MFG Investment Analysis Report & Stock Research, Mizuho Financial Group, Inc.-Sp ADR Shs Sponsr Amern Deps Recp 2 Sh

Mizuho Financial Group, Incorporated-Sp ADR Shs Sponsr Amern Deps Recp 2 Sh (MFG)

MFG Stock Report

2-Year Price History

View Larger MFG Chart
NYSE:MFG
$4.75
(8/27 9:35AM)
-0.8%
Open$4.8 Mkt Cap$26.8 Billion
High$4.89 52Wk High$12.00
Low$4.75 52Wk Low$3.26
Volume27,825 Avg Vol 10D484,600

Ockham's Rating

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MFG Revenue

Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 5 years. For, MFG the high and low end of the Price to Sales per share ratios are 2.51x and 1.44x respectively.

Notice that MFG's current Price to Sales per share ratio is 0.65x, which is quite a bit below what we consider a normal Price to Sales ratio for this stock. Given normal conditions and a price of $4.86, MFG is 68% below where we would expect to see it. This will beneficially factor into our final analysis of MFG as it is not often that this stock sinks to these levels.

MFG Cash Earnings

As the old saying goes, "Cash is King!" We look at reported Cash Earnings, but the main emphasis of our analysis involves stripping out non-cash events such as depreciation from our cash earnings analysis. This helps us view the cash flows more clearly. Nevertheless, an analysis of Cash Earnings (both reported and otherwise) is absolutely pivotal to assessing a company's value, and currently MFG is significantly below its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 5 years of cash earnings levels for MFG to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 31.73 and a 14.12 low over the same period.

Now that MFG’s current price is $4.86 and its Price to Cash Earnings ratio is 11.85, we are very positive on its outlook from the cash earnings perspective. In fact, MFG is now trading a full 49% below its average historical Price to Cash Earnings ratio at these profit per share levels. When our clients ask us why MFG has great long term potential, the Cash Earnings levels to current stock is one of our primary reasons. But naturally, now we need for the overall market to recognize this disparity.

MFG Dividends

When determining a company's future prospects for success, Ockham Research sees analysis of dividend payments as a key additional factor. Even though it isn't imperative for MFG to shell out a dividend in order to receive a positive rating, it can be helpful to further our analysis. While we do like to see companies with healthy and growing dividends, it is not appropriate for all companies, especially those focused on growth. In this regard, we regard MFG as neutral because we do not have historical data for this company's dividends. We will being incorporating this into our analysis as soon as that data is available.

Peer Comparison

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Mizuho Financial Group, Inc.-Sp ADR Shs Sponsr Amern Deps Recp 2 Sh Industry Grouping

(8/26/2009)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not incuding MFG) 27.37 5.76 » 35.42 1.90 0.89 » 3.31 17.86% 18.97%
*10 year range does not include current year values
The Bank of New York Mellon Corp. BK $34.7 Billion $28.82 41.01 7.70 » 39.45 2.00 1.44 » 5.93 20.86% 14.12%
Itau Unibanco Banco Multiplo SA - Pfd Shs Sponsored ADR Repr 1 Pfd Share ITUB $27.5 Billion $19.11 26.89 4.06 » 32.34 2.28 0.50 » 2.48 25.85% 25.38%
Mizuho Financial Group, Inc.-Sp ADR Shs Sponsr Amern Deps Recp 2 Sh MFG $26.8 Billion $4.79 11.85 7.95 » 37.35 0.65 0.43 » 3.55 n/a 22.07%
Bank of Montreal BMO $26.4 Billion $48.96 14.74 6.06 » 21.53 1.47 0.87 » 2.33 10.63% 15.86%
Banco Bradesco SA ADS BBD $25.4 Billion $16.56 16.93 4.00 » 25.80 1.94 0.27 » 2.34 21.80% 25.70%
PNC Financial Services Group PNC $19.4 Billion $42.03 37.27 7.00 » 58.00 1.80 1.39 » 3.47 10.15% 13.80%

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The Latest Financial News
2:39:00 AM MFG $4.80 Mizuho Financial Group, Inc.-Sp ADR Shs Sponsr Amern Deps Recp 2 Sh
7/1/2009 2:39 AM
“…as its new chief executive.Gannett to cut between 1,000-2,000 jobs out of its 41,500-work force in response to continuing newspaper revenue declines.MIZUHO FINANCIAL Group will raise as much as 655B yen ($6.8B) from selling shares after local and overseas investments depleted capital.Oshkosh wins $1.05B contract for blast-proof trucks: Pentagon.Pfizer said it discontinued phase 3 trial of its Sutent cancer drug.Porche's €1.75B loan request …” - MFG on Zero Hedge
2:21:04 AM MFG $4.92 Mizuho Financial Group, Inc.-Sp ADR Shs Sponsr Amern Deps Recp 2 Sh
6/29/2009 2:21 AM
“…Fincl Srvcs gets $3.4B in funds from the US. Treasury's TARP.KB Home reported a narrower qtrly loss of $78.4M; revs came in at $384.5M.MIZUHO FINANCIAL may start 600 billion yen share sale this week.Nokia Siemens Networks gets euro250 milllion loan from European Investment Bank.Novartis in talks to buy parts of Elan, incl. flagship multiple sclerosis products.Oracle, Sun merger gets closer antitrust scrutiny.Swiss banks shun …” - MFG on Zero Hedge
6:09:56 AM MFG $4.90 Mizuho Financial Group, Inc.-Sp ADR Shs Sponsr Amern Deps Recp 2 Sh
5/15/2009 6:09 AM
“…The nikkei rebounded nearly 2% today, boosted by machinery stocks, high tech stocks and the exporters, as well. And after the market close, we heard from the number two bank in japan, MIZUHO FINANCIAL group confirming that it's going to issue new shares to raise $3.6 billion in fresh capital. In hong kong, the market managed to rally 1.5% ahead of the gdp …” - MFG on Squawk Box
View All Mizuho Financial Group, Inc.-Sp ADR Shs Sponsr Amern Deps Recp 2 Sh News

Key Fundamentals

MFG - Mizuho Financial Group, Incorporated-Sp ADR Shs Sponsr Amern Deps Recp 2 Sh Fundamentals
Price (8/27 9:35AM) $4.75
Volume (8/27 9:35AM) 27,825
Last Close Price $4.79
10 Day Average Volume 484,600
13 Week Price Range $4.02 - $5.70
52 Week Price Range $3.26 - $12.00
LTM Revenue $24.9 Billion
 
Shares Outstanding (03/2009) 5.6 Billion
Market Capitalization $26.8 Billion
Shares Held By Institutions 57.7 Million
Institutional Holders 77
% Shares Held By Institutions 0.80%
Earnings Per Share (EPS) ($1.94)
P/E Ratio n/a
Book Value Per Share $4.74
 
Gross Margin n/a%
Annual Dividend 0.00
Dividend Yield 0.00%
Beta 1.42
Fiscal Year Ends March

About Mizuho Financial Group, Inc.-Sp ADR Shs Sponsr Amern Deps Recp 2 Sh

Mizuho Financial Group, Incorporated-Sp ADR Shs Sponsr Amern Deps Recp 2 Sh is considered to operate in the Financial sector. They specifically operate in the Foreign Money Center Banks business segment contained within the Banking industry.

The Company's offers a number of financial services, including banking, securities, trust and asset management services.