ITOCHU ENEX CO., LTD. (8133) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sanrio Co., Ltd.

VT Holdings Co., Ltd.

Hikari Tsushin, Inc.

Komehyo Holdings Co., Ltd.

Nextage Co., Ltd.

G-7 Holdings, Inc.

ITOCHU ENEX CO., LTD.

KU Holdings Co., Ltd.

IDOM, Inc.

Mie Kotsu Group Holdings, Inc.

Nitori Holdings Co., Ltd.

Why is ITOCHU ENEX CO., LTD. ?

High Management Efficiency with a high ROE of 10.82%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 22.72

Poor long term growth as Operating profit has grown by an annual rate 6.25% of over the last 5 years

Negative results in Jun 25

INTEREST(HY) At JPY 402 MM has Grown at 8.94%
INTEREST COVERAGE RATIO(Q) Lowest at 5,146.86
CASH AND EQV(HY) Lowest at JPY 34,772 MM

With ROE of 11.75%, it has a very attractive valuation with a 1.14 Price to Book Value

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 13.01%, its profits have risen by 19.1% ; the PEG ratio of the company is 0.5
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 13.01% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to ITOCHU ENEX CO., LTD. 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 ENEX CO., LTD. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

ITOCHU ENEX CO., LTD.

13.01%

0.79

23.16%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.60%

EBIT Growth (5y)

6.25%

EBIT to Interest (avg)

22.72

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.01

Sales to Capital Employed (avg)

5.41

Tax Ratio

30.04%

Dividend Payout Ratio

40.89%

Pledged Shares

Institutional Holding

0.04%

ROCE (avg)

13.33%

ROE (avg)

10.82%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.14

EV to EBIT

8.20

EV to EBITDA

4.30

EV to Capital Employed

1.14

EV to Sales

0.21

PEG Ratio

0.51

Dividend Yield

0.03%

ROCE (Latest)

13.94%

ROE (Latest)

11.75%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 42,566 MM

RAW MATERIAL COST(Y)

Fallen by -4.38% (YoY

NET PROFIT(9M)

Higher at JPY 12,918 MM

-12What is not working for the Company

INTEREST(HY)

At JPY 402 MM has Grown at 8.94%

INTEREST COVERAGE RATIO(Q)

Lowest at 5,146.86

CASH AND EQV(HY)

Lowest at JPY 34,772 MM

NET SALES(Q)

Lowest at JPY 203,200 MM

Here's what is working for ITOCHU ENEX CO., LTD.

Operating Cash Flow

Highest at JPY 42,566 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Net Profit

Higher at JPY 12,918 MM

than preceding 12 month period ended Jun 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (JPY MM)

Raw Material Cost

Fallen by -4.38% (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 ENEX CO., LTD.

Net Sales

At JPY 203,200 MM has Fallen at -12.08%

over average net sales of the previous four periods of JPY 231,120.25 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Interest Coverage Ratio

Lowest at 5,146.86

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At JPY 402 MM has Grown at 8.94%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

Lowest at JPY 203,200 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Cash and Eqv

Lowest at JPY 34,772 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents