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Sojitz
(2768)
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Rating:60Neutral
Price Target:
¥5,650.00
▲(4.82% Upside)
Action:Reiterated
Date:08/01/26
The score is driven primarily by weaker financial quality due to negative TTM operating and free cash flow despite positive earnings, alongside elevated leverage. Offsetting this are reasonable valuation (low P/E) and a ~3.07% dividend yield, while technicals are mildly supportive near-term but mixed versus the 100-day trend.
Positive Factors
Diversified Trading & Investment Model
Sojitz’s sōgō shōsha model combines trading/distribution with project development and ownership stakes. That diversified revenue mix spreads commodity and sector risk, supports cross-selling and long-term partner relationships, and provides multiple durable cash and earnings channels over months.
Negative Factors
Weak Cash Conversion
TTM operating and free cash flow have turned negative despite positive net income, signalling earnings aren’t converting to cash. This raises reliance on external financing or working-capital normalization to fund operations and investments, increasing execution and funding risk over months.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified Trading & Investment Model
Sojitz’s sōgō shōsha model combines trading/distribution with project development and ownership stakes. That diversified revenue mix spreads commodity and sector risk, supports cross-selling and long-term partner relationships, and provides multiple durable cash and earnings channels over months.
Read all positive factors
Sojitz (2768) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.08T
Dividend Yield3.04%
Average Volume (3M)1.10M
Price to Earnings (P/E)10.1
Beta (1Y)1.09
Revenue Growth20.44%
EPS Growth6.39%
CountryJP
Employees26,789
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)539.58
Shares Outstanding210,000,000
10 Day Avg. Volume1,000,230
30 Day Avg. Volume1,101,756
Financial Highlights & Ratios
PEG Ratio-3.38
Price to Book (P/B)1.18
Price to Sales (P/S)0.47
P/FCF Ratio-55.03
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)614.14
Revenue Forecast (FY)¥3.07T
Sojitz Business Overview & Revenue Model
Company Description
Sojitz Corporation is a diversified global trading firm, actively involved in a broad spectrum of commercial endeavors. Its extensive operations are structured across seven distinct business segments. The Automotive segment handles vehicle assembl...
How the Company Makes Money
Sojitz primarily makes money through a mix of (1) trading and distribution, and (2) earnings from business investments and operating interests. In trading/distribution, it buys, sells, and intermediates goods across domestic and international supp...
Sojitz Earnings Call Summary
Earnings Call Date:Feb 04, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:Nov 03, 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.
Read all updates
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
66
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.99T | 2.76T | 2.51T | 2.41T | 2.48T | 2.10T |
| Gross Profit | 396.59B | 367.49B | 317.76B | 299.98B | 314.84B | 252.35B |
| EBITDA | 194.87B | 196.00B | 205.94B | 193.41B | 215.87B | 162.78B |
| Net Income | 112.76B | 103.61B | 110.64B | 100.77B | 111.25B | 82.33B |
Balance Sheet | ||||||
| Total Assets | 3.73T | 3.65T | 3.17T | 2.97T | 2.72T | 2.71T |
| Cash, Cash Equivalents and Short-Term Investments | 249.42B | 256.05B | 199.18B | 209.41B | 254.28B | 282.43B |
| Total Debt | 1.53T | 1.40T | 1.19T | 1.01T | 955.11B | 1.13T |
| Total Liabilities | 2.52T | 2.49T | 2.16T | 2.02T | 1.84T | 1.95T |
| Stockholders Equity | 1.14T | 1.09T | 968.96B | 924.08B | 837.71B | 728.01B |
Cash Flow | ||||||
| Free Cash Flow | -78.24B | -23.30B | -60.05B | 85.09B | 145.96B | 46.71B |
| Operating Cash Flow | -39.79B | 16.76B | -16.69B | 112.19B | 171.64B | 65.08B |
| Investing Cash Flow | -72.73B | -89.63B | -90.81B | -8.60B | 30.72B | -140.28B |
| Financing Cash Flow | 143.19B | 113.24B | 103.09B | -165.49B | -231.93B | 48.35B |
Sojitz Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ¥15.56T | 15.25 | 14.58% | 2.11% | 3.10% | -3.40% | |
70 Outperform | ¥8.27T | 13.00 | 12.82% | 2.34% | 2.61% | 3.34% | |
70 Neutral | ¥8.20T | 13.62 | 13.62% | 1.97% | 10.23% | 13.04% | |
67 Neutral | ¥15.97T | 19.15 | 8.81% | 2.24% | 9.52% | 20.39% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | ¥1.08T | 10.06 | 10.18% | 3.03% | 20.44% | 6.39% | |
59 Neutral | ¥13.71T | 14.47 | 10.17% | 2.31% | 6.52% | 16.70% |
* Industrials Sector Average
JP:2768
Sojitz
5,427.00
1,719.36
46.37%
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Sojitz Corporate Events
Sojitz Releases Q1 FY2026 Results and FY2027 Outlook Materials
Jul 31, 2026
Sojitz Corporation has released presentation materials detailing its financial results for the first quarter ended June 30, 2026, along with a full-year forecast for the fiscal year ending March 31, 2027. The disclosure is structured around headli...
Sojitz Delivers Strong Q1 Earnings and Confirms Higher Full-Year Outlook
Jul 31, 2026
Sojitz reported strong consolidated results for the three months ended June 30, 2026, with revenue rising 39.3% year on year to ¥834.2 billion and profit attributable to owners surging 47.4% to ¥30.2 billion. Basic earnings per share cli...
Sojitz to Exit Loss-Making U.K. Oil and Gas Unit With Sale to NEO Energy
Jun 25, 2026
Sojitz Corporation has decided to sell all shares in its U.K.-based oil and gas development subsidiary, Sojitz Energy Development Limited, to NEO NEXT+ ENERGY UPSTREAM UK LIMITED as part of ongoing structural reforms. Ahead of the sale, Sojitz wil...
Sojitz to Take Significant Stake in Japan Investment Adviser in Strategic Finance Tie-Up
May 22, 2026
Sojitz Corporation will acquire 10,434,200 shares of Japan Investment Adviser Co., Ltd. through an off-market negotiated transaction, lifting its stake to more than 5% of voting rights and ultimately to about 19.97% including a planned third-party...
Sojitz Raises Dividends and Sets Higher Payout Target for FY2027
May 1, 2026
Sojitz Corporation’s board has approved a year-end dividend of JPY 82.50 per share for the fiscal year ended March 2026, unchanged from its prior forecast and up from JPY 75.00 a year earlier, in line with its Medium-term Management Plan 202...
Sojitz Lifts Dividend as FY2026 Profit Slips, Forecasts 25% Earnings Rebound
May 1, 2026
Sojitz reported consolidated revenue of ¥2.76 trillion for the year ended March 31, 2026, up 9.9% year on year, while profit attributable to owners fell 6.3% to ¥103.6 billion as profit before tax declined and equity-method earnings soft...
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.