Education
About Us
Working with TipRanks
Follow Us
SUMCO Corporation (JP:3436)
:3436
Top Page
SUMCO Corporation
(3436)
Select Model
Select Model
Rating:68Neutral
Price Target:
¥1,376.00
▼(-3.61% Downside)
SUMCO Corporation's stock score is primarily influenced by its strong technical performance, indicating bullish momentum. However, financial challenges, including increasing leverage and cash flow constraints, weigh on the score. The high P/E ratio suggests potential overvaluation, and the earnings call highlights significant risks, including projected losses and market challenges.
SUMCO Corporation (3436) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥499.86B
Dividend Yield1.12%
Average Volume (3M)6.13M
Price to Earnings (P/E)48.3
Beta (1Y)1.54
Revenue Growth0.04%
EPS Growth-61.48%
CountryJP
Employees9,850
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.10
Shares Outstanding350,175,140
10 Day Avg. Volume9,892,350
30 Day Avg. Volume6,131,643
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥1,440.00Price Target Upside0.88% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
SUMCO Corporation Business Overview & Revenue Model
Company DescriptionSumco 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 MoneySUMCO 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 Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Negative
The earnings call reflects a challenging financial outlook with projected losses in Q3 due to increased depreciation and high customer inventory levels. While there are positive signs in AI-driven segments, structural changes in the market, particularly in China, and potential tariffs pose significant challenges.Q2-2025 Updates
Positive Updates
Slight Sales Increase
Q2 sales were JPY102.9 billion, slightly ahead of plan, and H1 sales were JPY205.3 billion, up JPY7.1 billion YoY.
Positive Operating Profit in Q2
Operating profit for Q2 was JPY1.5 billion, exceeding the forecast of breakeven.
AI-Driven Growth
Strong growth projected for AI-related segments, with logic-use wafers for 7-nanometer and lower growing at an annual rate of around 16%.
Negative Updates
Forecasted Losses in Q3
Projected operating loss of JPY3.5 billion for Q3, with ordinary losses of JPY6 billion and losses attributable to owners of the parent of JPY5.5 billion.
Depreciation Impact
Significant increase in depreciation expected, contributing to projected losses and impacting profitability.
Challenges in the Chinese Market
Structural changes in the market, with a shift to local production in China, are leading to a decline in demand for 200-millimeter wafers.
High Customer Inventory Levels
Persistently high customer inventory levels are delaying a recovery in wafer demand.
Impact of Potential Tariffs
Uncertainty regarding potential 100% US tariffs on semiconductors could impact sales into the US market.
Company Guidance
During the Q2 2025 earnings call, guidance was provided for Q3 2025, highlighting expectations of an operating loss of JPY3.5 billion, ordinary losses of JPY6 billion, and net losses attributable to owners of the parent of JPY5.5 billion. The anticipated losses are largely attributed to a JPY3.4 billion increase in depreciation and a negative impact of JPY0.7 billion due to a stronger yen. Sales for Q3 are projected to remain largely unchanged quarter-over-quarter at JPY101 billion. In terms of dividends, an interim dividend has been set at JPY10 per share, while the fiscal year-end dividend level remains undetermined. The guidance also addressed ongoing challenges in the semiconductor market, with a decline in demand for 200-millimeter wafers due to structural market changes and geopolitical factors, while 300-millimeter wafers saw a rebound driven by inventory adjustments rather than real demand. The company expressed commitment to maintaining financial discipline amidst these challenges, with an emphasis on navigating depreciation impacts and market dynamics effectively.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.75
Positive
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.70
Positive
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.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 405.58B | 396.62B | 425.94B | 441.08B | 335.67B | 291.33B |
| Gross Profit | 74.56B | 72.73B | 108.25B | 143.35B | 80.12B | 65.17B |
| EBITDA | 111.23B | 114.09B | 165.43B | 172.00B | 104.33B | 84.67B |
| Net Income | 17.87B | 19.88B | 63.88B | 70.20B | 41.12B | 25.50B |
Balance Sheet | ||||||
| Total Assets | 1.16T | 1.17T | 1.07T | 892.55B | 764.82B | 593.44B |
| Cash, Cash Equivalents and Short-Term Investments | 93.76B | 95.67B | 156.35B | 259.31B | 224.67B | 82.97B |
| Total Debt | 363.89B | 353.95B | 224.45B | 141.38B | 141.07B | 149.90B |
| Total Liabilities | 514.75B | 515.45B | 437.56B | 301.07B | 241.98B | 238.44B |
| Stockholders Equity | 586.78B | 592.11B | 572.16B | 533.55B | 476.15B | 315.11B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -177.62B | -160.57B | 54.01B | 36.92B | 30.45B |
| Operating Cash Flow | 0.00 | 69.63B | 96.34B | 179.46B | 104.71B | 84.19B |
| Investing Cash Flow | 0.00 | -247.88B | -247.68B | -126.35B | -67.34B | -55.19B |
| Financing Cash Flow | 0.00 | 112.29B | 43.46B | -23.15B | 99.10B | -16.24B |
SUMCO Corporation Technical Analysis
Positive
1427.50
Price Trends
1267.43
Positive
1146.72
Positive
1121.47
Positive
Market Momentum
78.23
Negative
56.24
Neutral
62.81
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 1427.5 is above the 20-day moving average (MA) of 1348.83, above the 50-day MA of 1267.43, and above the 200-day MA of 1121.47, indicating a bullish trend. The MACD of 78.23 indicates Negative momentum. The RSI at 56.24 is Neutral, neither overbought nor oversold. The STOCH value of 62.81 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥43.20B | 12.07 | 12.37% | 1.76% | 32.53% | 182.70% | |
72 Outperform | ¥410.50B | 15.99 | 14.64% | 2.53% | 10.24% | 28.30% | |
68 Neutral | ¥499.86B | 48.26 | ― | 1.12% | 0.04% | -61.48% | |
63 Neutral | ¥892.34B | -17.08 | -5.63% | 2.24% | -4.19% | -236.23% | |
53 Neutral | ¥176.76B | 3.35 | 34.55% | ― | -58.24% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
JP:3436
SUMCO Corporation
1,427.50
-92.84
-6.11%
JP:6963
Rohm Co
2,237.00
657.00
41.58%
JP:7729
Tokyo Seimitsu Co., Ltd
10,000.00
2,549.92
34.23%
JP:6707
Sanken Electric Co., Ltd.
7,323.00
617.00
9.20%
JP:6855
Japan Electronic Materials Corporation
3,415.00
965.54
39.42%
JP:6967
Shinko Electric Industries Co., Ltd.
5,900.00
411.00
7.49%
SUMCO Corporation Corporate Events
SUMCO Corporation Declares Reduced Interim Dividend for 2025
Aug 7, 2025
SUMCO Corporation announced an interim dividend of 10 yen per share for fiscal year 2025, reflecting a decrease from the previous year’s 15 yen. This decision considers the company’s profit levels, future outlook, and capital investment needs, impacting its financial strategy and stakeholder expectations.
The most recent analyst rating on (JP:3436) stock is a Hold with a Yen1380.00 price target. To see the full list of analyst forecasts on SUMCO Corporation stock, see the JP:3436 Stock Forecast page.
SUMCO Corporation Reports Higher-Than-Expected Profits for H1 2025
Aug 7, 2025
SUMCO Corporation announced a significant difference between its forecasted and actual financial results for the first half of 2025. The company reported higher-than-expected profits due to lower income taxes, with a notable increase in profit attributable to owners of the parent, which surged by 208.1% compared to the forecast.
The most recent analyst rating on (JP:3436) stock is a Hold with a Yen1380.00 price target. To see the full list of analyst forecasts on SUMCO Corporation stock, see the JP:3436 Stock Forecast page.
SUMCO Corporation Reports Decline in Profits Despite Sales Growth
Aug 7, 2025
SUMCO Corporation’s financial results for the first half of 2025 show a slight increase in net sales by 3.6% compared to the previous year, reaching ¥205,372 million. However, the company experienced significant declines in operating profit, ordinary profit, and profit attributable to owners of the parent, with decreases of 64.2%, 76.9%, and 75.6% respectively. The company has also revised its financial forecasts for the nine months ending September 30, 2025, anticipating further challenges with a projected operating profit decrease of 87.0%. These results indicate a challenging period for SUMCO, affecting its market positioning and potentially impacting stakeholders.
The most recent analyst rating on (JP:3436) stock is a Hold with a Yen1380.00 price target. To see the full list of analyst forecasts on SUMCO Corporation stock, see the JP:3436 Stock Forecast page.
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.