Itoki Corporation (7972) AI Stock Analysis

• Market Cap: ¥125.96B
• Dividend Yield: 2.31%
• Average Volume (3M): 198.58K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 1.07
• Revenue Growth: 5.75%
• EPS Growth: 39.17%
• Country: JP
• Employees: 3,957
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 41.34
• Shares Outstanding: 53,382,850
• 10 Day Avg. Volume: 157,240
• 30 Day Avg. Volume: 198,580
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥2,606.00
• Price Target Upside: 9.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: ¥2,606.00 ▲(9.50% Upside)

Itoki Corporation's stock is performing well, driven primarily by strong technical indicators and solid financial performance. The stock is in a strong upward trend, as evidenced by bullish technical signals. However, the declining free cash flow highlights a need for better cash management. The valuation is reasonable, supporting the overall positive outlook.

Itoki Corporation Business Overview & Revenue Model

Company Description

Itoki Corporation (7972) is a Japanese company primarily engaged in the design, manufacture, and sale of office furniture, security equipment, and related products. Founded in 1890 and headquartered in Osaka, Japan, Itoki operates in multiple sectors including office solutions, logistics systems, and safety systems. The company offers a wide range of products such as office desks, chairs, storage solutions, security systems, and educational furniture, catering to both corporate and individual clients.

How the Company Makes Money

Itoki Corporation generates revenue through the sale of its various office and security products. The primary revenue streams include the sale of office furniture such as desks, chairs, and storage units, as well as the provision of security equipment like safes and security systems. Itoki also earns income from its logistics systems, which include automated storage and retrieval systems and other solutions aimed at improving efficiency in warehouses and distribution centers. The company leverages its extensive distribution network and partnerships with dealers and vendors to reach a broad customer base in Japan and internationally. Additionally, Itoki invests in research and development to innovate and enhance its product offerings, which helps maintain its competitive edge and support revenue growth.

Itoki Corporation Financial Statement Overview

Summary

Itoki Corporation demonstrates strong revenue growth and improved profit margins. The balance sheet is stable with moderate leverage, but declining free cash flow poses a risk to financial flexibility.

Income Statement

Itoki Corporation shows solid financial performance with a consistent revenue growth rate over the past years. The company reported a revenue increase from JPY 132.99 billion in 2023 to JPY 138.46 billion in 2024, marking a 4.11% growth. Gross profit margin improved to 39.86% in 2024 from 39.30% in 2023. The net profit margin increased to 5.19% in 2024, reflecting enhanced profitability. The EBIT and EBITDA margins also improved, indicating efficient operational management. However, net income growth is not as aggressive as revenue growth, suggesting room for margin improvement.

Balance Sheet

The balance sheet reveals a stable financial position with a debt-to-equity ratio of 0.76 in 2024, indicating moderate leverage. Return on equity improved to 14.58% in 2024, showcasing effective use of equity capital. However, the equity ratio slightly decreased to 40.88% in 2024, down from 46.80% in 2023, implying a higher reliance on liabilities. Overall, the company maintains a balanced approach to financing its operations.

Cash Flow

The cash flow statement indicates declining free cash flow, with a negative free cash flow of JPY -4.15 billion in 2024 compared to a positive JPY 3.01 billion in 2023. The operating cash flow to net income ratio was negative, reflecting challenges in converting earnings into cash. The company needs to improve cash generation from operations to enhance financial flexibility.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	138.46B	132.99B	123.32B	115.84B	116.21B
Gross Profit	55.20B	52.24B	45.75B	41.69B	41.89B
EBITDA	13.49B	11.42B	7.82B	6.12B	5.54B
Net Income	7.18B	5.91B	5.29B	1.17B	-355.00M
Balance Sheet
Total Assets	120.52B	117.44B	115.29B	103.90B	105.10B
Cash, Cash Equivalents and Short-Term Investments	22.48B	24.80B	26.98B	17.45B	18.25B
Total Debt	37.55B	16.94B	20.10B	19.44B	21.11B
Total Liabilities	71.18B	62.44B	65.38B	58.82B	60.91B
Stockholders Equity	49.26B	54.96B	49.87B	44.93B	43.81B
Cash Flow
Free Cash Flow	-4.15B	3.00B	1.66B	664.00M	2.83B
Operating Cash Flow	-1.00B	6.32B	5.80B	2.77B	4.56B
Investing Cash Flow	-7.11B	-4.01B	4.92B	-1.17B	-1.15B
Financing Cash Flow	5.91B	-4.15B	-1.43B	-2.66B	-2.27B

Itoki Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2380.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7972, the sentiment is Neutral. The current price of 2380 is below the 20-day moving average (MA) of 2424.75, above the 50-day MA of 2276.82, and above the 200-day MA of 1823.75, indicating a neutral trend. The MACD of 41.16 indicates Positive momentum. The RSI at 47.04 is Neutral, neither overbought nor oversold. The STOCH value of 16.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7972.

Itoki Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7955	79 Outperform	¥27.78B	13.71		4.12%	2.12%	56.08%
7972	76 Outperform	¥125.96B	13.14		2.31%	5.75%	39.17%
7981	74 Outperform	¥176.50B	14.87		2.93%	5.38%	27.34%
7898	74 Outperform	¥8.33B	4.07		2.70%	0.90%	―
7989	73 Outperform	¥37.83B	11.71		2.73%	2.31%	2.20%
8130	71 Outperform	¥177.82B	14.00		4.89%	6.13%	-0.28%
Sector *	61 Neutral	$17.75B	12.56	-5.49%	3.02%	1.43%	-14.12%

Itoki Corporation Corporate Events

Itoki Corporation Revises 2025 Financial Forecast Upward

Itoki Corporation has revised its full-year financial forecast for 2025, reflecting a positive outlook due to strong demand in its Workplace business. The company anticipates increases in net sales, operating profit, ordinary profit, and net income, driven by favorable sales and a focus on workplace solutions, positioning Itoki well within its industry.

Itoki Corporation Reports Strong First Half 2025 Financial Results

Itoki Corporation reported a significant increase in its financial performance for the first half of 2025, with net sales rising by 9.3% and operating profit surging by 54.8% compared to the previous year. The company also revised its full-year financial forecast upwards, indicating strong growth expectations, which could positively impact its market position and stakeholder confidence.

Itoki Corporation Announces Executive Officer Change

Itoki Corporation has announced a change in its executive officers, with Ryoichi Morita being appointed as the new Executive Officer and Deputy Executive Manager of the Sales Division, effective July 1, 2025. This appointment is part of the company’s ongoing efforts to strengthen its sales operations and enhance its market position.

Itoki Completes Treasury Stock Disposal for Executive Compensation

Itoki Corporation has completed the payment procedures for the disposal of 204,000 shares of its treasury stock as restricted stock-based compensation. This move, resolved by the Board of Directors, aims to align the interests of its executives and directors with the company’s performance, potentially impacting its governance and stakeholder relations positively.

Itoki Corporation Reports Strong Q1 2025 Financial Results

Itoki Corporation reported its consolidated financial results for the first quarter of 2025, showing a 4.5% increase in net sales compared to the previous year. The company also saw significant growth in operating and ordinary profits, with increases of 22.9% and 21.7%, respectively. The positive financial performance reflects Itoki’s strong market positioning and operational efficiency, which may have favorable implications for its stakeholders.