Sojitz Corp. (JP:2768)
:2768
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Sojitz
(2768)
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Rating:65Neutral
Price Target:
¥6,828.00
▲(7.39% Upside)
Action:DowngradedDate:02/05/26
The score is primarily constrained by financial quality—especially weak and volatile recent cash flow and above-1x leverage—despite solid profitability metrics. Offsetting this, technicals are strong (price above key moving averages with positive MACD) and valuation is reasonable (low P/E with a moderate dividend yield).
Positive Factors
Diversified trading and operating model
Sojitz’s sōgō shōsha model spans energy, metals, chemicals, automotive, food and infrastructure, combining trading with owned operating businesses and investments. This diversification cushions sector-specific shocks, enables cross‑business synergies, and supports durable cash flow sources over the medium term.
Negative Factors
Elevated leverage
Debt-to-equity near 1.3 leaves the company sensitive to profit and cash flow volatility. In a cyclical conglomerate, above‑1x leverage reduces financial flexibility for opportunistic investments, increases refinancing risk, and amplifies downside in prolonged weaker commodity or project cycles.
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Positive Factors
Negative Factors
Diversified trading and operating model
Sojitz’s sōgō shōsha model spans energy, metals, chemicals, automotive, food and infrastructure, combining trading with owned operating businesses and investments. This diversification cushions sector-specific shocks, enables cross‑business synergies, and supports durable cash flow sources over the medium term.
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Sojitz (2768) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.21T
Dividend Yield3.24%
Average Volume (3M)1.10M
Price to Earnings (P/E)7.2
Beta (1Y)1.22
Revenue Growth2.12%
EPS Growth18.93%
CountryJP
Employees22,819
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)168.71
Shares Outstanding210,000,000
10 Day Avg. Volume1,000,230
30 Day Avg. Volume1,101,756
Financial Highlights & Ratios
PEG Ratio0.46
Price to Book (P/B)0.73
Price to Sales (P/S)0.28
P/FCF Ratio-11.77
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥6,622.86Price Target Upside4.17% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)551.41
Revenue Forecast (FY)¥2.63T
Sojitz Business Overview & Revenue Model
Company Description
Sojitz Corporation operates as a general trading company that engages in various business activities worldwide. It operates through seven segments: Automotive; Aerospace & Transportation Project; Infrastructure & Healthcare; Metals, Mineral Resour...
How the Company Makes Money
Sojitz makes money through a mix of (1) trading margins, (2) profits from operating businesses it owns or co-owns, and (3) investment income from affiliates and joint ventures.
1) Trading and distribution (margin-based revenue): Sojitz buys and s...
Sojitz Earnings Call Summary
Earnings Call Date:Feb 04, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Neutral
The earnings call reflects balanced aspects of Sojitz Corporation's performance. While there are notable achievements such as the upward revision of profit forecasts, strong cash flow, and growth in certain segments, these are counterbalanced by declines in profit, challenges in key segments, and increased SG&A expenses.Positive Updates
Upward Revision of Full Year Profit Forecast
The full year profit forecast has been revised upward from JPY 95 billion to JPY 100 billion, indicating confidence in achieving higher earnings despite current challenges.
Negative Updates
Decline in Consolidated Profit
Consolidated profit for the period fell by 30% year-on-year to JPY 75.2 billion, mainly due to declines in coal prices and sluggish demand for chemical products.
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Q3-2024 Updates
Positive
Negative
Upward Revision of Full Year Profit Forecast
The full year profit forecast has been revised upward from JPY 95 billion to JPY 100 billion, indicating confidence in achieving higher earnings despite current challenges.
Read all positive updates
Company Guidance
During the Q3 2024 earnings call, Makoto Shibuya, CFO of Sojitz Corporation, discussed the financial performance and future outlook of the company. Consolidated profit for the period was JPY 75.2 billion, representing a 30% decline year-on-year but achieving 75% of the revised full-year forecast of JPY 100 billion. The decline was primarily attributed to lower coal prices and reduced demand for chemical products. Despite these challenges, progress in new investments and asset accumulation contributed to gross profit growth, totaling JPY 242.3 billion. The annual dividend forecast was raised to JPY 135 per share, with a payout ratio of 30.2%. Cash flow from operating activities was a net inflow of JPY 86.2 billion, and free cash flow was JPY 111.7 billion. The company's PBR was at 0.86, with efforts ongoing to achieve a target of above 1x. Shibuya highlighted improvements in Automotive, Infrastructure & Healthcare, and Retail & Consumer Service segments, while noting challenges in Metals, Mineral Resources & Recycling due to market conditions. The presentation concluded with an optimistic outlook for achieving an average net profit of over JPY 120 billion in the next MTP period.Sojitz Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
63
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Mar 2025 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.61T | 2.51T | 2.41T | 2.48T | 2.10T | 1.60T |
| Gross Profit | 356.75B | 317.76B | 299.98B | 314.84B | 252.35B | 170.59B |
| EBITDA | 108.66B | 121.02B | 126.53B | 154.70B | 125.28B | 58.89B |
| Net Income | 114.94B | 110.64B | 100.77B | 111.25B | 82.33B | 27.00B |
Balance Sheet | ||||||
| Total Assets | 3.43T | 3.17T | 2.97T | 2.72T | 2.71T | 2.35T |
| Cash, Cash Equivalents and Short-Term Investments | 219.16B | 199.18B | 209.41B | 254.28B | 282.43B | 297.66B |
| Total Debt | 1.27T | 1.19T | 1.01T | 955.11B | 1.13T | 985.57B |
| Total Liabilities | 2.33T | 2.16T | 2.02T | 1.84T | 1.95T | 1.70T |
| Stockholders Equity | 1.06T | 968.96B | 924.08B | 837.71B | 728.01B | 619.11B |
Cash Flow | ||||||
| Free Cash Flow | 5.57B | -60.05B | 85.09B | 145.96B | 46.71B | 61.08B |
| Operating Cash Flow | 46.08B | -16.69B | 112.19B | 171.64B | 65.08B | 84.97B |
| Investing Cash Flow | -100.81B | -90.81B | -8.60B | 30.72B | -140.28B | -37.66B |
| Financing Cash Flow | 64.83B | 103.09B | -165.49B | -231.93B | 48.35B | -38.63B |
Sojitz Technical Analysis
Positive
6358.00
Price Trends
6225.94
Positive
5476.10
Positive
4605.25
Positive
Market Momentum
-18.70
Positive
51.26
Neutral
45.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2768, the sentiment is Positive. The current price of 6358 is below the 20-day moving average (MA) of 6395.50, above the 50-day MA of 6225.94, and above the 200-day MA of 4605.25, indicating a neutral trend. The MACD of -18.70 indicates Positive momentum. The RSI at 51.26 is Neutral, neither overbought nor oversold. The STOCH value of 45.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2768.
Sojitz Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥9.48T | 14.11 | 13.39% | 2.29% | 9.62% | 25.71% | |
71 Outperform | ¥16.04T | 16.87 | 15.23% | 2.11% | 0.93% | 15.80% | |
69 Neutral | ¥7.12T | 15.10 | 12.86% | 2.48% | 3.19% | 72.26% | |
68 Neutral | ¥21.43T | 13.18 | 7.39% | 2.94% | -7.54% | -35.70% | |
67 Neutral | ¥18.23T | 17.68 | 11.47% | 2.28% | -1.33% | -7.40% | |
65 Neutral | ¥1.21T | 7.20 | 11.17% | 3.24% | 2.12% | 18.93% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
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Sojitz Corporate Events
Sojitz Lifts Nine-Month Earnings and Confirms Forecast While Raising Dividend
Feb 3, 2026
For the nine months ended 31 December 2025, Sojitz reported a 5.6% year-on-year increase in revenue to ¥1,985.8 billion, while profit before tax declined 5.5% to ¥92.9 billion. Despite the lower profit before tax, profit for the period a...
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.