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

• Market Cap: ¥125.22B
• Dividend Yield: 1.42%
• Average Volume (3M): 10.83K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.52
• Revenue Growth: 3.68%
• EPS Growth: 29.25%
• Country: JP
• Employees: 1,179
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 210.00
• Shares Outstanding: 12,720,000
• 10 Day Avg. Volume: 11,170
• 30 Day Avg. Volume: 10,826
• 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: ¥10,850.00
• Price Target Upside: 11.05% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: ¥10,850.00 ▲(11.05% Upside)

The stock score is primarily driven by strong financial performance, particularly in revenue growth and balance sheet stability. However, technical indicators suggest bearish momentum, and cash flow challenges weigh on the overall score. Valuation is fair but not compelling enough to offset these concerns.

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 Co., Ltd. generates revenue through its wholesale operations, primarily by purchasing food products from manufacturers and suppliers and selling them to retailers, restaurants, and other food service businesses. The company earns margins on the goods it sells, capitalizing on its expansive distribution network and strong relationships with both suppliers and customers. Additionally, strategic partnerships and collaborations enable the company to offer a diverse product range, enhancing its competitive edge and contributing to its revenue streams. Itochu-Shokuhin's success is also supported by its ability to adapt to market trends and consumer preferences, ensuring a steady demand for its products.

Itochu-Shokuhin Co., Ltd. Financial Statement Overview

Summary

The company 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: Negative
• Last Price: 9770.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 9770 is below the 20-day moving average (MA) of 10079.47, below the 50-day MA of 10238.12, and above the 200-day MA of 8931.42, indicating a neutral trend. The MACD of -142.69 indicates Positive momentum. The RSI at 42.37 is Neutral, neither overbought nor oversold. The STOCH value of 35.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥29.87B	12.51	―	7.89%	3.32%	-22.52%
7614	71 Outperform	¥10.08B	10.11	―	2.27%	5.62%	-21.92%
8079	68 Neutral	¥71.11B	23.43	―	1.28%	5.65%	-9.63%
7451	68 Neutral	―	―	―	―	1.49%	6.34%
2692	67 Neutral	¥125.22B	14.32	―	1.42%	3.68%	29.25%
8030	65 Neutral	¥14.28B	5.26	―	3.12%	7.29%	10.64%
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 Q1 2025 Financial Results

Itochu-Shokuhin Co., Ltd. reported a positive financial performance for the three months ended June 30, 2025, with a notable increase in profit attributable to owners of the parent by 25.5% year-on-year. The company also forecasts a steady growth in net sales and profits for the fiscal year ending March 31, 2026, indicating a stable market position and potential positive implications for stakeholders.

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.