Sumiseki Holdings, Inc. (1514) AI Stock Analysis

• Market Cap: ¥58.11B
• Dividend Yield: 5.78%
• Average Volume (3M): 194.90K
• Price to Earnings (P/E): 17.0
• Beta (1Y): 1.76
• 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: 67 Neutral
• Price Target: ¥1,055.00 ▲(99.06% Upside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

The score is driven by strong technical trend support and a very solid balance sheet, offset by weaker cash-flow quality (negative free cash flow) and operational pressure from steep revenue declines and very low EBIT margin. Valuation is middling, with a ~3.0% dividend helping but a P/E near 19.7 limiting upside purely from valuation.

Positive Factors

Balance sheet strength / low leverage

Extremely low leverage and a ~96% equity ratio give the company durable financial flexibility. Minimal debt servicing reduces solvency risk, lets Sumiseki fund working capital or opportunistic spending internally, and helps it withstand construction-cycle downturns.

High reported profitability (net & EBITDA margins)

Reported high net and EBITDA margins indicate the business can retain substantial profits and generate strong operating cash before non-operating items. This profitability resilience supports reinvestment capacity and provides a buffer to absorb shocks to revenue over several months.

Recurring dividend supports income investors

A ~3.02% dividend yield combined with a strong balance sheet signals disciplined capital allocation and predictable shareholder returns. This recurring income can attract and retain income-focused investors and provide a partial floor to returns over multiple quarters.

Negative Factors

Steep revenue decline

A roughly 43% drop in revenue materially reduces scale and pricing leverage in the stone/aggregate business. Shrinking top-line makes fixed-cost absorption harder, weakens customer relationships and margin sustainability, and constrains the firm's ability to invest for recovery.

Negative free cash flow and weak cash conversion

Negative free cash flow and poor conversion of earnings into cash limit internal funding for capex, working capital, or dividends. This forces reliance on reserves or external financing and raises sustainability risks for a cash-intensive construction materials supplier over the medium term.

Very low operating (EBIT) margin

An EBIT margin near 0.32% shows core operations generate almost no operating profit, leaving little buffer against cost inflation or contract pressure. Thin operating profitability makes earnings highly sensitive to revenue swings and impairs long-term competitiveness.

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

Sumiseki Holdings generates revenue primarily through its real estate operations, which include rental income from its portfolio of residential and commercial properties. The company also earns money from property management fees, as it manages properties on behalf of third-party owners. Additionally, revenue streams include profits from real estate development projects, where the company invests in the construction and sale of new properties. Strategic partnerships with local governments and real estate developers further enhance its earnings potential by enabling collaborative projects that meet community needs and align with urban development plans.

Sumiseki Holdings, Inc. Financial Statement Overview

Summary

Mixed fundamentals: strong balance sheet with extremely low leverage (debt-to-equity ~0.002) and high equity ratio (~96.48%), but significant revenue decline and weak operating profitability (EBIT margin ~0.32%) plus negative free cash flow in 2025 raise sustainability concerns despite strong net margin.

Income Statement

Sumiseki Holdings, Inc. has experienced significant revenue fluctuations, with a dramatic decline in revenue from 2023 to 2025. The gross profit margin for 2025 is approximately 12.06%, reflecting a challenge in maintaining profitability compared to previous years. The net profit margin in 2025 is notably strong at around 40.87%, indicating efficient cost management. However, the decline in revenue and EBIT margin to roughly 0.32% in 2025 suggests operational difficulties. The EBITDA margin is healthier at about 42.05%, showing a better position when non-operating expenses are excluded. Overall, the company's profitability is robust despite revenue volatility, but operational efficiency needs improvement.

Balance Sheet

The company's balance sheet is strong, with a minimal debt-to-equity ratio of approximately 0.002 in 2025, indicating low leverage and financial stability. The equity ratio stands at a healthy 96.48%, showcasing substantial equity financing and low dependency on debt. The return on equity for 2025 is impressive at around 14.96%, reflecting effective use of equity to generate profits. Overall, the balance sheet reflects solid financial health with low leverage risk, strong equity base, and efficient equity utilization.

Cash Flow

Sumiseki Holdings, Inc. faces challenges in cash flow management with a negative free cash flow in 2025. The free cash flow to net income ratio is negative, indicating that the company is not generating enough free cash flow compared to its net income. The operating cash flow to net income ratio is very low, suggesting inefficiencies in converting net income into cash flow. Despite a strong cash position, the decline in operating cash flow and negative free cash flow growth highlight risks in cash flow sustainability.

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	1.29B	9.38B	5.17B	3.46B	1.28B
EBITDA	4.41B	4.32B	7.79B	3.81B	2.42B	88.00M
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	1.95B
Stockholders Equity	26.23B	28.02B	26.99B	20.36B	17.35B	15.10B
Cash Flow
Free Cash Flow	0.00	-185.00M	18.76B	30.00M	-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: Positive
• 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 Positive. The current price of 530 is below the 20-day moving average (MA) of 904.00, below the 50-day MA of 723.44, and below the 200-day MA of 637.16, indicating a bullish trend. The MACD of 58.58 indicates Positive momentum. The RSI at 56.53 is Neutral, neither overbought nor oversold. The STOCH value of 10.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥131.32B	11.31	―	2.57%	7.46%	153.98%
5021	73 Outperform	¥810.71B	16.12	―	3.93%	2.57%	-4.79%
5019	68 Neutral	¥1.96T	62.58	2.23%	3.07%	-7.68%	-73.03%
1514	67 Neutral	¥58.11B	17.04	―	5.78%	-30.85%	-38.79%
8132	67 Neutral	¥70.55B	25.58	―	1.37%	-5.02%	186.97%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
8133	63 Neutral	¥237.73B	16.46	―	3.45%	-4.87%	26.27%