Itochu-Shokuhin Co., Ltd. (2692) AI Stock Analysis

• Market Cap: ¥126.87B
• Dividend Yield: 1.6%
• Average Volume (3M): 20.11K
• Price to Earnings (P/E): 15.5
• Beta (1Y): 0.55
• Revenue Growth: 4.00%
• EPS Growth: 24.34%
• Country: JP
• Employees: 1,179
• Sector: Consumer Defensive
• Sector Strength: 56
• Industry: Food Distribution
• EPS (TTM): -23.85
• Shares Outstanding: 12,720,000
• 10 Day Avg. Volume: 13,810
• 30 Day Avg. Volume: 20,113
• PEG Ratio: 1.09
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.00
• 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

• Rating: 77 Outperform
• Price Target: ¥11,823.00 ▲(18.23%Upside)

The overall stock score is primarily driven by strong technical momentum, highlighting a bullish trend, and solid financial performance due to revenue growth and stable margins. However, cash flow management issues and moderate valuation slightly temper the score.

Itochu-Shokuhin Co., Ltd. Business Overview & Revenue Model

Company Description

Itochu-Shokuhin Co., Ltd. is a Japan-based company primarily engaged in the wholesale distribution of food products. It operates within the consumer goods sector, providing a wide range of food items including processed foods, fresh foods, and beverages. The company serves various retail and food service businesses, leveraging its extensive distribution network to ensure efficient delivery and supply chain management.

How the Company Makes Money

Itochu-Shokuhin Co., Ltd. generates revenue through the wholesale distribution of food products. The company's primary revenue streams include sales to supermarkets, convenience stores, and restaurants. It earns money by purchasing food products from manufacturers and suppliers and selling them at a markup to retailers and food service operators. The company also benefits from its strong logistics and distribution capabilities, which allow it to effectively manage supply chains and maintain a steady flow of goods to its clients. Partnerships with food producers and retailers strengthen its market position and enhance its ability to meet consumer demand.

Itochu-Shokuhin Co., Ltd. Financial Statement Overview

Summary

Itochu-Shokuhin Co., Ltd. demonstrates solid revenue growth and stable profit margins, indicative of a strong market position in the food distribution industry. However, cash flow management needs attention due to recent negative trends, which slightly reduces the financial performance score.

Income Statement

The company shows a strong revenue growth trend with a 4% increase in the latest year. Net Profit Margin improved to 1.17% from 0.98% in the previous year, indicating enhanced profitability. Gross Profit Margin remained stable at around 5.9%. However, the EBIT and EBITDA margins show room for improvement at 1.22% and 1.87%, respectively, suggesting potential efficiency improvements.

Balance Sheet

The balance sheet reflects a healthy equity position with an Equity Ratio of 42.57%, indicating a stable capital structure. The Debt-to-Equity Ratio is low at 0.03, showcasing low leverage and financial stability. However, the Return on Equity is modest at 7.10%, suggesting opportunities for better utilization of equity capital.

Cash Flow

The cash flow statement shows a concerning decline in Operating Cash Flow from a positive flow to a negative in the latest year. Free Cash Flow also turned negative, indicating cash management challenges. The Free Cash Flow to Net Income Ratio reflects this strain at -0.52.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	692.12B	699.37B	672.45B	642.95B	612.66B	656.74B
Gross Profit	40.98B	41.16B	39.55B	37.93B	35.05B	35.34B
EBITDA	12.31B	13.09B	11.37B	9.67B	8.04B	7.25B
Net Income	8.42B	8.21B	6.60B	4.84B	4.32B	4.03B
Balance Sheet
Total Assets	334.62B	271.55B	274.50B	246.62B	236.67B	231.18B
Cash, Cash Equivalents and Short-Term Investments	69.53B	1.45B	1.61B	1.56B	1.27B	1.11B
Total Debt	3.73B	3.61B	4.11B	4.69B	5.78B	5.97B
Total Liabilities	217.28B	155.96B	165.23B	146.84B	141.42B	137.85B
Stockholders Equity	117.33B	115.57B	109.25B	99.76B	95.22B	93.31B
Cash Flow
Free Cash Flow	0.00	-4.24B	8.71B	5.39B	2.89B	7.57B
Operating Cash Flow	0.00	-3.92B	10.53B	7.68B	5.24B	8.01B
Investing Cash Flow	0.00	693.00M	-1.66B	-2.42B	1.63B	-14.53B
Financing Cash Flow	0.00	-2.04B	-1.72B	-2.16B	-1.78B	-1.68B

Itochu-Shokuhin Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10000.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2692, the sentiment is Positive. The current price of 10000 is above the 20-day moving average (MA) of 9981.00, above the 50-day MA of 9715.40, and above the 200-day MA of 7833.95, indicating a neutral trend. The MACD of 48.03 indicates Positive momentum. The RSI at 51.25 is Neutral, neither overbought nor oversold. The STOCH value of 68.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2692.

Itochu-Shokuhin Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2692	77 Outperform	¥126.87B	15.46		1.60%	4.00%	24.34%
8030	76 Outperform	¥13.84B	4.77		3.18%	8.95%	35.94%
7614	71 Outperform	¥10.15B	10.23		2.25%	3.37%	-28.80%
7451	68 Neutral	¥276.02B	11.87		3.00%	2.14%	2.72%
8079	66 Neutral	¥65.90B	22.34		1.53%	6.84%	-13.41%
Sector *	65 Neutral	$27.28B	15.30	-4.01%	3.16%	1.00%	1.98%

Itochu-Shokuhin Co., Ltd. Corporate Events

ITOCHU-SHOKUHIN Announces Relationship with Parent Company ITOCHU Corporation

ITOCHU-SHOKUHIN Co., Ltd. has announced its relationship with its controlling shareholder, ITOCHU Corporation, which owns a majority stake in the company. The announcement highlights the company’s independent decision-making despite being a consolidated subsidiary. The involvement of executives from ITOCHU Corporation in ITOCHU-SHOKUHIN’s operations is expected to enhance corporate value through informed decision-making and auditing. The company also engages in transactions with ITOCHU Corporation, including leasing agreements and procurement of goods, with terms set based on market conditions.

Itochu-Shokuhin Reports Strong Financial Growth in FY2025

Itochu-Shokuhin Co., Ltd. reported a notable increase in its consolidated financial results for the fiscal year ended March 31, 2025, with net sales rising by 4% and profit attributable to owners of the parent increasing by 24.3%. Despite a decrease in comprehensive income, the company improved its equity-to-asset ratio and increased dividends per share, reflecting a strong financial position and commitment to shareholder returns.