Itochu: Business Outlook, EPS Guidance Promising, Ideal For Long-Term Investors

Summary

• ITOCHU Corporation has delivered a 363% total return since December 2015, driven by stock price appreciation and dividend payments.
• ITOCF Management aims to raise the payout ratio to 50% and continue regular buybacks, suggesting above-average future returns.
• The company's business outlook and EPS guidance are promising and demonstrate Itochu's resilience in a low growth environment.
• With a moderate valuation, Itochu is ideal for long-term investors seeking exposure to a promising Asian market.

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1. Investment thesis

ITOCHU Corp. (OTCPK:ITOCF) is a Japanese Sogo-Shosha that has a good track record of creating long-term shareholder value. Since investing in the company in December 2015, the stock price has increased from below $12 to nearly $50, an increase of

Analyst’s Disclosure:I/we have a beneficial long position in the shares of ITOCF either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.