Sojitz (2768) AI Stock Analysis

• Market Cap: ¥926.42B
• Dividend Yield: 3.24%
• Average Volume (3M): 1.10M
• Price to Earnings (P/E): 9.2
• Beta (1Y): 1.04
• Revenue Growth: 2.12%
• EPS Growth: 18.93%
• Country: JP
• Employees: 22,819
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 116.15
• Shares Outstanding: 210,000,000
• 10 Day Avg. Volume: 1,000,230
• 30 Day Avg. Volume: 1,101,756
• PEG Ratio: 0.46
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.28
• P/FCF Ratio: -11.77
• 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: ¥4,331.98
• Price Target Upside: -10.50% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥5,471.00 ▲(13.04% Upside)

Sojitz's stock is supported by strong technical momentum and attractive valuation, with a low P/E ratio and solid dividend yield. Financial performance is positive with strong revenue growth and profitability, but there are concerns regarding operating efficiency and cash flow management. The absence of earnings call and corporate events data does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust market demand and effective business strategies, supporting long-term financial stability.

Profitability

Sustained profitability with stable margins reflects efficient cost management and a competitive edge in pricing, boosting long-term viability.

Equity Utilization

Strong return on equity showcases effective use of capital, enhancing shareholder value and supporting future growth initiatives.

Negative Factors

Rising Leverage

Increased leverage could strain financial flexibility and increase risk, potentially impacting long-term financial health if not managed.

Operating Efficiency

Declining EBIT margin suggests pressure on operating efficiency, which could affect profitability and competitiveness over time.

Cash Flow Management

Challenges in cash flow management may hinder liquidity and investment capacity, affecting the company's ability to fund future growth.

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 Resources & Recycling; Chemicals; Consumer Industry & Agriculture Business; and Retail & Consumer Service. The company is involved in the assembly and sale of automobiles, auto-financing business, and parts quality assurance business with customers comprising automobile and automobile parts manufacturers; and operation as an authorized dealer for premium brand vehicles. It also engages in the aircraft leasing, parts out, business jets, and transportation infrastructure businesses. In addition, the company is involved in the medical, telecommunication, and urban infrastructure development businesses. Further, it acquires coal and develops contract mining business, holds metal one and mid downstream venture, and ventures into new applications and businesses; and conducts a range of trading and business from basic chemicals to functional materials. Additionally, the company engages in building business models in the fields of agribusiness, foodstuffs, marine products, animal feed, and forest products to contribute to food safety and security; marine products processing; and wholesale and fertilizer business. Furthermore, it is involved in a range of retail consumer businesses comprising food distribution, shopping center management, consumer goods distribution, textile, and real estate activities; and logistics and insurance services, car and motorcycle parts, ship equipment, industrial machinery, forefront industry business, bearing, nuclear power-related equipment businesses, etc. The company was incorporated in 2003 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Sojitz makes money through a multifaceted revenue model that includes trading, investments, and services across its various business segments. Its primary revenue streams come from the sale of goods in the machinery and chemicals sectors, where it acts as an intermediary between manufacturers and customers. Additionally, Sojitz generates income from equity investments in projects such as energy and infrastructure, receiving returns through dividends or profit-sharing arrangements. The company also benefits from long-term contracts and partnerships with key industry players, which provide stable revenue sources. Furthermore, Sojitz engages in risk management services and consulting, allowing it to capitalize on its market expertise.

Sojitz Financial Statement Overview

Summary

Sojitz's financial performance shows moderate profitability with a gross profit margin of 13.82% and a net profit margin of 4.41%. However, negative revenue growth and low EBIT and EBITDA margins indicate operational challenges. The balance sheet reveals high leverage with a debt-to-equity ratio of 1.23, posing financial risks. Cash flow concerns are highlighted by negative operating and free cash flows, suggesting potential liquidity issues.

Income Statement

Sojitz's income statement reveals a mixed performance. The TTM data shows a gross profit margin of 13.82% and a net profit margin of 4.41%, indicating moderate profitability. However, the revenue growth rate is negative, suggesting a decline in sales. The EBIT and EBITDA margins are relatively low, reflecting challenges in operational efficiency.

Balance Sheet

The balance sheet shows a debt-to-equity ratio of 1.23, indicating a high level of leverage, which could pose financial risks. However, the return on equity is 11.35%, demonstrating effective use of equity to generate profits. The equity ratio is not provided, but the overall leverage suggests a need for cautious financial management.

Cash Flow

Cash flow analysis highlights concerns, with negative operating and free cash flows in the TTM period. The free cash flow to net income ratio is high at 3.60, suggesting reliance on non-operational sources for cash. The negative free cash flow growth rate indicates potential liquidity issues.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.51T	2.51T	2.41T	2.48T	2.10T	1.60T
Gross Profit	352.78B	346.79B	325.95B	337.57B	271.32B	188.12B
EBITDA	139.40B	156.31B	149.79B	188.59B	124.81B	66.26B
Net Income	111.60B	110.63B	100.77B	111.25B	82.33B	27.00B
Balance Sheet
Total Assets	3.25T	3.09T	2.89T	2.66T	2.66T	2.30T
Cash, Cash Equivalents and Short-Term Investments	199.76B	199.18B	209.41B	254.28B	282.43B	297.66B
Total Debt	1.27T	1.21T	1.01T	955.11B	1.13T	985.57B
Total Liabilities	2.23T	2.08T	1.93T	1.78T	1.90T	1.65T
Stockholders Equity	980.45B	968.96B	924.08B	837.71B	728.01B	619.11B
Cash Flow
Free Cash Flow	21.76B	-60.05B	80.97B	133.38B	38.01B	54.31B
Operating Cash Flow	69.89B	-16.69B	112.19B	171.64B	65.08B	84.97B
Investing Cash Flow	-134.65B	-94.11B	12.43B	29.16B	-138.82B	-35.68B
Financing Cash Flow	57.48B	106.39B	-186.52B	-230.37B	46.90B	-40.62B

Sojitz Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4840.00
• 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:2768, the sentiment is Positive. The current price of 4840 is above the 20-day moving average (MA) of 4751.95, above the 50-day MA of 4413.44, and above the 200-day MA of 3733.22, indicating a bullish trend. The MACD of 135.25 indicates Positive momentum. The RSI at 63.79 is Neutral, neither overbought nor oversold. The STOCH value of 36.87 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8053	77 Outperform	¥6.60T	10.83	12.86%	2.48%	3.19%	72.26%
2768	76 Outperform	¥926.42B	9.22	11.17%	3.24%	2.12%	18.93%
8031	74 Outperform	¥13.12T	14.56	11.47%	2.28%	-1.33%	-7.40%
8002	71 Outperform	¥7.32T	12.67	15.34%	2.29%	9.62%	25.71%
8001	68 Neutral	¥13.61T	14.23	15.80%	2.11%	0.93%	15.80%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
8058	60 Neutral	¥13.52T	20.33	7.39%	2.94%	-7.54%	-35.70%

Sojitz Corporate Events

Sojitz Corporation Announces Cancellation of Treasury Stock

Sojitz Corporation’s Board of Directors has approved the cancellation of 15 million treasury shares, representing approximately 6.7% of its total outstanding shares, effective August 29, 2025. This move is part of the company’s strategy to optimize its capital structure and potentially enhance shareholder value by reducing the number of shares in circulation.

The most recent analyst rating on (JP:2768) stock is a Hold with a Yen4240.00 price target. To see the full list of analyst forecasts on Sojitz stock, see the JP:2768 Stock Forecast page.

Sojitz Completes Share Repurchase Program

Sojitz Corporation has completed its share repurchase program, initially authorized by its Board of Directors on May 1, 2025. The company repurchased a total of 2,800,000 shares, amounting to approximately JPY 9.96 billion, through the Tokyo Stock Exchange. This move is likely to impact the company’s stock value and shareholder returns positively, reflecting a strategic decision to optimize capital structure and enhance shareholder value.

The most recent analyst rating on (JP:2768) stock is a Hold with a Yen3950.00 price target. To see the full list of analyst forecasts on Sojitz stock, see the JP:2768 Stock Forecast page.

Sojitz Corp Reports Decline in Q1 2025 Earnings

Sojitz Corporation is a diversified Japanese trading company operating in sectors such as metals, chemicals, and energy, known for its global reach and involvement in various industries.

Sojitz Reports Decline in Q1 2025 Financial Performance but Maintains Positive Outlook

Sojitz Corporation reported a decline in its financial performance for the first quarter ending June 30, 2025, with revenue decreasing by 4% compared to the previous year. Despite the downturn, the company maintains its full-year earnings forecast and plans to increase its annual dividend, reflecting confidence in its long-term strategy and market resilience.

The most recent analyst rating on (JP:2768) stock is a Hold with a Yen3565.00 price target. To see the full list of analyst forecasts on Sojitz stock, see the JP:2768 Stock Forecast page.