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ITOCHU

DB:IOC
Snowflake Description

Excellent balance sheet with solid track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
IOC
DB
¥3,577B
Market Cap
  1. Home
  2. DE
  3. Capital Goods
Company description

ITOCHU Corporation engages in trading and importing/exporting various products worldwide. The last earnings update was 15 days ago. More info.


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IOC Share Price and Events
7 Day Returns
1.8%
DB:IOC
-0.3%
DE Trade Distributors
0%
DE Market
1 Year Returns
25.7%
DB:IOC
8.5%
DE Trade Distributors
9.9%
DE Market
IOC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
ITOCHU (IOC) 1.8% 6.8% 15.1% 25.7% 56.1% 124.3%
DE Trade Distributors -0.3% 10.2% 15.4% 8.5% -3.8% 2.3%
DE Market 0% 4.5% 13.6% 9.9% 14.6% 18.2%
1 Year Return vs Industry and Market
  • IOC outperformed the Trade Distributors industry which returned 8.5% over the past year.
  • IOC outperformed the Market in Germany which returned 9.9% over the past year.
Price Volatility
IOC
Industry
5yr Volatility vs Market

Value

 Is ITOCHU undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of ITOCHU to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for ITOCHU.

DB:IOC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:IOC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Trade Distributors Unlevered Beta Simply Wall St/ S&P Global 0.95
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.949 (1 + (1- 30.86%) (114.75%))
1.47
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.47
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.47 * 5.96%)
8.99%

Discounted Cash Flow Calculation for DB:IOC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for ITOCHU is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:IOC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (JPY, Millions) Source Present Value
Discounted (@ 8.99%)
2020 501,250.00 Analyst x4 459,907.19
2021 432,500.00 Analyst x4 364,097.54
2022 431,500.00 Analyst x4 333,294.58
2023 427,000.00 Analyst x1 302,615.48
2024 430,000.00 Analyst x1 279,606.68
2025 429,455.33 Est @ -0.13% 256,219.93
2026 429,368.30 Est @ -0.02% 235,039.41
2027 429,601.08 Est @ 0.05% 215,770.41
2028 430,057.95 Est @ 0.11% 198,184.34
2029 430,672.27 Est @ 0.14% 182,097.96
Present value of next 10 years cash flows ¥2,826,833.00
DB:IOC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= ¥430,672.27 × (1 + 0.23%) ÷ (8.99% – 0.23%)
¥4,926,783.01
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ¥4,926,783.01 ÷ (1 + 8.99%)10
¥2,083,155.06
DB:IOC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ¥2,826,833.00 + ¥2,083,155.06
¥4,909,988.06
Equity Value per Share
(JPY)
= Total value / Shares Outstanding
= ¥4,909,988.06 / 1,490.28
¥3294.68
DB:IOC Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:IOC represents 0.00827x of TSE:8001
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.00827x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (JPY) x Listing Adjustment Factor
= ¥ 3,294.68 x 0.00827
€27.26
Value per share (EUR) From above. €27.26
Current discount Discount to share price of €19.86
= -1 x (€19.86 - €27.26) / €27.26
27.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price ITOCHU is available for.
Intrinsic value
27%
Share price is €19.86 vs Future cash flow value of €27.26
Current Discount Checks
For ITOCHU to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • ITOCHU's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • ITOCHU's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for ITOCHU's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are ITOCHU's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:IOC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in JPY ¥350.13
TSE:8001 Share Price ** TSE (2019-11-15) in JPY ¥2400
Germany Trade Distributors Industry PE Ratio Median Figure of 7 Publicly-Listed Trade Distributors Companies 15.38x
Germany Market PE Ratio Median Figure of 399 Publicly-Listed Companies 19.43x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of ITOCHU.

DB:IOC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSE:8001 Share Price ÷ EPS (both in JPY)

= 2400 ÷ 350.13

6.85x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ITOCHU is good value based on earnings compared to the DE Trade Distributors industry average.
  • ITOCHU is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does ITOCHU's expected growth come at a high price?
Raw Data
DB:IOC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 6.85x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
0.1%per year
Europe Trade Distributors Industry PEG Ratio Median Figure of 32 Publicly-Listed Trade Distributors Companies 1.62x
Germany Market PEG Ratio Median Figure of 252 Publicly-Listed Companies 1.36x

*Line of best fit is calculated by linear regression .

DB:IOC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 6.85x ÷ 0.1%

119.19x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ITOCHU is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on ITOCHU's assets?
Raw Data
DB:IOC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in JPY ¥1,989.15
TSE:8001 Share Price * TSE (2019-11-15) in JPY ¥2400
Germany Trade Distributors Industry PB Ratio Median Figure of 10 Publicly-Listed Trade Distributors Companies 1.19x
Germany Market PB Ratio Median Figure of 573 Publicly-Listed Companies 1.84x
DB:IOC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSE:8001 Share Price ÷ Book Value per Share (both in JPY)

= 2400 ÷ 1,989.15

1.21x

* Primary Listing of ITOCHU.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ITOCHU is overvalued based on assets compared to the DE Trade Distributors industry average.
X
Value checks
We assess ITOCHU's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Trade Distributors industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Trade Distributors industry average (and greater than 0)? (1 check)
  5. ITOCHU has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
0.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is ITOCHU expected to grow at an attractive rate?
  • ITOCHU's earnings growth is positive but not above the low risk savings rate of 0.2%.
Growth vs Market Checks
  • ITOCHU's earnings growth is positive but not above the Germany market average.
  • ITOCHU's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:IOC Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:IOC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 0.1%
DB:IOC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 1.6%
Germany Trade Distributors Industry Earnings Growth Rate Market Cap Weighted Average 14.6%
Europe Trade Distributors Industry Revenue Growth Rate Market Cap Weighted Average 3.6%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.6%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:IOC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in JPY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:IOC Future Estimates Data
Date (Data in JPY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-03-31 12,700,000 800,000 505,000 1
2023-03-31 12,600,000 797,000 503,000 1
2022-03-31 12,774,534 742,311 515,375 6
2021-03-31 12,498,693 729,530 505,250 6
2020-03-31 12,243,896 962,481 506,750 6
2019-11-16
DB:IOC Past Financials Data
Date (Data in JPY Millions) Revenue Cash Flow Net Income *
2019-09-30 11,629,260 794,817 531,589
2019-06-30 11,714,106 577,729 534,446
2019-03-31 11,600,485 476,551 500,523
2018-12-31 10,117,091 382,019 440,752
2018-09-30 8,393,278 400,747 415,867
2018-06-30 6,904,348 363,196 405,506
2018-03-31 5,510,059 388,212 400,333
2017-12-31 5,387,194 367,409 409,017
2017-09-30 5,169,687 382,289 392,518
2017-06-30 4,950,609 410,263 387,330
2017-03-31 4,838,464 389,693 352,221
2016-12-31 4,782,672 398,033 259,773

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • ITOCHU's earnings are expected to grow by 0.1% yearly, however this is not considered high growth (20% yearly).
  • ITOCHU's revenue is expected to grow by 1.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:IOC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from ITOCHU Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:IOC Future Estimates Data
Date (Data in JPY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-03-31 373.90 373.90 373.90 1.00
2023-03-31 365.80 365.80 365.80 1.00
2022-03-31 354.47 364.30 335.30 8.00
2021-03-31 344.78 352.50 323.20 8.00
2020-03-31 344.43 349.72 339.83 7.00
2019-11-16
DB:IOC Past Financials Data
Date (Data in JPY Millions) EPS *
2019-09-30 350.13
2019-06-30 348.58
2019-03-31 324.07
2018-12-31 284.47
2018-09-30 268.29
2018-06-30 261.60
2018-03-31 257.94
2017-12-31 262.81
2017-09-30 251.31
2017-06-30 246.83
2017-03-31 223.67
2016-12-31 164.64

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • ITOCHU is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess ITOCHU's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
ITOCHU has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has ITOCHU performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare ITOCHU's growth in the last year to its industry (Trade Distributors).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • ITOCHU's year on year earnings growth rate has been positive over the past 5 years.
  • ITOCHU's 1-year earnings growth exceeds its 5-year average (27.8% vs 14.5%)
  • ITOCHU's earnings growth has exceeded the DE Trade Distributors industry average in the past year (27.8% vs 8.4%).
Earnings and Revenue History
ITOCHU's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from ITOCHU Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:IOC Past Revenue, Cash Flow and Net Income Data
Date (Data in JPY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 11,629,260.00 531,589.00 1,407,221.00
2019-06-30 11,714,106.00 534,446.00 1,304,484.00
2019-03-31 11,600,485.00 500,523.00 1,201,945.00
2018-12-31 10,117,091.00 440,752.00 1,070,686.00
2018-09-30 8,393,278.00 415,867.00 918,272.00
2018-06-30 6,904,348.00 405,506.00 916,943.00
2018-03-31 5,510,059.00 400,333.00 893,507.00
2017-12-31 5,387,194.00 409,017.00 873,495.00
2017-09-30 5,169,687.00 392,518.00 838,116.00
2017-06-30 4,950,609.00 387,330.00 809,854.00
2017-03-31 4,838,464.00 352,221.00 805,063.00
2016-12-31 4,782,672.00 259,773.00 806,889.00
2016-09-30 4,810,583.00 229,817.00 824,770.00
2016-06-30 4,931,100.00 191,999.00 836,763.00
2016-03-31 5,083,536.00 240,376.00 843,293.00
2015-12-31 5,235,906.00 350,157.00 845,420.00
2015-09-30 5,389,078.00 361,087.00 840,319.00
2015-06-30 5,526,612.00 341,192.00 830,751.00
2015-03-31 5,591,435.00 300,569.00 816,376.00
2014-12-31 5,614,036.00 251,027.00 790,988.00
2014-09-30 5,661,558.00 246,950.00 772,368.00
2014-06-30 5,560,544.00 322,820.00 755,467.00
2014-03-31 5,587,526.00 245,312.00 754,667.00
2013-12-31 5,553,161.00 276,345.00 747,828.00
2013-09-30 5,000,292.00 303,167.00 698,320.00
2013-06-30 4,786,306.00 286,911.00 683,531.00
2013-03-31 4,699,466.00 258,843.00 688,812.00
2012-12-31 4,471,034.00 291,920.00 641,639.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • ITOCHU has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • ITOCHU used its assets more efficiently than the DE Trade Distributors industry average last year based on Return on Assets.
  • ITOCHU has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess ITOCHU's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Trade Distributors industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
ITOCHU has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is ITOCHU's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up ITOCHU's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • ITOCHU is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • ITOCHU's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of ITOCHU's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from ITOCHU Company Filings, last reported 1 month ago.

DB:IOC Past Debt and Equity Data
Date (Data in JPY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 3,719,762.00 2,902,352.00 657,823.00
2019-06-30 3,604,497.00 2,971,169.00 554,644.00
2019-03-31 3,690,116.00 2,983,837.00 620,213.00
2018-12-31 3,638,169.00 3,354,317.00 655,268.00
2018-09-30 3,545,373.00 3,441,317.00 693,544.00
2018-06-30 3,041,135.00 2,880,717.00 488,679.00
2018-03-31 2,984,351.00 2,779,473.00 493,384.00
2017-12-31 3,059,140.00 2,878,352.00 531,760.00
2017-09-30 2,914,870.00 2,890,055.00 576,841.00
2017-06-30 2,734,640.00 2,974,248.00 643,664.00
2017-03-31 2,662,811.00 2,944,653.00 642,969.00
2016-12-31 2,625,178.00 3,072,894.00 652,819.00
2016-09-30 2,419,387.00 2,957,137.00 693,732.00
2016-06-30 2,339,905.00 3,075,380.00 693,479.00
2016-03-31 2,452,055.00 3,196,165.00 676,006.00
2015-12-31 2,780,981.00 3,708,277.00 698,312.00
2015-09-30 2,816,854.00 3,817,000.00 686,821.00
2015-06-30 2,840,294.00 3,413,564.00 642,458.00
2015-03-31 2,748,251.00 3,092,164.00 764,769.00
2014-12-31 2,776,654.00 3,419,730.00 880,273.00
2014-09-30 2,699,078.00 2,999,338.00 695,891.00
2014-06-30 2,440,490.00 2,898,176.00 652,922.00
2014-03-31 2,397,591.00 2,893,380.00 690,377.00
2013-12-31 2,441,623.00 3,219,054.00 548,709.00
2013-09-30 2,321,731.00 3,146,974.00 589,503.00
2013-06-30 2,221,484.00 3,006,869.00 487,242.00
2013-03-31 2,075,194.00 2,780,883.00 613,447.00
2012-12-31 1,860,086.00 2,931,027.00 550,020.00
  • ITOCHU's level of debt (78%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (108.1% vs 78% today).
  • Debt is well covered by operating cash flow (27.4%, greater than 20% of total debt).
  • ITOCHU earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess ITOCHU's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. ITOCHU has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.54%
Current annual income from ITOCHU dividends. Estimated to be 3.98% next year.
If you bought €2,000 of ITOCHU shares you are expected to receive €71 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • ITOCHU's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.33%).
  • ITOCHU's dividend is below the markets top 25% of dividend payers in Germany (3.66%).
Upcoming dividend payment

Purchase ITOCHU before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:IOC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
Germany Trade Distributors Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 2.7%
Germany Market Average Dividend Yield Market Cap Weighted Average of 333 Stocks 2.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.7%
Germany Bottom 25% Dividend Yield 25th Percentile 1.3%
Germany Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:IOC Future Dividends Estimate Data
Date (Data in ¥) Dividend per Share (annual) Avg. No. Analysts
2024-03-31 110.00 1.00
2023-03-31 105.00 1.00
2022-03-31 100.25 8.00
2021-03-31 94.88 8.00
2020-03-31 88.31 8.00
2019-11-16
DB:IOC Past Annualized Dividends Data
Date (Data in ¥) Dividend per share (annual) Avg. Yield (%)
2019-11-01 85.000 3.618
2019-08-30 85.000 3.798
2019-04-26 85.000 4.161
2019-02-05 83.000 4.123
2018-11-02 83.000 4.193
2018-08-30 74.000 3.557
2018-05-02 74.000 3.672
2018-02-02 76.000 3.684
2017-11-02 64.000 3.138
2017-08-04 64.000 3.514
2017-05-02 64.000 3.872
2017-02-03 55.000 3.451
2016-11-02 55.000 3.566
2016-08-01 55.000 4.427
2016-05-06 55.000 4.222
2016-02-04 50.000 3.607
2015-11-05 50.000 3.495
2015-08-10 50.000 3.491
2015-05-01 50.000 3.161
2015-02-05 46.000 3.436
2014-11-05 46.000 3.581
2014-10-07 46.000 3.661
2014-05-01 46.000 3.576
2014-02-04 46.000 3.783
2013-08-01 42.000 3.417
2013-05-08 42.000 3.404
2013-02-05 40.000 3.515
2012-11-02 40.000 4.557
2012-08-02 40.000 4.968
2012-05-08 40.000 4.796
2012-02-02 47.000 5.176
2011-11-08 33.000 4.227
2011-08-01 33.000 4.201
2011-05-06 33.000 3.911
2011-02-02 18.000 2.133
2010-11-01 18.000 2.186
2010-08-02 18.000 2.497
2010-06-25 18.000 2.578
2010-05-07 18.000 2.377
2010-02-02 15.000 1.929
2009-10-15 15.000 2.304
2009-08-03 15.000 2.325
2009-04-30 15.000 2.278
2009-02-13 21.000 4.377
2009-02-02 21.000 4.548

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of ITOCHU's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess ITOCHU's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.7%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can ITOCHU afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. ITOCHU has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of ITOCHU's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Masahiro Okafuji
COMPENSATION ¥412,000,000
AGE 70
TENURE AS CEO 9.6 years
CEO Bio

Mr. Masahiro Okafuji has been the Chief Executive Officer of Itochu Corporation since April 1, 2010 and its Chairman since April 1, 2018. Mr. Okafuji was the President of Itochu Corporation since April 1, 2010 until April 1, 2018. Mr. Okafuji served as President of Textile Company. He served as an Executive Vice President of ITOCHU Corporation from 2009 to April 1, 2010. Mr. Okafuji served as Senior Managing Director of Itochu Corp. since 2006. He served as Managing Director at Itochu Corporation since 2004. He served as Senior Vice President of Textile Company (Brand Marketing Group), a division company of ITOCHU Corp. He joined Itochu Corp. in 1974. He serves as a Representative Director of Itochu Corporation since June 2004. Mr. Okafuji serves as an Outside Director of Nissin Foods Holdings Co., Ltd.

CEO Compensation
  • Masahiro's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Masahiro's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the ITOCHU management team in years:

4.1
Average Tenure
62
Average Age
  • The tenure for the ITOCHU management team is about average.
Management Team

Masahiro Okafuji

TITLE
Chairman & CEO
COMPENSATION
¥412M
AGE
70
TENURE
9.6 yrs

Yoshihisa Suzuki

TITLE
President
COMPENSATION
¥147M
AGE
64
TENURE
1.6 yrs

Tsuyoshi Hachimura

TITLE
CFO, Senior Managing Executive Officer & Director
COMPENSATION
¥138M
AGE
62
TENURE
4.6 yrs

Fumihiko Kobayashi

TITLE
Senior Managing Executive Officer
COMPENSATION
¥138M
AGE
62
TENURE
4.6 yrs

Yasuyuki Harada

TITLE
CEO of European Tyre Enterprise Limited
COMPENSATION
¥109M
AGE
60

Shunsuke Noda

TITLE
Managing Executive Officer & Chief Digital & Information Officer
AGE
57
TENURE
0.6 yrs

Suguru Amano

TITLE
General Manager of Investor Relations Department
TENURE
1.5 yrs

Tomoyuki Takada

TITLE
Executive Officer & GM of Corporate Communication Division

Tomofumi Yoshida

TITLE
Executive VP
COMPENSATION
¥123M
AGE
63
TENURE
5.6 yrs

Yuji Fukuda

TITLE
Executive VP
AGE
62
TENURE
3.6 yrs
Board of Directors Tenure

Average tenure and age of the ITOCHU board of directors in years:

2
Average Tenure
63.5
Average Age
  • The average tenure for the ITOCHU board of directors is less than 3 years, this suggests a new board.
Board of Directors

Masahiro Okafuji

TITLE
Chairman & CEO
COMPENSATION
¥412M
AGE
70
TENURE
1.6 yrs

Yoshihisa Suzuki

TITLE
President
COMPENSATION
¥147M
AGE
64
TENURE
3.4 yrs

Tsuyoshi Hachimura

TITLE
CFO, Senior Managing Executive Officer & Director
COMPENSATION
¥138M
AGE
62
TENURE
4.4 yrs

Fumihiko Kobayashi

TITLE
Senior Managing Executive Officer
COMPENSATION
¥138M
AGE
62
TENURE
4.4 yrs

Tomofumi Yoshida

TITLE
Executive VP
COMPENSATION
¥123M
AGE
63
TENURE
1.4 yrs

Yuji Fukuda

TITLE
Executive VP
AGE
62
TENURE
0.4 yrs

Harufumi Mochizuki

TITLE
Outside Director
AGE
70
TENURE
2.4 yrs

Atsuko Muraki

TITLE
Outside Director
AGE
64
TENURE
3.4 yrs

Masatoshi Kawana

TITLE
Outside Director
AGE
66
TENURE
1.4 yrs

Makiko Nakamori

TITLE
Outside Director
AGE
56
TENURE
0.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess ITOCHU's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. ITOCHU has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

ITOCHU Corporation engages in trading and importing/exporting various products worldwide. The company’s Textile segment produces and sells textile raw and garment materials, textiles, textile products, apparel, and industrial materials; and focuses on import licenses for 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, petrochemical, and IPP projects and plants; sells and leases aircraft and related equipment; sells automobiles, construction machinery, electronic system, industrial machinery, and medical devices; and owns, operates, and leases ships. The company’s Metals & Minerals segment develops iron ore, coal, alumina, etc.; trades in iron ore, coal, aluminum, uranium, and non-ferrous products; recycles steel; and processes and trades in steel products. Its Energy & Chemicals segment trades in crude oil, petroleum products, LPG, LNG, natural gas, and electricity, as well as basic pharmaceutical products, sulfur, fertilizers, synthetic resins, household goods, fine chemicals, storage batteries, electronic materials, etc. The company’s Food segment produces, distributes, and retails food products. Its General Products & Realty segment is involved in the production and wholesale of paper, pulp, hygiene products, natural rubber, tire, and wood products and materials; logistics business; and development and operation of real estate properties. The company’s ICT & Financial Business segment offers information technology solutions, Internet related and venture capital services, mobile telephone equipment and services, broadcasting and communications, entertainment and content services, outsourcing services for healthcare and preventive medicine, and financial and insurance brokerage services. The company was founded in 1858 and is headquartered in Tokyo, Japan.

Details
Name: ITOCHU Corporation
IOC
Exchange: DB
Founded: 1858
¥29,747,731,113
1,490,275,775
Website: http://www.itochu.co.jp
Address: ITOCHU Corporation
5-1, Kita-Aoyama 2-chome,
Minato-ku,
Tokyo,
107-8077,
Japan
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSE 8001 Common Stock The Tokyo Stock Exchange JP JPY 06. Jan 1992
OTCPK ITOC.F Common Stock Pink Sheets LLC US USD 06. Jan 1992
DB IOC Common Stock Deutsche Boerse AG DE EUR 06. Jan 1992
OTCPK ITOC.Y ADR Pink Sheets LLC US USD 28. Mar 1991
Number of employees
Current staff
Staff numbers
119,796
ITOCHU employees.
Industry
Trading Companies and Distributors
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/16 21:25
End of day share price update: 2019/11/15 00:00
Last estimates confirmation: 2019/11/14
Last earnings filing: 2019/11/01
Last earnings reported: 2019/09/30
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.