| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 11279.06 | 2 |
| Intrinsic value (DCF) | 3945.82 | -64 |
| Graham-Dodd Method | 10543.55 | -4 |
| Graham Formula | 7732.58 | -30 |
ITOCHU-SHOKUHIN Co., Ltd. (2692.T) is a leading Japanese food and liquor wholesale company, operating as a subsidiary of ITOCHU Corporation. Established in 1886 and headquartered in Osaka, the company specializes in distributing food and beverage products to supermarkets, department stores, convenience stores, restaurants, and online retailers. Beyond wholesale, ITOCHU-SHOKUHIN provides logistics management, storage, transportation, and distribution merchandising services, ensuring efficient supply chain solutions. The company also offers goods information services, enhancing its value proposition in Japan's competitive food distribution sector. As part of the consumer defensive sector, ITOCHU-SHOKUHIN benefits from stable demand for essential goods, supported by its strong ties with major retailers and manufacturers. With a market capitalization of approximately ¥120.8 billion, the company plays a critical role in Japan's food supply chain, leveraging its long-standing industry expertise and integrated logistics network.
ITOCHU-SHOKUHIN presents a stable investment opportunity within Japan's defensive food distribution sector, supported by consistent demand for essential goods. The company's low beta (0.363) suggests lower volatility compared to the broader market, appealing to risk-averse investors. However, negative operating cash flow (-¥3.92 billion) raises concerns about short-term liquidity, despite solid net income (¥8.2 billion) and a healthy dividend yield (¥140 per share). Investors should weigh the company's strong market position and logistical capabilities against potential margin pressures from rising supply chain costs. Its affiliation with ITOCHU Corporation provides strategic advantages, but reliance on Japan's domestic market limits growth diversification.
ITOCHU-SHOKUHIN holds a competitive edge in Japan's food distribution industry through its extensive logistics network and strong relationships with retailers and manufacturers. Its integration of wholesale and logistics services allows for cost efficiencies and reliable supply chain management, critical in a sector with thin margins. The company benefits from its parent company's (ITOCHU Corporation) global sourcing capabilities, though its operations remain domestically focused. However, competition is intense, with rivals leveraging scale, digital platforms, and direct-to-retail models. ITOCHU-SHOKUHIN's niche lies in its comprehensive service offerings, including value-added information services, but it must navigate pricing pressures and evolving retail trends (e.g., e-commerce disruption). Its conservative financials (modest debt at ¥3.6 billion) provide stability but may limit aggressive expansion.