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Itochu Corporation (JP:8001)
:8001
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Itochu
(OTC:8001)
Rating:77Outperform
Price Target:
¥8,483.00
▲(11.34%Upside)
Itochu (8001) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥10.90T
Dividend Yield2.64%
Average Volume (3M)2.80M
Price to Earnings (P/E)12.3
Beta (1Y)1.09
Revenue Growth4.95%
EPS Growth11.33%
CountryJP
Employees113,733
SectorIndustrials
Sector Strength89
IndustryConglomerates
Share Statistics
EPS (TTM)615.64
Shares Outstanding1,584,889,500
10 Day Avg. Volume2,354,220
30 Day Avg. Volume2,804,610
Financial Highlights & Ratios
PEG Ratio-6.44
Price to Book (P/B)1.31
Price to Sales (P/S)0.00
P/FCF Ratio8.47
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥8,765.05Price Target Upside15.04% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Itochu Business Overview & Revenue Model
Company DescriptionItochu Corporation (8001) is a leading Japanese general trading company, also known as a sogo shosha. The company operates in diverse sectors including textiles, machinery, metals and minerals, energy and chemicals, food, information and communications technology, real estate, and finance. Itochu engages in a wide range of activities from the import and export of goods to comprehensive project management and investment in various industries globally.
How the Company Makes MoneyItochu Corporation generates revenue through its extensive network of businesses that span across multiple sectors. The company earns money by facilitating international trade, which includes the import and export of goods such as textiles, machinery, and metals. Additionally, Itochu invests in energy and chemical projects, contributing to its earnings through the development, production, and sale of energy resources. The corporation also engages in food production and distribution, further diversifying its income sources. Through its ICT sector, Itochu participates in telecommunications and technology services, adding another revenue stream. Real estate investment and finance activities also play a significant role in Itochu's financial performance. The company's diverse portfolio allows it to leverage cross-sector synergies and maintain stable earnings through strategic partnerships and investments worldwide.
Itochu Earnings Call Summary
Earnings Call Date:May 02, 2025
(Q2-2025)
| % Change Since: 4.86%|
Next Earnings Date:Aug 01, 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 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
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
7619.00
Price Trends
7465.98
Positive
7065.76
Positive
7257.19
Positive
Market Momentum
37.01
Negative
55.21
Neutral
81.68
Negative
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 7619 is above the 20-day moving average (MA) of 7487.70, above the 50-day MA of 7465.98, and above the 200-day MA of 7257.19, indicating a bullish trend. The MACD of 37.01 indicates Negative momentum. The RSI at 55.21 is Neutral, neither overbought nor oversold. The STOCH value of 81.68 is Negative, 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 (71)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $3.38T | 9.29 | 14.04% | 3.45% | 1.18% | 9.37% | |
80 Outperform | ¥11.28T | 12.25 | 10.17% | 3.44% | -4.85% | 2.78% | |
79 Outperform | ¥4.45T | 7.93 | 12.19% | 3.53% | 5.52% | 46.81% | |
78 Outperform | $4.96T | 9.77 | 13.98% | 3.38% | 7.44% | 8.25% | |
77 Outperform | ¥10.90T | 12.30 | 15.55% | 2.64% | 4.95% | 11.33% | |
76 Outperform | $8.55T | 9.77 | 11.74% | 3.34% | 10.04% | -13.06% | |
71 Outperform | ¥252.71B | 13.12 | 8.49% | 3.08% | 6.31% | 13.02% |
* Industrials Sector Average
Performance Comparison
JP:8001
Itochu
7,619.00
-306.09
-3.86%
JP:8002
Marubeni
2,982.50
63.77
2.18%
JP:8053
Sumitomo
3,700.00
-198.78
-5.10%
JP:8031
Mitsui & Co
3,026.00
-587.72
-16.26%
JP:8058
Mitsubishi
2,893.00
-330.88
-10.26%
JP:8015
Toyota Tsusho
3,183.00
83.22
2.68%
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.