Want to see JP:8001 full AI Analyst Report?
Top Page
Itochu
(8001)
Select Model
Select Model
Rating:72Outperform
Price Target:
¥2,446.00
▲(24.16% Upside)
Action:Upgraded
Date:08/04/26
The score is driven primarily by solid financial performance (strong earnings base, improving leverage, and healthy profitability) tempered by a recent decline in free cash flow. Technicals add support with an uptrend and positive momentum, while valuation is neutral-to-moderately attractive with a mid-teens P/E and ~2.1% dividend yield.
Positive Factors
Diversified business model
ITOCHU’s broad portfolio across trading, investments and business management provides multiple earnings streams across consumer, industrial, resource and service markets. This diversification can reduce reliance on any single segment and support resilience through changing economic conditions.
Negative Factors
Free cash flow deterioration
The recent free cash flow decline indicates that cash conversion has weakened even though absolute generation remains strong. If this deterioration persists, it could reduce internally funded investment capacity and limit progress on debt reduction or shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified business model
ITOCHU’s broad portfolio across trading, investments and business management provides multiple earnings streams across consumer, industrial, resource and service markets. This diversification can reduce reliance on any single segment and support resilience through changing economic conditions.
Read all positive factors
Itochu (8001) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥17.14T
Dividend Yield1.91%
Average Volume (3M)13.37M
Price to Earnings (P/E)17.0
Beta (1Y)0.91
Revenue Growth3.10%
EPS Growth-3.40%
CountryJP
Employees114,570
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)129.91
Shares Outstanding7,924,447,800
10 Day Avg. Volume14,000,000
30 Day Avg. Volume13,366,839
Financial Highlights & Ratios
PEG Ratio3.90
Price to Book (P/B)2.11
Price to Sales (P/S)0.94
P/FCF Ratio15.93
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥2,464.00Price Target Upside25.08% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)140.72
Revenue Forecast (FY)¥15.59T
Itochu Business Overview & Revenue Model
Company Description
ITOCHU Corporation operates as a global trading house, managing a diverse portfolio of import, export, and multifaceted business operations across the world. Its Textile segment manufactures and supplies various fiber and garment materials, fabric...
How the Company Makes Money
ITOCHU makes money primarily by (1) earning profits from consolidated operating companies it controls and (2) generating trading and distribution income by buying, selling, and arranging logistics/financing for goods and materials globally. A sign...
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 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.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
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.
Read all updates
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
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
Income Statement
76
Positive
Balance Sheet
74
Positive
Cash Flow
66
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 15.14T | 14.82T | 14.72T | 14.03T | 13.95T | 12.29T |
| Gross Profit | 2.54T | 2.48T | 2.38T | 2.23T | 2.13T | 1.94T |
| EBITDA | 1.39T | 1.76T | 1.44T | 1.36T | 1.34T | 1.33T |
| Net Income | 910.11B | 900.28B | 880.25B | 801.77B | 800.52B | 820.27B |
Balance Sheet | ||||||
| Total Assets | 17.18T | 16.73T | 15.13T | 14.49T | 13.11T | 12.15T |
| Cash, Cash Equivalents and Short-Term Investments | 726.19B | 648.44B | 594.68B | 622.48B | 619.27B | 630.39B |
| Total Debt | 5.24T | 4.76T | 5.46T | 5.21T | 4.78T | 4.69T |
| Total Liabilities | 9.99T | 9.54T | 8.84T | 8.50T | 7.65T | 7.39T |
| Stockholders Equity | 6.77T | 6.59T | 5.76T | 5.43T | 4.82T | 4.20T |
Cash Flow | ||||||
| Free Cash Flow | 732.83B | 871.75B | 804.64B | 775.56B | 743.98B | 644.02B |
| Operating Cash Flow | 992.90B | 1.13T | 997.28B | 978.11B | 938.06B | 801.16B |
| Investing Cash Flow | -412.15B | -388.87B | -562.02B | -593.84B | -399.04B | 24.54B |
| Financing Cash Flow | -475.48B | -726.48B | -479.24B | -413.33B | -554.85B | -832.61B |
Itochu Technical Analysis
Positive
1970.00
Price Trends
1994.90
Positive
1964.14
Positive
1976.08
Positive
Market Momentum
51.99
Negative
69.82
Neutral
81.52
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 1970 is below the 20-day moving average (MA) of 2094.32, below the 50-day MA of 1994.90, and below the 200-day MA of 1976.08, indicating a bullish trend. The MACD of 51.99 indicates Negative momentum. The RSI at 69.82 is Neutral, neither overbought nor oversold. The STOCH value of 81.52 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ¥17.14T | 16.97 | 14.15% | 1.91% | 3.10% | -3.40% | |
70 Outperform | ¥8.56T | 14.05 | 13.18% | 2.06% | 2.61% | 3.34% | |
70 Neutral | ¥8.42T | 14.45 | 13.68% | 2.12% | 10.23% | 13.04% | |
68 Neutral | ¥14.12T | 15.29 | 10.95% | 2.29% | 6.52% | 16.70% | |
67 Neutral | ¥16.39T | 20.25 | 9.67% | 2.24% | 9.52% | 20.39% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | ¥1.10T | 10.68 | 10.56% | 2.86% | 20.44% | 6.39% |
* Industrials Sector Average
JP:8001
Itochu
2,204.00
497.46
29.15%
JP:8002
Marubeni
5,073.00
1,612.53
46.60%
JP:8031
Mitsui & Co
5,019.00
1,386.25
38.16%
JP:8058
Mitsubishi
4,902.00
1,491.11
43.72%
JP:8053
Sumitomo
1,820.00
759.29
71.58%
JP:2768
Sojitz
5,762.00
1,869.70
48.04%
Itochu Corporate Events
Itochu Posts Higher Q1 Profit and Confirms Audited Results
Aug 6, 2026
Itochu reported solid first-quarter results for the fiscal year ending March 31, 2027, with revenues up 8.9% year on year to ¥3.88 trillion and trading income rising 20.3%, while net profit attributable to Itochu increased 3.5% to ¥293.8...
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.