Sumitomo Rubber Industries (5110) AI Stock Analysis

• Market Cap: $645.00B
• Dividend Yield: 2.61%
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): 20.3
• Beta (1Y): 1.13
• 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: 1.07
• Enterprise Value/Revenue: 0.58
• Enterprise Value/Gross Profit: 1.98
• Enterprise Value/Ebitda: 4.32
• 1Y Price Target: $2,800.74
• Price Target Upside: 14.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: ¥2,269.00 ▼(-7.54% Downside)

The overall stock score of 59 reflects a mixed outlook for Sumitomo Rubber Industries. The financial performance is under pressure with declining revenues and profitability challenges, which is a significant concern. Technical analysis shows strong momentum, but overbought indicators suggest caution. Valuation is reasonable with a fair P/E ratio and a decent dividend yield, providing some support to the stock's attractiveness.

Sumitomo Rubber Industries Business Overview & Revenue Model

Company Description

Sumitomo Rubber Industries, Ltd. (5110) is a prominent Japanese company engaged in the manufacturing and sale of tires and rubber products. Established in 1909, the company operates in various sectors, including automotive tires, industrial rubber products, and sports equipment. Its core products include passenger car tires, truck and bus tires, and specialty tires for various applications. Additionally, Sumitomo Rubber is involved in the production of golf equipment and other sporting goods, showcasing its diverse portfolio that caters to both consumer and industrial markets.

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	347.76B	358.29B	326.50B	253.22B	259.70B	232.18B
EBITDA	159.84B	106.66B	155.01B	101.45B	115.20B	101.02B
Net Income	-14.49B	9.87B	37.05B	9.41B	29.47B	22.60B
Balance Sheet
Total Assets	1.35T	1.34T	1.27T	1.23T	1.09T	974.80B
Cash, Cash Equivalents and Short-Term Investments	85.98B	102.64B	93.15B	80.80B	77.19B	75.60B
Total Debt	326.88B	252.44B	245.38B	311.80B	238.65B	217.43B
Total Liabilities	693.72B	665.31B	625.30B	661.34B	572.63B	507.71B
Stockholders Equity	641.46B	656.13B	624.11B	546.20B	501.54B	454.74B
Cash Flow
Free Cash Flow	55.57B	47.53B	97.51B	-47.05B	10.09B	77.50B
Operating Cash Flow	115.44B	104.33B	169.80B	27.87B	63.09B	123.50B
Investing Cash Flow	-166.35B	-64.66B	-62.23B	-78.70B	-54.02B	-45.59B
Financing Cash Flow	65.75B	-35.62B	-95.57B	41.56B	-13.33B	-61.88B

Sumitomo Rubber Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2454.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 2454 is above the 20-day moving average (MA) of 2252.88, above the 50-day MA of 2016.87, and above the 200-day MA of 1797.98, indicating a bullish trend. The MACD of 124.09 indicates Negative momentum. The RSI at 72.89 is Negative, neither overbought nor oversold. The STOCH value of 90.25 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	¥677.49B	9.33	15.27%	2.95%	2.81%	2.78%
5191	79 Outperform	¥268.91B	9.24	―	2.93%	2.19%	27.44%
5185	77 Outperform	¥30.65B	12.74	―	4.33%	-1.15%	-34.09%
5101	76 Outperform	$1.00T	12.55	9.11%	1.57%	10.53%	-2.52%
5161	71 Outperform	¥110.35B	18.82	―	5.97%	-4.26%	17.85%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
5110	59 Neutral	$645.00B	20.27	4.89%	2.61%	-0.26%	129.15%

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.