Sojitz Corp

Sojitz Corp has a debt-to-equity ratio of 1.13, indicating a moderate reliance on debt financing relative to equity. The company's liquidity position is characterized by a current ratio of 1.46, suggesting it has sufficient short-term assets to cover its short-term liabilities. However, the operating cash flow is negative at -7.19 billion JPY, which may raise concerns about the company's ability to generate cash from its core operations.

The company's profitability is reflected in its return on equity (ROE) of 2.37% and return on assets (ROA) of 0.75%. These figures are below the industry median for ROE and ROA, indicating that Sojitz Corp is underperforming its peers in terms of generating returns for shareholders and utilizing its assets efficiently.

Sojitz Corp's revenue is primarily concentrated in the industrial and commercial services segment, with no significant geographic diversification disclosed. The company's exposure to a single business line may increase its vulnerability to sector-specific risks, such as changes in demand for industrial goods or regulatory shifts affecting the wholesale distribution industry.

The company's growth trajectory is mixed. While the current fiscal year is expected to show a slight improvement in operating income, the outlook for the next fiscal year is uncertain. The capital expenditure of -12.64 billion JPY indicates a reduction in investment in long-term assets, which may affect future growth potential.

The risk assessment for Sojitz Corp highlights a medium liquidity risk and a low dilution risk. The company's net cash position is negative after accounting for total debt, which could limit its flexibility in responding to financial stress. However, the low dilution risk suggests that the company is not likely to issue additional shares in the near term, preserving shareholder value.

Recent events and filings indicate that Sojitz Corp has maintained a stable financial position, with no major adverse events reported. The company's free cash flow of 7.26 billion JPY provides some buffer for operational needs and potential investments. Analysts have provided a range of price targets, with a mean of 6,843.33 JPY and a median of 6,740.00 JPY, reflecting a generally positive outlook despite the mixed financial indicators.

Analysts project 28.9% upside to a mean price target of 6,843 JPY, reflecting strong market confidence in the stock.

Revenue grew at a 7.0% CAGR over four years, demonstrating consistent top-line expansion for the diversified industrial wholesaler.

Operating margin of 3.8% significantly exceeds the 1.2% cohort median, indicating superior profitability relative to peers.

Net margin of 3.7% is well above the 1.4% industry median, highlighting efficient cost management and pricing power.

Return on equity matches the cohort median of 2.4%, suggesting the company generates returns in line with industry standards.

Net income declined 6.3% year-over-year to 103.6 billion JPY, confirming the negative trend in bottom-line earnings.

The company carries high credit risk, posing a significant threat to financial stability and potential default probabilities.

Debt-to-equity ratio of 1.13 is in the bottom quartile, indicating excessive leverage compared to the 0.4 cohort median.

Cash conversion of -0.31 is below the 1.58 cohort median, suggesting poor efficiency in turning earnings into cash.

Revenue ¥771.55B, +22,8% YoY; Operating income −54,8% YoY.

• ▍Revenue ¥771.55B, +22,8% YoY
• ▍Operating income −54,8% YoY
• ▍Net income −32,8% YoY
• ▍Free cash flow −26,3% YoY
• ▍Net margin 3.0%

Revenue ¥745.45B, +15,4% YoY; Operating income +2,9% YoY.

• ▍Revenue ¥745.45B, +15,4% YoY
• ▍Operating income +2,9% YoY
• ▍Net income +10,5% YoY
• ▍Free cash flow +77,1% YoY
• ▍Net margin 4.7%

Revenue ¥641.45B, +4,9% YoY; Operating income +18,1% YoY.

• ▍Revenue ¥641.45B, +4,9% YoY
• ▍Operating income +18,1% YoY
• ▍Net income +13,8% YoY
• ▍Free cash flow −8,1% YoY
• ▍Net margin 3.8%

Revenue ¥598.90B, −4,0% YoY; Operating income −40,5% YoY.

• ▍Revenue ¥598.90B, −4,0% YoY
• ▍Operating income −40,5% YoY
• ▍Net income −8,5% YoY
• ▍Free cash flow +0,8% YoY
• ▍Net margin 3.5%

Revenue ¥628.37B; Operating income ¥20.05B.

• ▍Revenue ¥628.37B
• ▍Operating income ¥20.05B
• ▍Net margin 5.5%

Revenue ¥646.12B; Operating income ¥27.69B.

• ▍Revenue ¥646.12B
• ▍Operating income ¥27.69B
• ▍Net margin 4.9%

Revenue ¥611.42B; Operating income ¥17.55B.

• ▍Revenue ¥611.42B
• ▍Operating income ¥17.55B
• ▍Net margin 3.5%

Revenue ¥623.80B; Operating income ¥23.90B.

• ▍Revenue ¥623.80B
• ▍Operating income ¥23.90B
• ▍Net margin 3.7%

Revenue ¥2.76T, +9,9% YoY; Operating income −19,8% YoY.

• ▍Revenue ¥2.76T, +9,9% YoY
• ▍Operating income −19,8% YoY
• ▍Net income −6,3% YoY
• ▍Free cash flow −0,5% YoY
• ▍Net margin 3.8%

Revenue ¥2.51T, +3,9% YoY; Operating income +1,4% YoY.

• ▍Revenue ¥2.51T, +3,9% YoY
• ▍Operating income +1,4% YoY
• ▍Net income +9,8% YoY
• ▍Free cash flow −5,5% YoY
• ▍Net margin 4.4%

Revenue ¥2.41T, −2,6% YoY; Operating income −31,4% YoY.

• ▍Revenue ¥2.41T, −2,6% YoY
• ▍Operating income −31,4% YoY
• ▍Net income −9,4% YoY
• ▍Free cash flow −4,4% YoY
• ▍Net margin 4.2%

Revenue ¥2.48T, +18,1% YoY; Operating income +66,6% YoY.

• ▍Revenue ¥2.48T, +18,1% YoY
• ▍Operating income +66,6% YoY
• ▍Net income +35,1% YoY
• ▍Free cash flow +15,4% YoY
• ▍Net margin 4.5%