ITOCHU's (TSE:8001) Earnings Are Of Questionable Quality
May 09
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Japanese (NIKKEI) Market Analysis & Valuation
UpdatedMay 10, 2025
DataAggregated Company Financials
Companies3964
- 7D1.7%
- 3M0.5%
- 1Y0.6%
- YTD-0.07%
In the last week, the market is up 1.7% led by Information Technology sector. The market has been flat overall in the last year. Looking forward, earnings are forecast to grow by 7.6% annually.
Market Valuation and Performance
Has the Japanese Market valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 11 May 2025 | JP¥954.9t | JP¥1026.2t | JP¥64.4t | 13.1x | 14.8x | 0.9x |
| Tue, 08 Apr 2025 | JP¥803.0t | JP¥1020.9t | JP¥64.1t | 11.3x | 12.5x | 0.8x |
| Thu, 06 Mar 2025 | JP¥946.6t | JP¥1019.7t | JP¥64.4t | 13.1x | 14.7x | 0.9x |
| Sat, 01 Feb 2025 | JP¥969.4t | JP¥1010.5t | JP¥62.2t | 13.7x | 15.6x | 1x |
| Mon, 30 Dec 2024 | JP¥976.9t | JP¥1010.9t | JP¥61.7t | 13.7x | 15.8x | 1x |
| Wed, 27 Nov 2024 | JP¥939.3t | JP¥1008.2t | JP¥61.7t | 13.5x | 15.2x | 0.9x |
| Fri, 25 Oct 2024 | JP¥925.6t | JP¥1001.6t | JP¥60.1t | 13.1x | 15.4x | 0.9x |
| Sun, 22 Sep 2024 | JP¥932.2t | JP¥1000.0t | JP¥60.1t | 13.4x | 15.5x | 0.9x |
| Tue, 20 Aug 2024 | JP¥929.4t | JP¥998.4t | JP¥59.9t | 13.2x | 15.5x | 0.9x |
| Thu, 18 Jul 2024 | JP¥1021.2t | JP¥987.5t | JP¥58.6t | 14.7x | 17.4x | 1x |
| Sat, 15 Jun 2024 | JP¥967.0t | JP¥988.9t | JP¥58.6t | 14.2x | 16.5x | 1x |
| Mon, 13 May 2024 | JP¥963.5t | JP¥980.3t | JP¥57.4t | 14.5x | 16.8x | 1x |
| Wed, 10 Apr 2024 | JP¥979.5t | JP¥975.8t | JP¥56.9t | 14.8x | 17.2x | 1x |
| Fri, 08 Mar 2024 | JP¥969.7t | JP¥975.8t | JP¥56.9t | 14.5x | 17x | 1x |
| Sun, 04 Feb 2024 | JP¥912.1t | JP¥971.3t | JP¥53.3t | 14.7x | 17.1x | 0.9x |
| Tue, 02 Jan 2024 | JP¥855.2t | JP¥971.2t | JP¥52.5t | 14.1x | 16.3x | 0.9x |
| Thu, 30 Nov 2023 | JP¥859.0t | JP¥977.7t | JP¥53.1t | 14.1x | 16.2x | 0.9x |
| Sat, 28 Oct 2023 | JP¥821.6t | JP¥972.1t | JP¥55.2t | 13.7x | 14.9x | 0.8x |
| Mon, 25 Sep 2023 | JP¥863.7t | JP¥971.4t | JP¥55.3t | 14.4x | 15.6x | 0.9x |
| Wed, 23 Aug 2023 | JP¥819.0t | JP¥970.8t | JP¥55.2t | 13.8x | 14.8x | 0.8x |
| Fri, 21 Jul 2023 | JP¥826.3t | JP¥957.7t | JP¥50.6t | 14x | 16.3x | 0.9x |
| Sun, 18 Jun 2023 | JP¥839.7t | JP¥959.3t | JP¥51.1t | 13.9x | 16.4x | 0.9x |
| Tue, 16 May 2023 | JP¥776.0t | JP¥951.5t | JP¥49.1t | 13.4x | 15.8x | 0.8x |
| Thu, 13 Apr 2023 | JP¥737.6t | JP¥934.5t | JP¥46.6t | 12.9x | 15.8x | 0.8x |
| Sat, 11 Mar 2023 | JP¥746.7t | JP¥933.6t | JP¥46.7t | 13x | 16x | 0.8x |
| Mon, 06 Feb 2023 | JP¥725.4t | JP¥915.6t | JP¥48.7t | 12.5x | 14.9x | 0.8x |
| Wed, 04 Jan 2023 | JP¥701.8t | JP¥903.1t | JP¥49.1t | 12.2x | 14.3x | 0.8x |
| Fri, 02 Dec 2022 | JP¥736.1t | JP¥902.8t | JP¥49.1t | 12.6x | 15x | 0.8x |
| Sun, 30 Oct 2022 | JP¥708.7t | JP¥870.6t | JP¥45.8t | 12.3x | 15.5x | 0.8x |
| Tue, 27 Sep 2022 | JP¥695.9t | JP¥863.4t | JP¥45.6t | 12.2x | 15.3x | 0.8x |
| Thu, 25 Aug 2022 | JP¥733.4t | JP¥864.2t | JP¥45.6t | 12.7x | 16.1x | 0.8x |
| Sat, 23 Jul 2022 | JP¥727.2t | JP¥837.1t | JP¥48.2t | 12.8x | 15.1x | 0.9x |
| Mon, 20 Jun 2022 | JP¥682.9t | JP¥839.2t | JP¥49.5t | 12.1x | 13.8x | 0.8x |
| Wed, 18 May 2022 | JP¥694.7t | JP¥835.9t | JP¥49.9t | 12.1x | 13.9x | 0.8x |
Price to Earnings Ratio
13.9x
Current Market PE
- Investors are relatively neutral on the Japanese market at the moment, indicating that they expect earnings will grow in line with historical growth rates.
- The market is trading close to its 3-year average PE ratio of 15.6x.
Past Earnings Growth
- The earnings for Japanese listed companies have grown 8.9% per year over the last three years.
- Revenues for these companies have grown 7.1% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Sector Trends
Which sectors have driven the changes within the Japanese Market?
| JP Market | 1.70% | |
| Tech | 4.84% | |
| Financials | 3.98% | |
| Industrials | 2.47% | |
| Consumer Staples | 1.95% | |
| Energy | 1.30% | |
| Telecom | 0.51% | |
| Materials | 0.45% | |
| Real Estate | 0.14% | |
| Consumer Discretionary | 0.12% | |
| Utilities | 0.12% | |
| Healthcare | -2.81% | |
Sector PE
- Investors favour the Healthcare sector the most for future growth even though it's trading below its 3-year average PE ratio of 29.5x.
- The market's confidence is likely because analysts are expecting annual earnings growth of 9.9%, which is higher than its past year's earnings growth of 8.5% per year.
- The Utilities sector is the least preferred by investors for future growth. Although, investor sentiment seems to have improved given that it's trading above its 3-year average.
Forecasted Growth
- Analysts are most optimistic on the Tech sector, expecting annual earnings growth of 13% over the next 5 years.
- This is roughly in line with its past earnings growth rate.
- In contrast, the Utilities industry is expected to see its earnings growth to stay flat over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | Sector | |
|---|---|---|---|---|---|---|
| 9613 NTT DATA Group | JP¥3.99k | 34.6% +JP¥1.4t | 73.4% | PE39.3x | Tech | |
| 6501 Hitachi | JP¥3.89k | 5.9% +JP¥993.4b | 34.6% | PE28.9x | Industrials | |
| 8306 Mitsubishi UFJ Financial Group | JP¥1.81k | 4.2% +JP¥845.7b | 13.7% | PB1x | Financials | |
| 8035 Tokyo Electron | JP¥22.56k | 6.7% +JP¥648.2b | -35.6% | PE19x | Tech | |
| 8001 ITOCHU | JP¥7.47k | 6.1% +JP¥611.6b | 2.9% | PE12x | Industrials |
