Itochu (8001) AI Stock Analysis

• Market Cap: ¥15.60T
• Dividend Yield: 2.11%
• Average Volume (3M): 2.76M
• Price to Earnings (P/E): 15.1
• Beta (1Y): 1.04
• 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: 0.20
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 0.13
• P/FCF Ratio: 2.45
• 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: ¥2,500.00
• Price Target Upside: -73.13% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥10,140.00 ▲(9.00% 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 Revenue Model

Itochu's diversified revenue model across sectors like textiles, machinery, and food provides resilience against sector-specific downturns, ensuring stable income streams.

Strong Return on Equity

A strong ROE indicates efficient management and effective use of shareholders' equity, contributing to sustainable profitability and investor confidence.

Healthy Margins

Stable profit margins reflect efficient operations and cost management, supporting long-term profitability and competitive positioning.

Negative Factors

Slight Decline in Revenue Growth

A decline in revenue growth could signal challenges in market expansion or competitive pressures, potentially impacting future earnings.

Decline in Free Cash Flow Growth

Reduced free cash flow growth may limit Itochu's ability to reinvest in growth opportunities or return capital to shareholders, affecting long-term financial flexibility.

No Recent Corporate Events

The lack of recent corporate events may indicate missed opportunities for strategic initiatives or partnerships that could drive future growth.

Itochu Business Overview & Revenue Model

Company Description

Itochu Corporation (8001) is a prominent Japanese trading company and one of Japan's largest general trading firms, known as sōgō shōsha. Founded in 1858, Itochu operates across various sectors, including textiles, machinery, chemicals, food, and logistics. The company engages in diverse activities such as importing, exporting, and investing in businesses, thereby providing a wide array of products and services globally. Itochu's operations span through subsidiaries and joint ventures, enhancing its reach and capabilities in multiple industries.

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: 9303.00
• 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:8001, the sentiment is Positive. The current price of 9303 is above the 20-day moving average (MA) of 1944.03, above the 50-day MA of 1887.92, and above the 200-day MA of 1622.46, indicating a bullish trend. The MACD of 38.76 indicates Negative momentum. The RSI at 61.25 is Neutral, neither overbought nor oversold. The STOCH value of 51.71 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
8015	77 Outperform	¥5.87T	15.90	13.49%	2.10%	5.32%	9.73%
8053	77 Outperform	¥6.85T	11.24	12.86%	2.48%	3.19%	72.26%
8031	74 Outperform	¥13.69T	15.20	11.47%	2.28%	-1.33%	-7.40%
8002	71 Outperform	¥7.71T	13.35	15.34%	2.29%	9.62%	25.71%
8001	68 Neutral	¥15.60T	15.08	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	¥14.33T	21.55	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.