Sumitomo Densetsu Co (1949) AI Stock Analysis

• Market Cap: $234.80B
• Dividend Yield: 2.23%
• Average Volume (3M): 69.94K
• Price to Earnings (P/E): 18.2
• Beta (1Y): 0.75
• Revenue Growth: 9.76%
• EPS Growth: 28.06%
• Country: JP
• Employees: 3,492
• Sector: Industrials
• Sector Strength: 93
• Industry: Engineering & Construction
• EPS (TTM): 46.78
• Shares Outstanding: 35,635,880
• 10 Day Avg. Volume: 61,720
• 30 Day Avg. Volume: 69,936
• PEG Ratio: 15.60
• Price to Book (P/B): 2.04
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• 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 Business Overview & Revenue Model

Company Description

Sumitomo 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 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 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	203.64B	185.52B	175.12B	167.59B	154.05B
Gross Profit	30.48B	24.21B	24.25B	22.76B	20.51B
EBITDA	20.32B	16.10B	15.96B	15.22B	13.06B
Net Income	12.80B	10.06B	9.38B	9.14B	8.05B
Balance Sheet
Total Assets	197.58B	181.66B	162.59B	161.04B	146.73B
Cash, Cash Equivalents and Short-Term Investments	64.92B	59.39B	54.77B	55.27B	39.92B
Total Debt	2.53B	2.56B	2.74B	2.76B	2.92B
Total Liabilities	78.39B	70.73B	62.97B	67.65B	60.35B
Stockholders Equity	113.71B	105.83B	94.93B	89.45B	82.95B
Cash Flow
Free Cash Flow	12.02B	5.54B	2.27B	5.06B	12.26B
Operating Cash Flow	13.79B	8.51B	5.09B	6.86B	14.96B
Investing Cash Flow	-2.89B	-499.00M	-2.39B	11.53B	-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 Price: 6560.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1980	78 Outperform	¥202.79B	11.23		3.46%	33.08%	91.81%
1949	78 Outperform	$234.80B	18.16	11.54%	2.23%	9.76%	28.06%
1939	73 Outperform	¥64.10B	12.14		4.55%	14.94%	13.18%
1941	73 Outperform	$193.87B	9.61	8.99%	3.39%	10.38%	151.57%
1417	72 Outperform	€220.89B	14.05	6.74%	2.83%	11.62%	41.11%
1946	71 Outperform	¥128.75B	11.42		3.69%	6.80%	15.08%
Sector *	71 Outperform	¥266.83B	13.99	8.47%	2.88%	6.37%	12.94%

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.

Sumitomo Densetsu Announces Corrections to Financial Results

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

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

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

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

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

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

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.