⚠ Buying Back Shares at a High MultipleModerate threat

Marubeni (8002) — threat to the moat

Marubeni began buying back shares seriously after its valuation more than doubled, which is the wrong order.

At the end of March 2025 Marubeni's shares traded at 7.9 times earnings and 1.1 times book; a year later, at 18.2 times earnings and 2.1 times book1. The company's planned returns rose over the same period, and treasury shares went from 2,058,377 to 22,361,446 in the year to March 20262.

Price to earnings at March year-end7.9xMar 202518.2xMar 2026Marubeni IR presentation, May 2026 (Bloomberg)
The multiple more than doubled in a year, and the buyback grew with it.

Buying back shares is value-creating when the price is below what the business is worth. At twice book and a return on equity of 13.6%3, each yen spent on buybacks buys less than it did at 1.1 times book.

The cash spent on buybacks rose too: purchases of treasury stock were ¥50,021 million in the year to March 2025 and ¥70,041 million in the year to March 20264. In the April-June 2026 quarter treasury shares rose from 22,361,446 to 33,979,4755, about 11.6 million more.

The measure is the price paid. The August 2026 buyback of up to ¥100 billion6 comes with the shares about 23% below their 52-week high7; if the company buys most heavily when the shares are highest, the returns are for show.

References
  1. ReportedAt the end of March 2025 Marubeni's shares traded at 7.9 times earnings and 1.1 times book; a year later, at 18.2 times earnings and 2.1 times book.
    Marubeni Corporation, full-year IR presentation for the fiscal year ended March 31, 2026 - capital allocation, divestments and investments, shareholder returns, dividends and buybacks, credit ratings, and the share price and market value milestones. — FY to March 2026 · publ. 1 May 2026 · source ↗
  2. ReportedThe company's planned returns rose over the same period, and treasury shares went from 2,058,377 to 22,361,446 in the year to March 2026.
    Marubeni Corporation, Summary of Consolidated Financial Results for the fiscal year ended March 31, 2026 (IFRS) - consolidated statements of profit or loss, financial position and cash flows, the segment note on the ten operating segments with revenue, gross trading profit, operating profit, share of profit of associates, net profit and segment assets, the investments in associates by segment, the one-time items including the Daiichi Life real-estate valuation gain, the dividend and buyback record, and the forecast for the year to March 2027 with its assumptions. — FY to March 2026 · publ. 1 May 2026 · source ↗
  3. ReportedAt twice book and a return on equity of 13.6%, each yen spent on buybacks buys less than it did at 1.1 times book.
    Marubeni Integrated Report 2026, Section 6 Corporate Data - the twelve-year financial summary (revenue, gross trading profit, operating profit, share of associates, net profit, adjusted net profit, EPS, dividends, ROE, ROA, net D/E, cash flows, total assets and equity), shareholder composition, employees and gross risk exposure by country. — FY to March 2015 - FY to March 2026 · publ. 2026 · source ↗
  4. ReportedThe cash spent on buybacks rose too: purchases of treasury stock were ¥50,021 million in the year to March 2025 and ¥70,041 million in the year to March 2026.
    Marubeni Corporation, Summary of Consolidated Financial Results for the fiscal year ended March 31, 2026 (IFRS) - consolidated statements of profit or loss, financial position and cash flows, the segment note on the ten operating segments with revenue, gross trading profit, operating profit, share of profit of associates, net profit and segment assets, the investments in associates by segment, the one-time items including the Daiichi Life real-estate valuation gain, the dividend and buyback record, and the forecast for the year to March 2027 with its assumptions. — FY to March 2026 · publ. 1 May 2026 · source ↗
  5. ReportedIn the April-June 2026 quarter treasury shares rose from 22,361,446 to 33,979,475, about 11.6 million more.
    Marubeni Corporation, Summary of Consolidated Financial Results for the three months ended June 30, 2026 (IFRS) - revenue, operating profit and net profit, segment results, progress against the full-year forecast, the balance sheet at 30 June 2026, and the revised GC2027 capital allocation and new share buyback. — April-June 2026 · publ. 3 August 2026 · source ↗
  6. ReportedThe August 2026 buyback of up to ¥100 billion comes with the shares about 23% below their 52-week high; if the company buys most heavily when the shares are highest, the returns are for show.
    Marubeni Corporation, Summary of Consolidated Financial Results for the three months ended June 30, 2026 (IFRS) - revenue, operating profit and net profit, segment results, progress against the full-year forecast, the balance sheet at 30 June 2026, and the revised GC2027 capital allocation and new share buyback. — April-June 2026 · publ. 3 August 2026 · source ↗
  7. ReportedThe August 2026 buyback of up to ¥100 billion comes with the shares about 23% below their 52-week high; if the company buys most heavily when the shares are highest, the returns are for show.
    Marubeni (TYO: 8002) market data - share price, market capitalisation, trailing and forward price/earnings, dividend and yield, and the 52-week range, 24 September 2026. — September 2026 · publ. 24 September 2026 · source ↗
Sources
Generated September 24, 2026