SUMCO Corporation (3436) AI Stock Analysis

• Market Cap: ¥563.42B
• Dividend Yield: 1.14%
• Average Volume (3M): 7.63M
• Price to Earnings (P/E): 214.5
• Beta (1Y): 1.41
• Revenue Growth: 0.66%
• EPS Growth: -87.63%
• Country: JP
• Employees: 9,850
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -11.66
• Shares Outstanding: 350,175,140
• 10 Day Avg. Volume: 5,665,710
• 30 Day Avg. Volume: 7,626,399
• PEG Ratio: -0.30
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 1.04
• P/FCF Ratio: -2.33
• 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: ¥1,575.00
• Price Target Upside: -2.11% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥1,664.00 ▲(3.42% Upside)

The score is primarily driven by mixed fundamentals: strong revenue growth and a solid equity base are offset by deteriorating profitability, rising leverage, and weak free cash flow from heavy capex. Technicals add support due to a strong uptrend and positive momentum, while valuation is a significant headwind given the very high P/E and modest dividend yield.

Positive Factors

Revenue Growth

SUMCO's multi-year revenue expansion, evidenced by roughly 65% revenue growth metric, reflects durable demand for silicon wafers across logic and memory markets. Sustained top-line growth supports scale economics, long qualification cycles, and stronger bargaining leverage with customers over 2–6 months.

Gross Margin Strength

Relatively strong gross margins indicate effective production cost control and product mix with higher-value wafers. Margin resilience supports reinvestment capacity and pricing power with OEMs, helping the company maintain profitability through semiconductor cycles and multi-year customer qualifications.

Equity Base

A robust and growing equity base provides financial cushioning for capital-intensive wafer manufacturing, enabling funding of capacity expansion and qualification projects without immediate dependence on external debt, preserving strategic flexibility over several quarters.

Negative Factors

Negative Free Cash Flow

Repeated negative free cash flow from heavy capex erodes liquidity and limits internal funding for R&D or dividend resilience. Over 2–6 months, persistent cash deficits raise the need for external financing and can constrain capacity utilization optimization and strategic investments.

Rising Leverage

An increasing debt-to-equity trend raises interest and refinancing risk, reducing financial flexibility. If operating cash conversion remains weak, higher leverage magnifies earnings volatility and limits ability to pursue opportunistic investments or absorb semiconductor demand downturns over the medium term.

Profitability Decline

Recent declines in net income and EBIT margins suggest margin pressure despite revenue growth, signaling cost, pricing, or mix challenges. If margins don't recover, long-term returns on capital may fall, undermining capacity to fund capex and weakening competitive positioning in wafer qualification battles.

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 silicon wafers to semiconductor manufacturers. The company operates on a business-to-business model, where its key revenue streams include the supply of various sizes and types of silicon wafers tailored to specific client requirements. Additionally, SUMCO benefits from long-term contracts with major semiconductor firms, which provide a stable revenue base. The company also invests in research and development to innovate its product offerings, enhance wafer quality, and reduce manufacturing costs, thereby improving profit margins. Strategic partnerships with technology leaders in the semiconductor space further bolster SUMCO's market position and contribute to its earnings.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	403.72B	396.62B	425.94B	441.08B	335.67B	291.33B
Gross Profit	71.86B	72.73B	108.25B	143.35B	80.12B	65.17B
EBITDA	108.27B	114.09B	165.43B	172.00B	104.33B	83.39B
Net Income	10.34B	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	80.91B	95.67B	156.35B	259.31B	224.67B	82.97B
Total Debt	364.52B	353.95B	224.45B	141.38B	141.07B	149.90B
Total Liabilities	505.89B	515.45B	437.56B	301.07B	241.98B	238.44B
Stockholders Equity	589.54B	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

• Technical Analysis Sentiment: Positive
• Last Price: 1609.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1609 is above the 20-day moving average (MA) of 1471.44, above the 50-day MA of 1365.98, and above the 200-day MA of 1232.33, indicating a bullish trend. The MACD of 67.00 indicates Negative momentum. The RSI at 66.06 is Neutral, neither overbought nor oversold. The STOCH value of 87.76 is Negative, 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
7729	76 Outperform	¥525.23B	23.88	12.66%	2.28%	9.53%	-11.17%
6855	72 Outperform	¥54.65B	14.34	―	1.72%	36.31%	101.77%
3436	64 Neutral	¥563.42B	214.51	―	1.14%	0.66%	-87.63%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6963	46 Neutral	¥998.64B	-23.11	-4.26%	2.30%	0.04%	-323.26%
6707	46 Neutral	¥132.31B	115.26	―	―	-51.82%	-96.08%

SUMCO Corporation Corporate Events

SUMCO Reshapes Top Management, Appoints Jiro Ryuta as New President

SUMCO Corporation announced board-approved senior management changes aimed at reinforcing its management structure, effective March 27, 2026. Current Representative Director, Chairman & CEO Mayuki Hashimoto will become Director and Executive Advisor, while Representative Director and President Toshihiro Awa will retire from his role. Jiro Ryuta, presently Representative Director, Executive Vice President and General Manager of the Production and Technology Division and Kyushu Factory, will be promoted to Representative Director and President, bringing extensive international sales, factory management and group company leadership experience to the company’s top executive post.

The most recent analyst rating on (JP:3436) stock is a Hold with a Yen1205.00 price target. To see the full list of analyst forecasts on SUMCO Corporation stock, see the JP:3436 Stock Forecast page.

SUMCO Corporation Corrects Third-Quarter Financial Results

SUMCO Corporation announced a correction to its third-quarter financial results for FY2025, initially disclosed on November 11, 2025. The correction pertains to an error in the vertical axis scale of a bar chart related to ‘Depreciation and Capital Expenditure’ in the presentation materials. This correction ensures accurate financial reporting and maintains transparency with stakeholders.

The most recent analyst rating on (JP:3436) stock is a Hold with a Yen1205.00 price target. To see the full list of analyst forecasts on SUMCO Corporation stock, see the JP:3436 Stock Forecast page.

SUMCO Corporation Revises Dividend Forecast for FY 2025

SUMCO Corporation announced a revision to its dividend forecast for the fiscal year 2025, setting the year-end dividend at 10 yen per share, resulting in an annual dividend of 20 yen per share. This decision reflects the company’s assessment of its profit forecast, future outlook, and financial needs, indicating a strategic approach to balancing shareholder returns with investment in growth.

The most recent analyst rating on (JP:3436) stock is a Hold with a Yen1544.00 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 Nine-Month Period

SUMCO Corporation announced a discrepancy between its forecasted and actual financial results for the nine months ending September 30, 2025. The company reported higher-than-expected operating and ordinary profits due to lower depreciation costs and favorable foreign exchange conditions, although net sales were slightly below forecast. This adjustment reflects a stronger operational performance than anticipated, which may positively influence investor confidence and market positioning.

The most recent analyst rating on (JP:3436) stock is a Hold with a Yen1544.00 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 Increased Sales

SUMCO Corporation reported its consolidated financial results for the nine months ended September 30, 2025, showing a slight increase in net sales by 2.6% year-on-year. However, the company experienced significant declines in operating and ordinary profits, with operating profit dropping by 80.4% and ordinary profit by 91.6%. The profit attributable to owners of the parent also turned negative. The company revised its cash dividend forecast, reducing the annual dividend per share. These results indicate challenges in maintaining profitability amidst fluctuating market conditions, impacting stakeholders’ expectations and the company’s financial stability.

The most recent analyst rating on (JP:3436) stock is a Hold with a Yen1544.00 price target. To see the full list of analyst forecasts on SUMCO Corporation stock, see the JP:3436 Stock Forecast page.