Sumitomo Riko Company Limited (5191) AI Stock Analysis

• Market Cap: ¥233.30B
• Dividend Yield: 2.4%
• Average Volume (3M): 144.60K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 1.11
• Revenue Growth: 0.49%
• EPS Growth: 27.98%
• Country: JP
• Employees: 25,692
• Sector: Consumer Cyclical
• Sector Strength: 82
• Industry: Auto - Parts
• EPS (TTM): 55.51
• Shares Outstanding: 104,042,810
• 10 Day Avg. Volume: 140,810
• 30 Day Avg. Volume: 144,596
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥2,458.00
• Price Target Upside: 9.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ¥2,458.00 ▲(9.39% Upside)

Sumitomo Riko's stock is supported by strong technical momentum and attractive valuation metrics. Despite some financial performance concerns, particularly in revenue and cash flow trends, the stock's current market position and valuation make it appealing. Investors should be cautious of the overbought technical indicators, which may signal a short-term correction.

Sumitomo Riko Company Limited Business Overview & Revenue Model

Company Description

Sumitomo Riko Company Limited, a member of the Sumitomo Group, is a globally operating company that primarily engages in the development and manufacturing of anti-vibration rubber products, thermal management products, and soundproofing materials. The company's core sectors include automotive, infrastructure, and information technology, where it provides critical components that enhance the comfort, safety, and functionality of vehicles and other equipment. Sumitomo Riko is known for its innovative solutions that contribute to noise reduction, vibration control, and thermal management.

How the Company Makes Money

Sumitomo Riko Company Limited generates its revenue through multiple streams primarily centered around the automotive industry. The company's main revenue stream comes from the production and sale of anti-vibration rubber products and other related components to major automobile manufacturers worldwide. These products are essential for reducing noise and vibration in vehicles, which improves ride quality and comfort. Additionally, the company manufactures and sells soundproofing materials and thermal management products, which are also supplied to automotive original equipment manufacturers (OEMs) and aftermarket suppliers. Sumitomo Riko benefits from strategic partnerships and collaborations with leading automotive companies, which help to secure long-term contracts and stable revenue streams. Furthermore, the company is expanding its presence in infrastructure and information technology sectors, where it applies its materials technology to develop solutions for a broader range of applications.

Sumitomo Riko Company Limited Financial Statement Overview

Summary

Sumitomo Riko demonstrates a stable financial position with consistent profitability but declining revenue growth. The balance sheet is strong with improved leverage ratios, while the cash flow statement highlights the need for better cash management.

Income Statement

Sumitomo Riko has shown a mixed performance in its income statement. The gross profit margin and net profit margin are relatively stable, indicating consistent profitability. However, the revenue growth rate has turned negative in the TTM period, which is a concern. The EBIT and EBITDA margins are moderate, suggesting operational efficiency but with room for improvement.

Balance Sheet

The balance sheet reflects a strong equity position with a debt-to-equity ratio that has improved over time, indicating reduced leverage. The return on equity has shown improvement, suggesting better utilization of shareholder funds. The equity ratio is healthy, indicating a solid financial foundation.

Cash Flow

The cash flow statement shows a decline in free cash flow growth, which is concerning. However, the operating cash flow to net income ratio is stable, indicating that the company is generating sufficient cash from its operations. The free cash flow to net income ratio is reasonable, but the negative growth trend needs attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	630.50B	633.33B	615.45B	541.01B	445.99B	397.94B
Gross Profit	106.88B	105.75B	99.72B	76.92B	58.90B	57.89B
EBITDA	73.04B	72.73B	65.30B	48.59B	32.18B	32.41B
Net Income	27.26B	27.42B	18.64B	6.68B	-6.36B	-4.96B
Balance Sheet
Total Assets	451.55B	450.43B	441.76B	420.01B	408.28B	379.50B
Cash, Cash Equivalents and Short-Term Investments	63.05B	55.02B	42.01B	29.67B	28.48B	31.87B
Total Debt	84.33B	79.80B	92.71B	114.89B	114.43B	99.58B
Total Liabilities	210.76B	207.62B	219.31B	230.34B	229.25B	208.03B
Stockholders Equity	212.72B	214.77B	196.36B	167.10B	157.88B	152.64B
Cash Flow
Free Cash Flow	33.10B	33.29B	40.20B	6.83B	-13.14B	5.07B
Operating Cash Flow	67.53B	66.05B	68.55B	33.34B	14.15B	29.83B
Investing Cash Flow	-33.81B	-31.78B	-24.14B	-25.51B	-24.96B	-26.13B
Financing Cash Flow	-30.39B	-23.64B	-32.41B	-8.91B	6.94B	-6.03B

Sumitomo Riko Company Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2247.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5191, the sentiment is Positive. The current price of 2247 is above the 20-day moving average (MA) of 2121.00, above the 50-day MA of 1923.78, and above the 200-day MA of 1689.46, indicating a bullish trend. The MACD of 83.64 indicates Positive momentum. The RSI at 77.46 is Negative, neither overbought nor oversold. The STOCH value of 74.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5191.

Sumitomo Riko Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7296	81 Outperform	¥157.17B	9.79		6.31%	2.11%	16.65%
7283	80 Outperform	¥127.71B	10.79		3.37%	1.71%	-11.98%
5161	78 Outperform	¥123.33B	33.63		3.69%	-1.11%	-33.77%
6995	77 Outperform	¥238.44B	9.22		3.44%	-1.35%	21.33%
5191	74 Outperform	¥233.30B	8.56		2.40%	0.49%	27.98%
7220	65 Neutral	¥208.15B	31.96		1.57%	-4.23%	-28.48%
Sector *	61 Neutral	$17.99B	12.87	-3.56%	2.97%	1.27%	-14.28%

Sumitomo Riko Company Limited Corporate Events

Sumitomo Riko Revises Financial and Dividend Forecasts Amid Currency Fluctuations

Sumitomo Riko Company Limited has revised its financial forecasts for the first half and full fiscal year ending March 31, 2026, reflecting changes in sales expectations and profit margins. The company anticipates higher profits in the first half due to steady production at major clients and cost reduction efforts, despite the negative impact of yen appreciation on overseas sales. However, full-year sales forecasts have been lowered due to similar currency impacts and revised assumptions regarding cost pass-throughs related to US tariffs. Additionally, the company has increased its dividend forecast, indicating confidence in its financial stability amidst a challenging business environment.

Sumitomo Riko Reports Mixed Financial Results and Revised Forecasts

Sumitomo Riko Company Limited reported a slight decline in net sales for the three months ended June 30, 2025, compared to the previous year. Despite the decrease in sales, the company saw an increase in business and operating profits, indicating improved operational efficiency. The company revised its financial forecasts for the fiscal year ending March 31, 2026, projecting a decrease in annual net sales and profits, which may impact stakeholders’ expectations.

Sumitomo Riko Affirms Independence and Shareholder Protections in Parent Company Relations

Sumitomo Riko Company Limited announced its relationship with its parent company, Sumitomo Electric Industries, Ltd., emphasizing its operational independence despite being part of the larger corporate group. The company maintains autonomy in its business decisions and ensures that transactions with the parent company adhere to the arm’s length rule to protect minority shareholders. Measures such as requiring board approval for significant transactions and establishing a special committee for conflict resolution are in place to safeguard shareholder interests.