Sumitomo Rubber Industries (5110) AI Stock Analysis

• Market Cap: ¥649.47B
• Dividend Yield: 2.59%
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): 20.4
• Beta (1Y): 1.12
• Revenue Growth: -0.26%
• EPS Growth: 129.15%
• Country: JP
• Employees: 37,995
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 44.27
• Shares Outstanding: 263,043,060
• 10 Day Avg. Volume: 1,079,310
• 30 Day Avg. Volume: 1,086,830
• PEG Ratio: -0.65
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 0.39
• P/FCF Ratio: 9.87
• 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: ¥2,795.63
• Price Target Upside: 12.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥2,662.00 ▲(6.95% Upside)

Sumitomo Rubber Industries receives a score of 70, driven by strong technical momentum and a balanced valuation. While financial performance shows potential with revenue growth and improving cash flow, profitability challenges remain a concern. The absence of earnings call data and notable corporate events limits additional insights.

Positive Factors

Revenue Growth

The strong top-line growth indicates effective market penetration and product demand, which can support long-term business expansion and stability.

Cash Flow Improvement

Improved cash flow enhances financial flexibility, allowing for reinvestment in growth opportunities and strengthening the company's financial position.

Stable Capital Structure

A stable capital structure with moderate leverage supports long-term financial health and reduces risk, providing a solid foundation for future growth.

Negative Factors

Profitability Challenges

Negative profitability margins indicate difficulties in converting revenue into profit, which can hinder long-term financial performance and shareholder returns.

Negative Return on Equity

Negative ROE suggests inefficiencies in generating shareholder returns, potentially impacting investor confidence and long-term value creation.

Inefficiencies in Cash Conversion

Low cash conversion efficiency indicates challenges in translating earnings into cash, which may affect liquidity and operational flexibility over time.

Sumitomo Rubber Industries Business Overview & Revenue Model

Company Description

Sumitomo Rubber Industries, Ltd., together with its subsidiaries, offers tires, sports, and industrial and other products in Japan, rest of Asia, Europe, North America, and internationally. The company manufactures and sells a range of tires for various vehicles, such as passenger cars, trucks, buses, motorcycles, construction vehicles, agricultural vehicles, and race and rally cars, as well as for industrial vehicles under the Dunlop and Falken brands; and aluminum wheels. It also manufactures and sells golf clubs and balls under the XXIO, SRIXON, and Cleveland Golf brand names; and tennis rackets and balls under the Dunlop brand name, as well as manages fitness clubs, and golf and tennis schools. In addition, the company offers rubber parts for medical applications, precision rubber parts for office equipment, vibration control dampers, artificial turf for sporting facilities, rubber gloves, rubber gas tubes, portable wheelchair ramps, water cushions and cooling packs, and ladies inner wear. The company was formerly known as Dunlop Rubber Company (Far East) Ltd. and changed its name to Sumitomo Rubber Industries, Ltd. in 1963. Sumitomo Rubber Industries, Ltd. was founded in 1909 and is headquartered in Kobe, Japan.

How the Company Makes Money

Sumitomo Rubber Industries generates revenue primarily through the sale of tires for passenger vehicles, trucks, and buses, which constitute a significant portion of its total sales. The company benefits from a well-established distribution network that includes partnerships with automotive manufacturers and aftermarket retailers. In addition to tire sales, Sumitomo Rubber also earns revenue from its industrial rubber products and sporting goods divisions. Strategic partnerships and collaborations with global automotive brands enhance its market presence and drive sales. Furthermore, the company invests in research and development to innovate and improve product performance, which can lead to increased sales and market share.

Sumitomo Rubber Industries Financial Statement Overview

Summary

Sumitomo Rubber Industries faces a challenging financial environment with declining revenues and profitability pressures. While the balance sheet remains stable with manageable leverage, the negative return on equity and net losses are concerning. Cash flow generation has improved, but operational challenges persist, requiring strategic adjustments to enhance profitability and growth.

Income Statement

The income statement shows a challenging period for Sumitomo Rubber Industries, with a negative net profit margin of -0.94% in the TTM, indicating losses. Revenue has declined by 9.33% in the TTM, reflecting a downturn in sales. However, the gross profit margin remains relatively stable at 29.21%, suggesting some resilience in cost management. The EBIT margin has turned negative, highlighting operational challenges.

Balance Sheet

The balance sheet indicates moderate financial stability with a debt-to-equity ratio of 0.42, which is manageable. However, the return on equity is negative at -1.75% in the TTM, reflecting recent losses. The equity ratio stands at 47.41%, showing a solid equity base relative to total assets.

Cash Flow

Cash flow analysis reveals a positive free cash flow growth of 51.20% in the TTM, indicating improved cash generation. The operating cash flow to net income ratio is 0.27, suggesting that cash flows are not fully covering net income, which is a concern. The free cash flow to net income ratio is 0.38, showing some ability to generate cash relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.20T	1.21T	1.18T	1.10T	936.04B	790.82B
Gross Profit	350.86B	358.29B	326.50B	253.22B	259.70B	232.18B
EBITDA	162.68B	106.66B	155.01B	101.45B	115.20B	101.02B
Net Income	31.83B	9.87B	37.05B	9.41B	29.47B	22.60B
Balance Sheet
Total Assets	1.42T	1.34T	1.27T	1.23T	1.09T	974.80B
Cash, Cash Equivalents and Short-Term Investments	102.08B	102.64B	93.15B	80.80B	77.19B	75.60B
Total Debt	356.07B	252.44B	245.38B	311.80B	238.65B	217.43B
Total Liabilities	735.92B	665.31B	625.30B	661.34B	572.63B	507.71B
Stockholders Equity	662.01B	656.13B	624.11B	546.20B	501.54B	454.74B
Cash Flow
Free Cash Flow	66.56B	47.53B	97.51B	-47.05B	10.09B	77.50B
Operating Cash Flow	123.56B	104.33B	169.80B	27.87B	63.09B	123.50B
Investing Cash Flow	-163.87B	-64.66B	-62.23B	-78.70B	-54.02B	-45.59B
Financing Cash Flow	69.36B	-35.62B	-95.57B	41.56B	-13.33B	-61.88B

Sumitomo Rubber Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2489.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5110, the sentiment is Positive. The current price of 2489 is above the 20-day moving average (MA) of 2363.33, above the 50-day MA of 2108.44, and above the 200-day MA of 1823.41, indicating a bullish trend. The MACD of 107.98 indicates Positive momentum. The RSI at 70.34 is Negative, neither overbought nor oversold. The STOCH value of 67.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5110.

Sumitomo Rubber Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5105	81 Outperform	¥679.64B	9.36	15.27%	2.93%	2.81%	2.78%
5191	79 Outperform	¥269.01B	9.24	―	2.94%	2.19%	27.44%
5185	77 Outperform	¥31.61B	13.14	―	4.20%	-1.15%	-34.09%
5101	76 Outperform	¥973.19B	12.17	9.11%	1.60%	10.53%	-2.52%
5161	71 Outperform	¥114.01B	19.45	―	5.78%	-4.26%	17.85%
5110	70 Outperform	¥649.47B	20.41	4.89%	2.59%	-0.26%	129.15%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Sumitomo Rubber Industries Corporate Events

Sumitomo Rubber Industries Rebrands Subsidiaries to Strengthen DUNLOP Brand

Sumitomo Rubber Industries has announced a strategic move to rebrand its overseas sales subsidiaries in Europe, North America, Oceania, and Latin America to incorporate the DUNLOP brand name. This change, effective January 2026, is part of the company’s long-term strategy to enhance the global value of the DUNLOP brand and strengthen brand management, aiming to make DUNLOP a preferred choice for customers worldwide.

Sumitomo Rubber Industries Reports Mixed Financial Results with Positive Profit Outlook

Sumitomo Rubber Industries reported a decrease in sales revenue by 1.5% for the nine months ending September 30, 2025, compared to the previous year. Despite this, the company saw a significant increase in operating profit and profit attributable to owners, indicating improved operational efficiency and profitability. The company also revised its financial forecast for the fiscal year ending December 31, 2025, reflecting a positive outlook with expected growth in profits.