Sumiseki Holdings, Inc. (1514) AI Stock Analysis

• Market Cap: ¥56.14B
• 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: 66 Neutral
• Price Target: ¥1,135.00 ▲(114.15% Upside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is driven primarily by strong technical strength (price above all key moving averages with positive MACD) and a solid, low-leverage balance sheet. These positives are tempered by weak cash flow quality (negative free cash flow) and revenue volatility, plus a high valuation (P/E 86) that raises the risk of multiple compression.

Positive Factors

Balance sheet strength

Extremely low leverage and a very high equity ratio provide durable financial flexibility. This limits refinancing and liquidity risk, supports capital allocation during cyclical construction demand, and preserves capacity to invest or absorb shocks over the next several quarters.

Return on equity

A ~15% ROE indicates the company generates attractive profit relative to its equity base despite low leverage. Durable ROE at that level signals competent capital deployment and management effectiveness, supporting sustainable shareholder returns and reinvestment capacity.

Profitability resilience (EBITDA/net)

Strong EBITDA and net margins show the business can retain a large portion of revenue as profit when non-operating items are excluded. This margin cushion can fund strategic initiatives, dividends or reserves, and helps absorb revenue cyclicality if operating performance is stabilized.

Negative Factors

Revenue decline and volatility

A severe, persistent revenue drop and high volatility reduce scale economies and make fixed-cost absorption harder. Over 2–6 months this hinders predictable cash generation, pressures pricing power and supplier/customer relationships, and raises execution risk for recovery plans.

Weak cash flow conversion

Negative free cash flow and poor conversion of net income into operating cash reduce internal funding for capex, working capital and dividends. Even with a strong balance sheet, sustained weak cash conversion increases reliance on equity buffers and limits strategic flexibility.

Operational efficiency pressure (low EBIT margin)

A near-zero EBIT margin signals core operations are generating almost no operating profit, meaning reported net profitability likely depends on non-operating items. This structural inefficiency risks margin erosion if revenue or cost conditions worsen, challenging long-term sustainability.

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.

Sumiseki Holdings, Inc. Financial Statement Overview

Summary

Mixed fundamentals: strong balance sheet with very low leverage and a high equity ratio, but meaningful risks from sharp revenue decline/volatility and weak cash conversion (negative free cash flow and low operating cash flow vs. net income). Profitability looks strong at the net level, yet operating efficiency appears pressured (very low EBIT 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	1.24B	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: Positive
• Last Price: 530.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 530 is below the 20-day moving average (MA) of 945.80, below the 50-day MA of 836.34, and below the 200-day MA of 657.43, indicating a neutral trend. The MACD of 45.97 indicates Positive momentum. The RSI at 50.22 is Neutral, neither overbought nor oversold. The STOCH value of 32.37 is Neutral, 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	¥126.85B	17.49	―	2.57%	7.46%	153.98%
5021	73 Outperform	¥752.94B	15.20	―	3.93%	2.57%	-4.79%
5019	68 Neutral	¥1.91T	21.95	2.23%	3.07%	-7.68%	-73.03%
8132	67 Neutral	¥72.35B	32.15	―	1.37%	-5.02%	186.97%
1514	66 Neutral	¥56.14B	86.16	―	5.78%	-30.85%	-38.79%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
8133	63 Neutral	¥221.70B	12.70	―	3.45%	-4.87%	26.27%