Sumitomo Rubber Industries Ltd (JP:5110)
:5110
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Sumitomo Rubber Industries
(5110)
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Rating:70Outperform
Price Target:
¥2,307.00
▲(9.34% Upside)
Action:ReiteratedDate:03/03/26
The score is driven primarily by improving financial performance (strong 2025 revenue/profitability rebound and better free cash flow), tempered by historical volatility and increased debt. Technicals add moderate support with longer-term uptrend signals, while valuation is reasonable with a mid P/E and ~3% yield.
Positive Factors
Strong 2025 revenue and margin rebound
Sharp 2025 top-line and margin recovery (71% revenue growth; operating margin ~7.5%, net ~4.2%) signals restored pricing and volume leverage and improved cost absorption. Sustained revenue and margin expansion would strengthen earnings power, support reinvestment and durable free cash flow generation.
Negative Factors
Earnings and cash-flow volatility
Marked swings in earnings and cash flow reduce predictability of free cash flow and complicate capital allocation. For a capital-intensive auto-parts firm, volatility undermines planning for capex, dividends, and debt servicing and raises execution and refinancing risk during downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong 2025 revenue and margin rebound
Sharp 2025 top-line and margin recovery (71% revenue growth; operating margin ~7.5%, net ~4.2%) signals restored pricing and volume leverage and improved cost absorption. Sustained revenue and margin expansion would strengthen earnings power, support reinvestment and durable free cash flow generation.
Read all positive factors
Sumitomo Rubber Industries (5110) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥554.59B
Dividend Yield2.59%
Average Volume (3M)1.09M
Price to Earnings (P/E)12.6
Beta (1Y)1.30
Revenue Growth-0.26%
EPS Growth129.15%
CountryJP
Employees37,995
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)92.69
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
¥2,548.64Price Target Upside20.79% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)250.03
Revenue Forecast (FY)¥1.29T
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 main revenue stream is the tire business, where it supplies replacement tires to consumers and fleets through distributors and retailers, and sells original e...
Sumitomo Rubber Industries Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
67
Positive
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.21T | 1.21T | 1.18T | 1.10T | 936.04B |
| Gross Profit | 368.37B | 358.29B | 326.50B | 253.22B | 259.70B |
| EBITDA | 169.46B | 171.11B | 156.23B | 97.31B | 119.70B |
| Net Income | 50.38B | 9.87B | 37.05B | 9.41B | 29.47B |
Balance Sheet | |||||
| Total Assets | 1.46T | 1.34T | 1.27T | 1.23T | 1.09T |
| Cash, Cash Equivalents and Short-Term Investments | 98.64B | 100.38B | 90.25B | 73.85B | 75.09B |
| Total Debt | 322.05B | 315.52B | 310.93B | 357.89B | 283.75B |
| Total Liabilities | 723.62B | 665.31B | 625.30B | 661.34B | 572.63B |
| Stockholders Equity | 716.08B | 656.13B | 624.11B | 546.20B | 501.54B |
Cash Flow | |||||
| Free Cash Flow | 91.53B | 47.53B | 106.50B | -39.45B | 15.36B |
| Operating Cash Flow | 150.43B | 104.33B | 169.80B | 27.87B | 63.09B |
| Investing Cash Flow | -186.56B | -64.66B | -62.23B | -78.70B | -53.24B |
| Financing Cash Flow | 30.88B | -35.62B | -95.57B | 41.56B | -14.11B |
Sumitomo Rubber Industries Technical Analysis
Neutral
2110.00
Price Trends
2470.68
Negative
2364.73
Negative
2037.52
Positive
Market Momentum
-130.32
Positive
39.89
Neutral
46.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5110, the sentiment is Neutral. The current price of 2110 is below the 20-day moving average (MA) of 2233.87, below the 50-day MA of 2470.68, and above the 200-day MA of 2037.52, indicating a neutral trend. The MACD of -130.32 indicates Positive momentum. The RSI at 39.89 is Neutral, neither overbought nor oversold. The STOCH value of 46.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | ¥579.12B | 10.49 | 15.27% | 2.93% | 2.81% | 2.78% | |
75 Outperform | ¥496.21B | 7.76 | 8.58% | 2.62% | 1.44% | -0.92% | |
73 Outperform | ¥142.56B | 16.04 | ― | 5.78% | -4.26% | 17.85% | |
70 Outperform | ¥554.59B | 12.60 | 4.89% | 2.59% | -0.26% | 129.15% | |
68 Neutral | ¥4.28T | 14.28 | 6.59% | 3.07% | 0.24% | -23.93% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | ¥987.86B | 9.00 | 9.11% | 1.60% | 10.53% | -2.52% |
* Consumer Cyclical Sector Average
JP:5110
Sumitomo Rubber Industries
2,110.00
195.27
10.20%
JP:5108
Bridgestone
3,323.00
325.65
10.86%
JP:7282
Toyoda Gosei Co
4,240.00
1,452.73
52.12%
JP:5105
Toyo Tire
3,762.00
1,051.84
38.81%
JP:5101
Yokohama Rubber Co
6,264.00
2,737.48
77.63%
JP:5161
Nishikawa Rubber Co., Ltd.
3,895.00
1,647.73
73.32%
Sumitomo Rubber Industries Corporate Events
Sumitomo Rubber Overhauls Leadership Ahead of New Management Structure in 2026
Feb 12, 2026
Sumitomo Rubber Industries announced a broad reshuffle of its leadership, including changes to representative directors, directors, audit and supervisory board members, and executive officers, to establish a new management structure effective Marc...
Sumitomo Rubber Industries Lifts Year-End Dividend After Earnings Beat
Feb 12, 2026
Sumitomo Rubber Industries has approved a year-end dividend of ¥42 per share for the fiscal year ended December 31, 2025, up from the previous forecast of ¥35 and the prior year’s ¥29, with total dividends amounting to ¥1...
Sumitomo Rubber Industries Outlines 2025 Results and 2026 Outlook
Feb 12, 2026
Sumitomo Rubber Industries has released its financial report for the fiscal year ended December 31, 2025, outlining annual results, changes in the scope of consolidation and affiliated companies, and key performance highlights. The company also pr...
Sumitomo Rubber Lifts Profit and Dividends, Signals Further Growth in 2026
Feb 12, 2026
Sumitomo Rubber Industries reported full-year 2025 sales revenue of ¥1.21 trillion, essentially flat year on year, while business profit edged up 3.2% to ¥90.8 billion and operating profit surged on a recovery from the prior year’s...
Sumitomo Rubber Industries Announces CEO Succession and New Management Structure
Dec 25, 2025
Sumitomo Rubber Industries has announced a change in its top management, with the Board of Directors resolving to appoint Director and Senior Executive Officer Yasuaki Kuniyasu as the new Representative Director, President and CEO, effective March...
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.