ScoreWhy is ITOCHU Corp. ?
1
Strong Long Term Fundamental Strength with a 11.71% CAGR growth in Operating Profits
- The company has been able to generate a Return on Equity (avg) of 16.73% signifying high profitability per unit of shareholders funds
2
Positive results in Jun 26
- NET SALES(Q) Highest at JPY 3,875,861 MM
- INTEREST COVERAGE RATIO(Q) Highest at 1,152.9
- RAW MATERIAL COST(Y) Fallen by -1.21% (YoY)
3
With ROCE of 7.12%, it has a expensive valuation with a 1.83 Enterprise value to Capital Employed
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -73.60%, its profits have risen by 0.5%
- At the current price, the company has a high dividend yield of 0
4
Majority shareholders : FIIs
5
Below par performance in long term as well as near term
- Along with generating -73.60% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to ITOCHU Corp. should be less than 10%
- Overall Portfolio exposure to Retailing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is ITOCHU Corp. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
ITOCHU Corp.
-73.83%
114.06
85.55%
Japan Nikkei 225
60.14%
2.04
29.37%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
7.42%
EBIT Growth (5y)
11.71%
EBIT to Interest (avg)
10.16
Debt to EBITDA (avg)
2.63
Net Debt to Equity (avg)
0.55
Sales to Capital Employed (avg)
1.52
Tax Ratio
29.91%
Dividend Payout Ratio
32.81%
Pledged Shares
0
Institutional Holding
0.01%
ROCE (avg)
8.25%
ROE (avg)
16.73%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
16
Industry P/E
Price to Book Value
2.24
EV to EBIT
25.65
EV to EBITDA
15.51
EV to Capital Employed
1.83
EV to Sales
1.21
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
7.12%
ROE (Latest)
14.23%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
Bullish
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend12What is working for the Company
NET SALES(Q)
Highest at JPY 3,875,861 MM
INTEREST COVERAGE RATIO(Q)
Highest at 1,152.9
RAW MATERIAL COST(Y)
Fallen by -1.21% (YoY
CASH AND EQV(HY)
Highest at JPY 1,375,999 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 66.72 %
DEBTORS TURNOVER RATIO(HY)
Highest at 4.65 times
OPERATING PROFIT(Q)
Highest at JPY 320,241 MM
OPERATING PROFIT MARGIN(Q)
Highest at 8.26 %
NET PROFIT(Q)
Highest at JPY 293,763 MM
EPS(Q)
Highest at JPY 42.02
-6What is not working for the Company
INTEREST(HY)
At JPY 55,856 MM has Grown at 8.53%
ROCE(HY)
Lowest at 14.55%
Here's what is working for ITOCHU Corp.
Net Sales
Highest at JPY 3,875,861 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (JPY MM)
Interest Coverage Ratio
Highest at 1,152.9
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Profit
Highest at JPY 320,241 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 8.26 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Net Profit
Highest at JPY 293,763 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 42.02
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Cash and Eqv
Highest at JPY 1,375,999 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at 66.72 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Debtors Turnover Ratio
Highest at 4.65 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -1.21% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for ITOCHU Corp.
Interest
At JPY 55,856 MM has Grown at 8.53%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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