Sojitz (2768) AI Stock Analysis

• Market Cap: $1.31T
• Dividend Yield: 3.24%
• Average Volume (3M): 1.10M
• Price to Earnings (P/E): 12.5
• Beta (1Y): 1.17
• Revenue Growth: 2.12%
• EPS Growth: 18.93%
• Country: JP
• Employees: 22,819
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 168.71
• 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: 1.87
• Enterprise Value/Revenue: 0.94
• Enterprise Value/Gross Profit: 6.88
• Enterprise Value/Ebitda: 16.43
• 1Y Price Target: $6,463.77
• Price Target Upside: -6.06% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 548.85
• Revenue Forecast (FY): $2.62T

• Rating: 65 Neutral
• Price Target: ¥7,590.00 ▲(10.30% Upside)
• Action: Downgraded Date: 02/05/26
• Date: Action: Downgraded 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 business model

Sojitz's broad sōgō shōsha model provides durable revenue diversification across commodity trading, project development and operating businesses. This multi-industry footprint smooths cycle exposure, enables cross-segment synergies and supports stable cash flow sources over months to years.

Steady revenue and gross margins

Consistent top-line expansion and stable gross margins show underlying demand and recurring trading/operating margins. That steadiness supports sustainable operating profit generation, making earnings less dependent on one-off gains and improving predictability across a 2–6 month horizon.

Respectable ROE and growing equity base

Material equity growth combined with mid-teens ROE indicates the company is generating solid returns on its capital base. This supports reinvestment capacity and reduces relative dilution risk, underpinning medium-term financial resilience and the ability to fund operating businesses.

Negative Factors

Elevated leverage

A >1x debt-to-equity ratio raises structural financial risk for a cyclical conglomerate. Elevated leverage limits balance-sheet flexibility, increases sensitivity to interest-rate or earnings shocks, and constrains the company's ability to fund opportunistic investments or absorb downturns over the coming months.

Weak, volatile cash conversion

Sharp declines and volatility in free cash flow reduce internal funding for capex, dividends and debt repayment. Persistent weak cash conversion forces reliance on external financing or asset sales, amplifying refinancing and liquidity risk and undermining durable financial stability.

Cooling operating profitability

A decline in operating margins suggests weaker pricing or adverse mix/cost pressure that can persist beyond a quarter. Softer operating profitability reduces cash generation and impairs the company's ability to deleverage or reinvest, weighing on medium-term earnings resilience.

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

Earnings and profitability are solid (steady revenue growth, stable gross margins, and ROE ~11–13%), but the financial profile is held back by above-1x leverage (debt-to-equity ~1.28) and weak/volatile cash conversion, with TTM free cash flow down sharply and low versus net income.

Income Statement

Sojitz shows steady top-line expansion with revenue up ~4% in TTM (Trailing-Twelve-Months) and a clear multi-year step-up versus 2021, supported by consistent gross margins (~13–14%). Profitability is solid for the group, with net margins around ~4–4.5% and ROE holding near ~11–13% across recent years. Offsetting this, operating profitability has cooled from the 2023 peak (lower EBIT/EBITDA margins in TTM), suggesting less favorable mix/pricing or higher costs, and the growth profile looks more moderate than the surge seen in 2022–2023.

Balance Sheet

The balance sheet is functional but leveraged: debt-to-equity sits around ~1.28 in TTM (Trailing-Twelve-Months), and total debt has risen versus the last annual period, which can constrain flexibility in a cyclical conglomerate model. A positive is that equity has grown materially over the last several years and returns on equity remain respectable (~11–13% recently), indicating the capital base is being used reasonably well. The key weakness is the persistently above-1x leverage level, which elevates sensitivity to earnings and cash flow swings.

Cash Flow

Cash generation is the main pressure point. In TTM (Trailing-Twelve-Months), operating cash flow is modest relative to earnings and free cash flow is low, with free cash flow down sharply (about -74% growth) and only covering a small portion of net income. The prior annual period also showed negative operating and free cash flow, highlighting volatility and working-capital/investment swings. While earlier years (2023–2024) demonstrated strong positive free cash flow, the recent pattern reduces confidence in the durability of cash conversion.

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	346.79B	325.95B	337.57B	271.32B	188.12B
EBITDA	149.29B	156.31B	149.79B	188.59B	124.81B	66.26B
Net Income	114.94B	110.63B	100.77B	111.25B	82.33B	27.00B
Balance Sheet
Total Assets	3.43T	3.09T	2.89T	2.66T	2.66T	2.30T
Cash, Cash Equivalents and Short-Term Investments	219.16B	199.18B	209.41B	254.28B	282.43B	297.66B
Total Debt	1.36T	1.21T	1.01T	955.11B	1.13T	985.57B
Total Liabilities	2.33T	2.08T	1.93T	1.78T	1.90T	1.65T
Stockholders Equity	1.06T	968.96B	924.08B	837.71B	728.01B	619.11B
Cash Flow
Free Cash Flow	5.57B	-60.05B	80.97B	133.38B	38.01B	54.31B
Operating Cash Flow	46.08B	-16.69B	112.19B	171.64B	65.08B	84.97B
Investing Cash Flow	-100.31B	-94.11B	12.43B	29.16B	-138.82B	-35.68B
Financing Cash Flow	64.33B	106.39B	-186.52B	-230.37B	46.90B	-40.62B

Sojitz Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6881.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 6881 is above the 20-day moving average (MA) of 6533.95, above the 50-day MA of 5851.58, and above the 200-day MA of 4381.80, indicating a bullish trend. The MACD of 339.76 indicates Negative momentum. The RSI at 65.90 is Neutral, neither overbought nor oversold. The STOCH value of 79.93 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
8002	74 Outperform	¥9.64T	18.62	15.34%	2.29%	9.62%	25.71%
8001	71 Outperform	¥16.75T	16.72	15.80%	2.11%	0.93%	15.80%
8053	69 Neutral	¥7.66T	13.78	12.86%	2.48%	3.19%	72.26%
8058	68 Neutral	¥20.14T	27.84	7.39%	2.94%	-7.54%	-35.70%
8031	67 Neutral	¥17.00T	19.92	11.47%	2.28%	-1.33%	-7.40%
2768	65 Neutral	$1.31T	12.55	11.17%	3.24%	2.12%	18.93%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Sojitz Corporate Events

Sojitz Lifts Nine-Month Earnings and Confirms Forecast While Raising Dividend

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 attributable to owners rose 5.7% to ¥80.4 billion, boosting basic earnings per share to ¥385.16 and lifting total comprehensive income by 64.4%, as the company’s equity base expanded to ¥1,057.0 billion and total assets to ¥3,431.5 billion. Sojitz confirmed it will maintain its previously announced full-year forecast for FY2025, targeting profit attributable to owners of ¥115.0 billion and basic EPS of ¥551.23, and plans to raise its annual dividend to ¥165 per share (up from ¥150), underlining a continued shareholder return focus that also includes treasury stock purchases and cancellations, which have reduced the number of outstanding shares and supported EPS growth.

The most recent analyst rating on (JP:2768) stock is a Buy with a Yen6360.00 price target. To see the full list of analyst forecasts on Sojitz stock, see the JP:2768 Stock Forecast page.