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8001

ITOCHU TSE:8001 Stock Report

Last Price

JP¥3.62k

Market Cap

JP¥5.3t

7D

-1.0%

1Y

10.6%

Updated

26 Jun, 2022

Data

Company Financials +
8001 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance4/6
Financial Health5/6
Dividends4/6

8001 Stock Overview

ITOCHU Corporation engages in trading and importing/exporting various products worldwide.

ITOCHU Competitors

Price History & Performance

Summary of all time highs, changes and price drops for ITOCHU
Historical stock prices
Current Share PriceJP¥3,618.00
52 Week HighJP¥4,249.00
52 Week LowJP¥3,104.00
Beta0.64
1 Month Change-1.55%
3 Month Change-13.55%
1 Year Change10.64%
3 Year Change75.59%
5 Year Change116.78%
Change since IPO448.18%

Recent News & Updates

Shareholder Returns

8001JP Trade DistributorsJP Market
7D-1.0%-5.0%1.9%
1Y10.6%10.1%-6.2%

Return vs Industry: 8001 matched the JP Trade Distributors industry which returned 10.1% over the past year.

Return vs Market: 8001 exceeded the JP Market which returned -6.2% over the past year.

Price Volatility

Is 8001's price volatile compared to industry and market?
8001 volatility
8001 Average Weekly Movement3.5%
Trade Distributors Industry Average Movement3.6%
Market Average Movement4.2%
10% most volatile stocks in JP Market8.5%
10% least volatile stocks in JP Market2.3%

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.

About the Company

FoundedEmployeesCEOWebsite
1858125,944Masahiro Okafujihttps://www.itochu.co.jp

ITOCHU Corporation engages in trading and importing/exporting various products worldwide. The company’s Textile segment produces and sells fiber and garment materials, textiles fabrics, apparel, and industrial materials; and imports lifestyle brands, fashion accessories, and garments in various areas, such as luxury, casual, and sports Its Machinery segment provides engineering, procurement, and construction services; operates water and environmental, infrastructure, renewable energy, oil and gas, petrochemical, and independent power producer projects and plants; sells and leases aircraft and related equipment; sells automobiles, construction machinery, electronic systems, industrial machinery, and medical devices; and owns and charters ships. The company’s Metals & Minerals segment engages in mining and trading of iron ore, coal, uranium, base metals, and minor metals; trading in non-ferrous metal materials; and processing and trading in steel products.

ITOCHU Fundamentals Summary

How do ITOCHU's earnings and revenue compare to its market cap?
8001 fundamental statistics
Market CapJP¥5.32t
Earnings (TTM)JP¥820.27b
Revenue (TTM)JP¥12.29t

6.5x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
8001 income statement (TTM)
RevenueJP¥12.29t
Cost of RevenueJP¥10.36t
Gross ProfitJP¥1.94t
Other ExpensesJP¥1.12t
EarningsJP¥820.27b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 05, 2022

Earnings per share (EPS)558.17
Gross Margin15.76%
Net Profit Margin6.67%
Debt/Equity Ratio61.0%

How did 8001 perform over the long term?

See historical performance and comparison

Dividends

3.6%

Current Dividend Yield

20%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 8001 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 8001?

Other financial metrics that can be useful for relative valuation.

8001 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.7x
Enterprise Value/EBITDA9.2x
PEG Ratio-1.7x

Price to Earnings Ratio vs Peers

How does 8001's PE Ratio compare to its peers?

8001 PE Ratio vs Peers
The above table shows the PE ratio for 8001 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average5.3x
8058 Mitsubishi
6.2x-5.1%JP¥5.8t
8031 Mitsui
5.1x-8.4%JP¥4.7t
8053 Sumitomo
4.9x-5.2%JP¥2.3t
8002 Marubeni
4.9x-2.6%JP¥2.1t
8001 ITOCHU
6.5x-3.8%JP¥5.3t

Price-To-Earnings vs Peers: 8001 is expensive based on its Price-To-Earnings Ratio (6.5x) compared to the peer average (5.3x).


Price to Earnings Ratio vs Industry

How does 8001's PE Ratio compare vs other companies in the JP Trade Distributors Industry?

Price-To-Earnings vs Industry: 8001 is good value based on its Price-To-Earnings Ratio (6.5x) compared to the JP Trade Distributors industry average (7.9x)


Price to Earnings Ratio vs Fair Ratio

What is 8001's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

8001 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.5x
Fair PE Ratio14.7x

Price-To-Earnings vs Fair Ratio: 8001 is good value based on its Price-To-Earnings Ratio (6.5x) compared to the estimated Fair Price-To-Earnings Ratio (14.7x).


Share Price vs Fair Value

What is the Fair Price of 8001 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 8001 (¥3618) is trading below our estimate of fair value (¥4551.19)

Significantly Below Fair Value: 8001 is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: 8001's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


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Future Growth

How is ITOCHU forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-3.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 8001's earnings are forecast to decline over the next 3 years (-3.8% per year).

Earnings vs Market: 8001's earnings are forecast to decline over the next 3 years (-3.8% per year).

High Growth Earnings: 8001's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 8001's revenue (1.2% per year) is forecast to grow slower than the JP market (4.4% per year).

High Growth Revenue: 8001's revenue (1.2% 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 (13.4%).


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Past Performance

How has ITOCHU performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


11.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 8001 has a large one-off gain of ¥194.3B impacting its March 31 2022 financial results.

Growing Profit Margin: 8001's current net profit margins (6.7%) are higher than last year (3.9%).


Past Earnings Growth Analysis

Earnings Trend: 8001's earnings have grown by 11.8% per year over the past 5 years.

Accelerating Growth: 8001's earnings growth over the past year (104.3%) exceeds its 5-year average (11.8% per year).

Earnings vs Industry: 8001 earnings growth over the past year (104.3%) exceeded the Trade Distributors industry 37.8%.


Return on Equity

High ROE: 8001's Return on Equity (18.5%) is considered low.


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Financial Health

How is ITOCHU's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 8001's short term assets (¥4,810.0B) exceed its short term liabilities (¥3,650.5B).

Long Term Liabilities: 8001's short term assets (¥4,810.0B) exceed its long term liabilities (¥3,739.4B).


Debt to Equity History and Analysis

Debt Level: 8001's net debt to equity ratio (45.8%) is considered high.

Reducing Debt: 8001's debt to equity ratio has reduced from 110.5% to 61% over the past 5 years.

Debt Coverage: 8001's debt is well covered by operating cash flow (27.6%).

Interest Coverage: 8001 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is ITOCHU current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


3.59%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 8001's dividend (3.59%) is higher than the bottom 25% of dividend payers in the JP market (1.68%).

High Dividend: 8001's dividend (3.59%) is low compared to the top 25% of dividend payers in the JP market (3.74%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (19.9%), 8001's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (28.2%), 8001's dividend payments are well covered by cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

6.2yrs

Average management tenure


CEO

Masahiro Okafuji (72 yo)

12.17yrs

Tenure

JP¥649,000,000

Compensation

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: Masahiro's total compensation ($USD4.80M) is above average for companies of similar size in the JP market ($USD1.55M).

Compensation vs Earnings: Masahiro's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 8001's management team is seasoned and experienced (6.2 years average tenure).


Board Members

Experienced Board: 8001's board of directors are considered experienced (4 years average tenure).


Ownership

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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

ITOCHU Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: ITOCHU Corporation
  • Ticker: 8001
  • Exchange: TSE
  • Founded: 1858
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Implied Market Cap: JP¥5.317t
  • Shares outstanding: 1.47b
  • Website: https://www.itochu.co.jp

Number of Employees


Location

  • ITOCHU Corporation
  • 5-1, Kita-Aoyama 2-chome
  • Minato-ku
  • Tokyo
  • 107-8077
  • Japan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.