TSE:8001

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Excellent balance sheet average dividend payer.


Similar Companies

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 less volatile than 75% of JP stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 8001's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-1.2%

8001

-2.0%

JP Trade Distributors

-0.1%

JP Market


1 Year Return

15.1%

8001

-4.6%

JP Trade Distributors

3.4%

JP Market

Return vs Industry: 8001 exceeded the JP Trade Distributors industry which returned -4.6% over the past year.

Return vs Market: 8001 exceeded the JP Market which returned 3.4% over the past year.


Shareholder returns

8001IndustryMarket
7 Day-1.2%-2.0%-0.1%
30 Day11.8%8.8%10.5%
90 Day0.2%-0.3%8.1%
1 Year19.1%15.1%-0.5%-4.6%6.0%3.4%
3 Year61.0%44.1%12.2%-0.2%6.7%-0.8%
5 Year128.3%89.8%57.4%31.2%27.6%13.3%

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

Valuation

Is ITOCHU undervalued compared to its fair value and its price relative to the market?

8.96x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 8001 (¥2794) is trading above our estimate of fair value (¥2485.14)

Significantly Below Fair Value: 8001 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 8001 is good value based on its PE Ratio (9x) compared to the JP Trade Distributors industry average (11.4x).

PE vs Market: 8001 is good value based on its PE Ratio (9x) compared to the JP market (17x).


Price to Earnings Growth Ratio

PEG Ratio: 8001 is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: 8001 is overvalued based on its PB Ratio (1.3x) compared to the JP Trade Distributors industry average (0.6x).


Next Steps

Future Growth

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

6.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 8001's forecast earnings growth (6.8% per year) is above the savings rate (0.05%).

Earnings vs Market: 8001's earnings (6.8% per year) are forecast to grow slower than the JP market (17.4% per year).

High Growth Earnings: 8001's earnings are forecast to grow, but not significantly.

Revenue vs Market: 8001's revenue (3.7% per year) is forecast to grow slower than the JP market (5.5% per year).

High Growth Revenue: 8001's revenue (3.7% 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 (13.4%).


Next Steps

Past Performance

How has ITOCHU performed over the past 5 years?

13.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8001 has high quality earnings.

Growing Profit Margin: 8001's current net profit margins (4.5%) are lower than last year (4.6%).


Past Earnings Growth Analysis

Earnings Trend: 8001's earnings have grown by 13.6% 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 (-12.6%) over the past year, making it difficult to compare to the Trade Distributors industry average (-19.9%).


Return on Equity

High ROE: 8001's Return on Equity (12.9%) is considered low.


Next Steps

Financial Health

How is ITOCHU's financial position?


Financial Position Analysis

Short Term Liabilities: 8001's short term assets (¥4,134.0B) exceed its short term liabilities (¥3,380.1B).

Long Term Liabilities: 8001's short term assets (¥4,134.0B) exceed its long term liabilities (¥3,607.6B).


Debt to Equity History and Analysis

Debt Level: 8001's debt to equity ratio (76.2%) is considered high.

Reducing Debt: 8001's debt to equity ratio has reduced from 132.6% to 76.2% over the past 5 years.

Debt Coverage: 8001's debt is well covered by operating cash flow (28.5%).

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


Balance Sheet


Next Steps

Dividend

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

3.15%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 8001's dividend (3.15%) is higher than the bottom 25% of dividend payers in the JP market (1.28%).

High Dividend: 8001's dividend (3.15%) is in the top 25% of dividend payers in the JP market (3.07%)


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 (27.7%), 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.


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Masahiro Okafuji (71 yo)

10.58yrs

Tenure

JP¥588,000,000

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 ($USD0.00) is below average for companies of similar size in the JP market ($USD1.96M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Masahiro Okafuji
Chairman & CEO10.58yrsJP¥588.00m0.018%
¥ 758.4m
Yoshihisa Q. Suzuki
President4.42yrsJP¥417.00m0.0089%
¥ 366.9m
Tsuyoshi Hachimura
CFO, Senior Managing Executive Officer & Director5.42yrsJP¥238.00m0.0077%
¥ 317.2m
Fumihiko Kobayashi
Senior Managing Executive Officer5.42yrsJP¥250.00m0.0083%
¥ 339.4m
Tomofumi Yoshida
Executive VP2.42yrsJP¥237.00m0.0064%
¥ 262.2m
Suguru Amano
General Manager of Investor Relations Department2.5yrsno datano data
Tomoyuki Takada
Managing Executive Officer & GM of Corporate Communication Divisionno datano datano data
Nobuya Urashima
General Manager of Human Resources & General Affairs Division0.75yrno datano data
Yuji Fukuda
Executive VP1.42yrsno data0.0030%
¥ 121.5m
Masazumi Nishikage
Executive Officerno datano datano data
Hiroyuki Tsubai
Managing Executive Officer & President of Machinery Company4.58yrsno datano data
Masatoshi Maki
COO of Construction & Real Estate Division and Executive Officer1.67yrsno datano data

3.6yrs

Average Tenure

63.5yo

Average Age

Experienced Management: 8001's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Masahiro Okafuji
Chairman & CEO10.58yrsJP¥588.00m0.018%
¥ 758.4m
Yoshihisa Q. Suzuki
President4.42yrsJP¥417.00m0.0089%
¥ 366.9m
Tsuyoshi Hachimura
CFO, Senior Managing Executive Officer & Director5.42yrsJP¥238.00m0.0077%
¥ 317.2m
Fumihiko Kobayashi
Senior Managing Executive Officer5.42yrsJP¥250.00m0.0083%
¥ 339.4m
Tomofumi Yoshida
Executive VP2.42yrsJP¥237.00m0.0064%
¥ 262.2m
Yuji Fukuda
Executive VP1.42yrsno data0.0030%
¥ 121.5m
Kobayashi Eizo
Director Emeritus0.58yrJP¥193.00mno data
Makiko Nakamori
Independent Outside Director1.42yrsno datano data
Harufumi Mochizuki
Independent Outside Director3.42yrsno data0.00027%
¥ 11.1m
Atsuko Muraki
Independent Outside Director4.42yrsno data0.00013%
¥ 5.3m
Masatoshi Kawana
Independent Outside Director2.42yrsno data0.000070%
¥ 2.9m
Shoko Haku
Chairman of Dateng Logistics (Shanghai) Co. Ltd & Deputy Director of General Products0.75yrno datano data

2.5yrs

Average Tenure

65yo

Average Age

Experienced Board: 8001's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


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 company bio, 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
  • Market Cap: JP¥4.104t
  • Shares outstanding: 1.49b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ITOC.YOTCPK (Pink Sheets LLC)ADRUSUSDMar 1991
8001TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
ITOC.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
IOCDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992

Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/01 08:06
End of Day Share Price2020/12/01 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.