Itoki Corporation (7972) AI Stock Analysis

• Market Cap: ¥139.25B
• Dividend Yield: 2.2%
• Average Volume (3M): 108.29K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 1.24
• Revenue Growth: 7.63%
• EPS Growth: 29.07%
• Country: JP
• Employees: 3,957
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 14.06
• Shares Outstanding: 53,382,850
• 10 Day Avg. Volume: 98,130
• 30 Day Avg. Volume: 108,290
• PEG Ratio: 0.87
• Price to Book (P/B): 1.63
• Price to Sales (P/S): 0.58
• P/FCF Ratio: -19.41
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ¥2,776.00 ▲(13.77% Upside)

The overall stock score is primarily influenced by solid financial performance and reasonable valuation. However, technical analysis indicates a bearish trend, which dampens the overall score. The lack of earnings call and corporate events data means these factors do not contribute to the score.

Positive Factors

Consistent Revenue Growth

Sustained top-line growth reflects steady demand for office furniture and workspace solutions and supports long-term business stability. Combined with diversified sales channels and customized solutions, this trend underpins predictable revenue traction over the medium term.

Improving Profitability Margins

Expanding gross and net margins indicate stronger pricing power and operational efficiency. Margin improvements are durable when driven by product mix, higher-value customized offerings and cost management, enhancing the company’s ability to generate sustainable earnings.

Effective Capital Use and Moderate Leverage

An improved ROE alongside moderate leverage suggests management is allocating capital effectively to generate returns. This financial structure supports disciplined investment in product development and sales while keeping leverage at a manageable level for strategic growth.

Negative Factors

Declining Free Cash Flow

A shift to negative free cash flow signals weakening cash conversion from operations, reducing flexibility for capex, dividends, and debt service. If persistent, this undermines funding for strategic initiatives and increases reliance on external financing over the medium term.

Lower Equity Ratio / Higher Liability Reliance

A declining equity ratio points to greater reliance on liabilities versus equity financing, raising financial risk. Over time, this could constrain flexibility during downturns or raise refinancing costs, making capital structure management a longer‑term concern.

Net Income Growth Lagging Revenue

Slower net income growth relative to revenue suggests remaining pressure on bottom‑line conversion, perhaps from non-operating costs or structural cost items. Enduring weaker net leverage limits reinvestment capacity and reduces earnings resiliency over time.

Itoki Corporation Business Overview & Revenue Model

Company Description

Itoki Corporation manufactures and sells office and equipment-related products and services in Japan and internationally. The company offers workstation systems, desks, low partitions, office and conference room chairs, tables, related maintenance services, etc.; office building internal materials, movable and fixed walls, security equipment, factory and logistics equipment, commercial facility equipment, research facility equipment, etc.; and study desks and chairs, study and small office/home office furniture, etc. It also provides furniture and other products for healthcare facilities; bookshelf, auto racks, and find picker products for public facilities; safety deposit boxes and vault doors for financial institutions; and distribution equipment for factories and logistics facilities. The company offers its products under joyten brand name. Itoki Corporation was founded in 1890 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Itoki Corporation generates revenue through multiple key streams, primarily from the sale of office furniture and related products. The company's business model includes direct sales to corporate clients, government agencies, and educational institutions, as well as partnerships with interior design firms and distributors. Itoki also offers customized workspace solutions, which can command higher margins due to their tailored nature. Additionally, the company benefits from ongoing maintenance and support services for its products, which contribute to recurring revenue. Strategic partnerships with architects and designers enhance Itoki's market reach and allow for collaborative projects that can lead to significant sales opportunities.

Itoki Corporation Financial Statement Overview

Summary

Itoki Corporation shows solid financial performance with consistent revenue growth and improved profit margins. However, declining free cash flow indicates potential cash management issues, which slightly offsets the strong operational performance.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	145.19B	138.46B	132.99B	123.32B	115.84B	116.21B
Gross Profit	60.99B	55.20B	52.24B	45.75B	41.69B	41.89B
EBITDA	17.28B	13.49B	11.42B	11.76B	5.27B	5.54B
Net Income	9.06B	7.18B	5.91B	5.29B	1.17B	-236.00M
Balance Sheet
Total Assets	126.25B	120.52B	117.44B	115.29B	103.90B	105.10B
Cash, Cash Equivalents and Short-Term Investments	25.29B	22.48B	24.80B	26.98B	17.45B	18.25B
Total Debt	41.27B	37.55B	16.94B	20.10B	19.44B	21.11B
Total Liabilities	72.26B	71.18B	62.44B	65.38B	58.82B	60.91B
Stockholders Equity	53.91B	49.26B	54.96B	49.87B	44.93B	43.81B
Cash Flow
Free Cash Flow	0.00	-4.15B	3.00B	1.66B	664.00M	2.83B
Operating Cash Flow	0.00	-1.00B	6.32B	5.80B	2.77B	4.56B
Investing Cash Flow	0.00	-7.11B	-4.01B	4.92B	-1.17B	-1.15B
Financing Cash Flow	0.00	5.91B	-4.15B	-1.43B	-2.66B	-2.27B

Itoki Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2440.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7972, the sentiment is Positive. The current price of 2440 is below the 20-day moving average (MA) of 2481.38, above the 50-day MA of 2401.87, and above the 200-day MA of 2174.95, indicating a bullish trend. The MACD of 43.96 indicates Negative momentum. The RSI at 75.50 is Negative, neither overbought nor oversold. The STOCH value of 96.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7972.

Itoki Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7989	80 Outperform	¥42.13B	12.51	―	2.52%	2.47%	6.88%
7981	79 Outperform	¥204.34B	14.57	―	3.41%	6.17%	61.39%
7955	78 Outperform	¥33.17B	13.14	―	3.56%	3.03%	160.39%
8130	76 Outperform	¥186.56B	13.57	―	4.91%	6.35%	14.05%
7898	66 Neutral	¥9.50B	3.97	―	2.65%	1.11%	―
7972	65 Neutral	¥139.25B	14.34	―	2.20%	7.63%	29.07%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Itoki Corporation Corporate Events

Itoki Sells Former Kansai Logistics Center After Relocation to New Hub

Itoki Corporation has sold its former Kansai Logistics Center in Kadoma, Osaka, after relocating its Kansai logistics operations on September 1, 2025, to the newer GLP ALFALINK Ibaraki 3 facility as part of efforts to streamline logistics in the Kansai region. The property, comprising land and buildings now classified as non-business assets, has been transferred at a market-reflective price to an undisclosed, non-related buyer, and the company expects to record an extraordinary gain from the transaction in its fiscal year ending December 2025, although it estimates the impact on overall performance will be minor.

The most recent analyst rating on (JP:7972) stock is a Hold with a Yen2487.00 price target. To see the full list of analyst forecasts on Itoki Corporation stock, see the JP:7972 Stock Forecast page.

Itoki Corporation Maintains Stable A- Issuer Rating

Itoki Corporation has maintained its A- issuer rating with a stable outlook from Rating & Investment Information, Inc. This rating underscores the company’s commitment to transparency and credibility in its business operations, aiming to enhance its financial stability and fund procurement strategies.

The most recent analyst rating on (JP:7972) stock is a Hold with a Yen2487.00 price target. To see the full list of analyst forecasts on Itoki Corporation stock, see the JP:7972 Stock Forecast page.

Itoki Corporation Introduces Employee Stock Compensation System

Itoki Corporation has announced the adoption of a restricted stock compensation system for employees, following a similar initiative for executives introduced in 2018. This new system aims to incentivize employees by granting shares to those who meet specific criteria, thereby encouraging proactive participation in business administration and sustainable corporate value enhancement.

The most recent analyst rating on (JP:7972) stock is a Hold with a Yen2487.00 price target. To see the full list of analyst forecasts on Itoki Corporation stock, see the JP:7972 Stock Forecast page.

Itoki Corporation Revises Internal Control System Policy

Itoki Corporation announced a partial revision to its internal control system policy, effective January 1, 2026. The revised policy aims to strengthen compliance with laws and regulations, enhance risk management, and improve overall corporate governance. This move is expected to bolster Itoki’s operational efficiency and reliability, potentially impacting its market positioning positively by ensuring robust internal controls and risk management practices.

The most recent analyst rating on (JP:7972) stock is a Hold with a Yen2487.00 price target. To see the full list of analyst forecasts on Itoki Corporation stock, see the JP:7972 Stock Forecast page.

Itoki Corporation Announces Executive Leadership Changes

Itoki Corporation announced several executive officer appointments and promotions effective January 1, 2026, aimed at strengthening its leadership team. These changes are expected to enhance the company’s operational efficiency and strategic focus, particularly in work style design, engineering, and corporate communication, potentially impacting its market positioning and stakeholder relations positively.

The most recent analyst rating on (JP:7972) stock is a Hold with a Yen2487.00 price target. To see the full list of analyst forecasts on Itoki Corporation stock, see the JP:7972 Stock Forecast page.

Itoki Corporation Reports Strong Financial Growth for Nine-Month Period Ending September 2025

Itoki Corporation reported a significant increase in its consolidated financial results for the nine months ending September 30, 2025, with net sales rising by 10.1% year-on-year to ¥112,458 million. The company also saw a substantial boost in operating profit, ordinary profit, and profit attributable to owners of the parent, reflecting strong operational performance and strategic market positioning. The equity-to-asset ratio improved to 44.4%, indicating a stronger financial position. The company has revised its cash dividend forecast for the fiscal year ending December 31, 2025, projecting an increase, which suggests confidence in its future earnings potential.

The most recent analyst rating on (JP:7972) stock is a Hold with a Yen2487.00 price target. To see the full list of analyst forecasts on Itoki Corporation stock, see the JP:7972 Stock Forecast page.

Itoki Corporation Revises FY2025 Dividend Forecast Upward

Itoki Corporation has announced an amendment to its dividend forecast for FY2025, increasing the year-end dividend per share from 65 yen to 68 yen. This decision reflects the company’s commitment to stable and continuous profit distribution to shareholders, aligning with its long-term strategic priorities.

The most recent analyst rating on (JP:7972) stock is a Hold with a Yen2612.00 price target. To see the full list of analyst forecasts on Itoki Corporation stock, see the JP:7972 Stock Forecast page.

Itoki Corporation Reports Strong Financial Growth for 2025

Itoki Corporation reported a significant improvement in its financial performance for the nine months ending September 30, 2025, with net sales increasing by 10.1% and operating profit rising by 48.8% compared to the previous year. The company’s strong financial results indicate a positive trajectory, with implications for increased shareholder value and a strengthened market position.

The most recent analyst rating on (JP:7972) stock is a Hold with a Yen2612.00 price target. To see the full list of analyst forecasts on Itoki Corporation stock, see the JP:7972 Stock Forecast page.