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Sumitomo Densetsu Co Ltd (JP:1949)
:1949
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Sumitomo Densetsu Co (1949) AI Stock Analysis

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JP:1949

Sumitomo Densetsu Co

(OTC:1949)

Rating:78Outperform
Price Target:
¥7,573.00
▲(15.44%Upside)
Sumitomo Densetsu Co's strong financial performance is the most significant factor, driven by robust revenue growth, profitability, and excellent financial health. Technical indicators suggest positive momentum but caution with potential overbought conditions. The stock is fairly valued with a reasonable P/E ratio and dividend yield, contributing to the overall score. The lack of earnings call data and notable corporate events did not impact the analysis.

Sumitomo Densetsu Co (1949) vs. iShares MSCI Japan ETF (EWJ)

Sumitomo Densetsu Co Business Overview & Revenue Model

Company DescriptionSumitomo Densetsu Co., Ltd., established in 1949, is a Japanese company primarily engaged in electrical and telecommunication engineering. It operates within the construction and engineering sectors, providing comprehensive services that include the design, installation, and maintenance of electrical and telecommunication systems. The company's core services extend to infrastructure projects, industrial facilities, and energy solutions, catering to both public and private sectors.
How the Company Makes MoneySumitomo Densetsu Co. makes money through a variety of revenue streams centered around its engineering and construction services. The company's primary revenue is generated from contracting and executing projects that involve electrical installations, telecommunications systems, and related infrastructure. This includes designing and implementing systems for buildings, factories, and public utilities. Additionally, the company earns revenue from maintenance contracts and after-sale services, ensuring the longevity and efficiency of the systems they install. Sumitomo Densetsu also benefits from partnerships and collaborations with other firms, government bodies, and organizations, allowing it to participate in large-scale projects and expand its market presence. These collaborations often enhance the company's capabilities and access to resources, further contributing to its financial performance.

Sumitomo Densetsu Co Financial Statement Overview

Summary
Sumitomo Densetsu Co presents a robust financial profile with strong growth in revenue and profitability, underpinned by solid margins and efficient operations. The balance sheet is notably strong, with low debt levels and high equity, ensuring financial stability and low risk. Cash flow generation is impressive, with significant growth in free cash flow, highlighting efficient cash management. Overall, the company is in excellent financial health, well-positioned for sustained growth and stability.
Income Statement
85
Very Positive
Sumitomo Densetsu Co exhibits strong revenue growth and profitability. Revenue grew by 9.78% from 2024 to 2025, indicating robust demand for its services. The company maintains healthy gross and net profit margins at 14.97% and 6.28% respectively, reflecting operational efficiency. EBIT and EBITDA margins of 8.79% and 9.98% are solid, supporting profitability. Overall, the income statement reflects a strong financial performance with sustained growth trends.
Balance Sheet
88
Very Positive
The balance sheet is exceptionally strong, highlighted by a low debt-to-equity ratio of 0.02, indicating minimal leverage and financial risk. A high equity ratio of 57.56% suggests solid financial stability and a strong capital base. The return on equity is robust at 11.26%, indicating effective use of shareholders' equity to generate profits. Overall, the company’s balance sheet demonstrates excellent financial health and low risk.
Cash Flow
82
Very Positive
Cash flow performance is strong with a significant free cash flow growth of 117.13% from 2024 to 2025, showcasing efficient cash generation capabilities. The operating cash flow to net income ratio is favorable at 1.08, indicating good cash conversion. The free cash flow to net income ratio stands at 0.94, reflecting strong cash profitability. Overall, the cash flow statement underscores effective cash management and robust free cash flow generation.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue203.64B185.52B175.12B167.59B154.05B
Gross Profit30.48B24.21B24.25B22.76B20.51B
EBITDA20.32B16.10B15.96B15.22B13.06B
Net Income12.80B10.06B9.38B9.14B8.05B
Balance Sheet
Total Assets197.58B181.66B162.59B161.04B146.73B
Cash, Cash Equivalents and Short-Term Investments64.92B59.39B54.77B55.27B39.92B
Total Debt2.53B2.56B2.74B2.76B2.92B
Total Liabilities78.39B70.73B62.97B67.65B60.35B
Stockholders Equity113.71B105.83B94.93B89.45B82.95B
Cash Flow
Free Cash Flow12.02B5.54B2.27B5.06B12.26B
Operating Cash Flow13.79B8.51B5.09B6.86B14.96B
Investing Cash Flow-2.89B-499.00M-2.39B11.53B-2.77B
Financing Cash Flow-5.35B-3.83B-3.50B-3.38B-2.93B

Sumitomo Densetsu Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6560.00
Price Trends
50DMA
6282.80
Positive
100DMA
5553.87
Positive
200DMA
5125.59
Positive
Market Momentum
MACD
145.43
Negative
RSI
65.25
Neutral
STOCH
53.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1949, the sentiment is Positive. The current price of 6560 is above the 20-day moving average (MA) of 6500.50, above the 50-day MA of 6282.80, and above the 200-day MA of 5125.59, indicating a bullish trend. The MACD of 145.43 indicates Negative momentum. The RSI at 65.25 is Neutral, neither overbought nor oversold. The STOCH value of 53.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1949.

Sumitomo Densetsu Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥202.79B11.23
3.46%33.08%91.81%
78
Outperform
$234.80B18.1611.54%2.23%9.76%28.06%
73
Outperform
¥64.10B12.14
4.55%14.94%13.18%
73
Outperform
$193.87B9.618.99%3.39%10.38%151.57%
72
Outperform
€220.89B14.056.74%2.83%11.62%41.11%
71
Outperform
¥128.75B11.42
3.69%6.80%15.08%
71
Outperform
¥266.83B13.998.47%2.88%6.37%12.94%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:1949
Sumitomo Densetsu Co
6,560.00
2,705.50
70.19%
JP:1939
Yondenko Corporation
1,319.00
132.01
11.12%
JP:1946
Toenec Corporation
1,354.00
425.90
45.89%
JP:1980
DAI-DAN Co., Ltd.
4,535.00
1,665.90
58.06%
JP:1417
Mirait Holdings Corporation
2,646.50
626.67
31.03%
JP:1941
CHUDENKO
3,545.00
251.07
7.62%

Sumitomo Densetsu Co Corporate Events

Sumitomo Densetsu Reports Strong Q1 2025 Financial Performance
Jul 30, 2025

Sumitomo Densetsu Co., Ltd. reported a positive financial performance for the three months ended June 30, 2025, with a notable increase in net sales and profits compared to the previous year. The company achieved a 6.1% rise in net sales and a significant boost in operating and ordinary profits, reflecting strong operational efficiency and market demand. The financial outlook for the fiscal year ending March 31, 2026, remains stable, with modest growth expectations, indicating a steady market position and potential benefits for stakeholders.

Sumitomo Densetsu Announces Corrections to Financial Results
May 26, 2025

Sumitomo Densetsu Co., Ltd. has announced corrections to its consolidated financial results for the fiscal year ending March 31, 2025, due to aggregation errors related to depreciation and asset increases. These corrections are crucial for maintaining accurate financial reporting and could impact stakeholders’ understanding of the company’s financial health.

Sumitomo Densetsu Opposes Shareholder Proposal, Focuses on Strategic Growth
May 9, 2025

Sumitomo Densetsu Co., Ltd. has announced its Board of Directors’ decision to oppose a shareholder proposal from the Monex Activist Mother Fund, which suggested increasing dividends to a level equivalent to 6% of net assets. The company believes this proposal does not align with its strategy of maintaining stable dividends while investing in growth, particularly given the current global economic uncertainties. Instead, Sumitomo Densetsu plans to focus on its new medium-term management plan, ‘VISION 2030 Mid-term Plan 2028,’ which aims for sustainable growth through investments in human capital and technology, targeting a 50% dividend payout ratio by FY2028.

Sumitomo Densetsu Unveils Ambitious VISION2030 Mid-term Plan
May 9, 2025

Sumitomo Densetsu Co., Ltd. has announced its ‘VISION2030 Mid-term PLAN 2028’, aiming for sustainable growth by enhancing human capital and technological capabilities. Despite challenges during the previous plan, the company achieved record financial results and now seeks to strengthen its market position by improving construction efficiency, fostering customer relationships, and investing heavily in growth and shareholder returns.

Sumitomo Densetsu Announces Leadership Restructuring
May 9, 2025

Sumitomo Densetsu Co., Ltd. announced significant changes in its leadership, with new appointments for representative directors and executive officers aimed at restructuring the management framework. These changes, effective June 25, 2025, are expected to enhance the company’s operational efficiency and strategic positioning in the market.

Sumitomo Densetsu Announces Increased Year-End Dividend
May 9, 2025

Sumitomo Densetsu Co., Ltd. announced an increase in its year-end dividend to 86 yen per share for the fiscal year ending March 2025, surpassing previous forecasts. This decision reflects the company’s strong financial performance and commitment to rewarding shareholders, resulting in a total annual dividend of 146 yen per share.

Sumitomo Densetsu Highlights Independence and Shareholder Protections
May 9, 2025

Sumitomo Densetsu Co., Ltd. announced its position within the Sumitomo Electric Industries group, emphasizing its operational independence despite being a subsidiary. The company ensures fair transaction terms with its parent company, protecting minority shareholders through independent governance structures and a dedicated committee to oversee transactions.

Sumitomo Densetsu Reports Strong Financial Growth and Increased Dividends for FY 2025
May 9, 2025

Sumitomo Densetsu Co., Ltd. reported significant growth in its financial performance for the fiscal year ended March 31, 2025, with a 9.8% increase in net sales and a substantial rise in operating and ordinary profits by 42.5% and 40.1% respectively. The company also announced an increase in dividends, reflecting its strong financial health and commitment to shareholder returns, while maintaining a stable capital adequacy ratio and improving cash flow from operating activities.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 17, 2025