Sumitomo Rubber Industries (5110) AI Stock Analysis

• Market Cap: ¥435.52B
• Dividend Yield: 4.23%
• Average Volume (3M): 1.37M
• Price to Earnings (P/E): 50.9
• Beta (1Y): 1.15
• Revenue Growth: 1.37%
• EPS Growth: -119.72%
• Country: JP
• Employees: 37,995
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Auto - Parts
• EPS (TTM): 13.54
• Shares Outstanding: 263,043,060
• 10 Day Avg. Volume: 1,575,640
• 30 Day Avg. Volume: 1,372,570
• PEG Ratio: -0.47
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.44
• 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: ¥1,936.83
• Price Target Upside: 15.05% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 55 Neutral
• Price Target: ¥1,683.00 ▼(-0.03%Downside)

Sumitomo Rubber Industries faces financial performance challenges, particularly in profitability and leverage, which are the most impactful factors. The technical indicators suggest bearish momentum, while the valuation is hampered by a negative P/E ratio despite an attractive dividend yield.

Sumitomo Rubber Industries Business Overview & Revenue Model

Company Description

Sumitomo Rubber Industries, Ltd. is a renowned Japanese company primarily engaged in the manufacturing and distribution of rubber products, with a strong focus on the tire industry. Established in 1909, the company operates through various segments, including tires, sports, and industrial products, and is known for its high-quality tire brands such as Dunlop and Falken. Sumitomo Rubber Industries serves a global market, providing products ranging from passenger car tires to commercial vehicle tires, as well as golf and tennis equipment under its sports division.

How the Company Makes Money

Sumitomo Rubber Industries generates revenue primarily through the sale of tires, which is its largest segment. The company's tire products cater to a wide range of vehicles, including passenger cars, trucks, buses, and motorcycles, serving both original equipment manufacturers (OEMs) and the replacement market. In addition to tires, the company earns revenue from its sports division, which offers golf clubs, balls, and tennis equipment under well-known brands. The industrial product segment contributes to earnings through the sale of rubber parts for industrial applications, including precision rubber parts and vibration control products. The company's global presence and strategic partnerships with automotive manufacturers and distributors play a crucial role in its revenue generation, enabling access to diverse markets and customer bases.

Sumitomo Rubber Industries Financial Statement Overview

Summary

Sumitomo Rubber Industries shows a mixed financial performance with strengths in cash flow and a stable balance sheet but challenges in profitability and revenue growth. The company needs to address its leverage and improve margins to enhance financial stability and investor confidence.

Income Statement

The company has experienced fluctuating revenue growth with a recent decline in TTM. Gross and net profit margins have been under pressure, particularly with a negative net income in the latest period. The EBIT and EBITDA margins have shown improvement but remain moderate. Overall, the income statement reflects challenges in maintaining consistent profitability.

Balance Sheet

The balance sheet shows a reasonable equity ratio, indicating a stable financial structure. However, the debt-to-equity ratio is relatively high, suggesting potential leverage risks. Return on equity has been inconsistent, reflecting the variability in net income. Despite these challenges, the company maintains a strong asset base.

Cash Flow

Cash flow from operations is robust, and the company has maintained positive free cash flow in recent periods, although growth has been inconsistent. The free cash flow to net income ratio is strong when net income is positive. Overall, the cash flow statement suggests adequate liquidity to support operations and investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.21T	1.21T	1.18T	1.10T	936.04B	790.82B
Gross Profit	352.94B	358.29B	326.50B	253.22B	259.70B	232.18B
EBITDA	167.90B	106.66B	155.01B	101.45B	115.20B	101.02B
Net Income	-11.41B	9.87B	37.05B	9.41B	29.47B	22.60B
Balance Sheet
Total Assets	1.29T	1.34T	1.27T	1.23T	1.09T	974.80B
Cash, Cash Equivalents and Short-Term Investments	87.03B	102.64B	93.15B	80.80B	77.19B	75.60B
Total Debt	262.02B	252.44B	245.38B	311.80B	238.65B	217.43B
Total Liabilities	640.83B	665.31B	625.30B	661.34B	572.63B	507.71B
Stockholders Equity	631.19B	656.13B	624.11B	546.20B	501.54B	454.74B
Cash Flow
Free Cash Flow	36.75B	47.53B	97.51B	-47.05B	10.09B	77.50B
Operating Cash Flow	96.16B	104.33B	169.80B	27.87B	63.09B	123.50B
Investing Cash Flow	-63.37B	-64.66B	-62.23B	-78.70B	-54.02B	-45.59B
Financing Cash Flow	-27.29B	-35.62B	-95.57B	41.56B	-13.33B	-61.88B

Sumitomo Rubber Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1683.50
• 50DMA: Negative
• 100DMA: Negative
• 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:5110, the sentiment is Positive. The current price of 1683.5 is above the 20-day moving average (MA) of 1610.26, below the 50-day MA of 1699.00, and above the 200-day MA of 1661.71, indicating a neutral trend. The MACD of -12.15 indicates Negative momentum. The RSI at 58.58 is Neutral, neither overbought nor oversold. The STOCH value of 84.40 is Negative, 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	$475.67B	7.29	14.57%	3.88%	4.01%	-22.73%
5161	78 Outperform	¥102.07B	25.16		6.90%	2.32%	-21.60%
5185	74 Outperform	¥27.42B	9.08		4.54%	0.91%	-3.92%
5101	72 Outperform	$630.48B	10.07	7.48%	2.42%	8.13%	-17.49%
5191	69 Neutral	¥171.62B	6.26		4.32%	2.91%	47.09%
Sector *	67 Neutral	¥251.03B	13.17	6.57%	2.80%	5.06%	-11.36%
5110	55 Neutral	¥435.52B	50.94	-1.90%	4.23%	1.37%	-119.72%

Sumitomo Rubber Industries Corporate Events

Sumitomo Rubber Completes Treasury Stock Acquisition

Sumitomo Rubber Industries has completed the acquisition of 200,000 shares of its own common stock, with a total acquisition cost of approximately 355.7 million yen. This move, approved by the Board of Directors, is part of a strategic decision to utilize treasury stock for restricted stock compensation over multiple fiscal years, potentially impacting shareholder value and company operations.

The most recent analyst rating on (JP:5110) stock is a Buy with a Yen2100.00 price target. To see the full list of analyst forecasts on Sumitomo Rubber Industries stock, see the JP:5110 Stock Forecast page.

Sumitomo Rubber Reports Significant Foreign Exchange Loss

Sumitomo Rubber Industries reported a foreign exchange loss of ¥8,004 million for the first quarter of the fiscal year ending March 31, 2025, due to the yen’s unexpected appreciation. This financial impact is detailed in their consolidated financial results, indicating potential implications for their operational performance.

The most recent analyst rating on (JP:5110) stock is a Buy with a Yen2100.00 price target. To see the full list of analyst forecasts on Sumitomo Rubber Industries stock, see the JP:5110 Stock Forecast page.

Sumitomo Rubber Industries Announces Share Repurchase Plan

Sumitomo Rubber Industries has announced a decision by its Board of Directors to repurchase up to 200,000 shares of its own common stock, with a maximum acquisition cost of 400 million yen. This repurchase is intended to support a restricted stock compensation plan approved in 2022, which aims to deliver shares as compensation over multiple fiscal years, potentially impacting shareholder value and stock market operations.

The most recent analyst rating on (JP:5110) stock is a Buy with a Yen2100.00 price target. To see the full list of analyst forecasts on Sumitomo Rubber Industries stock, see the JP:5110 Stock Forecast page.

Sumitomo Rubber Industries Reports Q1 2025 Financial Results and Revises Year-End Forecast

Sumitomo Rubber Industries reported a decline in its financial performance for the first quarter of 2025, with sales revenue decreasing by 1.2% and operating profit dropping by 40.5% compared to the previous year. The company also revised its financial forecast for the full year, expecting a slight increase in sales revenue but a significant improvement in operating profit, indicating a strategic focus on enhancing profitability despite current challenges.

The most recent analyst rating on (JP:5110) stock is a Buy with a Yen2100.00 price target. To see the full list of analyst forecasts on Sumitomo Rubber Industries stock, see the JP:5110 Stock Forecast page.

Sumitomo Rubber Completes DUNLOP Trademark Acquisition from Goodyear

Sumitomo Rubber Industries has completed the acquisition of the DUNLOP trademark and related rights for four-wheel vehicles in Europe, North America, and Oceania from Goodyear. This acquisition, valued at 631 million US dollars, is part of Sumitomo’s strategy to maximize the DUNLOP brand’s value and achieve its long-term corporate goals under the R.I.S.E. 2035 strategy. The company is assessing the acquisition’s impact on its financial results for the fiscal year ending December 2025.

Sumitomo Rubber Completes Treasury Share Disposal for Compensation

Sumitomo Rubber Industries has completed the payment for the disposal of 10,000 treasury shares as restricted stock compensation, with a total disposal amount of 19,855,000 yen. This strategic move is aimed at aligning the interests of its directors with the company’s performance, potentially enhancing governance and operational efficiency.