Sumitomo Mitsui Construction Co., Ltd. (1821) AI Stock Analysis

• Market Cap: €93.46B
• Dividend Yield: 2.35%
• Average Volume (3M): 483.61K
• Price to Earnings (P/E): 109.7
• Beta (1Y): 0.51
• Revenue Growth: -3.44%
• EPS Growth: -79.01%
• Country: JP
• Employees: 5,522
• Sector: Industrials
• Sector Strength: 86
• Industry: Conglomerates
• EPS (TTM): 53.23
• Shares Outstanding: 162,673,320
• 10 Day Avg. Volume: 343,100
• 30 Day Avg. Volume: 483,610
• PEG Ratio: 0.95
• Price to Book (P/B): 1.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €640.94
• Price Target Upside: 7.18% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: ¥641.00 ▲(7.19%Upside)

The stock score reflects a challenging financial performance with declining profitability and poor cash flow management. Despite a strong technical analysis indicating bullish momentum, the high P/E ratio suggests overvaluation. The dividend yield provides a modest cushion, but the overall risk is elevated due to financial weaknesses.

Sumitomo Mitsui Construction Co., Ltd. Business Overview & Revenue Model

Company Description

Sumitomo Mitsui Construction Co.,Ltd. engages in the construction business in Japan, rest of Asia, and internationally. The company operates in two segments, Civil Construction and Building Construction. It designs, engineers, and executes civil, building, and pre-stressed concrete works, as well as engages in related operations. The company's construction projects include hotels and resort facilities; residential, office, factory, and industrial buildings; dams and plant facilities; roads and railways, and transport facilities; bridges; and traditional historical buildings and structures. It is also involved in the real estate trading, leasing, and management services, as well as undertakes development projects. In addition, the company engages in the solar power and insurance agency business. The company was founded in 1887 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Sumitomo Mitsui Construction Co., Ltd. generates revenue through multiple streams primarily centered around its construction and engineering services. The company earns income by undertaking large-scale civil engineering projects, including infrastructure development like roads, bridges, and tunnels, which often involve government contracts or public-private partnerships. Additionally, the company is involved in building construction for residential, commercial, and industrial clients, providing end-to-end solutions from design to completion. Real estate development also contributes to its revenue, as the company develops and sells or leases properties. Strategic partnerships and joint ventures with other construction firms and developers, both domestically and internationally, further bolster its revenue. The emphasis on sustainable and innovative construction techniques helps the company maintain competitive advantage and secure continual business growth.

Sumitomo Mitsui Construction Co., Ltd. Financial Statement Overview

Summary

The company faces challenges in profitability and growth. The income statement shows declining revenue and profit margins, with significant operational challenges. The balance sheet is stable but highlights low profitability, and cash flow management is poor with negative operating cash flow.

Income Statement

The income statement demonstrates a challenging period with declining revenue and profit margins. The gross profit margin for 2025 is 7.17%, and the net profit margin is 0.18%, reflecting a reduction in profitability. The revenue growth rate from 2024 to 2025 is -3.44%, indicating a decline in sales. EBIT and EBITDA margins have also contracted, showing operational challenges. The company must focus on improving efficiency and reversing negative growth trends.

Balance Sheet

The balance sheet shows a stable equity ratio of 17.82% for 2025, indicating a moderate reliance on equity financing. The debt-to-equity ratio is 1.13, suggesting manageable leverage. However, the return on equity is low at 1.22%, highlighting inefficiencies in generating returns from shareholders' equity. Overall, the balance sheet is stable but shows room for improved profitability.

Cash Flow

The cash flow statement indicates a significant decline in operating cash flow, with a negative figure of -16.71 billion JPY in 2025, suggesting poor cash generation. The free cash flow to net income ratio is negative, which is concerning. The company needs to enhance cash flow management and focus on converting revenue into cash effectively.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	462.98B	479.49B	458.62B	403.27B	421.62B
Gross Profit	33.21B	35.10B	9.07B	18.18B	38.94B
EBITDA	12.46B	14.07B	-11.85B	-4.21B	18.29B
Net Income	856.00M	4.01B	-25.70B	-6.55B	8.74B
Balance Sheet
Total Assets	393.47B	411.60B	410.15B	394.07B	376.83B
Cash, Cash Equivalents and Short-Term Investments	72.67B	96.68B	65.14B	70.97B	75.53B
Total Debt	78.99B	82.54B	86.82B	67.46B	65.03B
Total Liabilities	316.16B	334.44B	339.02B	294.37B	266.52B
Stockholders Equity	70.11B	69.79B	63.62B	91.39B	102.41B
Cash Flow
Free Cash Flow	-19.32B	17.58B	-21.22B	5.78B	13.06B
Operating Cash Flow	-16.71B	21.45B	-16.12B	10.00B	16.72B
Investing Cash Flow	2.63B	13.46B	-3.51B	-12.98B	-2.68B
Financing Cash Flow	-6.92B	-7.51B	14.20B	-2.15B	9.71B

Sumitomo Mitsui Construction Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 598.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1821, the sentiment is Positive. The current price of 598 is above the 20-day moving average (MA) of 596.20, above the 50-day MA of 595.60, and above the 200-day MA of 462.39, indicating a bullish trend. The MACD of 1.81 indicates Positive momentum. The RSI at 80.59 is Negative, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1821.

Sumitomo Mitsui Construction Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1821	65 Neutral	€93.46B	109.68	1.54%	2.35%	-3.44%	-79.01%
Sector *	58 Neutral	HK$14.20B	4.67	-2.78%	5.88%	3.78%	-54.63%
KHNRF	―	$2.07B	11.67	9.19%	1.27%	―	―
KINUF	―	$3.65B	11.93	8.66%	1.83%	―	―
KTERF	―	$2.65B	10.18	10.45%	2.03%	―	―
9003	73 Outperform	¥230.98B	10.30		2.30%	-1.07%	-10.05%
9048	73 Outperform	¥323.39B	8.56		2.28%	14.91%	54.74%

Sumitomo Mitsui Construction Co., Ltd. Corporate Events

Sumitomo Mitsui Construction Advances in Tender Offer Process

Sumitomo Mitsui Construction Co., Ltd. has announced progress in the tender offer process for its shares by INFRONEER Holdings Inc., with necessary procedures under the Philippine competition law expected to be completed by early August 2025. The tender offer’s commencement is contingent upon the completion of these procedures, and any changes in timing will be promptly communicated, impacting the company’s strategic operations and stakeholder interests.

Sumitomo Mitsui Construction Supports Tender Offer by INFRONEER Holdings

Sumitomo Mitsui Construction Co., Ltd. has announced its support for a tender offer by INFRONEER Holdings Inc. to acquire all of its common stock, aiming to become a wholly-owned subsidiary. The tender offer’s commencement is contingent upon regulatory approvals in the Philippines, with plans to start around July 2025, and the company’s board has recommended shareholders tender their shares.

Sumitomo Mitsui Construction Reports Decline and Upcoming Delisting

Sumitomo Mitsui Construction Co., Ltd. reported a decline in financial performance for the fiscal year ended March 31, 2025, with net sales and profits decreasing compared to the previous year. The company announced that its shares are expected to be delisted following a tender offer by INFRONEER Holdings Inc., which will impact its future financial forecasts and dividend plans.