Sojitz Corporation (2768.T) stock analysis

In our weekly check, Sojitz Corporation is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 1, red flags: 9.

About Sojitz Corporation

Sojitz Corporation is an Industrials company (Conglomerates) based in Japan, listed on JPX as 2768.T.

What our checks show for 2768.T

Red flags

• Net debt is 6.8x a year of EBITDA (debt/equity 1.27). That limits room in a downturn and raises refinancing risk.
• Operating cash flow is negative while the company reports a profit: the profit does not arrive as cash.
• Analysts expect revenue to shrink about 0.1% a year.
• The net margin is only 3.8%: little room if costs rise.
• Free cash flow is negative (-1.2% of revenue): the business spends more cash than it brings in.
• The stock has fallen as much as 84% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 10 years.
• Return on capital (ROCE) is only 3.6%.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Operating profit covers interest only 2.6 times: a weak year could make the payments hard.

Strengths

• The gross margin is 13.1% and has risen by 1.1 points: pricing power is holding.
• The dividend takes 28% of profit: there is a cushion.
• The price is 8.8 times earnings (P/E), reasonable for its growth.
• The share count fell by 6.3% in 2 years: the company buys back its own shares.

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Questions

What grade does Sojitz Corporation (2768.T) have?

In our weekly check, Sojitz Corporation is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 1, red flags: 9. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 2768.T stock?

This week's biggest flags for Sojitz Corporation: High debt, Profits not backed by cash, Weak revenue forecast. In total 10 of 25 checks show a warning or a red flag.

What does Sojitz Corporation do?

Sojitz Corporation is an Industrials company (Conglomerates) based in Japan, listed on JPX as 2768.T.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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