Sojitz (TSE:2768) Stock Looks Mispriced After Strong Q2 Earnings

Sojitz entered this earnings day with a value tag and a bruised chart, with the stock down about 8.5% over the past month and trading on a single digit P/E. Investors who expected that gloom to match the latest numbers just got a surprise. For Q2 2027, the trading house posted basic earnings per share of ¥159.75 and net income of ¥33,366m, both higher than in Q1. The share price barely budged at ¥5,130 into the close, yet the fresh profit line tells a stronger story than the recent return profile suggests.

Love the fresh profit beat at Sojitz but concerned that a bruised chart might be a warning sign rather than an opportunity. Compare this result with peers in our 15 high quality undervalued stocks.

Q2 2027 Earnings Summary

• Revenue (Q2 2027 vs Q2 2026): ¥837,881m vs. ¥598,901m (higher reported level year on year, noting Q2 2026 shows a reversed revenue sign in the filings)
• Net Income (Excl. Extra Items, Q2 2027 vs Q2 2026): ¥33,366m vs. ¥24,196m (up 37.9%)
• Basic EPS (Q2 2027 vs Q2 2026): ¥159.75 per share vs. ¥116.22 per share (up 37.5%)
• Trailing 12M Basic EPS (Q2 2027 vs Q2 2026): ¥582.89 per share vs. ¥528.16 per share (up 10.4%)

Ask Charlie what makes Sojitz look cheap versus peers.

Sojitz dividend story meets early profit milestones

The bullish claim is that richer payouts go hand in hand with a stronger earnings engine at Sojitz.

"Higher Dividend Guidance Will Support Stronger Future Profitability Assumptions"

Management is now guiding to a full year dividend of ¥180.00 per share, up from ¥165.00 a year earlier, while also flagging profit attributable to owners of ¥130,000m and basic EPS of ¥622.55 for the year to March 2027. Q2 basic EPS of ¥159.75 and trailing 12 month EPS of ¥582.89 move part of the way toward that target, so the richer dividend is currently backed by higher reported earnings rather than just optimism.

One Narrative has put a figure on that disagreement. → See the Narrative with its higher Fair Value, assumptions and all.

Sojitz execution risk: early signs or false alarm?

The bear case argues that Sojitz’s expansion into Australian infrastructure could stumble on project timing and delivery. That is a real operational risk for a trading and investment group that is leaning harder into long duration contracts.

"If project execution issues or delays emerge in rail and broader infrastructure development, this could weigh on segment profit and compress group net margins."

Q2 profit and EPS are ahead of last year and the group is lifting dividends, so there is no clear hit to margins yet. The agreed sale of the Gregory Crinum coal stake instead points to active pruning of weaker exposure rather than project strain in rail or infrastructure this quarter.

Hunt For Earnings Disconnects

Sojitz just showed how a stronger profit print does not always move the share price on the day. The real opportunity could lie in spotting stocks that screens flag as undervalued before expectations reset.

• Company 1 - 41% below our estimate - target drivers trading up into better used cars once warranty and servicing feel simple.
• Company 2 - 34% below our estimate - supply bonding and optical materials that device makers adopt when screens become thinner and brighter.
• Company 3 - 37% below our estimate - design air systems that factories and data centers install when tighter temperature control becomes a production bottleneck.

Three companies from the same screener. Open every one of the 15 undervalued companies on it →

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