Itochu (8001) AI Stock Analysis

• Market Cap: ¥15.33T
• Dividend Yield: 2.11%
• Average Volume (3M): 2.76M
• Price to Earnings (P/E): 14.8
• Beta (1Y): 1.01
• Revenue Growth: 0.93%
• EPS Growth: 15.80%
• Country: JP
• Employees: 113,733
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): N/A
• Shares Outstanding: 7,924,447,800
• 10 Day Avg. Volume: 2,637,070
• 30 Day Avg. Volume: 2,758,586
• PEG Ratio: 0.99
• Price to Book (P/B): 1.71
• Price to Sales (P/S): 0.67
• P/FCF Ratio: 12.26
• 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: ¥4,720.93
• Price Target Upside: 138.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥2,306.00 ▲(16.41% Upside)

Itochu's overall stock score of 68 reflects its strong financial performance and reasonable valuation. The company's stable profitability and efficient operations are significant strengths, although the slight decline in revenue and free cash flow growth warrants monitoring. The technical analysis suggests a mixed outlook, with short-term weakness but a longer-term uptrend. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Diversified trading model and global footprint

Itochu's broad sector exposure and global trading footprint reduce dependence on any single market or product cycle. Diversification plus numerous subsidiaries and JVs provides multiple revenue sources, cross-selling and geographic optionality that support more stable earnings across months.

High return on equity

A reported ROE of 16.1% indicates efficient deployment of shareholders' capital and strong profit generation versus equity. Sustained high ROE supports reinvestment, dividend capacity and long-term shareholder returns, reflecting durable operational effectiveness across business lines.

Solid cash conversion with balanced leverage

Operating cash flow above reported earnings and a robust FCF/net income ratio signal disciplined cash conversion. Combined with a moderate debt-to-equity profile, this preserves financial flexibility for capex, investments or distributions without materially increasing liquidity risk over the medium term.

Negative Factors

TTM revenue slowdown

A recurring top-line decline of ~1.5% TTM suggests weakening demand or marginable trading volumes in core segments. If this trend continues, it can constrain scale benefits, reduce operating leverage and limit funds available for strategic initiatives or reinvestment over the next several months.

Declining free cash flow growth

A 4.5% fall in FCF growth reduces internally generated funding for capex, acquisitions and shareholder returns. Persistent FCF erosion often reflects working-capital or margin pressures and can force increased external financing or slower buybacks/dividend growth, weakening medium-term cash resilience.

Conglomerate complexity can hinder capital allocation

Wide-ranging operations and numerous JV structures increase managerial and reporting complexity, complicating capital allocation and performance transparency. Over time this can dilute focus, slow strategic decisions and make it harder to consistently allocate capital to highest-return opportunities.

Itochu Business Overview & Revenue Model

Company Description

ITOCHU Corporation engages in trading and importing/exporting various products worldwide. The company's Textile segment produces and sells fiber and garment materials, textiles fabrics, apparel, and industrial materials; and imports lifestyle brands, fashion accessories, and garments in various areas, such as luxury, casual, and sports. Its Machinery segment provides engineering, procurement, and construction services; operates water and environmental, infrastructure, renewable energy, oil and gas, petrochemical, and independent power producer projects and plants; sells and leases aircraft and related equipment; sells automobiles, construction machinery, electronic systems, industrial machinery, and medical devices; and owns and charters ships. The company's Metals & Minerals segment engages in mining and trading of iron ore, coal, uranium, base metals, and minor metals; trading in non-ferrous metal materials; and processing and trading in steel products. Its Energy & Chemicals segment trades in crude oil, petroleum products, LPG, LNG, natural gas, hydrogen, organic and inorganic chemicals, synthetic resins, household goods, fine chemicals, pharmaceuticals, and electronic materials, as well as generates and trades in power. The company's Food segment produces, distributes, and retails food products. Its General Products & Realty segment produces and sells paper, pulp, natural rubber, tire, and wood products and materials; develops and operates real estate properties, such as housing, logistics facilities, and other projects; and offers logistics services. The company's ICT & Financial Business segment offers IT solutions, Internet related and venture capital services, mobile telephone equipment and services, BPO, broadcasting and communications, entertainment and content services, outsourcing services for healthcare and preventive medicine, and financial and insurance brokerage services. The company was founded in 1858 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Itochu generates revenue through a diversified revenue model, primarily focused on trading and investment activities. Key revenue streams include the sale of goods across its various sectors, such as textiles, machinery, and food products, where the company acts as an intermediary between manufacturers and consumers. Additionally, Itochu earns income through its investments in companies and joint ventures, often involving profit-sharing arrangements. The company's strategic partnerships with global firms and its presence in emerging markets also contribute significantly to its earnings, allowing it to capitalize on growth opportunities and leverage synergies in different industries. Furthermore, Itochu's financial services and logistics solutions add to its revenue, enhancing its overall business portfolio.

Itochu Financial Statement Overview

Summary

Itochu's financial performance is solid, with stable profitability and efficient operations. Despite a slight decline in revenue and free cash flow growth, the company maintains healthy margins and a balanced leverage profile. The strong return on equity and stable cash conversion efficiency further support its financial strength.

Income Statement

Itochu's income statement shows a stable gross profit margin of around 16% and a net profit margin of approximately 6.4% in the TTM period. However, the revenue growth rate has slightly declined by 1.5% in the TTM, indicating a potential slowdown in sales. EBIT and EBITDA margins are healthy, reflecting efficient operations.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.75, indicating a balanced approach to leveraging. The return on equity is strong at 16.1%, showcasing effective use of equity to generate profits. The equity ratio stands at 38.9%, suggesting a solid equity base relative to total assets.

Cash Flow

Cash flow analysis shows a slight decline in free cash flow growth by 4.5% in the TTM, which could be a concern. However, the operating cash flow to net income ratio is stable at 1.09, and the free cash flow to net income ratio is robust at 0.78, indicating good cash conversion efficiency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	14.68T	14.72T	14.03T	13.95T	12.29T	10.36T
Gross Profit	2.42T	2.38T	2.23T	2.13T	1.94T	1.78T
EBITDA	1.46T	1.36T	1.29T	1.25T	1.28T	968.57B
Net Income	942.09B	880.25B	801.77B	800.52B	820.27B	401.43B
Balance Sheet
Total Assets	15.59T	15.13T	14.49T	13.11T	12.15T	11.18T
Cash, Cash Equivalents and Short-Term Investments	625.77B	589.49B	689.06B	688.80B	724.83B	598.88B
Total Debt	4.55T	4.62T	4.40T	4.01T	3.92T	4.22T
Total Liabilities	8.96T	8.84T	8.50T	7.65T	7.39T	7.31T
Stockholders Equity	6.06T	5.76T	5.43T	4.82T	4.20T	3.32T
Cash Flow
Free Cash Flow	806.92B	804.64B	775.56B	743.98B	644.02B	730.88B
Operating Cash Flow	1.03T	997.28B	978.11B	938.06B	801.16B	895.90B
Investing Cash Flow	-531.61B	-516.27B	-205.99B	-453.81B	38.64B	-207.30B
Financing Cash Flow	-514.73B	-525.00B	-801.17B	-500.08B	-846.71B	-728.77B

Itochu Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1981.00
• 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:8001, the sentiment is Positive. The current price of 1981 is below the 20-day moving average (MA) of 2027.13, above the 50-day MA of 1948.10, and above the 200-day MA of 1677.86, indicating a neutral trend. The MACD of 6.33 indicates Positive momentum. The RSI at 47.72 is Neutral, neither overbought nor oversold. The STOCH value of 30.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8001.

Itochu Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8053	77 Outperform	$7.56T	12.40	12.86%	2.48%	3.19%	72.26%
2768	76 Outperform	¥1.07T	10.68	11.17%	3.24%	2.12%	18.93%
8031	74 Outperform	¥14.37T	15.95	11.47%	2.28%	-1.33%	-7.40%
8002	71 Outperform	¥8.57T	14.83	15.34%	2.29%	9.62%	25.71%
8001	68 Neutral	¥15.33T	14.82	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	¥15.53T	23.34	7.39%	2.94%	-7.54%	-35.70%

Itochu Corporate Events

ITOCHU Reports Progress on Share Repurchase Program

ITOCHU Corporation announced the progress of its share repurchase program, initiated by the Board of Directors on May 2, 2025, under the Companies Act of Japan. As of October 31, 2025, ITOCHU has repurchased a total of 15,473,000 shares, amounting to approximately 123 billion yen, as part of its plan to buy back up to 28 million shares by the end of the year. This strategic move is expected to enhance shareholder value and optimize the company’s capital structure.

The most recent analyst rating on (JP:8001) stock is a Buy with a Yen10890.00 price target. To see the full list of analyst forecasts on Itochu stock, see the JP:8001 Stock Forecast page.