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Itochu
(OTC:ITOCY)
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Rating:70Outperform
Price Target:
$14.00
â–²(17.06% Upside)
Action:Upgraded
Date:08/05/26
Overall score reflects solid financial performance (steady growth and healthy returns, tempered by margin volatility and weaker recent free cash flow momentum), supported by a bullish technical setup (price above key moving averages and positive MACD). Valuation is fair on earnings (P/E ~15.7) but the dividend yield is only moderate (~1.76%), keeping the score in the low-70s rather than higher.
Positive Factors
Diversified business model
Itochu's sogo shosha model spans commodities, trading, operating subsidiaries, investments and project development, creating multiple cash-flow sources and sector diversification. This structural breadth reduces reliance on any single cycle and supports durable revenue stability over months.
Negative Factors
Operating margin volatility
Meaningful swings in operating margins reduce earnings predictability and complicate capital allocation. For a trading-and-investment conglomerate, volatile margins imply profit sensitivity to commodity cycles and investee performance, increasing long-term cashflow uncertainty.
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Positive Factors
Negative Factors
Diversified business model
Itochu's sogo shosha model spans commodities, trading, operating subsidiaries, investments and project development, creating multiple cash-flow sources and sector diversification. This structural breadth reduces reliance on any single cycle and supports durable revenue stability over months.
Read all positive factors
Itochu (ITOCY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$103.43B
Dividend Yield1.66%
Average Volume (3M)118.36K
Price to Earnings (P/E)16.3
Beta (1Y)0.32
Revenue Growth-0.07%
EPS Growth-6.80%
CountryUS
Employees114,570
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)116.54
Shares Outstanding7,924,447,800
10 Day Avg. Volume269,463
30 Day Avg. Volume118,360
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)2.15
Price to Sales (P/S)0.91
P/FCF Ratio16.83
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.87
Revenue Forecast (FY)$97.51B
Itochu Business Overview & Revenue Model
Company Description
ITOCHU Corporation, established in Tokyo, Japan, in 1858, operates as a global trading house, engaging in the import and export of a wide array of products across the world. Its diverse operations are categorized into several key segments. The Tex...
How the Company Makes Money
Itochu makes money primarily through a diversified portfolio model rather than a single product line. Its earnings generally come from: (1) Trading margins: buying and selling commodities, raw materials, and finished goods (e.g., energy products, ...
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 highlighted several positive developments, including an increase in consolidated net profit and record-setting cash flows, alongside strong performances in specific sectors like Textile and Food. However, challenges such as declines in Metals & Minerals and Energy & Chemicals profits were noted. Despite these challenges, the overall sentiment is positive due to the significant gains and strategic investments being made.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
Decline in Metals & Minerals Profit
Metals & Minerals saw a decrease in profit despite increased dividends from Brazilian iron ore business due to deteriorating profitability in Marubeni Itochu Steel's North American business.
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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
In the call, Itochu Corporation's President, Keita Ishii, provided guidance on various financial metrics for the first half of FYE2025. The consolidated net profit increased by 6% year-on-year to ¥438.4 billion, achieving 50% of the annual forecast. Core profit reached ¥396 billion, marking the second-highest profit level after FYE2023, with a 3% year-on-year growth across sectors including Textile, Chemicals, and Food. Core operating cash flows exceeded ¥500 billion for the first time in a half-year, reaching ¥513 billion, setting an all-time high. The overall annual forecast remains unchanged at ¥880 billion, despite revisions in sector forecasts: Textile is expected to increase by ¥40 billion, while Metals & Minerals are revised down by ¥40 billion. Total shareholders' equity rose by ¥170 billion to ¥5.6 trillion, and the company plans to maintain a total payout ratio of 50%, with a dividend per share of ¥200 and the largest-ever share buybacks of ¥150 billion.Itochu Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
71
Positive
Cash Flow
62
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 15.39T | 15.72T | 14.72T | 14.03T | 13.95T | 12.29T |
| Gross Profit | 2.58T | 2.63T | 2.38T | 2.23T | 2.13T | 1.94T |
| EBITDA | 1.30T | 1.23T | 1.71T | 1.29T | 1.25T | 1.28T |
| Net Income | 925.03B | 954.58B | 880.25B | 801.77B | 800.52B | 820.27B |
Balance Sheet | ||||||
| Total Assets | 17.07T | 16.81T | 15.13T | 14.49T | 13.11T | 12.15T |
| Cash, Cash Equivalents and Short-Term Investments | 721.39B | 651.25B | 636.91B | 689.06B | 688.80B | 724.83B |
| Total Debt | 5.21T | 4.78T | 4.62T | 4.40T | 4.01T | 3.92T |
| Total Liabilities | 9.92T | 9.59T | 8.84T | 8.50T | 7.65T | 7.39T |
| Stockholders Equity | 6.73T | 6.62T | 5.76T | 5.43T | 4.82T | 4.20T |
Cash Flow | ||||||
| Free Cash Flow | 741.62B | 846.85B | 769.81B | 775.56B | 743.98B | 644.02B |
| Operating Cash Flow | 1.01T | 1.13T | 997.28B | 978.11B | 938.06B | 801.16B |
| Investing Cash Flow | -423.13B | -388.87B | -516.27B | -205.99B | -453.81B | 38.64B |
| Financing Cash Flow | -475.21B | -726.48B | -525.00B | -801.17B | -500.08B | -846.71B |
Itochu Technical Analysis
Positive
11.96
Price Trends
12.18
Positive
12.25
Positive
12.53
Positive
Market Momentum
0.27
Negative
68.77
Neutral
99.81
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ITOCY, the sentiment is Positive. The current price of 11.96 is below the 20-day moving average (MA) of 12.90, below the 50-day MA of 12.18, and below the 200-day MA of 12.53, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 68.77 is Neutral, neither overbought nor oversold. The STOCH value of 99.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ITOCY.
Itochu Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $68.36B | 8.56 | 41.71% | 4.05% | -2.41% | 53.63% | |
70 Outperform | $103.43B | 16.31 | 14.15% | 1.86% | -0.07% | -6.80% | |
67 Neutral | $92.51B | 31.80 | 77.12% | 1.75% | 2.35% | -21.55% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
ITOCY
Itochu
13.41
2.38
21.58%
MMM
3M
180.00
26.31
17.12%
HON
Honeywell International
220.67
6.36
2.97%
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.