Sumiseki Holdings, Inc. (1514) AI Stock Analysis

• Market Cap: ¥37.25B
• Dividend Yield: 4.82%
• Average Volume (3M): 192.11K
• Price to Earnings (P/E): 8.0
• Beta (1Y): 1.53
• Revenue Growth: -36.30%
• EPS Growth: -45.78%
• Country: JP
• Employees: 46
• Sector: Energy
• Sector Strength: 52
• Industry: Coal
• EPS (TTM): 31.86
• Shares Outstanding: 67,222,855
• 10 Day Avg. Volume: 157,310
• 30 Day Avg. Volume: 192,106
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥675.00
• Price Target Upside: 8.35% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: ¥675.00 ▲(8.35% Upside)

Sumiseki Holdings, Inc. benefits from a strong balance sheet and attractive valuation, with a low P/E ratio and high dividend yield. However, challenges in cash flow management and revenue volatility, along with bearish technical indicators, temper the overall outlook.

Positive Factors

Balance Sheet Strength

A strong balance sheet with low leverage and high equity ratio provides financial stability and flexibility to navigate industry challenges.

Net Profit Margin

A high net profit margin indicates efficient cost management, allowing the company to maintain profitability despite revenue volatility.

Equity Utilization

Effective use of equity to generate profits suggests strong management performance and potential for sustainable growth.

Negative Factors

Revenue Volatility

Revenue volatility can impact long-term planning and investment, posing risks to consistent growth and market position.

Cash Flow Challenges

Negative free cash flow indicates difficulties in generating cash from operations, which may hinder reinvestment and debt servicing.

Operational Efficiency

Low operational efficiency can reduce profitability and competitiveness, necessitating improvements in cost control and process optimization.

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, Inc. generates revenue through several key streams, primarily centered around its coal-related operations. The company imports coal from various international sources and sells it to domestic industries, including power plants and manufacturing companies, which require coal as a primary energy source. Additionally, Sumiseki Holdings exports coal to international markets, leveraging global demand to increase its revenue. The company may also engage in partnerships or joint ventures with other energy or mining companies to optimize supply chains and expand its market reach. Revenue is significantly influenced by global coal prices, demand fluctuations, and regulatory environments in different regions.

Sumiseki Holdings, Inc. Financial Statement Overview

Summary

Sumiseki Holdings, Inc. shows strong profitability and balance sheet stability with high net profit margins and low leverage. However, significant revenue volatility and cash flow challenges pose risks to long-term sustainability. Operational efficiency and cash flow management need improvement.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.26B	10.26B	22.60B	39.89B	12.40B	9.78B
Gross Profit	1.29B	1.24B	9.38B	5.17B	3.46B	1.28B
EBITDA	4.32B	4.32B	7.79B	3.81B	2.42B	90.00M
Net Income	4.20B	4.20B	7.53B	3.67B	2.27B	-94.00M
Balance Sheet
Total Assets	29.05B	29.05B	31.14B	26.14B	21.57B	17.05B
Cash, Cash Equivalents and Short-Term Investments	15.35B	15.35B	18.72B	3.94B	3.40B	4.65B
Total Debt	63.00M	63.00M	136.00M	2.98B	1.81B	299.00M
Total Liabilities	1.02B	1.02B	4.15B	5.78B	4.22B	1.95B
Stockholders Equity	28.02B	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: Negative
• Last Price: 623.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1514, the sentiment is Negative. The current price of 623 is below the 20-day moving average (MA) of 627.95, below the 50-day MA of 629.56, and below the 200-day MA of 695.69, indicating a bearish trend. The MACD of -2.21 indicates Negative momentum. The RSI at 45.80 is Neutral, neither overbought nor oversold. The STOCH value of 38.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	78 Outperform	¥127.63B	10.51		2.46%	9.10%	92.69%
1518	75 Outperform	¥88.34B	7.58		1.91%	-8.49%	18.53%
8133	70 Outperform	¥223.73B	13.10		3.13%	-4.47%	37.38%
8132	67 Neutral	¥72.89B	21.95		1.34%	-6.97%	―
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
1514	63 Neutral	¥37.25B	7.97		4.82%	-36.30%	-45.78%
NJ2	―	€167.89M	―	-31.94%	―	―	―