ITO EN (2593) AI Stock Analysis

• Market Cap: $328.40B
• Dividend Yield: 1.36%
• Average Volume (3M): 298.63K
• Price to Earnings (P/E): 28.6
• Beta (1Y): 0.38
• Revenue Growth: 4.15%
• EPS Growth: -6.73%
• Country: JP
• Employees: 7,929
• Sector: Utilities
• Sector Strength: 74
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): N/A
• Shares Outstanding: 85,212,380
• 10 Day Avg. Volume: 228,330
• 30 Day Avg. Volume: 298,630
• PEG Ratio: -604.70
• Price to Book (P/B): 3.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 32.55
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $3,649.76
• Price Target Upside: 13.56% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: ¥3,650.00 ▲(13.57%Upside)

ITO EN's stock score reflects strong financial stability and positive technical indicators, though some caution is warranted due to high valuation metrics and areas for improvement in cash flow conversion and return on equity.

ITO EN Business Overview & Revenue Model

Company Description

ITO EN (2593) is a leading Japanese beverage company primarily known for its production and distribution of tea products. Established in 1966, ITO EN operates within the food and beverage sector, offering a wide array of products including ready-to-drink tea beverages, tea leaf products, and functional beverages. The company is renowned for its commitment to quality and innovation, often leveraging traditional Japanese tea culture in its product offerings. Its extensive portfolio caters to both domestic and international markets, positioning ITO EN as a prominent player in the global beverage industry.

How the Company Makes Money

ITO EN generates revenue through several key streams. The primary source of income comes from the sale of its beverage products, particularly its ready-to-drink tea offerings such as Oi Ocha, which is highly popular in Japan and abroad. The company also earns from the sale of tea leaf products, which are distributed through various retail channels. In addition to its core tea business, ITO EN has diversified into other functional and health-oriented beverages, expanding its market reach. International sales contribute significantly to its revenue, with strategic partnerships and distribution agreements in various countries amplifying its global presence. Furthermore, ITO EN invests in marketing and brand development to maintain its competitive edge and attract a diverse customer base. The company also benefits from economies of scale in production, enhancing profitability.

ITO EN Financial Statement Overview

Summary

ITO EN demonstrates strong financial stability with consistent revenue growth and effective leverage management. However, cash flow conversion and return on equity need improvement to enhance overall performance.

Income Statement

The TTM data shows a stable gross profit margin at 38.05% and a net profit margin of 2.73%. Despite a decrease in EBIT and EBITDA margins compared to the previous period, the company has maintained a steady revenue growth rate of 3.22% from the previous year. The overall profitability remains consistent with industry standards, indicating solid operational performance.

Balance Sheet

The balance sheet demonstrates a strong equity ratio of 52.63%, indicating a solid capital structure. With a debt-to-equity ratio of 0.43, the company maintains low financial leverage, which reduces financial risk. However, the return on equity is moderate at 7.33%, suggesting room for improvement in equity efficiency.

Cash Flow

Cash flow metrics show some areas for concern, with a lack of data for TTM cash flow activities. Previously, the operating cash flow was positive, but with a moderate free cash flow growth rate of -6.53% annually. The company's ability to convert operating activities into cash needs monitoring.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	468.54B	453.90B	431.67B	400.77B	446.28B	483.36B
Gross Profit	178.31B	177.07B	165.59B	159.58B	215.00B	232.75B
EBITDA	27.62B	34.68B	31.02B	31.14B	30.37B	34.81B
Net Income	12.78B	15.65B	12.89B	12.93B	7.01B	7.79B
Balance Sheet
Total Assets	331.02B	353.89B	338.77B	328.36B	333.06B	290.65B
Cash, Cash Equivalents and Short-Term Investments	82.29B	109.31B	104.18B	96.57B	109.43B	64.81B
Total Debt	75.02B	76.00B	76.75B	78.38B	98.85B	65.68B
Total Liabilities	155.19B	170.68B	166.65B	165.35B	180.01B	140.96B
Stockholders Equity	174.20B	181.59B	170.72B	161.76B	151.92B	148.48B
Cash Flow
Free Cash Flow	0.00	15.57B	16.79B	14.38B	18.27B	14.37B
Operating Cash Flow	0.00	25.48B	23.77B	22.23B	25.35B	24.72B
Investing Cash Flow	0.00	-10.74B	-8.64B	-7.40B	-7.51B	-9.22B
Financing Cash Flow	0.00	-12.21B	-9.13B	-29.93B	25.81B	-12.90B

ITO EN Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3214.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2593, the sentiment is Negative. The current price of 3214 is below the 20-day moving average (MA) of 3224.30, below the 50-day MA of 3245.44, and below the 200-day MA of 3285.28, indicating a neutral trend. The MACD of 0.94 indicates Negative momentum. The RSI at 49.84 is Neutral, neither overbought nor oversold. The STOCH value of 50.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2593.

ITO EN Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2588	71 Outperform	¥94.51B	16.69		3.48%	-4.57%	-2.70%
2573	69 Neutral	¥45.37B	30.45		0.88%	0.79%	-8.30%
Sector *	67 Neutral	¥332.07B	7.66	9.28%	2.76%	2.39%	8.81%
2593	64 Neutral	$328.40B	28.62	7.88%	1.36%	4.15%	-6.73%
2585	60 Neutral	¥102.73B	30.27		0.61%	16.48%	7.02%
2579	58 Neutral	¥402.74B	112.72	0.85%	2.48%	2.62%	-33.99%
2590	56 Neutral	¥85.36B	23.09		0.75%	8.00%	-127.55%

ITO EN Corporate Events

ITO EN Reports Mixed Financial Results with Optimistic Forecast

ITO EN, LTD. reported its consolidated financial results for the fiscal year ending April 30, 2025, showing a 4.1% increase in net sales to 472,716 million yen. However, operating income and ordinary income declined by 8.2% and 13.9%, respectively. The company also announced a dividend increase, reflecting a commitment to returning value to shareholders despite the decrease in profit attributable to owners of the parent by 9.5%. Looking ahead, ITO EN forecasts growth in net sales and income for the fiscal year ending April 30, 2026, indicating optimism about future business performance.

ITO EN Revises Earnings Forecast Amid Rising Costs and Competition

ITO EN has revised its earnings forecasts for the fiscal year ending April 30, 2025, citing a challenging business environment marked by rising costs and consumer frugality. Despite efforts to streamline operations and increase productivity, the company expects lower financial results than previously forecasted due to increased competition and upfront advertising investments.

ITO EN Completes Treasury Stock Cancellation

ITO EN has completed the cancellation of 3,000,000 shares of its common stock, representing 3.40% of the total number of common shares issued and outstanding before the cancellation. This move, effective April 15, 2025, may impact the company’s stock value and shareholder equity by reducing the number of shares in circulation, potentially enhancing shareholder value and reflecting a strategic decision by the company’s board.