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

• Market Cap: ¥143.87B
• Dividend Yield: 1.39%
• Average Volume (3M): 10.99K
• Price to Earnings (P/E): 17.5
• Beta (1Y): 0.57
• Revenue Growth: 3.91%
• EPS Growth: -0.28%
• Country: JP
• Employees: 1,179
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 196.12
• Shares Outstanding: 12,720,000
• 10 Day Avg. Volume: 11,110
• 30 Day Avg. Volume: 10,993
• PEG Ratio: 0.48
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.14
• P/FCF Ratio: -22.49
• 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: 69 Neutral
• Price Target: ¥11,826.00 ▲(5.21% Upside)

The overall stock score of 69 reflects a strong financial performance with solid revenue growth and a stable balance sheet, though cash flow management requires improvement. Technical analysis indicates a positive short-term trend but with caution due to potential bearish momentum and overbought RSI levels. Valuation metrics suggest the stock is fairly valued with a reasonable P/E ratio and dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a robust market position and effective business strategies, supporting long-term expansion and stability.

Balance Sheet Health

A low debt-to-equity ratio reflects financial prudence, providing the company with flexibility to invest in growth opportunities without excessive risk.

Profit Margin Improvement

Improved profit margins suggest enhanced operational efficiency and cost management, contributing to sustainable profitability.

Negative Factors

Cash Flow Challenges

Negative operating cash flow indicates potential liquidity issues, which could constrain the company's ability to fund operations and growth initiatives.

Free Cash Flow Decline

Negative free cash flow suggests difficulties in generating cash from operations, impacting the company's ability to invest in future growth.

Efficiency Improvement Needed

Low EBIT and EBITDA margins indicate potential inefficiencies, suggesting a need for operational improvements to enhance profitability.

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

Company Description

ITOCHU-SHOKUHIN Co., Ltd. engages in the wholesale of food and liquor products in Japan. The company sells its products to supermarkets, department stores, convenience stores, and other retailers, as well as restaurants, online retailers, wholesalers, and manufactures. It is also involved in the logistics management, storage, transportation, and distribution merchandising businesses; and provision of goods information services. The company was founded in 1886 and is headquartered in Osaka, Japan. ITOCHU-SHOKUHIN Co., Ltd. is a subsidiary of ITOCHU Corporation.

How the Company Makes Money

Itochu-Shokuhin generates revenue through various streams, including the import and distribution of food products to domestic and international markets. The company profits from the markup on goods purchased from suppliers and sold to its clients. Key revenue streams include the sales of seafood, meat, and processed foods, which are sourced from reliable suppliers worldwide. Additionally, partnerships with manufacturers and retailers enhance its supply chain capabilities, allowing the company to leverage economies of scale and negotiate favorable terms. The company's focus on quality assurance and customer service further contributes to customer retention and repeat business, thereby boosting overall profitability.

Itochu-Shokuhin Co., Ltd. Financial Statement Overview

Summary

Itochu-Shokuhin Co., Ltd. shows strong revenue growth and stable profit margins, indicating a solid market position. The balance sheet is robust with low leverage, but cash flow management needs improvement due to recent negative trends.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	704.84B	699.37B	672.45B	642.95B	612.66B	656.74B
Gross Profit	41.68B	41.16B	39.55B	37.93B	35.05B	35.34B
EBITDA	13.16B	13.09B	11.37B	9.57B	8.04B	7.25B
Net Income	8.75B	8.21B	6.60B	4.84B	4.32B	4.03B
Balance Sheet
Total Assets	283.83B	271.55B	274.50B	246.62B	236.67B	231.18B
Cash, Cash Equivalents and Short-Term Investments	1.74B	1.45B	1.61B	1.56B	1.27B	1.11B
Total Debt	3.50B	3.61B	4.11B	4.69B	5.78B	5.97B
Total Liabilities	165.21B	155.96B	165.23B	146.84B	141.42B	137.85B
Stockholders Equity	118.60B	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	-3.73B	10.53B	7.68B	5.24B	8.01B
Investing Cash Flow	0.00	503.00M	-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: 11240.00
• 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 11240 is below the 20-day moving average (MA) of 11358.50, above the 50-day MA of 10521.60, and above the 200-day MA of 9838.24, indicating a neutral trend. The MACD of 217.04 indicates Positive momentum. The RSI at 58.78 is Neutral, neither overbought nor oversold. The STOCH value of 46.16 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
8006	78 Outperform	¥30.62B	12.09	―	1.94%	3.15%	27.71%
7614	71 Outperform	¥10.73B	11.10	―	2.23%	7.53%	-17.97%
2692	69 Neutral	¥143.87B	17.55	―	1.39%	3.91%	-0.28%
8030	68 Neutral	¥14.62B	5.46	―	3.17%	5.19%	11.04%
8079	64 Neutral	¥68.59B	22.47	―	1.48%	8.41%	-3.65%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Itochu-Shokuhin Co., Ltd. Corporate Events

Itochu-Shokuhin Reports Strong Half-Year Financial Results with Increased Sales and Dividends

Itochu-Shokuhin Co., Ltd. announced its consolidated financial results for the six months ending September 30, 2025, reporting a 3.8% increase in net sales compared to the previous year. Despite a slight decline in ordinary profit, the company saw a significant rise in comprehensive income by 43.3%, indicating strong operational performance. The company maintained its equity-to-asset ratio and announced a forecasted increase in annual dividends, reflecting confidence in its financial stability and growth prospects.

The most recent analyst rating on (JP:2692) stock is a Hold with a Yen10112.00 price target. To see the full list of analyst forecasts on Itochu-Shokuhin Co., Ltd. stock, see the JP:2692 Stock Forecast page.