Group 1 - The article discusses a value investing approach focusing on classical value ratios such as low P/B, P/FCF, Owner Earnings discounting, PEG ratios, and the Graham Number [1] - It emphasizes the importance of tracking earnings growth versus price appreciation as a key element in evaluating investment quality [1] - The author advocates for self-indexing using the Dow Jones Industrial Average combined with Joel Greenblatt's Magic Formula for tax efficiency [1] Group 2 - The author has a beneficial long position in several stocks including ITOCY, BRK.B, MITSY, MARUY, SSUMY, and MSBHF through various financial instruments [2] - The article is based on the author's personal opinions and research, and does not constitute financial advice [2][3] - Seeking Alpha clarifies that past performance is not indicative of future results and that the views expressed may not reflect the platform's overall stance [3]

Core Viewpoint - ITOCHU Corp. is positioned well despite a market crash, showing resilience with a positive total return and maintaining its profit targets for FY 2025, while focusing on growth in non-resource businesses [2][10]. Financial Performance - ITOCHU's stock fell 24.4% during the market crash, but it is the only trading company with a positive total return through early August [2]. - The company reported a Q1 profit delivery of 23% of its annual target, with minimal extraordinary gains of ¥4.5 billion [3]. - ITOCHU expects a profit growth of 9.8% for FY 2025, primarily from non-resource businesses, which will contribute 74% of profits [4][10]. Business Strategy - ITOCHU is focusing on consolidating partially owned businesses and has announced tender offers for C.I. Takiron and Descente [5]. - The company is investing in growth, with plans to invest up to ¥1 trillion this year, although it has only seen a net investment cash outflow of ¥98 billion in Q1 [7][10]. Capital Management - ITOCHU plans to maintain a dividend payout of ¥200 per share for FY 2025, representing a 25% increase from the previous year [6]. - The total capital return from dividends and buybacks is projected at ¥437.8 billion, aligning with a payout ratio target of 50% [6]. Market Valuation - Following the market crash, ITOCHU's P/B ratio remains at 1.5, while its P/E ratio is 9.6, reflecting a premium valuation supported by the highest return on equity in its peer group at 15.4% [8][9]. Conclusion - ITOCHU is on track to meet its FY 2025 growth plan, with a focus on non-commodity sectors and capital investment, despite a slow start in investment activities [10].

Financial Data and Key Metrics Changes - The net profit for Q1 2025 was JPY206.6 billion, a decrease of JPY6.6 billion from JPY213.2 billion in the previous year, primarily due to a reduction in extraordinary gains and losses by JPY18.5 billion [2] - Core profit increased from JPY190 billion to JPY202 billion, reflecting a growth of 6.3% year-on-year, aligning with the company's target of 10% growth for the fiscal year [3][4] - The progress towards the forecast of JPY880 billion was at 23%, indicating a good start despite being slightly below expectations [4] Business Line Data and Key Metrics Changes - Textile segment reported a profit of JPY5.3 billion, up JPY0.6 billion, driven by strong performance in Japan and abroad, particularly in Hong Kong and China [9] - Machinery segment achieved a record high profit of JPY34 billion, an increase of JPY2.4 billion, aided by strong performance in auto-related and aerospace transactions [10] - Metals & Minerals segment saw a profit of JPY52.5 billion, down by JPY3.7 billion, impacted by decreased prices of iron ore and coal, although a weaker yen contributed an increase of JPY700 million [11] - Energy & Chemicals segment reported a profit of JPY17.8 billion, down by JPY19.6 billion, largely due to extraordinary gains last year [12] - Food segment's profit was JPY19 billion, down by JPY1.8 billion, but core profit increased by JPY1.7 billion due to strong performance in food distribution [13] - General Products & Realty segment reported a profit of JPY18.8 billion, up by JPY1.4 billion, with strong domestic business performance [14] - ICT & Financial Business segment's profit was JPY16 billion, up by JPY1.6 billion, supported by strong transactions in retail finance [15] - The 8th segment reported a profit of JPY10.9 billion, up by JPY0.3 billion, driven by increased daily sales at FamilyMart [16] Market Data and Key Metrics Changes - The average exchange rate in Q1 was JPY155.85 to the dollar, with a depreciation of JPY21.2, resulting in a JPY15 billion impact on after-tax profit, particularly affecting Metals & Minerals and Machinery [19] Company Strategy and Development Direction - The company announced a JPY150 billion share buyback and two tender offers totaling JPY220 billion, indicating a commitment to shareholder returns and growth investments [5][6] - The company aims to allocate cash for shareholder returns and growth investments equally, targeting a total shareholder return of 50% [5] Management Comments on Operating Environment and Future Outlook - Management acknowledged challenges in resource businesses but noted improvements in non-resource sectors, indicating a mixed outlook for the future [7] - The company emphasized the importance of investments for growth, with preparations underway for execution [4] Other Important Information - The core operating cash flow reached a record high of JPY238.8 billion, an increase of JPY66 billion [20] - Total major new investments in Q1 amounted to JPY118 billion, with a net investment of JPY98 billion after accounting for exits [22] - 84.5% of the group companies were profit-making, with 160 companies increasing profits compared to the previous year [23] Q&A Session Summary - No specific questions or answers were recorded in the provided content, indicating the end of the Q&A session [24]

Core Viewpoint - Itochu Corporation is positioned for growth through strategic initiatives, including a potential stock split and the acquisition of licensing rights for the FRUIT OF THE LOOM brand, which aligns with its focus on consumer-related businesses [5][6][16]. Group 1: Corporate Developments - Itochu has acquired master licensing rights for the FRUIT OF THE LOOM brand in Asia, indicating progress in expanding its consumer-related businesses [6]. - The company is considering a stock split to lower the minimum investment amount, which could enhance share liquidity and attract a broader investor base [9]. - Itochu aims to achieve retail sales of 20 billion yen from the FRUIT OF THE LOOM brand within five years, reflecting its commitment to growth in the apparel sector [6]. Group 2: Financial Metrics and Valuation - The average daily trading value of Itochu's shares on the Tokyo Stock Exchange was approximately $150 million over the past three months, compared to $2 million for its OTC shares [5]. - The updated valuation analysis suggests a target P/B ratio of 2.6 times, which is 34% higher than the current trailing P/B multiple of 1.94 times [10]. - The company has guided for a 25% increase in dividend per share and a 50% growth in share buybacks for the new fiscal year, indicating a shareholder-friendly approach [10]. Group 3: Market Performance and Outlook - Historical data shows that more than half of Japanese companies that conducted stock splits outperformed the Topix index a month after the announcement, suggesting a positive outlook for Itochu's shares if a stock split occurs [4]. - The strategic focus on consumer and retail businesses, particularly leveraging the FamilyMart convenience store chain, positions Itochu well for future growth [6].

Investors might want to bet on Itochu Corp. (ITOCY) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices. The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate. Since a changin ...

The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Itochu Corp. (ITOCY) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Retail-Wholesale sector should help us answer this question.Itochu Corp. is a member of our Retail-Wholesale group, whi ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional val ...

For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Itochu Corp. (ITOCY) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.Itochu Corp. is one of 218 individual stocks in the Retail-Wholesale sector. Collectively, these companies sit at #13 in the Zacks ...

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true v ...

Itochu Corp. (ITOCY) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Individual ...