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Itochu
(8001)
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Rating:72Outperform
Price Target:
¥2,215.00
▲(12.44% Upside)
Action:Upgraded
Date:08/04/26
The score is driven primarily by solid financial performance (strong earnings base, improving leverage, and healthy profitability) tempered by a recent decline in free cash flow. Technicals add support with an uptrend and positive momentum, while valuation is neutral-to-moderately attractive with a mid-teens P/E and ~2.1% dividend yield.
Positive Factors
Diversified trading & investment model
ITOCHU’s sogo shosha structure combines trading, equity investments, and operating subsidiaries across many sectors. This diversification spreads cyclical risk, creates multiple cash and fee streams and anchors earnings via affiliate profits and trading margins over the medium term.
Negative Factors
Declining free cash flow
A notable FCF drop weakens the company’s cash cushion despite large absolute cash generation. Reduced FCF ratio limits aggressive debt paydown or new capital deployment, and introduces risk that cash conversion will fluctuate, constraining durable capacity to self-fund growth or absorb shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified trading & investment model
ITOCHU’s sogo shosha structure combines trading, equity investments, and operating subsidiaries across many sectors. This diversification spreads cyclical risk, creates multiple cash and fee streams and anchors earnings via affiliate profits and trading margins over the medium term.
Read all positive factors
Itochu (8001) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥16.18T
Dividend Yield2.01%
Average Volume (3M)2.76M
Price to Earnings (P/E)16.1
Beta (1Y)0.96
Revenue Growth3.10%
EPS Growth-3.40%
CountryJP
Employees114,570
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)129.91
Shares Outstanding7,924,447,800
10 Day Avg. Volume2,637,070
30 Day Avg. Volume2,758,586
Financial Highlights & Ratios
PEG Ratio3.90
Price to Book (P/B)2.11
Price to Sales (P/S)0.94
P/FCF Ratio15.93
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥2,365.56Price Target Upside20.08% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)139.68
Revenue Forecast (FY)¥15.48T
Itochu Business Overview & Revenue Model
Company Description
Itochu Corporation (TSE: 8001) is a Japanese “sogo shosha” (general trading company) that operates a diversified global portfolio spanning trading, investment, logistics, and business management. It engages across multiple sectors including textil...
How the Company Makes Money
ITOCHU makes money primarily by (1) earning profits from consolidated operating companies it controls and (2) generating trading and distribution income by buying, selling, and arranging logistics/financing for goods and materials globally. A sign...
Itochu Earnings Call Summary
Earnings Call Date:Nov 06, 2024
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook, with strong financial performance in key sectors, record-high cash flows, and continued shareholder returns. However, some challenges remain in specific segments such as Metals & Minerals, Energy & Chemicals, and General Products & Realty, which experienced profit declines.Positive Updates
Increase in Consolidated Net Profit
Consolidated net profit increased by 6% or ¥25.5 billion year-on-year to ¥438.4 billion, achieving 50% of the annual forecast.
Negative Updates
Metals & Minerals Profit Decline
Profit in Metals & Minerals declined due to deteriorating profitability in Marubeni Itochu Steel's North American business and operational issues in coking coal companies.
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Q2-2025 Updates
Positive
Negative
Increase in Consolidated Net Profit
Consolidated net profit increased by 6% or ¥25.5 billion year-on-year to ¥438.4 billion, achieving 50% of the annual forecast.
Read all positive updates
Company Guidance
During the first half of FYE2025, Itochu Corporation reported a 6% year-on-year increase in consolidated net profit, reaching ¥438.4 billion and achieving 50% of its annual forecast. Core profit rose by ¥12.5 billion to ¥396 billion, marking the second-highest level after FYE2023. Operating cash flows set a record at ¥578.6 billion, driven by stable performance in sectors like The 8th, Machinery, and Food. Core operating cash flows also hit a new high at ¥513 billion. Despite challenges in the resource sector, the company offset negative impacts with strong performances in non-resource sectors and a weaker yen, maintaining a robust profit level. Total shareholders' equity increased by approximately ¥170 billion to ¥5.6 trillion, and the NET DER improved slightly to 0.47x. The company maintained its commitment to shareholder returns with a total payout ratio of 50% and a dividend per share of ¥200, alongside a significant share buyback initiative of ¥150 billion. Looking ahead, Itochu aims to enhance its profit base through growth investments while maintaining a strong financial foundation.Itochu Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
74
Positive
Cash Flow
66
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 15.14T | 14.82T | 14.72T | 14.03T | 13.95T | 12.29T |
| Gross Profit | 2.54T | 2.48T | 2.38T | 2.23T | 2.13T | 1.94T |
| EBITDA | 1.39T | 1.76T | 1.44T | 1.36T | 1.34T | 1.33T |
| Net Income | 910.11B | 900.28B | 880.25B | 801.77B | 800.52B | 820.27B |
Balance Sheet | ||||||
| Total Assets | 17.18T | 16.73T | 15.13T | 14.49T | 13.11T | 12.15T |
| Cash, Cash Equivalents and Short-Term Investments | 726.19B | 648.44B | 594.68B | 622.48B | 619.27B | 630.39B |
| Total Debt | 5.24T | 4.76T | 5.46T | 5.21T | 4.78T | 4.69T |
| Total Liabilities | 9.99T | 9.54T | 8.84T | 8.50T | 7.65T | 7.39T |
| Stockholders Equity | 6.77T | 6.59T | 5.76T | 5.43T | 4.82T | 4.20T |
Cash Flow | ||||||
| Free Cash Flow | 732.83B | 871.75B | 804.64B | 775.56B | 743.98B | 644.02B |
| Operating Cash Flow | 992.90B | 1.13T | 997.28B | 978.11B | 938.06B | 801.16B |
| Investing Cash Flow | -412.15B | -388.87B | -562.02B | -593.84B | -399.04B | 24.54B |
| Financing Cash Flow | -475.48B | -726.48B | -479.24B | -413.33B | -554.85B | -832.61B |
Itochu Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ¥16.18T | 16.09 | 14.58% | 2.11% | 3.10% | -3.40% | |
70 Outperform | ¥8.41T | 13.78 | 12.82% | 2.34% | 2.61% | 3.34% | |
70 Neutral | ¥8.34T | 14.09 | 13.62% | 1.97% | 10.23% | 13.04% | |
67 Neutral | ¥16.27T | 20.04 | 8.81% | 2.24% | 9.52% | 20.39% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | ¥1.08T | 10.53 | 10.18% | 3.03% | 20.44% | 6.39% | |
59 Neutral | ¥13.87T | 14.87 | 10.17% | 2.31% | 6.52% | 16.70% |
* Industrials Sector Average
JP:8001
Itochu
2,090.50
528.09
33.80%
JP:8002
Marubeni
4,950.00
1,792.31
56.76%
JP:8031
Mitsui & Co
4,880.00
1,723.81
54.62%
JP:8058
Mitsubishi
4,849.00
1,799.97
59.03%
JP:8053
Sumitomo
1,785.50
808.78
82.80%
JP:2768
Sojitz
5,680.00
2,015.86
55.02%
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.