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Itochu Corporation (JP:8001)
:8001
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Itochu
(OTC:8001)
Rating:77Outperform
Price Target:
Â¥8,483.00
â–²(2.41% Upside)
Itochu (8001) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
$11.76T
Dividend Yield2.41%
Average Volume (3M)2.39M
Price to Earnings (P/E)12.2
Beta (1Y)1.07
Revenue Growth2.83%
EPS Growth22.27%
CountryJP
Employees113,733
SectorIndustrials
Sector Strength78
IndustryConglomerates
Share Statistics
EPS (TTM)200.50
Shares Outstanding1,584,889,500
10 Day Avg. Volume2,423,860
30 Day Avg. Volume2,388,826
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.30
Enterprise Value/Revenue1.04
Enterprise Value/Gross Profit6.43
Enterprise Value/Ebitda12.36
Forecast
1Y Price Target
$7,989.68Price Target Upside-3.54% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Itochu Business Overview & Revenue Model
Company DescriptionItochu Corporation, a prominent Japanese general trading company, operates in a diverse range of sectors including textiles, machinery, metals and minerals, energy and chemicals, food, ICT, and real estate. With a global presence, Itochu engages in numerous business activities such as the import and export of goods, domestic and international trade, and investments in various industries. The company serves as a critical intermediary in the supply chain, connecting manufacturers with customers worldwide.
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: 4.41%|
Next Earnings Date:Nov 05, 2025
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.Q2-2025 Updates
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.
Core Profit Achievement
Core profit reached ¥396 billion, maintaining the second highest profit level after FYE2023, with a 3% growth year-on-year.
Record-High Core Operating Cash Flows
Core operating cash flows exceeded ¥500 billion for the first time on a half-year basis, reaching ¥513 billion, setting a new all-time high.
Strong Performance in Key Segments
Textile, Machinery, Food, The 8th, and Others saw an increase in profit compared to the same period of the previous fiscal year.
Shareholder Returns and Dividend Increase
Dividend per share increased to ¥200, marking the 10th consecutive year of dividend increases, along with share buybacks of ¥150 billion.
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.
Energy & Chemicals Profit Decrease
Despite steady performance in chemicals, profit decreased significantly due to the absence of large extraordinary gains from the previous fiscal year.
General Products & Realty Profit Drop
Profit decreased due to the downturn in North American construction demand and higher costs affecting the North American construction materials business.
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
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
8283.00
Price Trends
7679.70
Positive
7409.12
Positive
7298.44
Positive
Market Momentum
131.43
Negative
65.45
Neutral
82.36
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 8283 is above the 20-day moving average (MA) of 7915.45, above the 50-day MA of 7679.70, and above the 200-day MA of 7298.44, indicating a bullish trend. The MACD of 131.43 indicates Negative momentum. The RSI at 65.45 is Neutral, neither overbought nor oversold. The STOCH value of 82.36 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $12.46T | 15.93 | 8.85% | 3.12% | -7.01% | -17.06% | |
80 Outperform | $4.00T | 10.92 | 14.15% | 2.72% | 1.69% | 9.10% | |
79 Outperform | $4.88T | 8.06 | 13.26% | 3.19% | 4.25% | 59.51% | |
79 Outperform | $9.38T | 11.69 | 10.69% | 3.03% | 0.76% | -22.37% | |
78 Outperform | $5.44T | 10.45 | 14.30% | 2.89% | 8.52% | 10.16% | |
77 Outperform | $11.76T | 12.15 | 17.06% | 2.41% | 2.83% | 22.27% | |
63 Neutral | $10.78B | 16.39 | 6.80% | 2.08% | 2.65% | -16.28% |
* Industrials Sector Average
Performance Comparison
JP:8001
Itochu
8,283.00
1,378.49
19.97%
JP:8002
Marubeni
3,292.00
922.76
38.95%
JP:8053
Sumitomo
4,069.00
836.71
25.89%
JP:8031
Mitsui & Co
3,305.00
380.72
13.02%
JP:8058
Mitsubishi
3,205.00
289.30
9.92%
JP:8015
Toyota Tsusho
3,857.00
1,248.63
47.87%
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.