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Japan Confident - MIUFY 88% Off High

July 13, 2013 | About:
Sally Jones

Sally Jones

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Japan’s economy is growing faster than many and the Tokyo stock market is up 40% this year. Signaling the first signs of economic recovery since the Fukushima disaster of March 2011, the Bank of Japan also reported good news this week, according to The New York Times, with “confidence that the world’s third-largest economy was on the cusp of a long-awaited turnaround.”

With this burst of economic excitement, let’s check out a Japanese finance company, hitting a new low: Mitsubishi UFJ Lease & Financial Co. Ltd. (MIUFY). This week the GuruFocus 52-week low Value Screen reveals that the banking sector has the most lows with 73 stocks out of 665 stocks at a 52-week low. The bank-related finance firm Mitsubishi UFJ Lease & Financial Co. Ltd. (MIUFY) is 87.7% off high, now priced at $9.89 down from a 52-week high of $80.45.

Part of Japan's largest financial group and the world’s second largest bank holding company, Mitsubishi UFJ Lease & Finance Company Limited (MIUFY) is a Tokyo-based company engaged in the leasing and loan services business. The global company has approximately 324 subsidiaries and 33 associated companies.

Incorporated in 1971, Mitsubish UFJ Lease & Finance (MIUFY) deals in leases, installment sales, financing and international business. Its principal shareholders are Mitsubishi Corporation, Mitsubishi UFJ Financial Group Inc., The Bank of Tokyo- Mitsubishi UFJ Ltd., Meiji Yasuda Life Insurance Company, and Mitsubishi UFJ Trust and Banking Corporation.

With 2,400 employees, the company has a large domestic network in Japan, as well as an international network. The global company finances everything from car loans to real estate, solar energy projects to the resale of manufacturing equipment.

With a market cap of $4.39 billion dollars, the company’s stock trades at a P/E of 1.50 and a P/S of 0.62. Down 88% over the last 12 months, Mitsubish UFJ Lease & Finance (MIUFY) is currently priced at $9.89. Here’s a look at prices since August 2010:

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According to the GuruFocus financial and performance checkup, Mitsubishi UFJ Lease & Finance Co.Ltd. (MIUFY) revenue has been in decline over the past three years. Another severe warning sign is that cash flow from operations is divergent from the reported net income, suggesting that the company is not receiving payment from its customers or it has other activities affecting cash flow. Another warning sign is that the stock’s P/S ratio is close to a three-year high; however, a sign of health is that the P/B of 8593 (0.02) is close to a three-year low of 0.02.

President and CEO Tadashi Shiraishi describes his company’s identity as a “value integrator,” a firm that enhances customer value by upgrading from current potential value to actual future value. Shiraishi states, “By continuing to draw on our vast range of leasing and financing instruments, we will strive to achieve more sophisticated solutions to meet the diverse needs of our customers and ensure our mutual prosperity.”

Check out the GuruFocus special feature 52-week low screener. This special feature helps you find the stocks hitting new lows but are still held by top investor Gurus and Insiders. If billionaire Gurus own these stocks and are still increasing their positions, it means that they believe the stocks are undervalued. Researching these stocks may help you find deep valued stocks.

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About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 5.0/5 (2 votes)

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