ITOCHU ENEX CO., LTD. (8133) AI Stock Analysis

• Market Cap: ¥215.83B
• Dividend Yield: 3.45%
• Average Volume (3M): 97.27K
• Price to Earnings (P/E): 15.1
• Beta (1Y): 0.53
• Revenue Growth: -4.87%
• EPS Growth: 26.27%
• Country: JP
• Employees: 5,365
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): 37.37
• Shares Outstanding: 116,881,100
• 10 Day Avg. Volume: 80,250
• 30 Day Avg. Volume: 97,273
• PEG Ratio: 0.45
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 9.26
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ¥2,036.00 ▲(7.27% Upside)

The score is driven primarily by stable but low-margin financial performance with positive free cash flow and manageable (though rising) leverage. Valuation is a modest positive given a mid-range P/E and a ~3.4% dividend yield, while technical indicators weigh on the score due to weak near-term momentum and the stock trading below its 20-day moving average.

Positive Factors

Free Cash Flow Strength

Consistent free cash flow (~¥25.8B, +7.8% TTM) provides durable internal funding for dividends, maintenance capex and working-capital needs. Reliable FCF supports financial flexibility for investment or debt reduction in a low-margin commodity business over coming quarters.

Balance-Sheet Resilience

Moderate leverage (debt/equity ~0.56) combined with rising equity builds a thicker capital base, supporting resilience through commodity cycles. This gives management room to fund logistics and distribution operations and absorb working-capital swings without immediate refinancing pressure.

Stable Operating Margins

Consistent gross and EBITDA margins reflect structural cost control in refining, trading and distribution. While margins are inherently low in R&M, their stability supports predictable cash generation and planning across procurement, logistics and retail channels over the medium term.

Negative Factors

Top-Line Weakness

A sustained TTM revenue decline (-2.9%) signals weakening demand or volume pressure in core fuel and LPG businesses. Persistent top-line softness reduces operating leverage, constrains margin expansion opportunities, and limits the firm’s ability to fund growth investments over several quarters.

Thin Net Profitability

A net margin near 1.6% leaves little buffer against commodity price swings, supply disruptions or cost inflation. Thin profitability restricts retained earnings and reinvestment capacity, making earnings volatile and reducing resilience to adverse shocks over the medium term.

Rising Leverage

The increase in debt-to-equity from ~0.39 to ~0.56 indicates re-levering, raising financial risk. Higher debt increases interest and refinancing sensitivity, reducing flexibility for capex or strategic moves and making the company more exposed to rate or commodity shocks in the coming quarters.

ITOCHU ENEX CO., LTD. Business Overview & Revenue Model

Company Description

Itochu Enex Co.,Ltd. engages in the sale of petroleum and gas businesses in Japan and internationally. It operates through four divisions: Home-Life, Car-Life, Industrial Business, and Power & Utility. The Home-Life division is involved in the sale of liquefied petroleum gas (LPG), town gas, industrial gas, and specialty gas, electricity, and kerosene; gas for medical and automotive usage; household and smart energy equipment; solar power systems; ENEFARM residential fuel cells; ENE-POWABOL residential lithium-ion electricity storage systems; and welding materials, as well as supply of LPG and city gas to 1.5 million customers. This segment also engages in the remodeling and gas container pressure resistance inspection businesses. The Car-Life division sells gasoline, kerosene, diesel oil, electricity, automobiles, and lifestyle and automotive products; offers credit card services and IT support services; and rents cars and terminal tanks, as well as engages in the import/export and trading of petroleum products. This segment also operates approximately 1,687 car-life gas stations and 430 rent-a-car service stores. The Industrial Business division sells gasoline, kerosene, diesel and fuel oil, gas to liquids fuel, marine fuel, LPG, corporate fleet refueling card, and asphalt, as well as high-grade urea solution; and engages in the recycling of fly ash, and recovery and recycling of slop businesses. The Power & Utility division engages in the sale of electricity from coal-fired, natural gas-fired, wind, hydro, and photovoltaic power; and sells steam. This segment also offers district heating, energy, electricity/heat supply, and electricity power supply/demand management, as well as asset management services. The company was formerly known as Itochu Fuel Corporation and changed its name to Itochu Enex Co.,Ltd. in July 2001. The company was founded in 1961 and is headquartered in Tokyo, Japan. Itochu Enex Co.,Ltd. is a subsidiary of ITOCHU Corporation.

How the Company Makes Money

ITOCHU ENEX generates revenue through multiple streams, primarily from the wholesale and retail sales of petroleum products such as fuels and lubricants. The company's operations in the energy sector allow it to leverage large-scale distribution networks and strategic partnerships with oil refiners and suppliers. Additionally, ITOCHU ENEX earns income from value-added services like logistics and supply chain management, which enhance the efficiency of product delivery. The company's involvement in renewable energy projects, such as solar and wind energy, also contributes to its revenue, aligning with global trends toward sustainable energy sources. Collaborations with other firms and government entities in energy projects further bolster its earnings potential.

ITOCHU ENEX CO., LTD. Financial Statement Overview

Summary

Financials are steady but constrained by a low-margin refining/marketing profile. TTM revenue is slightly down (-2.9%) while profitability is holding (gross margin ~10.4%, EBITDA margin ~5.0%, net margin ~1.6%). Balance sheet leverage is moderate (debt-to-equity ~0.56) but has increased versus the last annual level, and free cash flow is positive (~¥25.8B) with modest growth (+7.8%) though cash conversion is not especially strong (~69% of net income).

Income Statement

TTM (Trailing-Twelve-Months) revenue is down (-2.9%), extending a softer top-line trend versus recent annual periods, but profitability has held up reasonably well for the industry. Gross margin is ~10.4% and EBITDA margin ~5.0% in TTM, broadly stable to the last annual report, while net margin remains thin at ~1.6% (typical for refining/marketing but still a constraint). Net income is higher than several prior years, suggesting decent cost control, though the business remains sensitive to volume/price swings given low margin structure.

Balance Sheet

Leverage looks manageable with debt-to-equity at ~0.56 in TTM, though it has risen versus the most recent annual level (~0.39), indicating some balance-sheet re-levering. Equity has trended upward over the multi-year period, supporting balance-sheet resilience. Returns on equity are steady but moderate (TTM ~8.2% vs ~9.9% in the last annual report), signaling consistent profitability but not a high-return profile.

Cash Flow

Cash generation is solid: TTM operating cash flow is ~¥37.4B and free cash flow ~¥25.8B, with TTM free cash flow growth positive (+7.8%). However, cash conversion is not especially strong—TTM free cash flow is about 69% of net income, and operating cash flow relative to revenue is modest (~4.3% implied by the provided figures). Overall, the company produces dependable free cash flow, but variability and working-capital swings remain a likely risk in this industry.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	873.01B	924.48B	963.30B	1.01T	936.31B	739.07B
Gross Profit	90.51B	94.42B	88.61B	89.56B	83.59B	86.89B
EBITDA	43.69B	48.74B	44.08B	43.41B	41.61B	39.31B
Net Income	14.29B	17.10B	13.89B	13.83B	13.19B	12.17B
Balance Sheet
Total Assets	433.46B	442.15B	444.30B	433.02B	447.02B	408.33B
Cash, Cash Equivalents and Short-Term Investments	14.33B	13.93B	30.10B	32.01B	38.15B	34.84B
Total Debt	98.98B	66.33B	58.94B	71.81B	90.56B	78.24B
Total Liabilities	228.49B	239.40B	252.09B	252.70B	275.82B	246.93B
Stockholders Equity	176.89B	172.28B	162.54B	152.96B	144.30B	136.23B
Cash Flow
Free Cash Flow	25.80B	19.53B	20.17B	19.81B	27.14B	26.95B
Operating Cash Flow	37.43B	31.71B	34.54B	34.80B	39.95B	40.21B
Investing Cash Flow	-25.74B	-28.33B	-6.60B	-3.19B	-19.11B	-125.00M
Financing Cash Flow	-21.96B	-19.43B	-29.92B	-37.75B	-17.63B	-24.53B

ITOCHU ENEX CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1898.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8133, the sentiment is Negative. The current price of 1898 is below the 20-day moving average (MA) of 1983.00, below the 50-day MA of 1912.42, and above the 200-day MA of 1828.34, indicating a neutral trend. The MACD of 12.40 indicates Positive momentum. The RSI at 37.84 is Neutral, neither overbought nor oversold. The STOCH value of 23.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8133.

ITOCHU ENEX CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8037	75 Outperform	¥94.25B	8.80	―	3.16%	3.28%	20.32%
8131	74 Outperform	¥121.48B	9.17	―	2.57%	7.46%	153.98%
8097	70 Outperform	¥136.69B	19.54	―	4.76%	1.07%	-28.19%
8132	67 Neutral	¥63.66B	20.24	―	1.37%	-5.02%	186.97%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
8133	63 Neutral	¥215.83B	15.10	―	3.45%	-4.87%	26.27%
5019	63 Neutral	¥1.68T	41.13	2.23%	3.07%	-7.68%	-73.03%

ITOCHU ENEX CO., LTD. Corporate Events

Itochu Enex Profit Falls on Lower Revenue but Keeps Full-Year Forecasts and Dividend Plan

Itochu Enex reported consolidated revenue of ¥626.9 billion for the first nine months of the fiscal year ending March 31, 2026, down 7.6% year on year, with profit from operating activities falling 23.7% to ¥17.6 billion and net profit attributable to shareholders declining 20.2% to ¥11.1 billion, reflecting a significant deterioration in earnings compared with the prior-year period. Despite weaker performance, the company’s financial position remains solid, with shareholders’ equity ratio improving to 40.8% from 39.0%, and it maintained its full-year earnings and dividend forecasts, including an unchanged annual dividend projection of ¥62 per share, signaling management’s confidence in cash generation and commitment to shareholder returns even amid profit headwinds.

The most recent analyst rating on (JP:8133) stock is a Buy with a Yen2266.00 price target. To see the full list of analyst forecasts on ITOCHU ENEX CO., LTD. stock, see the JP:8133 Stock Forecast page.