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ITOCHU Corp 8001

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Stock XTKS Rating as of
¥2,175.50 −27.00 (1.23%)
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Itochu's Downstream Business Presents Steady Growth Opportunities and Offsets Upstream Volatility

Ahmad Halim

Itochu's strategy focuses on profit growth through differentiated businesses with defensible competitive positions, with a clear emphasis on expanding in downstream, consumer-facing sectors. Unlike its sogo shosha (Japanese trading house) peers, Itochu derives most of its profits from nonresources businesses, supporting more stable earnings through the cycle and reducing reliance on volatile upstream commodity sectors such as metals and energy.

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Price vs Fair Value

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8001 is trading at a LOCK|$hmq%%b premium.
Price
¥2,202.50
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Strong brands in consumer goods (for example, Descente and FamilyMart) and cost-advantaged metals production and trading support consistent return on invested capital above the cost of capital.

Bears

Its nonresource growth engine may be maturing due to inflationary pressure and weaker consumer sentiment.

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Trading Information

Previous Close Price
¥2,202.50
Day Range
¥2,175.50–2,210.50
52-Week Range
¥1,653.60–2,399.00
Bid/Ask
¥2,175.00 / ¥2,180.00
Shares Outstanding
6.99B
Market Cap
¥15.21T
Volume/Avg
12M / 15M

Key Statistics

Price/Earnings (Normalized)
19.54
Price/Sales
1.05
Dividend Yield (Trailing)
2.00%
Dividend Yield (Forward)
2.00%
Dividend Payment Schedule
Jun, Dec
Total Yield
3.10%

Company Profile

Itochu is a general trading house, or sogo shosha, a conglomerate type unique to Japan. The primary driver for sogo shoshas is trading and intermediation between businesses and leveraging their wide domestic and global information and contact networks to extract value. Itochu has historical roots as a textile trader, but over the years has expanded its portfolio from upstream minerals production, to midstream industrial machinery, food processing, and information and communication technology, and all the way to downstream textiles, convenience stores (Family Mart), and realty. Among the Big Five sogo shoshas, Itochu has the highest exposure to nonresource businesses and to domestic business. It continues to skew its future investments toward the downstream and consumer businesses.
Sector
Industrials
Industry
Conglomerates
Stock Style Box
Large Value
Total Number of Employees
160,029
Website
https://www.itochu.co.jp

Competitors

Valuation

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Metric
8001
8058
8002
Price/Earnings (Normalized)
 19.5423.3816.74
Price/Book Value
 2.341.801.76
Price/Sales
 1.050.950.96
Price/Cash Flow
 12.7214.3314.04
Price/Earnings
8001
8058
8002

Financial Strength

Metric
8001
8058
8002
Quick Ratio
 0.870.920.83
Current Ratio
 1.321.411.37
Interest Coverage
 11.905.319.01
Quick Ratio
8001
8058
8002

Profitability

Metric
8001
8058
8002
Return on Assets (Normalized)
 5.12%——
Return on Equity (Normalized)
 13.21%——
Return on Invested Capital (Normalized)
 7.12%——
Return on Assets
8001
8058
8002

Conglomerates Industry Comparables

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1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Hitachi Ltd
HTHIF
—LOCK|cRvV$156B
 Hitachi Ltd ADR
HTHIY
—LOCK|>@#D$156B
 Mitsubishi Corp
MSBHF
—LOCK|B@$110B
 Mitsubishi Corp ADR (Unsponsored)
MTSUY
—LOCK|qlV$110B
 ITOCHU Corp ADR
ITOCY
—LOCK|MWmJ$98B
 ITOCHU Corp
ITOCF
—LOCK|Z>x&L$98B
 3M Co
MMM
LOCK|#rgCz%LOCK|<!j?&$84B
 Honeywell International Inc
HON
LOCK|x%L>VyLOCK|B!$68B
 Kyocera Corp ADR - Unsponsor
KYOAY
LOCK|&j#<T^YLOCK|@Dy$30B
 First State Financial Corp
FSTF
—LOCK|#q$118,406

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