Sumiseki Holdings, Inc. (1514) AI Stock Analysis

• Market Cap: ¥52.13B
• Dividend Yield: 5.78%
• Average Volume (3M): 194.90K
• Price to Earnings (P/E): 86.2
• Beta (1Y): 1.26
• Revenue Growth: -30.85%
• EPS Growth: -38.79%
• Country: JP
• Employees: 46
• Sector: Energy
• Sector Strength: 52
• Industry: Coal
• EPS (TTM): 1.54
• Shares Outstanding: 67,222,855
• 10 Day Avg. Volume: 274,550
• 30 Day Avg. Volume: 194,903
• PEG Ratio: -0.20
• Price to Book (P/B): 1.43
• Price to Sales (P/S): 3.90
• P/FCF Ratio: -216.55
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ¥889.00 ▲(67.74% Upside)
• Action: Reiterated Date: 03/24/26
• Date: Action: Reiterated 03/24/26

The score is held back primarily by volatile cash flow and inconsistent operating profitability despite a very strong, low-leverage balance sheet. Technicals are mixed (neutral momentum with a longer-term uptrend), while valuation is a clear headwind due to the very high P/E, only partly cushioned by the dividend yield.

Positive Factors

Conservative balance sheet

Extremely low leverage and a large equity base materially reduce financial risk and increase resilience to cyclical commodity shocks. Over 2–6 months this supports capacity to fund operations, absorb price swings in coal markets, and maintain strategic optionality without forced asset sales.

Built-in buyer base in essential sectors

A business model centered on importing and distributing thermal coal to utilities and manufacturers provides durable demand exposure. Long-term contractual relationships and essential end-markets (power generation, manufacturing) support steady core volumes versus nonessential commodity distributors.

Ability to generate strong cash in favorable cycles

History of very strong operating and free cash flow in favorable years demonstrates the company can convert commodity-driven revenue into cash. That capability underpins dividend support, capital expenditure funding, and potential opportunistic investments when market conditions improve.

Negative Factors

Volatile cash generation

Wide swings from strong to negative free cash flow limit durable financial planning and increase refinancing or liquidity risk during downturns. For a capital-intensive trading/logistics operator, inconsistent cash conversion undermines steady reinvestment, dividend sustainability, and working capital management.

Revenue and operating margin volatility

Steep year-over-year revenue declines and inconsistent operating profitability point to sensitivity to coal price and demand cycles. Persistently thin or negative operating margins weaken structural earnings power and make long-term cash generation contingent on favorable market swings rather than stable margin expansion.

Earnings quality inconsistency

Large negative revenue and EPS growth indicate high earnings volatility and raise questions about sustainability of reported profits. This complicates forecasting, elevates execution risk for management, and constrains confidence that earnings will convert into predictable long-term free cash flow.

Sumiseki Holdings, Inc. Business Overview & Revenue Model

Company Description

Sumiseki Holdings,Inc. imports, purchases, and sells coal in Japan. It also manufactures and sells artificial diamonds; and collects, processes, and sells crushed stones. The company invests in coal companies and others. Sumiseki Holdings,Inc. was incorporated in 2008 and is headquartered in Tokyo, Japan.

How the Company Makes Money

null

Sumiseki Holdings, Inc. Financial Statement Overview

Summary

Very strong balance sheet with minimal leverage and a large equity base, but earnings quality is uneven: revenue and operating profitability are volatile and 2025 shows thin/weak operating margins. Cash flow is the key risk, swinging from very strong (2024) to very weak/negative free cash flow (2025), raising concerns about cash conversion durability.

Income Statement

Profitability has been strong on paper, with net profit margins high in 2024 (annual) and 2025 (annual), and net income remaining positive across most years. However, revenue is highly volatile and materially down in 2025 (annual) with a steep year-over-year decline, and operating profitability is inconsistent (including a negative EBIT/EBITDA year in 2024 and very thin EBIT/EBITDA margins in 2025). Overall, earnings quality appears uneven given the disconnect between net income and operating margins.

Balance Sheet

The balance sheet is conservatively positioned with extremely low leverage in the most recent years (debt-to-equity near zero in 2024–2025 annual) and a large equity base. Returns on equity have generally been solid to strong (notably high in 2024 and healthy in 2025), though they have also fluctuated over time (including a negative ROE in 2021). Overall financial risk from debt looks low, with the main weakness being variability in returns.

Cash Flow

Cash generation is volatile. 2024 (annual) shows exceptionally strong operating and free cash flow, roughly in line with net income, but this reverses sharply in 2025 (annual) where operating cash flow is very low and free cash flow turns negative. Earlier periods also show stress (notably negative operating and free cash flow in 2022). This inconsistency raises questions about the durability and timing of cash conversion despite reported profitability.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	11.31B	10.26B	14.42B	39.89B	12.40B	9.78B
Gross Profit	1.46B	1.24B	1.20B	5.11B	3.41B	1.22B
EBITDA	274.00M	160.00M	-62.00M	3.93B	2.43B	72.00M
Net Income	4.28B	4.20B	7.53B	3.67B	2.27B	-94.00M
Balance Sheet
Total Assets	27.32B	29.05B	31.14B	26.14B	21.57B	17.05B
Cash, Cash Equivalents and Short-Term Investments	12.38B	15.35B	18.72B	3.94B	3.40B	4.65B
Total Debt	25.00M	63.00M	136.00M	2.98B	1.81B	299.00M
Total Liabilities	1.09B	1.02B	4.15B	5.78B	4.22B	1.94B
Stockholders Equity	26.23B	28.02B	26.99B	20.36B	17.35B	15.11B
Cash Flow
Free Cash Flow	0.00	-185.00M	18.76B	31.00M	-3.04B	1.43B
Operating Cash Flow	0.00	26.00M	18.78B	53.00M	-3.03B	1.45B
Investing Cash Flow	0.00	-216.00M	-11.00M	-22.00M	445.00M	-36.00M
Financing Cash Flow	0.00	-3.17B	-3.98B	504.00M	1.42B	-299.00M

Sumiseki Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 530.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1514, the sentiment is Neutral. The current price of 530 is below the 20-day moving average (MA) of 949.35, below the 50-day MA of 848.56, and below the 200-day MA of 659.62, indicating a neutral trend. The MACD of 27.57 indicates Positive momentum. The RSI at 46.15 is Neutral, neither overbought nor oversold. The STOCH value of 9.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1514.

Sumiseki Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8131	74 Outperform	¥125.28B	17.49	―	2.57%	7.46%	153.98%
5021	73 Outperform	¥712.41B	15.20	―	3.93%	2.57%	-4.79%
5019	68 Neutral	¥1.81T	21.95	2.23%	3.07%	-7.68%	-73.03%
8132	67 Neutral	¥71.65B	32.15	―	1.37%	-5.02%	186.97%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
8133	63 Neutral	¥218.65B	12.70	―	3.45%	-4.87%	26.27%
1514	54 Neutral	¥52.13B	86.16	―	5.78%	-30.85%	-38.79%