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

• Market Cap: ¥164.93B
• Dividend Yield: 1.39%
• Average Volume (3M): 10.99K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.63
• Revenue Growth: 3.91%
• EPS Growth: -0.28%
• Country: JP
• Employees: 1,179
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 292.33
• 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: -23.55
• 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: ¥14,235.00 ▲(26.65% Upside)
• Action: Reiterated Date: 11/15/25
• Date: Action: Reiterated 11/15/25

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

Low Leverage / Strong Capital

A 42.57% equity ratio and near-zero debt-to-equity (0.03) indicate a conservatively financed balance sheet. This durable capital structure increases resilience to procurement shocks, supports investments in distribution capacity, and preserves strategic flexibility over a multi-month horizon.

Stable Revenue Growth & Margin Improvement

Consistent top-line growth (~4% latest year) combined with a rising net margin (1.17%) and stable gross margin (~5.9%) shows the company can grow sales while modestly improving profitability. These are durable trends that support longer-term earnings stability and incremental cash generation if sustained.

Entrenched Distribution Network

Serving mass retailers, supermarkets, convenience stores and foodservice with embedded logistics and inventory services creates stickiness and multi-item supply relationships. This operational footprint and service mix raise switching costs and underpin recurring volume capture across channels over months.

Negative Factors

Weakening Cash Conversion

Operating cash flow slipping to negative and free cash flow turning negative (FCF/Net Income -0.52) signals deteriorating cash conversion. Over a 2-6 month horizon this can constrain reinvestment, force working-capital funding, and limit flexibility for dividends or strategic initiatives without corrective measures.

Thin Operating Margins

Very low EBIT (1.22%) and EBITDA (1.87%) margins leave limited buffer against input-cost inflation or supplier price volatility. As a wholesaler with thin spreads, margin compression can quickly erode profitability, making sustained operational efficiency and mix improvement critical for durable earnings.

Modest Return on Equity

ROE of 7.10% indicates only modest returns on deployed capital. Over time, this suggests there's room to better monetize assets and equity; without improved asset efficiency or higher-margin sales, capital accumulation and shareholder returns may lag industry peers.

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

The company primarily makes money by acting as an intermediary and distributor in the food supply chain. Its core revenue comes from (1) wholesale/trading sales: purchasing food and beverage products from manufacturers and suppliers and reselling them to retailers and other commercial customers, earning a gross margin on the spread between procurement costs and selling prices; (2) distribution/logistics-related services embedded in its wholesaling: supplying customers with multi-item delivery, inventory handling, and distribution coordination, which supports its ability to win accounts and capture volume (specific fee structures are null); and (3) category and account management functions: using its product portfolio, merchandising proposals, and supply coordination to expand transaction volumes with key retail channels, which increases turnover and the absolute gross profit earned even when per-unit margins are thin. Earnings are influenced by sales mix (e.g., higher-margin categories vs. low-margin staples), procurement conditions and supplier terms, customer concentration in large retail chains, and the efficiency of its distribution operations. Information on specific major partnerships, named key customers, or segment-level revenue breakdowns is null.

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. The balance sheet is robust with low leverage, although cash flow management needs attention due to recent negative trends. Strategic measures to improve cash generation and efficiency could enhance overall financial health.

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	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	10.44B	10.25B	9.61B	9.67B	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	248.06B	237.61B	231.93B
Cash, Cash Equivalents and Short-Term Investments	1.74B	1.45B	1.61B	10.77B	7.67B	2.61B
Total Debt	3.50B	4.20B	4.11B	4.69B	5.78B	5.97B
Total Liabilities	165.21B	155.96B	165.23B	148.28B	142.37B	138.59B
Stockholders Equity	118.60B	115.57B	109.25B	99.76B	95.22B	93.31B
Cash Flow
Free Cash Flow	0.00	-4.05B	10.15B	7.38B	4.38B	7.83B
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: Positive

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 12866.00, below the 50-day MA of 12182.60, and above the 200-day MA of 10699.32, indicating a bullish trend. The MACD of 262.45 indicates Positive momentum. The RSI at 65.24 is Neutral, neither overbought nor oversold. The STOCH value of 9.54 is Positive, 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	¥32.81B	9.72	―	1.94%	3.15%	27.71%
2692	69 Neutral	¥164.93B	9.61	―	1.39%	3.91%	-0.28%
8030	68 Neutral	¥16.78B	2.44	―	3.17%	5.19%	11.04%
8079	64 Neutral	¥70.44B	15.39	―	1.48%	8.41%	-3.65%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2281	62 Neutral	¥135.32B	14.71	―	3.02%	2.16%	-24.33%
3182	61 Neutral	¥48.53B	3.77	―	0.52%	20.97%	-56.39%

Itochu-Shokuhin Co., Ltd. Corporate Events

Major shareholders back ITOCHU unit’s tender offer to privatize ITOCHU-SHOKUHIN

ITOCHU-SHOKUHIN announced that G.K. FMDI, a wholly owned subsidiary of parent ITOCHU Corporation, has signed tender agreements with a group of major corporate shareholders to sell all of their shares into an ongoing tender offer. The group includes prominent food, beverage, and financial institutions such as Asahi Breweries, Meiji, Kewpie, Nestlé Japan, Sumitomo Mitsui Trust Bank, and others, collectively representing 1,479,340 shares, or 11.66% of outstanding stock.

The agreements commit these shareholders not only to tender but also not to withdraw their shares, and in Asahi Breweries’ case to include shares held in a retirement benefit trust. This broad backing significantly increases the likelihood that the tender offer will succeed and that ITOCHU will be able to complete its planned squeeze-out procedures, paving the way to fully privatize ITOCHU-SHOKUHIN and consolidate control within the ITOCHU Group.

The most recent analyst rating on (JP:2692) stock is a Buy with a Yen14701.00 price target. To see the full list of analyst forecasts on Itochu-Shokuhin Co., Ltd. stock, see the JP:2692 Stock Forecast page.

Itochu-Shokuhin Backs Itochu-Led Tender Offer to Go Private at ¥13,000 a Share

Itochu-Shokuhin’s board has endorsed a tender offer by G.K. FMDI, a newly established wholly owned subsidiary of parent Itochu Corporation, to acquire all outstanding common shares at ¥13,000 per share, excluding Itochu’s existing stake and the company’s treasury stock. The board recommends that shareholders tender their shares, with the transaction structured to make Itochu and G.K. FMDI the sole owners, secure at least two-thirds of voting rights, and ultimately delist and privatize Itochu-Shokuhin, tightening group control and simplifying capital and governance arrangements.

The tender offer sets a minimum acceptance threshold of 1,801,900 shares, representing about 14.2% of shares excluding treasury stock, below which no shares will be purchased, while there is no upper limit on the number of shares to be bought. Governance measures include approval by disinterested directors and auditors, reflecting efforts to address conflicts of interest inherent in a parent-led buyout, and the move is expected to reshape Itochu-Shokuhin’s relationship with public markets and minority shareholders by concentrating ownership within the Itochu group.

The most recent analyst rating on (JP:2692) stock is a Buy with a Yen13231.00 price target. To see the full list of analyst forecasts on Itochu-Shokuhin Co., Ltd. stock, see the JP:2692 Stock Forecast page.

Itochu-Shokuhin Scraps Year-End Dividend and Shareholder Perks Ahead of Parent’s Take-Private Bid

ITOCHU-SHOKUHIN has revised its dividend forecast for the fiscal year ending March 31, 2026, deciding to cancel the planned year-end dividend, leaving only the already-paid interim dividend and reducing the total annual payout from the previous forecast. The board justified the move by noting that the tender offer price for the company’s shares, to be launched by G.K. FMDI, a wholly owned unit of parent ITOCHU Corporation, was calculated on the assumption that no year-end dividend would be paid in the year the company is taken private and subsequently delisted.

In a parallel step, the board approved the abolition of the company’s shareholder benefit plan starting with the fiscal year ending March 31, 2026, making the benefits granted to holders as of March 31, 2025 the final distribution under the program. Management said ending the benefit scheme is intended to ensure equal treatment between shareholders who tender into the buyout offer and those who do not, as the company transitions toward a wholly owned structure under ITOCHU, altering the return profile for minority investors.

The most recent analyst rating on (JP:2692) stock is a Buy with a Yen13231.00 price target. To see the full list of analyst forecasts on Itochu-Shokuhin Co., Ltd. stock, see the JP:2692 Stock Forecast page.

ITOCHU-SHOKUHIN Overhauls Management Structure with New Executive Lineup

ITOCHU-SHOKUHIN Co., Ltd. has announced a broad reshuffle of its directors and executive officers aimed at strengthening its management structure, with board-level changes to be finalized at the June 18, 2026 annual shareholders’ meeting. Effective March 31, 2026, several executive officers, including senior figures overseeing the administration, logistics and group operations, will step down from their executive positions to become advisory members, signaling a transition of experienced leaders into more strategic, non-executive roles. From April 1, 2026, the company will promote key managers such as the heads of the Retail and Sales Division No.5 to executive officer roles and reassign responsibilities across sales, logistics, information systems, and finance, including the creation of a Chief Logistics Officer position and expanded oversight of diversity and digital transformation. The realignment is designed to reinforce governance, clarify divisional accountability and support operational efficiency in core areas such as retail, drugstore channels, IT systems, and financial management, which is likely to influence how the company executes its growth and competitiveness strategy in Japan’s food wholesale market.

The most recent analyst rating on (JP:2692) stock is a Hold with a Yen13009.00 price target. To see the full list of analyst forecasts on Itochu-Shokuhin Co., Ltd. stock, see the JP:2692 Stock Forecast page.

ITOCHU-SHOKUHIN Lifts Profits and Dividend as Nine-Month Sales Edge Higher

ITOCHU-SHOKUHIN reported consolidated net sales of ¥558.3 billion for the nine months ended December 31, 2025, up 2.8% year on year, with operating profit rising 12.3% to ¥10.3 billion and profit attributable to owners of the parent increasing 4.2% to ¥8.9 billion. Basic earnings per share improved to ¥698.45, while total assets expanded to ¥348.7 billion, partly reducing the equity ratio to 36.1%. The company maintained its full-year forecast for the fiscal year ending March 31, 2026, targeting net sales of ¥720.0 billion, operating profit of ¥9.7 billion, and profit attributable to owners of the parent of ¥8.3 billion, and plans a higher annual dividend of ¥160 per share, up from ¥140 in the previous year. The unchanged guidance and dividend hike signal management’s confidence in earnings stability, which should reassure shareholders despite a lower equity ratio reflecting balance sheet expansion.

The most recent analyst rating on (JP:2692) stock is a Buy with a Yen13187.00 price target. To see the full list of analyst forecasts on Itochu-Shokuhin Co., Ltd. stock, see the JP:2692 Stock Forecast page.