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

• Market Cap: ¥211.76B
• Dividend Yield: 3.44%
• Average Volume (3M): 97.27K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.49
• 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): 28.77
• 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: 70 Neutral
• Price Target: ¥2,013.00 ▲(7.30% Upside)

ITOCHU ENEX CO., LTD. has a stable financial performance with effective leverage management and solid profitability, which are the most significant factors. The stock's valuation is attractive with a low P/E ratio and a good dividend yield. However, technical indicators suggest a bearish trend, which slightly offsets the positive financial and valuation aspects.

Positive Factors

Diversified Revenue Streams

Diversification into renewable energy aligns with global sustainability trends, reducing reliance on traditional petroleum products and enhancing long-term revenue stability.

Effective Leverage Management

Improved leverage management reduces financial risk and enhances the company's ability to invest in growth opportunities, supporting long-term financial health.

Strong Equity Base

A strong equity base provides financial stability and flexibility, enabling the company to withstand market fluctuations and invest in strategic initiatives.

Negative Factors

Decline in Revenue Growth

A decline in revenue growth can signal challenges in market demand or competitive pressures, potentially impacting long-term profitability and market position.

Cash Flow Challenges

Negative free cash flow growth indicates potential liquidity issues, which could constrain the company's ability to fund operations and growth initiatives over time.

Modest Profit Margins

Modest profit margins suggest limited pricing power and efficiency improvements, which may hinder the company's ability to enhance profitability in a competitive market.

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

ITOCHU ENEX CO., LTD. presents a stable financial position with strong cash flow generation and a solid balance sheet. The company maintains a conservative leverage approach and a strong ROE, but faces challenges with declining revenue growth, indicating a need for strategic initiatives to drive top-line growth.

Income Statement

ITOCHU ENEX CO., LTD. shows stable profitability with a gross profit margin of 10.21% and a net profit margin of 1.85% in the TTM period. However, the company faces challenges with a declining revenue growth rate of -0.85% in the TTM, indicating potential market or operational pressures. The EBIT and EBITDA margins are moderate at 2.93% and 5.26%, respectively, suggesting room for operational efficiency improvements.

Balance Sheet

The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.33, indicating a conservative leverage approach. The return on equity (ROE) is strong at 10.19%, reflecting effective use of shareholder funds. The equity ratio stands at 41.63%, showcasing a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

ITOCHU ENEX CO., LTD. demonstrates robust cash flow management with a significant free cash flow growth rate of 58.70% in the TTM. The operating cash flow to net income ratio is 2.49, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 0.62, reflecting efficient conversion of earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	898.91B	924.48B	963.30B	1.01T	936.31B	739.07B
Gross Profit	92.97B	94.42B	88.61B	89.56B	83.59B	86.89B
EBITDA	47.30B	48.74B	44.08B	43.41B	41.61B	39.31B
Net Income	16.17B	17.10B	13.89B	13.83B	13.19B	12.17B
Balance Sheet
Total Assets	420.58B	442.15B	444.30B	433.02B	447.02B	408.33B
Cash, Cash Equivalents and Short-Term Investments	51.76B	13.93B	30.10B	32.01B	38.15B	34.84B
Total Debt	55.79B	66.33B	58.94B	71.81B	90.56B	78.24B
Total Liabilities	216.21B	239.40B	252.09B	252.70B	275.82B	246.93B
Stockholders Equity	176.39B	172.28B	162.54B	152.96B	144.30B	136.23B
Cash Flow
Free Cash Flow	23.94B	19.53B	20.17B	19.81B	27.14B	26.95B
Operating Cash Flow	35.58B	31.71B	34.54B	34.80B	39.95B	40.21B
Investing Cash Flow	-27.87B	-28.33B	-6.60B	-3.19B	-19.11B	-125.00M
Financing Cash Flow	-21.66B	-19.43B	-29.92B	-37.75B	-17.63B	-24.53B

ITOCHU ENEX CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1876.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8133, the sentiment is Positive. The current price of 1876 is above the 20-day moving average (MA) of 1850.10, above the 50-day MA of 1858.02, and above the 200-day MA of 1769.72, indicating a bullish trend. The MACD of 4.98 indicates Negative momentum. The RSI at 56.14 is Neutral, neither overbought nor oversold. The STOCH value of 81.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥91.80B	8.59	―	3.17%	3.28%	20.32%
8131	74 Outperform	¥119.85B	9.20	―	2.61%	7.46%	153.98%
8097	70 Outperform	¥128.65B	18.71	―	4.76%	1.07%	-28.19%
8133	70 Neutral	¥211.76B	13.14	―	3.44%	-4.87%	26.27%
8132	67 Neutral	¥64.16B	20.77	―	1.37%	-5.02%	186.97%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
5019	63 Neutral	¥1.51T	36.92	2.23%	3.07%	-7.68%	-73.03%

ITOCHU ENEX CO., LTD. Corporate Events

Itochu Enex Reports Decline in Semi-Annual Financial Performance

Itochu Enex Co., Ltd. reported a decline in its financial performance for the first half of the fiscal year ending March 31, 2026, with revenue and profits showing a year-on-year decrease. Despite the downturn, the company maintains a stable financial position with a slight increase in total equity, and it plans to continue its dividend payments, reflecting a commitment to shareholder returns.