Sumitomo Rubber Industries Ltd (JP:5110)
:5110
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Sumitomo Rubber Industries
(5110)
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Rating:69Neutral
Price Target:
¥2,243.00
▲(5.83% Upside)
Action:Downgraded
Date:05/17/26
The score is driven primarily by improved financial performance (recovered margins/returns with manageable leverage) and strong valuation support (low P/E and solid dividend yield). These positives are tempered by softer recent free cash flow conversion and mixed technical momentum with a negative MACD and price below key moving averages.
Positive Factors
Recovered profitability and ROE
ROE recovery to ~8.1% and improved margins indicate the business has regained operating discipline and pricing power versus the weak 2022–2024 period. Sustained mid-single-digit ROE supports internal reinvestment, dividend capacity and resilience to cyclical input cost swings over months.
Negative Factors
Modest and uneven revenue growth
TTM revenue growth of only about 1% shows limited volume expansion and reliance on margins rather than scale. Over 2–6 months this constrains unit economics, limits operating leverage benefits, and increases dependence on pricing or cost cuts to sustain profit growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Recovered profitability and ROE
ROE recovery to ~8.1% and improved margins indicate the business has regained operating discipline and pricing power versus the weak 2022–2024 period. Sustained mid-single-digit ROE supports internal reinvestment, dividend capacity and resilience to cyclical input cost swings over months.
Read all positive factors
Sumitomo Rubber Industries (5110) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥534.74B
Dividend Yield2.59%
Average Volume (3M)1.09M
Price to Earnings (P/E)9.9
Beta (1Y)1.36
Revenue Growth1.09%
EPS GrowthN/A
CountryJP
Employees37,995
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)210.68
Shares Outstanding263,043,060
10 Day Avg. Volume1,079,310
30 Day Avg. Volume1,086,830
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)0.89
Price to Sales (P/S)0.53
P/FCF Ratio6.93
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥2,503.33Price Target Upside18.11% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)227.08
Revenue Forecast (FY)¥1.32T
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 v...
How the Company Makes Money
Sumitomo Rubber Industries primarily makes money by manufacturing and selling tires. Its key revenue stream is the sale of new tires (i) to automotive manufacturers as original equipment (OE) for new vehicles and (ii) to wholesalers, retailers, an...
Sumitomo Rubber Industries Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
68
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.22T | 1.21T | 1.21T | 1.18T | 1.10T | 936.04B |
| Gross Profit | 378.32B | 368.37B | 358.29B | 326.50B | 253.22B | 259.70B |
| EBITDA | 175.49B | 169.46B | 171.11B | 156.23B | 97.31B | 119.70B |
| Net Income | 55.38B | 50.38B | 9.87B | 37.05B | 9.41B | 29.47B |
Balance Sheet | ||||||
| Total Assets | 1.49T | 1.46T | 1.34T | 1.27T | 1.23T | 1.09T |
| Cash, Cash Equivalents and Short-Term Investments | 99.34B | 98.64B | 100.38B | 90.25B | 73.85B | 75.09B |
| Total Debt | 355.66B | 322.05B | 315.52B | 310.93B | 357.89B | 283.75B |
| Total Liabilities | 743.46B | 723.62B | 665.31B | 625.30B | 661.34B | 572.63B |
| Stockholders Equity | 725.72B | 716.08B | 656.13B | 624.11B | 546.20B | 501.54B |
Cash Flow | ||||||
| Free Cash Flow | 80.61B | 91.53B | 47.53B | 106.50B | -39.45B | 15.36B |
| Operating Cash Flow | 151.04B | 150.43B | 104.33B | 169.80B | 27.87B | 63.09B |
| Investing Cash Flow | -196.82B | -186.56B | -64.66B | -62.23B | -78.70B | -53.24B |
| Financing Cash Flow | 48.58B | 30.88B | -35.62B | -95.57B | 41.56B | -14.11B |
Sumitomo Rubber Industries Technical Analysis
Positive
2119.50
Price Trends
2052.85
Positive
2289.97
Negative
2098.60
Negative
Market Momentum
-14.30
Negative
54.66
Neutral
74.44
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 2119.5 is above the 20-day moving average (MA) of 2008.75, above the 50-day MA of 2052.85, and above the 200-day MA of 2098.60, indicating a neutral trend. The MACD of -14.30 indicates Negative momentum. The RSI at 54.66 is Neutral, neither overbought nor oversold. The STOCH value of 74.44 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | ¥562.65B | 8.90 | 15.27% | 2.93% | 2.97% | 0.49% | |
74 Outperform | ¥554.02B | 9.48 | 8.58% | 2.62% | 8.21% | 72.79% | |
73 Outperform | ¥4.28T | 12.76 | 6.59% | 3.07% | 1.37% | 32.33% | |
70 Outperform | ¥1.09T | 10.11 | 9.11% | 1.60% | 13.08% | 78.00% | |
69 Neutral | ¥534.74B | 9.88 | 4.89% | 2.59% | 1.09% | ― | |
69 Neutral | ¥111.63B | 10.43 | ― | 5.78% | 1.24% | 186.45% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
JP:5110
Sumitomo Rubber Industries
2,081.00
411.76
24.67%
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781.94
33.73%
Sumitomo Rubber Industries Corporate Events
Sumitomo Rubber Outlines First-Quarter 2026 Results and Full-Year Outlook
May 15, 2026
Sumitomo Rubber Industries released its financial report for the first quarter of 2026, covering the period from January 1 to March 31, outlining key results and operational developments. The disclosure also provided an updated forecast for full-y...
Sumitomo Rubber lifts Q1 profit and sticks to upbeat 2026 outlook
May 15, 2026
Sumitomo Rubber Industries reported a 5.0% year-on-year increase in first-quarter 2026 sales revenue to ¥302.2 billion, with business profit up 18.8% and profit attributable to owners of the parent surging 140.5%, reflecting improved profitab...
Sumitomo Rubber Finalizes Restricted Stock Compensation for Directors
Apr 24, 2026
Sumitomo Rubber Industries has completed the payment process for the disposal of its treasury shares used as restricted stock compensation, following a plan first announced in March 2025. The transaction involved allocating 11,000 shares of common...
Sumitomo Rubber Reaffirms Independence Despite Major Stake by Sumitomo Electric
Mar 30, 2026
Sumitomo Rubber Industries, Ltd., a major Japanese tire and rubber products maker listed on the TSE Prime Market, operates as part of the broader Sumitomo group while maintaining its own management and business base. The company identifies Sumitom...
Sumitomo Rubber Grants Treasury Shares as Restricted Stock to Directors
Mar 26, 2026
Sumitomo Rubber Industries will dispose of 11,000 treasury shares as restricted stock, worth about ¥23.4 million, to five internal directors as part of its stock-based compensation plan. The move is designed to tie executive rewards to sustai...
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.