ITO EN (2593) AI Stock Analysis

• Market Cap: ¥333.10B
• Dividend Yield: 1.34%
• Average Volume (3M): 275.17K
• Price to Earnings (P/E): 26.1
• Beta (1Y): 0.37
• Revenue Growth: 4.54%
• EPS Growth: 20.36%
• Country: JP
• Employees: 7,929
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): 49.60
• Shares Outstanding: 85,212,380
• 10 Day Avg. Volume: 267,700
• 30 Day Avg. Volume: 275,166
• PEG Ratio: -4.44
• Price to Book (P/B): 2.45
• Price to Sales (P/S): 0.90
• P/FCF Ratio: 74.30
• 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: ¥3,497.96
• Price Target Upside: 6.48% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 57 Neutral
• Price Target: ¥3,498.00 ▲(6.48% Upside)

ITO EN's overall stock score is primarily influenced by its strong financial performance, which is offset by weak technical indicators suggesting bearish momentum. The valuation indicates potential overvaluation, which further impacts the score. The absence of earnings call data and corporate events means these factors do not influence the score.

ITO EN Business Overview & Revenue Model

Company Description

ITO EN (2593) is a leading Japanese beverage company known for its extensive range of green tea products, including bottled teas, tea bags, and powdered teas. The company operates primarily in the beverage sector, focusing on health-oriented and premium quality green tea, while also offering other beverages such as herbal teas and functional drinks. ITO EN has established a strong brand presence both domestically in Japan and internationally, leveraging its expertise in tea cultivation and processing.

How the Company Makes Money

ITO EN generates revenue primarily through the sale of its tea products, which include ready-to-drink bottled teas, tea bags, and powdered tea. The company’s revenue model is supported by a diverse portfolio of products that cater to various consumer preferences, emphasizing health benefits and quality. Key revenue streams include retail sales through convenience stores, supermarkets, and online platforms, as well as partnerships with restaurants and food service providers. Additionally, ITO EN benefits from significant brand loyalty and recognition in the health-conscious consumer market, which further enhances its sales. The company also engages in export activities, expanding its market reach and driving additional revenue through international sales.

ITO EN Financial Statement Overview

Summary

ITO EN demonstrates strong revenue growth and stable profitability, supported by effective cost management. The balance sheet reflects a solid financial position with improved leverage, although further debt reduction could enhance stability. Cash flow management shows efficiency, but declining free cash flow growth poses a potential risk.

Income Statement

ITO EN has shown consistent revenue growth over the past years, with a notable increase in the latest year. The gross profit margin remains strong, although it has slightly decreased from previous years. The net profit margin is stable, indicating effective cost management. However, there is a slight decline in EBIT and EBITDA margins, suggesting increased operational costs.

Balance Sheet

The company's debt-to-equity ratio has improved over the years, indicating better leverage management. Return on equity has been stable, reflecting consistent profitability. The equity ratio shows a solid financial structure, but there is room for improvement in reducing debt levels further.

Cash Flow

ITO EN's operating cash flow has been stable, but there is a noticeable decline in free cash flow growth, which could impact future investments. The free cash flow to net income ratio is healthy, indicating efficient cash generation relative to profits. However, the operating cash flow to net income ratio suggests potential challenges in converting profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	478.55B	472.72B	453.90B	431.67B	400.77B	446.28B
Gross Profit	180.79B	179.64B	177.07B	165.59B	159.58B	215.00B
EBITDA	22.34B	32.18B	34.68B	31.66B	33.15B	27.52B
Net Income	15.43B	14.16B	15.65B	12.89B	12.93B	7.01B
Balance Sheet
Total Assets	356.69B	344.60B	353.89B	338.77B	328.36B	333.06B
Cash, Cash Equivalents and Short-Term Investments	77.86B	89.91B	109.31B	104.18B	96.57B	109.43B
Total Debt	72.84B	73.07B	76.00B	76.75B	78.38B	98.85B
Total Liabilities	176.94B	168.63B	170.68B	166.65B	165.35B	180.01B
Stockholders Equity	178.42B	174.36B	181.59B	170.72B	161.76B	151.92B
Cash Flow
Free Cash Flow	0.00	5.75B	15.57B	16.79B	14.38B	18.27B
Operating Cash Flow	0.00	18.04B	25.48B	23.77B	22.23B	25.35B
Investing Cash Flow	0.00	-13.33B	-10.74B	-8.64B	-7.40B	-7.51B
Financing Cash Flow	0.00	-23.24B	-12.21B	-9.13B	-29.93B	25.81B

ITO EN Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3285.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 3285 is below the 20-day moving average (MA) of 3389.55, below the 50-day MA of 3437.38, and below the 200-day MA of 3309.48, indicating a bearish trend. The MACD of -60.58 indicates Positive momentum. The RSI at 33.27 is Neutral, neither overbought nor oversold. The STOCH value of 12.60 is Positive, 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	72 Outperform	¥101.74B	16.63	―	3.20%	-2.03%	-6.76%
2573	69 Neutral	¥51.03B	34.65	―	0.64%	1.24%	-7.09%
2590	63 Neutral	¥80.88B	23.09	―	1.00%	3.54%	-135.08%
2585	63 Neutral	¥111.09B	31.37	―	0.58%	17.94%	15.35%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2593	57 Neutral	¥333.10B	26.10	8.81%	1.34%	4.54%	20.36%
2579	52 Neutral	$446.06B	115.50	-14.55%	2.24%	2.65%	-1191.54%

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.