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Sumitomo Rubber Industries
(5110)
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Rating:72Outperform
Price Target:
¥2,761.00
▲(29.05% Upside)
Action:Reiterated
Date:08/09/26
The score is driven primarily by improving profitability and margins alongside moderate balance-sheet risk, offset by weaker and more volatile cash-flow conversion (notably the sharp decline in free cash flow vs 2025). Technicals add support with strong uptrend signals across moving averages and positive MACD, while valuation is favorable with a low P/E and solid dividend yield.
Positive Factors
Margin Expansion
Multi-year margin expansion indicates improved pricing, product mix, and cost control that strengthen long-term profitability. Higher gross and net margins create a buffer against commodity swings and support sustainable operating cash generation and reinvestment capacity over months.
Negative Factors
Weakened Free Cash Flow
A large decline in free cash flow and FCF covering only half of net income reduce financial flexibility to fund capex, dividends, or debt reduction. Persistent cash conversion weakness raises risk that earnings improvements may not translate into reliably available cash.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Expansion
Multi-year margin expansion indicates improved pricing, product mix, and cost control that strengthen long-term profitability. Higher gross and net margins create a buffer against commodity swings and support sustainable operating cash generation and reinvestment capacity over months.
Read all positive factors
Sumitomo Rubber Industries (5110) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥630.15B
Dividend Yield3.5%
Average Volume (3M)1.09M
Price to Earnings (P/E)10.2
Beta (1Y)1.39
Revenue Growth4.82%
EPS GrowthN/A
CountryJP
Employees37,671
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)235.38
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
¥2,574.29Price Target Upside20.32% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)217.15
Revenue Forecast (FY)¥1.31T
Sumitomo Rubber Industries Business Overview & Revenue Model
Company Description
Sumitomo Rubber Industries, Ltd. is a global enterprise that, together with its subsidiaries, offers a diverse range of tires, sports equipment, and industrial and specialty products. Its extensive operations cover Japan, the broader Asian region,...
How the Company Makes Money
Sumitomo Rubber Industries makes money mainly by manufacturing and selling tires, which are typically its largest revenue driver. Revenue is generated from tire sales into multiple end-markets: (1) replacement tires sold through distributors, whol...
Sumitomo Rubber Industries Financial Statement Overview
Summary
Income Statement
71
Positive
Balance Sheet
70
Positive
Cash Flow
56
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.25T | 1.21T | 1.21T | 1.18T | 1.10T | 936.04B |
| Gross Profit | 396.33B | 368.37B | 358.29B | 326.50B | 253.22B | 259.70B |
| EBITDA | 188.47B | 179.28B | 106.71B | 152.68B | 101.52B | 115.29B |
| Net Income | 61.87B | 50.38B | 9.87B | 37.05B | 9.41B | 29.47B |
Balance Sheet | ||||||
| Total Assets | 1.51T | 1.46T | 1.34T | 1.27T | 1.23T | 1.09T |
| Cash, Cash Equivalents and Short-Term Investments | 98.69B | 98.64B | 100.38B | 90.25B | 73.85B | 75.09B |
| Total Debt | 347.78B | 322.05B | 315.52B | 310.93B | 357.89B | 283.75B |
| Total Liabilities | 737.41B | 723.62B | 665.31B | 625.30B | 661.34B | 572.63B |
| Stockholders Equity | 754.24B | 716.08B | 656.13B | 624.11B | 546.20B | 501.54B |
Cash Flow | ||||||
| Free Cash Flow | 46.81B | 91.53B | 47.53B | 106.50B | -39.45B | 15.36B |
| Operating Cash Flow | 117.39B | 150.43B | 104.33B | 169.80B | 27.87B | 63.09B |
| Investing Cash Flow | -93.58B | -186.56B | -64.66B | -62.23B | -78.70B | -53.24B |
| Financing Cash Flow | -23.32B | 30.88B | -35.62B | -95.57B | 41.56B | -14.11B |
Sumitomo Rubber Industries Technical Analysis
Positive
2139.50
Price Trends
2202.49
Positive
2105.79
Positive
2185.96
Positive
Market Momentum
57.40
Negative
59.14
Neutral
63.69
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 2139.5 is below the 20-day moving average (MA) of 2288.05, below the 50-day MA of 2202.49, and below the 200-day MA of 2185.96, indicating a bullish trend. The MACD of 57.40 indicates Negative momentum. The RSI at 59.14 is Neutral, neither overbought nor oversold. The STOCH value of 63.69 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | ¥584.97B | 9.80 | 12.94% | 3.38% | 3.55% | -9.71% | |
78 Outperform | ¥609.50B | 9.61 | 10.96% | 2.75% | 12.73% | 81.53% | |
75 Outperform | ¥5.22T | 12.75 | 9.60% | 3.16% | 6.06% | 120.85% | |
72 Outperform | ¥630.15B | 10.19 | 8.07% | 3.93% | 4.82% | ― | |
70 Outperform | ¥1.24T | 8.68 | 11.53% | 1.96% | 12.75% | 124.90% | |
69 Neutral | ¥125.18B | 11.06 | ― | 5.78% | 3.24% | 236.26% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
JP:5110
Sumitomo Rubber Industries
2,397.50
746.77
45.24%
JP:5108
Bridgestone
4,133.00
925.07
28.84%
JP:7282
Toyoda Gosei Co
5,208.00
1,801.75
52.90%
JP:5105
Toyo Tire
3,800.00
293.36
8.37%
JP:5101
Yokohama Rubber Co
7,850.00
2,555.35
48.26%
JP:5161
Nishikawa Rubber Co., Ltd.
3,420.00
485.68
16.55%
Sumitomo Rubber Industries Corporate Events
Sumitomo Rubber Outlines 2026 Midyear Results, Forecast and Shareholder Return Plans
Aug 6, 2026
Sumitomo Rubber Industries released its financial report for the first half of 2026, outlining second-quarter results, changes in its consolidation scope and affiliated companies, and a detailed summary of performance highlights. The company also ...
Sumitomo Rubber Lifts First-Half Profit and Raises 2026 Outlook, Dividend
Aug 6, 2026
Sumitomo Rubber Industries reported an 8.3% rise in sales revenue to ¥619.8 billion for the six months ended June 30, 2026, with business profit jumping 40.6% and profit attributable to owners of the parent soaring 79.9%. Profitability improv...
Sumitomo Rubber to Absorb Logistics Subsidiary in Group Restructuring
Jul 1, 2026
Sumitomo Rubber Industries has approved an absorption-type merger of its wholly owned subsidiary SRI Logistics, making the parent company the surviving entity and dissolving the logistics arm. The move, structured as a simplified merger without ne...
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...
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.