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Itochu Corporation (JP:8001)
:8001
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Itochu
(OTC:8001)
Rating:77Outperform
Price Target:
¥8,483.00
▲(8.17%Upside)
Itochu (8001) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥11.17T
Dividend Yield2.55%
Average Volume (3M)2.54M
Price to Earnings (P/E)12.6
Beta (1Y)1.09
Revenue Growth4.95%
EPS Growth11.33%
CountryJP
Employees113,733
SectorIndustrials
Sector Strength89
IndustryConglomerates
Share Statistics
EPS (TTM)310.66
Shares Outstanding1,584,889,500
10 Day Avg. Volume2,036,850
30 Day Avg. Volume2,544,996
Financial Highlights & Ratios
PEG Ratio6.67
Price to Book (P/B)1.97
Price to Sales (P/S)0.00
P/FCF Ratio14.11
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥8,974.20Price Target Upside14.44% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Itochu Business Overview & Revenue Model
Company DescriptionITOCHU 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 MoneyItochu Corporation generates revenue through its multifaceted business model, which includes trading, investment, and business development. The company earns money by facilitating the import and export of goods across its various divisions, leveraging its extensive network to source, distribute, and market products. Itochu's investments in key industries such as energy, natural resources, and technology also contribute significantly to its earnings. Additionally, the company forms strategic partnerships and joint ventures to expand its market presence and diversify its portfolio, further enhancing its revenue streams. Itochu's ability to adapt to market trends and its focus on sustainable business practices also play a crucial role in its financial success.
Itochu Earnings Call Summary
Earnings Call Date:Aug 01, 2025
(Q2-2025)
| % Change Since: 7.93%|
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative elements. On the positive side, the company reported a significant increase in consolidated net profit, record high core operating cash flows, strong sector performances, and enhanced shareholder returns. However, these achievements were partly offset by declines in specific sectors such as Metals & Minerals, Energy & Chemicals, and General Products & Realty, as well as flat results in the ICT and Financial business. The overall sentiment appears balanced with highlights slightly outweighing the lowlights.Q2-2025 Updates
Positive Updates
Increase in Consolidated Net Profit
Consolidated net profit increased by 6% or JPY 25.5 billion year-on-year to JPY 438.4 billion, achieving 50% of the annual forecast.
Record High Core Operating Cash Flows
Core operating cash flows exceeded JPY 500 billion for the first time in all the half-year results, reaching JPY 513 billion.
Strong Group Performance
87.5% of group companies reported profits, the highest for the first half.
Sector Performance Highlights
Textile, Chemicals, Food, Construction and Real Estate, ICT, and The 8th showed strong performance, resulting in a JPY 12.5 billion increase in core profit, which is 3% growth year-on-year.
Shareholder Returns
Total payout ratio of 50% with a dividend per share of JPY 200, an increase of JPY 40 from the previous fiscal year, and share buybacks of JPY 150 billion.
Negative Updates
Decline in Metals & Minerals Profit
Profit declined due to deteriorating profitability in Marubeni-Itochu Steel's North American business and operational issues in coking coal companies.
Energy & Chemicals Profit Decrease
Profit decreased significantly due to the absence of large extraordinary gain in the previous fiscal year's power and environmental solutions.
General Products & Realty Profit Decline
Profit was down due to the decrease in the North American Construction Materials business affected by higher cost and market downturn.
Flat ICT and Financial Business Results
Results were almost flat year-on-year due to the absence of extraordinary gains recorded in the previous fiscal year and lower profit in the mobile phone business.
Company Guidance
During the earnings call for Q2 2025, Keita Ishii, President of ITOCHU Corporation, reported an increase in consolidated net profit by 6% year-on-year, reaching JPY 438.4 billion, which is 50% of the annual forecast. Core profit was JPY 396 billion, driven by strong performances in sectors like Textile, Chemicals, and Food, reflecting a 3% growth year-on-year. The company achieved an all-time high in core operating cash flows, surpassing JPY 500 billion, reaching JPY 513 billion. The ratio of group companies reporting profits was a record 87.5%. Shareholder returns were a key focus, with a target payout ratio of 50% and a dividend per share increase to JPY 200. The financial position was strengthened with shareholders' equity at JPY 5.6 trillion and a net debt-to-equity ratio of 0.47x. Despite challenges in sectors such as Metals & Minerals and Energy, the first half results showed resilience, with plans for continued growth investments and shareholder returns.Itochu Financial Statement Overview
Summary
Itochu exhibits strong financial health with robust revenue and profit growth, supported by effective cost management and profitability. The balance sheet reflects a solid foundation with manageable leverage and effective equity utilization. Cash flows are healthy, ensuring liquidity and operational efficiency. Overall, Itochu is well-positioned within the conglomerates industry, demonstrating stability and growth potential with some leverage considerations.Income Statement
Itochu has demonstrated strong revenue growth with a consistent upward trend over the past years, reaching ¥14.7 trillion in 2025 from ¥10.3 trillion in 2021. The gross profit margin remains healthy, indicating efficient cost management. Net profit margin shows a positive trend, reflecting increased profitability. However, EBIT margin has slightly decreased, suggesting a potential rise in operating expenses. Overall, the company has shown strong growth and profitability in its income statement.85
Very Positive
Balance Sheet
The balance sheet of Itochu presents a solid financial foundation, with a healthy equity ratio of 38% in 2025, improved from 29.7% in 2021. The debt-to-equity ratio has been managed well, though it remains relatively high, indicating moderate leverage. The return on equity is robust, suggesting effective use of equity to generate profits. Stability in assets and equity over the period reflects financial strength, albeit with some concerns over leveraging.80
Positive
Cash Flow
Itochu's cash flows show a positive trend, with consistent free cash flow generation. The operating cash flow to net income ratio is strong, indicating effective cash conversion from earnings. Although there is a fluctuation in free cash flow growth rates, the overall cash position is stable. The company effectively manages its investing and financing activities, ensuring sufficient liquidity for operations.78
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 14.72T | 14.03T | 13.95T | 12.29T | 10.36T |
| Gross Profit | 2.38T | 2.23T | 2.13T | 1.94T | 1.78T |
| EBITDA | 1.36T | 1.29T | 1.25T | 1.28T | 968.57B |
| Net Income | 880.25B | 801.77B | 800.52B | 820.27B | 401.43B |
Balance Sheet | |||||
| Total Assets | 15.13T | 14.49T | 13.11T | 12.15T | 11.18T |
| Cash, Cash Equivalents and Short-Term Investments | 589.49B | 689.06B | 688.80B | 724.83B | 598.88B |
| Total Debt | 4.62T | 4.40T | 4.01T | 3.92T | 4.22T |
| Total Liabilities | 8.84T | 8.50T | 7.65T | 7.39T | 7.31T |
| Stockholders Equity | 5.76T | 5.43T | 4.82T | 4.20T | 3.32T |
Cash Flow | |||||
| Free Cash Flow | 804.64B | 775.56B | 743.98B | 644.02B | 730.88B |
| Operating Cash Flow | 997.28B | 978.11B | 938.06B | 801.16B | 895.90B |
| Investing Cash Flow | -516.27B | -205.99B | -453.81B | 38.64B | -207.30B |
| Financing Cash Flow | -525.00B | -413.33B | -500.08B | -846.71B | -728.77B |
Itochu Technical Analysis
Positive
7842.00
Price Trends
7579.38
Positive
7279.53
Positive
7275.90
Positive
Market Momentum
98.24
Negative
61.98
Neutral
62.21
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 7842 is above the 20-day moving average (MA) of 7695.30, above the 50-day MA of 7579.38, and above the 200-day MA of 7275.90, indicating a bullish trend. The MACD of 98.24 indicates Negative momentum. The RSI at 61.98 is Neutral, neither overbought nor oversold. The STOCH value of 62.21 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
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥11.17T | 12.61 | 15.55% | 2.55% | 4.95% | 11.33% | |
65 Neutral | $11.04B | 15.74 | 4.60% | 2.11% | 3.27% | -26.87% | |
| ― | $34.10B | 10.38 | 13.98% | 3.13% | ― | ― | |
| ― | $58.21B | 10.25 | 11.74% | 3.27% | ― | ― | |
| ― | $76.76B | 12.75 | 10.17% | 3.37% | ― | ― | |
| ― | $31.02B | 8.44 | 12.19% | 3.39% | ― | ― | |
| ― | $24.56B | 9.80 | 14.04% | 3.98% | ― | ― |
* Industrials Sector Average
Performance Comparison
JP:8001
Itochu
7,933.00
732.44
10.17%
MARUF
Marubeni
20.60
3.27
18.87%
MITSF
Mitsui & Co
20.75
-0.55
-2.58%
MSBHF
Mitsubishi
19.75
0.06
0.30%
SSUMF
Sumitomo
25.68
2.27
9.70%
TYHOF
Toyota Tsusho
21.71
4.10
23.28%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.