SUMCO Corporation (3436) AI Stock Analysis

• Market Cap: ¥353.49B
• Dividend Yield: 1.19%
• Average Volume (3M): 4.80M
• Price to Earnings (P/E): 19.8
• Beta (1Y): 1.48
• Revenue Growth: -0.96%
• EPS Growth: -42.79%
• Country: JP
• Employees: 9,850
• Sector: Technology
• Sector Strength: 79
• Industry: Semiconductors
• EPS (TTM): 8.71
• Shares Outstanding: 350,175,140
• 10 Day Avg. Volume: 5,150,220
• 30 Day Avg. Volume: 4,800,526
• PEG Ratio: 0.18
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.39
• 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: ¥1,380.00
• Price Target Upside: 31.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 73 Outperform
• Price Target: ¥1,219.00 ▲(15.98%Upside)

The overall stock score is influenced primarily by financial performance challenges, such as increasing leverage and cash flow issues. Technical analysis suggests bullish momentum, although caution is advised due to near-overbought conditions. Valuation appears moderate, and mixed earnings call sentiment highlights potential risks, especially related to profitability and external economic factors.

SUMCO Corporation Business Overview & Revenue Model

Company Description

SUMCO Corporation (3436) is a leading global manufacturer and supplier of silicon wafers primarily used in the semiconductor industry. The company specializes in the production of high-quality silicon wafers, which are essential for the fabrication of semiconductor devices including microchips and integrated circuits. SUMCO operates in the technology sector and is known for its advanced manufacturing capabilities and innovative technologies, serving a wide range of customers in the electronics industry.

How the Company Makes Money

SUMCO Corporation generates revenue primarily through the production and sale of silicon wafers. The company operates advanced manufacturing facilities capable of producing a variety of wafers, including polished, epitaxial, and silicon-on-insulator wafers, which are used in numerous electronic applications. SUMCO's key revenue streams come from its contracts and sales agreements with major semiconductor manufacturers who require a steady supply of high-quality wafers to produce microchips for consumer electronics, automotive, and industrial applications. The company also benefits from strategic partnerships and long-term agreements with leading technology firms, ensuring a stable demand for its products. Additionally, SUMCO invests in research and development to enhance its production processes and wafer quality, which helps maintain its competitive edge in the global market.

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
	EBIT
36.92B	73.08B	109.68B	51.54B	37.90B
	EBITDA
114.09B	144.66B	169.53B	104.33B	84.67B
	Net Income Common Stockholders
19.88B	63.88B	70.20B	41.12B	25.50B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
95.67B	156.35B	259.31B	224.67B	82.97B
	Total Assets
1.17T	1.07T	892.55B	764.82B	593.44B
	Total Debt
353.95B	224.45B	141.38B	141.07B	149.90B
	Net Debt
266.77B	76.73B	-109.12B	-77.11B	66.93B
	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: 1051.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 1051 is above the 20-day moving average (MA) of 979.98, above the 50-day MA of 953.69, and below the 200-day MA of 1225.36, indicating a neutral trend. The MACD of 12.56 indicates Negative momentum. The RSI at 53.21 is Neutral, neither overbought nor oversold. The STOCH value of 72.93 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
7729	78 Outperform	¥344.32B	12.73	15.34%	2.71%	11.77%	31.94%
6855	74 Outperform	¥26.89B	7.53		1.88%	36.47%	454.91%
3436	73 Outperform	¥353.49B	19.76		1.19%	-0.96%	-42.79%
6707	69 Neutral	¥189.21B	3.64		0.38%	-48.30%	―
Sector *	62 Neutral	$11.97B	10.08	-7.46%	2.96%	7.37%	-8.22%
6963	54 Neutral	$684.11B	60.02	-5.34%	2.92%	-4.13%	-193.68%

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.