SUMCO Corporation (3436) AI Stock Analysis

• Market Cap: ¥444.01B
• Dividend Yield: 1.26%
• Average Volume (3M): 5.22M
• Price to Earnings (P/E): 24.7
• Beta (1Y): 1.52
• Revenue Growth: -0.96%
• EPS Growth: -42.79%
• Country: JP
• Employees: 9,850
• Sector: Technology
• Sector Strength: 86
• Industry: Semiconductors
• EPS (TTM): 8.71
• Shares Outstanding: 350,175,140
• 10 Day Avg. Volume: 6,043,280
• 30 Day Avg. Volume: 5,217,209
• PEG Ratio: -2.30
• Price to Book (P/B): 0.71
• 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: ¥1,360.00
• Price Target Upside: 7.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 67 Neutral
• Price Target: ¥1,347.00 ▲(6.23%Upside)

The overall stock score of 67.2 reflects a balanced view of SUMCO Corporation's strengths and challenges. Financial performance is under pressure from leverage and cash flow issues, while technical analysis indicates positive momentum. Valuation remains a concern due to a high P/E ratio, and the earnings call highlighted mixed sentiment with both opportunities and risks.

SUMCO Corporation Business Overview & Revenue Model

Company Description

Sumco Corporation, together with its subsidiaries, manufactures and sells silicon wafers for the semiconductor industry primarily in Japan, the United States, China, Taiwan, Korea, and internationally. It provides monocrystalline ingots, as well as polished, annealed, epitaxial, junction isolated, silicon-on-insulator, and reclaimed polished wafers. The company was formerly known as Sumitomo Mitsubishi Silicon Corp. and changed its name to Sumco Corporation in August 2005. Sumco Corporation was incorporated in 1999 and is headquartered in Tokyo, Japan.

How the Company Makes Money

SUMCO Corporation generates revenue primarily through the sale of high-quality silicon wafers to semiconductor manufacturers. The company's revenue model is based on the production and distribution of a variety of wafers, including polished, epitaxial, and annealed wafers, each tailored to specific customer requirements. SUMCO's income is driven by long-term contracts with major semiconductor firms, enabling it to maintain stable revenue streams. Additionally, the company invests in research and development to innovate and enhance its product offerings, ensuring competitiveness in the rapidly evolving semiconductor industry. Strategic partnerships with key players in the technology sector also contribute to SUMCO's growth and market presence.

SUMCO Corporation Financial Statement Overview

Summary

SUMCO Corporation shows strong revenue growth and effective asset management, but faces challenges with increasing leverage and cash flow constraints. Improving profitability and cash flow efficiency will be crucial for maintaining financial stability.

Income Statement

SUMCO Corporation demonstrates robust revenue growth with a notable increase from 2019 to 2023. The gross profit margin has been relatively strong, showcasing effective cost management. However, there is a recent decline in net income and EBIT margins from 2023 to 2024, indicating potential challenges in maintaining profitability.

Balance Sheet

The company maintains a strong equity base with a significant increase in stockholders' equity over the years. However, the debt-to-equity ratio has been increasing, signaling rising leverage, which could pose risks if cash flows do not improve. The equity ratio remains healthy, reflecting effective asset management.

Cash Flow

SUMCO faces challenges in cash flow management, with a significant negative free cash flow in 2023 and 2024 due to high capital expenditures. Operating cash flow remains positive but shows a decline, suggesting potential issues in converting sales into cash. The free cash flow to net income ratio has deteriorated, indicating inefficiency in cash generation relative to earnings.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	396.62B	425.94B	441.08B	335.67B	291.33B
Gross Profit	72.73B	108.25B	143.35B	80.12B	65.17B
EBITDA	114.09B	144.66B	169.53B	104.33B	84.67B
Net Income	19.88B	63.88B	70.20B	41.12B	25.50B
Balance Sheet
Total Assets	1.17T	1.07T	892.55B	764.82B	593.44B
Cash, Cash Equivalents and Short-Term Investments	95.67B	156.35B	259.31B	224.67B	82.97B
Total Debt	353.95B	224.45B	141.38B	141.07B	149.90B
Total Liabilities	515.45B	437.56B	301.07B	241.98B	238.44B
Stockholders Equity	592.11B	572.16B	533.55B	476.15B	315.11B
Cash Flow
Free Cash Flow	-177.62B	-160.57B	54.01B	36.92B	30.45B
Operating Cash Flow	69.63B	96.34B	179.46B	104.71B	84.19B
Investing Cash Flow	-247.88B	-247.68B	-126.35B	-67.34B	-55.19B
Financing Cash Flow	112.29B	43.46B	-23.15B	99.10B	-16.24B

SUMCO Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1268.00
• 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:3436, the sentiment is Positive. The current price of 1268 is above the 20-day moving average (MA) of 1165.37, above the 50-day MA of 1058.17, and above the 200-day MA of 1152.78, indicating a bullish trend. The MACD of 52.43 indicates Negative momentum. The RSI at 64.16 is Neutral, neither overbought nor oversold. The STOCH value of 74.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3436.

SUMCO Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3436	67 Neutral	¥444.01B	24.73		1.26%	-0.96%	-42.79%
Sector *	63 Neutral	$34.70B	4.89	-11.39%	1.66%	5.53%	-19.00%
ROHCF	―	$5.27B	62.37	-5.34%	0.31%	―	―
TYS	―	€2.28B	14.17	15.34%	2.51%	―	―
6855	77 Outperform	¥29.95B	8.70		2.11%	36.47%	454.90%
6707	67 Neutral	¥210.53B	4.13		0.38%	-48.30%	―
6967	60 Neutral	$797.03B	44.60		0.84%	2.41%	-3.95%

SUMCO Corporation Corporate Events

SUMCO Corporation Revises 2025 Dividend Forecast

SUMCO Corporation has announced a revision to its dividend forecast for the fiscal year 2025, with an interim dividend now set at 10 yen per share. This decision reflects the company’s assessment of its financial performance and future outlook, balancing profit forecasts, capital investment needs, and cash flow considerations. The year-end dividend remains undetermined, highlighting a cautious approach amid market uncertainties.

SUMCO Corporation Exceeds Q1 2025 Financial Forecasts

SUMCO Corporation announced a positive variance between its forecasted and actual financial results for the first quarter of fiscal year 2025. The company exceeded its net sales and profit forecasts due to lower-than-expected costs and income taxes, resulting in a significant increase in quarterly profit attributable to owners of the parent.

SUMCO Corporation Reports Q1 2025 Financial Results with Profit Declines

SUMCO Corporation reported its consolidated financial results for the first quarter of 2025, showing a 9.6% increase in net sales compared to the previous year. However, the company experienced significant declines in operating profit, ordinary profit, and profit attributable to owners of the parent, with decreases of 31.1%, 46.3%, and 39.7%, respectively. The financial forecast for the first half of 2025 indicates a modest increase in net sales but anticipates substantial drops in profits. These results suggest challenges in maintaining profitability despite revenue growth, potentially impacting stakeholder confidence and market positioning.