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8001:TSEItochu Corporation Analysis

Data as of 2026-07-07 - not real-time

¥1,904.00

Latest Price

5/10Risk

Risk Level: Medium

Executive Summary

ITOCHU trades below its peers on a price‑to‑earnings multiple, with a trailing PE well under the industry average and a forward PE indicating strong earnings momentum. The RSI sits in the mid‑fifties and the MACD histogram is positive, giving a short‑term bullish tilt despite a broader bearish trend indicated by the price sitting under the longer‑term moving averages.
The company benefits from a low beta, stable volume and a dividend yield that exceeds two percent with a comfortable payout ratio, while a recent partnership to secure battery‑material supply chains adds a growth catalyst. Valuation models suggest upside potential, and the dividend appears sustainable given robust cash flow and modest leverage.

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 6/10

Key Factors

  • price approaching short‑term resistance
  • bullish MACD histogram
  • steady dividend yield

Medium Term

1–3 years
Positive
Model confidence: 8/10

Key Factors

  • valuation gap versus peers
  • strong forward earnings outlook
  • strategic battery‑materials partnership

Long Term

> 3 years
Neutral
Model confidence: 7/10

Key Factors

  • diversified conglomerate business model
  • sustainable dividend and cash flow generation
  • potential regulatory and market cycle headwinds

Key Metrics & Analysis

Financial Health

Revenue Growth4.10%
Profit Margin6.07%
P/E Ratio14.9
ROE13.91%
ROA2.75%
Debt/Equity66.19
P/B Ratio2.0
Op. Cash Flow¥1131.8B
Free Cash Flow¥515.4B
Industry P/E32.2

Technical Analysis

TrendBearish
RSI56.5
Support¥1,802.00
Resistance¥1,929.50
MA 20¥1,858.78
MA 50¥1,911.54
MA 200¥1,926.79
MACDBullish
VolumeStable
Fear & Greed Index92.95

Valuation

Fair Value¥591.57
Target Price¥2,403.85
Upside/Downside26.25%
GradeUndervalued
TypeBlend
Dividend Yield2.32%

Risk Assessment

Beta0.40
Volatility19.15%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskLow
Liquidity RiskLow

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.