Itochu AI Stock Analysis
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Itochu (ITOCY) AI Stock Analysis
Itochu
(Other OTC:ITOCY)
The company's primary strength is its excellent financial health, marked by strong profitability and a robust, improving balance sheet. This is complemented by a bullish technical trend and a reasonable valuation. The main factor capping the score is the noted weakness in cash flow efficiency, which prevents a higher rating despite the otherwise solid fundamentals.
Itochu (ITOCY) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $106.99B
- Dividend Yield
- 1.79%
- Average Volume (3M)
- 436.22K
- Price to Earnings (P/E)
- 17.2
- Beta (1Y)
- 0.33
- Revenue Growth
- 0.07%
- EPS Growth
- -0.49%
- Country
- US
- Employees
- 114,570
- Sector
- Industrials
- Sector Strength
- 63
- Industry
- Conglomerates
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 Textil...
How the Company Makes Money
ITOCHU makes money through a combination of (1) trading and distribution margins and (2) earnings from investments in operating businesses, alongside services such as logistics, financing, and project management. 1) Trading and distribution (merchant...
Itochu Earnings Call Summary
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.
Q2-2025 Updates
Positive Updates
Negative 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
Strong profitability and a fortress-like balance sheet are offset by cash flow pressures. Revenue growth is exceptional, and leverage is declining, but a low operating cash flow coverage ratio and declining free cash flow growth introduce caution.
Income Statement
78PositiveBalance Sheet
82Very PositiveCash Flow
65Positive| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 15.69T | 15.72T | 14.72T | 14.03T | 13.95T | 12.29T |
| Gross Profit | 2.62T | 2.63T | 2.38T | 2.23T | 2.13T | 1.94T |
| EBITDA | 1.29T | 1.23T | 1.71T | 1.29T | 1.26T | 1.29T |
| Net Income | 991.43B | 954.58B | 880.25B | 801.77B | 800.52B | 820.27B |
Balance Sheet | ||||||
| Total Assets | 17.34T | 16.81T | 15.13T | 14.49T | 13.11T | 12.15T |
| Cash, Cash Equivalents and Short-Term Investments | 631.39B | 651.25B | 636.91B | 689.06B | 688.80B | 724.83B |
| Total Debt | 5.30T | 4.78T | 4.62T | 4.40T | 4.01T | 3.92T |
| Total Liabilities | 10.06T | 9.59T | 8.84T | 8.50T | 7.65T | 7.39T |
| Stockholders Equity | 6.85T | 6.62T | 5.76T | 5.43T | 4.82T | 4.20T |
Cash Flow | ||||||
| Free Cash Flow | 552.07B | 846.85B | 769.81B | 775.56B | 743.98B | 644.02B |
| Operating Cash Flow | 816.95B | 1.13T | 997.28B | 978.11B | 938.06B | 801.16B |
| Investing Cash Flow | -469.84B | -388.87B | -516.27B | -205.99B | -453.81B | 38.64B |
| Financing Cash Flow | -393.86B | -726.48B | -525.00B | -801.17B | -500.08B | -846.71B |
Itochu Technical Analysis
Price Trends
Market Momentum
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 15.09 is above the 20-day moving average (MA) of 14.72, above the 50-day MA of 14.47, and above the 200-day MA of 13.09, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 58.19 is Neutral, neither overbought nor oversold. The STOCH value of 84.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ITOCY.
Itochu Peers Comparison
Overall Rating
CRESY77Outperform
HON73Outperform- ITOCY72Outperform
VMI68Neutral
SEB67Neutral
MMM59Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| CRESY | 77Outperform | $687.16M | 7.78 | 9.88% | 14.11% | 15.72% | -50.12% |
| HON | 73Outperform | $70.91B | 10.06 | 36.19% | 1.75% | -17.35% | 23.22% |
| ITOCY | 72Outperform | $117.49B | 17.20 | 14.81% | 1.79% | 0.07% | -0.49% |
| VMI | 68Neutral | $8.09B | 15.82 | 30.42% | 0.71% | 4.55% | 131.74% |
| SEB | 67Neutral | $3.55B | 6.49 | 10.25% | 0.24% | 6.98% | 40.66% |
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
| MMM | 59Neutral | $96.24B | 27.21 | 94.02% | 1.70% | 1.70% | 7.26% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| ITOCY | Itochu Corporation Unsponsored Adr | 15.09 | 3.04 | 25.21% | |
| MMM | 3M Company | 183.66 | 21.25 | 13.09% | |
| CRESY | Cresud S.A.C.I.F. Y A. | 9.74 | -0.07 | -0.71% | |
| HON | Honeywell International | 222.46 | 20.30 | 10.04% | |
| SEB | Seaboard Corporation | 3746.85 | -283.32 | -7.03% | |
| VMI | Valmont Industries | 420.92 | 32.78 | 8.44% |
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.
Date of analysis: Nov 06, 2026