ITOCHU Corporation engages in trading and importing/exporting various products worldwide. More Details
Excellent balance sheet second-rate dividend payer.
Share Price & News
How has ITOCHU's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 8001 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: 8001's weekly volatility (4%) has been stable over the past year.
7 Day Return
JP Trade Distributors
1 Year Return
JP Trade Distributors
Return vs Industry: 8001 exceeded the JP Trade Distributors industry which returned 37.9% over the past year.
Return vs Market: 8001 exceeded the JP Market which returned 22.3% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is ITOCHU's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Is ITOCHU undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 8001 (¥3275) is trading above our estimate of fair value (¥3081.69)
Significantly Below Fair Value: 8001 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 8001's PE Ratio (12.1x) is in line with the JP Trade Distributors industry average.
PE vs Market: 8001 is good value based on its PE Ratio (12.1x) compared to the JP market (16.2x).
Price to Earnings Growth Ratio
PEG Ratio: 8001 is poor value based on its PEG Ratio (1.5x)
Price to Book Ratio
PB vs Industry: 8001 is overvalued based on its PB Ratio (1.5x) compared to the JP Trade Distributors industry average (0.6x).
How is ITOCHU forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 8001's forecast earnings growth (7.9% per year) is above the savings rate (0%).
Earnings vs Market: 8001's earnings (7.9% per year) are forecast to grow slower than the JP market (12.8% per year).
High Growth Earnings: 8001's earnings are forecast to grow, but not significantly.
Revenue vs Market: 8001's revenue (2.7% per year) is forecast to grow slower than the JP market (5.2% per year).
High Growth Revenue: 8001's revenue (2.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 8001's Return on Equity is forecast to be low in 3 years time (13%).
How has ITOCHU performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 8001 has a large one-off loss of ¥153.4B impacting its March 31 2021 financial results.
Growing Profit Margin: 8001's current net profit margins (3.9%) are lower than last year (4.6%).
Past Earnings Growth Analysis
Earnings Trend: 8001's earnings have grown by 12.7% per year over the past 5 years.
Accelerating Growth: 8001's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 8001 had negative earnings growth (-19.9%) over the past year, making it difficult to compare to the Trade Distributors industry average (-9.1%).
Return on Equity
High ROE: 8001's Return on Equity (11.4%) is considered low.
How is ITOCHU's financial position?
Financial Position Analysis
Short Term Liabilities: 8001's short term assets (¥4,277.3B) exceed its short term liabilities (¥3,554.6B).
Long Term Liabilities: 8001's short term assets (¥4,277.3B) exceed its long term liabilities (¥3,753.6B).
Debt to Equity History and Analysis
Debt Level: 8001's debt to equity ratio (81.5%) is considered high.
Reducing Debt: 8001's debt to equity ratio has reduced from 130.3% to 81.5% over the past 5 years.
Debt Coverage: 8001's debt is well covered by operating cash flow (28.4%).
Interest Coverage: 8001 earns more interest than it pays, so coverage of interest payments is not a concern.
What is ITOCHU current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 8001's dividend (2.87%) is higher than the bottom 25% of dividend payers in the JP market (1.32%).
High Dividend: 8001's dividend (2.87%) is low compared to the top 25% of dividend payers in the JP market (3%).
Stability and Growth of Payments
Stable Dividend: 8001's dividend payments have been volatile in the past 10 years.
Growing Dividend: 8001's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (32.6%), 8001's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Masahiro Okafuji (71 yo)
Mr. Masahiro Okafuji has been the Chief Executive Officer of Itochu Corporation since April 1, 2010 and its Chairman since April 1, 2018 and was its Executive Officer since June 2002. Mr. Okafuji was the P...
CEO Compensation Analysis
Compensation vs Market: Insufficient data to establish whether Masahiro's total compensation is reasonable compared to companies of similar size in the JP market.
Compensation vs Earnings: Masahiro's compensation has been consistent with company performance over the past year.
Experienced Management: 8001's management team is considered experienced (2.8 years average tenure).
Experienced Board: 8001's board of directors are considered experienced (3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
ITOCHU Corporation's company bio, employee growth, exchange listings and data sources
- Name: ITOCHU Corporation
- Ticker: 8001
- Exchange: TSE
- Founded: 1858
- Industry: Trading Companies and Distributors
- Sector: Capital Goods
- Market Cap: JP¥4.864t
- Shares outstanding: 1.49b
- Website: https://www.itochu.co.jp
Number of Employees
- ITOCHU Corporation
- 5-1, Kita-Aoyama 2-chome
ITOCHU Corporation engages in trading and importing/exporting various products worldwide. The company’s Textile segment produces and sells textile and garment materials, textiles, textile products, apparel...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/06/23 08:11|
|End of Day Share Price||2021/06/23 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.