Sumitomo Densetsu Co (1949) AI Stock Analysis

• Market Cap: $229.82B
• Dividend Yield: 2.26%
• Average Volume (3M): 53.53K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.78
• Revenue Growth: 8.45%
• EPS Growth: 19.27%
• Country: JP
• Employees: 3,492
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 46.78
• Shares Outstanding: 35,635,880
• 10 Day Avg. Volume: 42,650
• 30 Day Avg. Volume: 53,533
• PEG Ratio: 0.48
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 0.84
• P/FCF Ratio: 14.21
• Enterprise Value/Market Cap: 0.73
• Enterprise Value/Revenue: 0.82
• Enterprise Value/Gross Profit: 5.51
• Enterprise Value/Ebitda: 8.48
• 1Y Price Target: $7,052.05
• Price Target Upside: 9.16% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: ¥7,052.00 ▲(9.16% Upside)

Sumitomo Densetsu Co's strong financial performance is the most significant factor, supported by robust revenue growth and solid financial health. However, technical indicators suggest a bearish trend, which impacts the overall score. The valuation is reasonable, providing a balanced view of the stock's potential.

Sumitomo Densetsu Co Business Overview & Revenue Model

Company Description

Sumitomo Densetsu Co.,Ltd. operates as a construction company in Japan, Indonesia, Thailand, Cambodia, Myanmar, the Philippines, China, and Malaysia. It constructs overhead and underground power transmission, electrical substations, and electrical power distribution systems; and constructs interconnected systems to supply electricity from new energy facilities, including photovoltaic, wind, and hydroelectric power stations. The company also engages in the construction of photovoltaic, redox flow battery, and biomass power-generating systems; provision of engineering services for various systems, such as electrical work and electrical instrumentation in factories and plants; and establishment of facility management system and building energy management and automation systems. In addition, it is involved in the consultation, system design, construction, operation, and maintenance of communication/broadcasting infrastructure; and the design, establishment, operation, and maintenance of information networks for various companies, universities, hospitals, data centers, etc. Further, the company engages in the planning, construction, and maintenance of plant machines used in various manufacturing plants, air-conditioning and plumbing systems in factories, office buildings, and hotels. The company was formerly known as Taiyo Kudo Construction Co., Ltd. and changed its name to Sumitomo Densetsu Co., Ltd. in July 1985. Sumitomo Densetsu Co.,Ltd. was founded in 1947 and is headquartered in Osaka, Japan. Sumitomo Densetsu Co.,Ltd. is a subsidiary of Sumitomo Electric Industries, Ltd.

How the Company Makes Money

Sumitomo 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 exhibits strong financial performance with robust revenue growth, solid profit margins, and efficient operations. The balance sheet is exceptionally strong with low debt and high equity, indicating financial stability. Cash flow generation is impressive, highlighting efficient cash management.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	203.64B	203.64B	185.52B	175.12B	167.59B	154.05B
Gross Profit	30.48B	30.48B	24.21B	24.25B	22.76B	20.51B
EBITDA	19.80B	20.32B	16.10B	15.96B	15.22B	13.06B
Net Income	12.80B	12.80B	10.06B	9.38B	9.14B	8.05B
Balance Sheet
Total Assets	197.58B	197.58B	181.66B	162.59B	161.04B	146.73B
Cash, Cash Equivalents and Short-Term Investments	64.92B	64.92B	59.39B	54.77B	55.27B	39.92B
Total Debt	2.53B	2.53B	2.56B	2.74B	2.76B	2.92B
Total Liabilities	78.39B	78.39B	70.73B	62.97B	67.65B	60.35B
Stockholders Equity	113.71B	113.71B	105.83B	94.93B	89.45B	82.95B
Cash Flow
Free Cash Flow	0.00	12.02B	5.54B	2.27B	5.06B	12.26B
Operating Cash Flow	0.00	13.79B	8.51B	5.09B	6.86B	14.96B
Investing Cash Flow	0.00	-2.89B	-499.00M	-2.39B	11.53B	-2.77B
Financing Cash Flow	0.00	-5.35B	-3.83B	-3.50B	-3.38B	-2.93B

Sumitomo Densetsu Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6460.00
• 50DMA: Negative
• 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:1949, the sentiment is Neutral. The current price of 6460 is below the 20-day moving average (MA) of 6600.50, below the 50-day MA of 6735.80, and above the 200-day MA of 5567.92, indicating a neutral trend. The MACD of -88.09 indicates Positive momentum. The RSI at 40.67 is Neutral, neither overbought nor oversold. The STOCH value of 9.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1949.

Sumitomo Densetsu Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1941	75 Outperform	¥224.39B	10.50	8.78%	2.94%	5.58%	97.09%
1939	73 Outperform	¥66.85B	13.08	7.98%	4.69%	8.15%	0.50%
1980	73 Outperform	¥276.01B	11.59	16.30%	2.62%	38.57%	138.68%
1946	71 Outperform	¥137.68B	12.21	7.88%	3.63%	6.80%	15.08%
1417	69 Neutral	¥245.54B	17.59	6.57%	2.70%	8.86%	12.48%
1949	66 Neutral	$229.82B	17.36	12.16%	2.26%	8.45%	19.27%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Sumitomo Densetsu Co Corporate Events

Sumitomo Densetsu Reports Strong Q1 2025 Financial Performance

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.