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ITO ENLtd (JP:2593)
:2593
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ITO EN (2593) AI Stock Analysis

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JP

ITO EN

(OTC:2593)

Rating:64Neutral
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 (2593) vs. iShares MSCI Japan ETF (EWJ)

ITO EN Business Overview & Revenue Model

Company DescriptionITO 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 MoneyITO 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
75
Positive
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
78
Positive
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
60
Neutral
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.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue468.54B453.90B431.67B400.77B446.28B483.36B
Gross Profit178.31B177.07B165.59B159.58B215.00B232.75B
EBITDA27.62B34.68B31.02B31.14B30.37B34.81B
Net Income12.78B15.65B12.89B12.93B7.01B7.79B
Balance Sheet
Total Assets331.02B353.89B338.77B328.36B333.06B290.65B
Cash, Cash Equivalents and Short-Term Investments82.29B109.31B104.18B96.57B109.43B64.81B
Total Debt75.02B76.00B76.75B78.38B98.85B65.68B
Total Liabilities155.19B170.68B166.65B165.35B180.01B140.96B
Stockholders Equity174.20B181.59B170.72B161.76B151.92B148.48B
Cash Flow
Free Cash Flow0.0015.57B16.79B14.38B18.27B14.37B
Operating Cash Flow0.0025.48B23.77B22.23B25.35B24.72B
Investing Cash Flow0.00-10.74B-8.64B-7.40B-7.51B-9.22B
Financing Cash Flow0.00-12.21B-9.13B-29.93B25.81B-12.90B

ITO EN Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3214.00
Price Trends
50DMA
3245.44
Negative
100DMA
3219.22
Positive
200DMA
3285.28
Negative
Market Momentum
MACD
0.94
Negative
RSI
49.84
Neutral
STOCH
50.20
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

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
¥94.51B16.69
3.48%-4.57%-2.70%
69
Neutral
¥45.37B30.45
0.88%0.79%-8.30%
67
Neutral
¥332.07B7.669.28%2.76%2.39%8.81%
64
Neutral
$328.40B28.627.88%1.36%4.15%-6.73%
60
Neutral
¥102.73B30.27
0.61%16.48%7.02%
58
Neutral
¥402.74B112.720.85%2.48%2.62%-33.99%
56
Neutral
¥85.36B23.09
0.75%8.00%-127.55%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2593
ITO EN
3,214.00
-282.44
-8.08%
JP:2573
Hokkaido Coca-Cola Bottling Co., Ltd.
3,385.00
692.41
25.72%
JP:2585
LIFEDRINK COMPANY INC.
1,937.00
331.68
20.66%
JP:2588
Premium Water Holdings, Inc.
3,140.00
268.43
9.35%
JP:2590
DyDo Group Holdings, Inc.
2,650.00
7.42
0.28%
JP:2579
Coca-Cola Bottlers Japan Holdings
2,258.00
74.76
3.42%

ITO EN Corporate Events

ITO EN Reports Mixed Financial Results with Optimistic Forecast
Jun 2, 2025

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
May 2, 2025

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
Apr 15, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 04, 2025