple contraction, and the stock can grind higher while paying nearly 4%. Recent 36% earnings growth and the 4.7% revenue CAGR give that path empirical support, and Japanese governance reforms plus buybacks could tighten the equity base. I weigh this less heavily because the re-rating from sub-1x book to almost 2x has already discounted a large fraction of that optimism; further upside requires execution, not just narrative.

I would flip to outright undervalued if the next two semi-annual prints show ROE sustainably above 10% with stable credit costs and net interest income still rising, or if the shares retreated toward 1.3–1.4x book while earnings held. I would flip bearish if NI fell back below $9B, if credit costs spiked on CRE or China exposure, or if BoJ stalled and the P/E remained above 15x on flattening earnings.

Big-3 Panel — where each AI stands
Each AI above independently stated a direction (undervalued, fairly valued, or overvalued) and how strongly it believes it (conviction, 0–5). We combine those into a Bull-Bear Index on a 0–10 scale: 5 is neutral, 10 is maximum bullish (undervalued at full conviction), 0 is maximum bearish. We compute the score ourselves with the same arithmetic for every seat — the models never grade their own bullishness — so the three are directly comparable. Δ shows how far each seat sits from the panel average of 3.7; a large Δ marks the dissenting voice, usually the one worth reading.
Claude claude-opus-4-7 5.0
fairly valued · conviction 3/5 · Δ +1.3 vs panel · self: 4.0
GPT gpt-5.4 1.0
overvalued · conviction 4/5 · Δ -2.7 vs panel · self: 3.0
Grok grok-4.5 5.0
fairly valued · conviction 3/5 · Δ +1.3 vs panel · self: 5.0
No second round needed — Panel agreed within band (spread 1: Claude: fairly_valued · GPT: overvalued · Grok: fairly_valued) — second round not warranted
Advanced Analysis Forensic deep-dive · four lenses
Four separate reads — Company Quality (is it a great business?), Valuation (is it mispriced?), General Sentiment (how macro + narrative are pushing it), and AI Impact (how the AI wave reshapes it), kept deliberately apart · 2026-08-03 00:32:23
Delvantic - Cairn AI
Solid + modestly cheap — nibble, add on weakness 6/10
MUFG at $22.45 is a solid megabank trading modestly below a conservative fair value, but the sentiment tape is asleep — this is a patient accumulator, not a table-pounder.
The cruxWhether the Japan-rates normalization actually lifts MUFG's ROE from ~8% toward double digits; without that, the anchored-PE $26.58 is the ceiling, not a waypoint to $43.
Forensic checks Derived mechanically from MUFG's filed financials — not from the AI lenses
Liquidity & RunwayLong Runway
DilutionHeavy Dilution
Earnings QualityPoor — Multiple Red Flags
The four lensesswitch a tab for its full read — score + evidence
Company Quality
+41
Solid
edge √Σ 100 · risk √Σ 56 · conf 6/10

MUFG is a mature, diversified megabank reporting revenue growth from $62.5B (2024) to $74.4B (2026) with operating margin expanding to 19.9% and net income of $10.8B. For a bank the size of the balance sheet dwarfs the income statement, and standard non-financial forensic tools misfire here: the Altman Z of 0.11 flags 'distress' but Z-scores are not meaningful for banks (all banks look distressed on Z because leverage is the business model), and OCF/NI of 0.01x with negative FCF reflects loan-book growth and trading-asset movements, not earnings manipulation. Liquid 'cash' of $566B is largely regulatory/operational bank liquidity, not shareholder free capital. The 'diluted share CAGR of 250%' is almost certainly a data artifact from an ADR ratio change (share count jumps from 75.6M to ~11.5B in one step, then declines gradually from 11.68B to 11.43B) - the underlying share count is actually shrinking modestly, consistent with MUFG's known buyback programs. Insider tape shows only C-Conversion and J-Other codes (no open-market P/S), which is normal for Japanese executive compensation mechanics and non-directional. Net: a scaled, profitable, systemically important bank with improving margins and modestly declining share count. Bank-specific risks (credit cycle, JGB duration, cross-shareholdings) are not visible in this data and require filing-level work.

Strengths 3
m70
Scale and profitability trajectory
Revenue up 19% over the window to $74.4B with operating margin expanding from 18.5% to 19.9% and net income growing to $10.8B - operating leverage is real.
m55
Share count actually shrinking post-adjustment
Adjusting for the one-step jump (ADR ratio artifact), diluted shares declined from 11.68B to 11.43B - roughly 2% reduction, consistent with buyback discipline, not dilution.
m45
Systemically important scale
As Japan's largest banking group with a global footprint, MUFG has franchise durability and funding advantages that the module data cannot capture.
Concerns 3
m40
Cash flow volatility
FCF swings from +$12.5B to -$10.1B to +$5.6B to -$23.0B across recent periods - normal for a bank (loan growth, trading book) but means 'FCF' is not a useful quality signal here; earnings quality must be assessed via NIM, credit costs, and reserves in the filings.
m30
Forensic modules misapplied to a bank
Altman Z of 0.11 and 'distress' label are not diagnostic for banks; treating them as such would misread the business. Same for OCF/NI at 0.01x.
m25
Insider tape opacity
All insider activity is C-Conversion and J-Other with $0 prices - non-directional comp mechanics, but the absence of any open-market conviction buys also gives no positive signal.
This is a solid mature megabank being flagged by tools that were built for non-financials. The Altman Z, OCF/NI, and dilution CAGR readings are all artifacts once you know it's MUFG - the real business is growing revenue, expanding margins to ~20%, and modestly buying back stock. I would not call it Fortress because I have no visibility into credit quality, duration risk, or the cross-shareholding overhang, and Japanese megabank ROEs have historically been mediocre. But there is nothing here that looks like a broken or dishonest business - it looks like exactly what it is, a large, boring, improving national champion bank.
Verify before trusting this (6)
  • Actual share count history in native Japanese shares (not ADRs) to confirm buyback discipline vs. dilution
  • CET1 ratio, NPL ratio, and credit cost trend from the annual securities report
  • Net interest margin trajectory and sensitivity to BoJ rate normalization
  • Size and mark of cross-shareholdings and unrealized gains/losses on securities portfolio
  • Nature of the J-Other/C-Conversion insider entries (likely stock-based comp vesting mechanics under Japanese rules)
  • Whether the 2024 vs 2025 share count jump is an ADR ratio change or a genuine equity issuance
Valuation / Mispricing
+37
Undervalued
edge √Σ 94 · risk √Σ 56 · conf 6/10
Price $22.45 vs conservative anchor ~$26.58 and composite ~$43 - roughly 18% to 90% upside depending on which anchor you trust; call it a real 20-30% margin of safety. attractive below $24.00

The e2e composite pins fair value at $43.28 (signal-adjusted $42.54) with 89% upside, anchored between an EPV floor of $59.97 and an anchored-PE of $26.58. I trust the EPV floor least here (banks + Japan means EPV can overstate durable earnings power given low ROEs and cross-shareholding gains), so I lean on the anchored-PE $26.58 as the more defensible marker. Even that conservative anchor implies roughly 18% upside from $22.45, and the truth likely sits between the two anchors given a solid-quality franchise and a ~4% yield backing the wait.

Cheap signals 3
m62
Below even the conservative PE anchor
Anchored-PE fair value $26.58 vs price $22.45 = ~18% discount on the least aggressive method; the composite $43.28 implies 89% but is likely inflated by the EPV floor.
m55
Growth and margin expansion not priced in
Quality lens confirms revenue growth and margins expanding to ~20% with modest buybacks - the tape is pricing structural stagnation that is not showing up in the numbers.
m45
~4% dividend pays you to wait
Yield alone covers a meaningful chunk of the required return if the re-rating is slow; reduces the cost of being early.
Rich / priced-in 3
m40
Japan-bank discount is semi-permanent
Global investors have applied a structural discount to Japanese megabanks for decades; the gap to composite FV $43 may never fully close regardless of fundamentals.
m30
EPV floor likely overstates durable earnings
$59.97 EPV floor assumes bank NIM and fee stability that a low-rate, low-growth home market does not guarantee - discount this anchor heavily.
m25
Earnings-quality haircut hint (-2)
Even if red flags are accounting artifacts, some caution on reported earnings power is warranted; not enough to erase the discount but enough to trim deserved value.
Cheap enough to be interesting, not cheap enough to be a fat pitch. The conservative anchor says ~18% upside plus a 4% yield - that is a respectable risk-adjusted setup for a solid megabank, but I would not confuse the composite $43 with a realistic target; Japanese banks rarely get re-rated to global peer multiples. I would accumulate at or below $24 and get more aggressive if it drops under $20. The thesis pays off through earnings compounding and dividends, not a multiple explosion.
Verify before trusting this (5)
  • Latest NIM trajectory and sensitivity to BoJ rate normalization
  • Credit quality trends and NPL ratios in domestic and overseas books
  • Cross-shareholding unwind pace and mark-to-market gains vs core earnings
  • Buyback cadence and total shareholder yield vs prior guidance
  • Duration risk and unrealized losses on securities portfolio
General Sentiment
+1
Balanced
tail √Σ 44 · head √Σ 43 · conf 6/10

MUFG sits in the calmest possible sentiment bucket: post-bubble-cynicism with minimal intensity, low cult coefficient, and a durable but sleepy story. There is no mania to unwind and no collapse in progress - the 47% discount is a structural fact the market has priced for years, not a fresh narrative break. With beta of 0.31, the mildly-positive-but-fragile global tape (VIX 16, S&P off 1.6%, neutral +22) barely registers here; a risk-off flinch that would gut a story stock leaves MUFG almost untouched.

Tailwinds 3
m30
Japan-rates normalization backdrop
The durable bull thread for Japanese megabanks - BOJ policy normalization lifting NIM - remains a low-key positive drumbeat that supports the cohort without generating euphoria.
m25
Low beta insulates from tape wobble
Beta 0.31 means the mildly wobbly global tape (S&P off recent highs, 10y at 4.68%) transmits weakly. Macro headwinds that press high-multiple US names slide off this name.
m20
Positive multi-year momentum
Steady low-vol revenue growth and positive 3y trajectory give the tape no reason to punish the name; it grinds rather than gaps.
Headwinds 2
m35
Entrenched foreign-investor skepticism
The dominant sentiment overlay on Japanese megabanks is chronic disinterest from global allocators - a persistent, low-grade discount pressure that keeps the multiple compressed regardless of results.
m25
No narrative to bid it up
Minimal narrative intensity and low cult coefficient mean nothing is pulling incremental buyers in. In a market that rewards story stocks, boring compounders drift.
Net-net this is about as close to sentiment-neutral as a large-cap gets. There is no active narrative pressing the stock either way - the story is durable but the intensity is minimal, the cult is low, and beta of 0.31 mutes what little macro cross-current exists. The mild positive of Japan-rates normalization roughly offsets the chronic foreign-investor apathy that keeps the multiple structurally low. I lean a hair toward balanced-with-a-whiff-of-headwind because 'nobody cares' is itself a soft press in a narrative-driven market, but it is not enough to call a headwind.
Verify before trusting this (4)
  • BOJ rate-path signals - any dovish surprise would sap the one active tailwind for Japanese banks
  • Foreign-flow data into TOPIX banks - a rotation would move MUFG more than earnings will
  • Any crack in the yen or Japanese-bank credit story that would flip the sleepy narrative to active headwind
  • US regional/global bank sentiment - contagion channel even at low beta
The market-wide tape + this name's exposure to it (beta / sector / narrative durability). Context on the non-fundamental pressure — not a call on the business or the price. processId: detail-general-sentiment
AI Impact
not run

This lens hasn't been run for this ticker yet.

The structural effect of the AI wave on this specific business over the next ~5 years — demand, cost leverage, moat, barriers to entry, position in the AI stack. The reality beneath the AI story, not the story's market pressure (General Sentiment owns that) — and not a call on the business today or the price.
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Four lenses kept deliberately separate — Company Quality (price-agnostic), Valuation (price-conditional), General Sentiment (non-fundamental macro/narrative pressure), and AI Impact (structural ~5yr AI exposure). The scores are not blended. Filing-level items (convertibles, lock-ups, customer concentration) are v2 — see each lens's "verify."
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Data via Financial Modeling Prep · Cached for performance · twelvedata
v1.1.525 · a5aac093 · 2026-08-10 20:52:14