ITO EN (2593) AI Stock Analysis

• Market Cap: ¥312.33B
• Dividend Yield: 1.49%
• Average Volume (3M): 271.88K
• Price to Earnings (P/E): 25.7
• Beta (1Y): 0.32
• Revenue Growth: 4.14%
• EPS Growth: 9.91%
• Country: JP
• Employees: 7,929
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): N/A
• Shares Outstanding: 85,212,380
• 10 Day Avg. Volume: 248,760
• 30 Day Avg. Volume: 271,880
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: ¥3,498.00 ▲(15.52% 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.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust market demand and effective business strategies, supporting long-term financial health.

Brand Loyalty

Strong brand loyalty ensures a stable customer base and competitive advantage, fostering sustained revenue and market position.

Balance Sheet Health

Improved leverage management enhances financial stability, providing flexibility for future investments and growth opportunities.

Negative Factors

Declining Free Cash Flow Growth

Declining free cash flow growth may limit the company's ability to invest in new projects or expand operations, affecting long-term growth.

Operational Cost Pressures

Rising operational costs can pressure margins, potentially impacting profitability if not managed effectively over the long term.

Debt Levels

Higher debt levels can strain financial resources and limit strategic flexibility, posing risks to long-term financial health.

ITO EN Business Overview & Revenue Model

Company Description

Ito En, Ltd. manufactures and sells green tea beverages in Japan and internationally. The company provides Japanese tea, black tea, and Chinese tea; coffee beverages; fruit, vegetable, and other beverages; and tea leaves, as well as yoghurt, milk, and other dairy products. It also manages eateries; and develops franchise chain store system. The company offers its products through convenience stores, supermarkets, general and mass retailers, vending machines, station stores, and other channels. The company primarily operates under the Oi Ocha, TULLY's COFFEE, and MATCHA GREEN TEA brands. It operates 112 specialty tea shops at locations, such as department stores, shopping malls, and airports in Japan. The company was formerly known as Frontier Tea Corporation and changed its name to Ito En, Ltd. in May 1969. Ito En, Ltd. was founded in 1964 and is headquartered in Tokyo, Japan.

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	173.24B	170.91B	157.66B	150.43B	204.80B
EBITDA	33.84B	32.18B	34.68B	31.65B	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: 3028.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 3028 is below the 20-day moving average (MA) of 3040.57, below the 50-day MA of 3108.55, and below the 200-day MA of 3243.51, indicating a bearish trend. The MACD of -18.72 indicates Negative momentum. The RSI at 43.81 is Neutral, neither overbought nor oversold. The STOCH value of 19.41 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
2573	72 Outperform	¥52.09B	36.41	―	0.60%	3.62%	5.25%
2588	64 Neutral	¥100.54B	15.47	―	3.35%	0.46%	-6.07%
2579	63 Neutral	¥548.41B	-11.30	-12.00%	1.77%	2.07%	-751.72%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2585	62 Neutral	¥90.84B	24.70	―	0.65%	17.33%	12.37%
2593	57 Neutral	¥312.33B	25.67	8.17%	1.49%	4.14%	9.91%
2590	51 Neutral	¥81.14B	-26.60	―	1.01%	6.00%	-139.78%

ITO EN Corporate Events

ITO EN Reports Stable Growth in First Half of 2025

ITO EN, LTD. reported its consolidated financial results for the six months ended October 31, 2025, showing a 4% increase in net sales compared to the previous year. Despite a slight decline in operating income, the company saw improvements in ordinary income and profit attributable to owners of the parent, reflecting a positive financial trajectory. The company also announced an increase in dividends per share, signaling confidence in its ongoing financial performance. These results suggest a stable market position and a commitment to shareholder value, with no significant changes in accounting policies or consolidation scope.

The most recent analyst rating on (JP:2593) stock is a Hold with a Yen3498.00 price target. To see the full list of analyst forecasts on ITO EN stock, see the JP:2593 Stock Forecast page.

ITO EN Completes Treasury Shares Disposal for Employee Stock Grant

ITO EN has completed the payment procedures for the disposal of treasury shares to grant restricted stock to its employees and those of its subsidiaries. This move, involving 52,492 shares of Class-A Preferred Stock, aims to incentivize employees and align their interests with the company’s long-term goals.

The most recent analyst rating on (JP:2593) stock is a Hold with a Yen3498.00 price target. To see the full list of analyst forecasts on ITO EN stock, see the JP:2593 Stock Forecast page.