Sumitomo Densetsu Co (1949) AI Stock Analysis

• Market Cap: $345.45B
• Dividend Yield: 1.69%
• Average Volume (3M): 234.70K
• Price to Earnings (P/E): 23.6
• Beta (1Y): 0.86
• Revenue Growth: 8.09%
• EPS Growth: 20.78%
• Country: JP
• Employees: 3,492
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 125.67
• Shares Outstanding: 35,635,880
• 10 Day Avg. Volume: 214,990
• 30 Day Avg. Volume: 234,703
• 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: 0.50
• Enterprise Value/Revenue: 0.84
• Enterprise Value/Gross Profit: 5.55
• Enterprise Value/Ebitda: 8.57
• 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: 74 Outperform
• Price Target: ¥10,214.00 ▲(5.19% Upside)

Sumitomo Densetsu Co's strong financial performance is the most significant factor driving the stock's score, supported by robust revenue growth, profitability, and financial stability. Technical analysis indicates strong momentum but warns of potential overbought conditions. The valuation suggests the stock might be slightly overvalued, though the dividend yield offers some compensation. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for services and effective market positioning, supporting long-term business expansion.

Balance Sheet Health

A strong balance sheet with low leverage and high equity ensures financial stability and reduces risk, supporting sustainable growth.

Cash Flow Generation

Robust free cash flow growth highlights efficient cash management, enabling reinvestment in growth opportunities and financial flexibility.

Negative Factors

Valuation Concerns

High valuation metrics may limit upside potential and increase market risk, impacting investor sentiment and long-term stock performance.

Earnings Call Absence

Lack of earnings call data can lead to uncertainty about future performance and strategic direction, affecting investor confidence.

Technical Overbought Conditions

Overbought technical indicators suggest potential for short-term pullback, which could impact stock performance and investor sentiment.

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 generates revenue primarily through its contracting services in electrical and telecommunications infrastructure projects. The company secures contracts from both public and private sectors, focusing on large-scale projects that require significant expertise and capital investment. Key revenue streams include installation services for power and communication networks, maintenance contracts, and sales of electrical equipment. Additionally, strategic partnerships with government agencies and private enterprises enhance its project pipeline and revenue potential. The company's focus on innovation and technology in electrical systems also positions it to benefit from emerging trends in renewable energy and smart grid solutions, further contributing to its earnings.

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

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	206.05B	203.64B	185.52B	175.12B	167.59B	154.05B
Gross Profit	31.17B	30.48B	24.21B	24.25B	22.76B	20.51B
EBITDA	20.21B	20.32B	16.10B	15.96B	15.22B	13.06B
Net Income	13.09B	12.80B	10.06B	9.38B	9.14B	8.05B
Balance Sheet
Total Assets	177.58B	197.58B	181.66B	162.59B	161.04B	146.73B
Cash, Cash Equivalents and Short-Term Investments	56.66B	64.92B	59.39B	54.77B	55.27B	39.92B
Total Debt	2.06B	2.53B	2.56B	2.74B	2.76B	2.92B
Total Liabilities	58.92B	78.39B	70.73B	62.97B	67.65B	60.35B
Stockholders Equity	113.19B	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: Positive
• Last Price: 9710.00
• 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:1949, the sentiment is Positive. The current price of 9710 is below the 20-day moving average (MA) of 9726.00, above the 50-day MA of 8904.20, and above the 200-day MA of 6619.88, indicating a neutral trend. The MACD of 177.61 indicates Positive momentum. The RSI at 74.86 is Negative, neither overbought nor oversold. The STOCH value of 40.74 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1980	81 Outperform	¥335.92B	13.26	―	2.55%	30.13%	101.75%
1946	77 Outperform	¥182.90B	11.70	―	3.04%	3.75%	87.00%
1939	77 Outperform	¥72.83B	14.04	―	4.44%	-0.84%	-1.80%
1941	76 Outperform	$246.94B	11.47	9.20%	2.78%	1.31%	59.20%
1417	76 Outperform	¥283.18B	14.98	8.12%	2.34%	6.50%	53.04%
1949	74 Outperform	$345.45B	23.64	12.41%	1.69%	8.09%	20.78%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Sumitomo Densetsu Co Corporate Events

Sumitomo Densetsu Sets Record Date for Potential Shareholder Meeting Amid Tender Offer

Sumitomo Densetsu Co., Ltd. has announced the establishment of a record date for an upcoming extraordinary shareholders meeting, set for December 23, 2025. This meeting is contingent on the outcome of a tender offer by Daiwa House Industry Co., Ltd., which aims to acquire all outstanding shares of Sumitomo Densetsu, excluding those held by Sumitomo Electric Industries. If successful, the meeting will address share consolidation and potential delisting from the stock exchange, impacting the company’s shareholder structure and market presence.

Sumitomo Densetsu Approves Tender Offer by Daiwa House

Sumitomo Densetsu Co., Ltd. has announced its board’s approval of a tender offer by Daiwa House Industry Co., Ltd. to acquire all its common stock, aiming to make Sumitomo Densetsu a wholly-owned subsidiary. This strategic move is expected to result in the delisting of Sumitomo Densetsu’s shares from the Tokyo Stock Exchange, with implications for stakeholders including a potential shift in company operations and market positioning.

Sumitomo Densetsu Exceeds Earnings Forecasts and Revises Full-Year Outlook

Sumitomo Densetsu Co., Ltd. announced a significant improvement in its financial performance for the six months ended September 30, 2025, surpassing its previous earnings forecasts. This improvement was attributed to steady progress in large-scale projects, particularly in general electrical construction, leading to higher-than-expected profits. Consequently, the company has revised its full-year earnings forecast upwards, anticipating continued profit growth in the second half of the fiscal year, which reflects positively on its operational strategy and market positioning.

Sumitomo Densetsu Reports Strong Financial Growth and Upward Forecast Revisions

Sumitomo Densetsu Co., Ltd. reported a significant increase in its consolidated financial results for the six months ended September 30, 2025, with net sales rising by 9.3% and operating profit by 38.9% compared to the previous year. The company also revised its financial forecasts upward for the fiscal year ending March 31, 2026, reflecting strong operational performance and the inclusion of two new companies in its consolidation scope, indicating a positive outlook for stakeholders.

Sumitomo Densetsu Revises Year-End Dividend Forecast Amid Tender Offer

Sumitomo Densetsu Co., Ltd. announced a revision of its year-end dividend forecast for the fiscal year ending March 31, 2026, deciding not to pay a year-end dividend. This decision is contingent upon the successful completion of a tender offer by Daiwa House Industry Co., Ltd., which aims to make Sumitomo Densetsu a wholly-owned subsidiary and subsequently delist its shares. The board’s resolution aligns with the tender offer’s conditions, which assume no year-end dividend payment, although an interim dividend will still be paid.