Sumitomo Riko Company Limited (5191) AI Stock Analysis

• Market Cap: ¥174.84B
• Dividend Yield: 4.28%
• Average Volume (3M): 195.61K
• Price to Earnings (P/E): 6.4
• Beta (1Y): 1.09
• Revenue Growth: 2.91%
• EPS Growth: 47.09%
• Country: JP
• Employees: 25,692
• Sector: Consumer Cyclical
• Sector Strength: 56
• Industry: Auto - Parts
• EPS (TTM): 50.38
• Shares Outstanding: 104,042,810
• 10 Day Avg. Volume: 203,690
• 30 Day Avg. Volume: 195,613
• PEG Ratio: -0.05
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.47
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: ¥1,795.00 ▲(3.40%Upside)

The overall score reflects strong financial performance and an attractive valuation, offset by neutral technical indicators. The company's stable balance sheet and profitability are major strengths, while technical analysis suggests cautious short-term trading.

Sumitomo Riko Company Limited Business Overview & Revenue Model

Company Description

Sumitomo Riko Company Limited is a Japanese industrial company that specializes in the production and sale of automotive components, industrial products, and materials. It operates primarily in the automotive and infrastructure sectors, providing products such as anti-vibration rubber, hoses for automobiles, and various industrial materials. Sumitomo Riko is part of the larger Sumitomo Group and leverages its technological expertise to deliver innovative solutions that enhance safety, comfort, and environmental performance.

How the Company Makes Money

Sumitomo Riko Company Limited generates revenue through the manufacturing and sale of automotive components, such as anti-vibration products and hoses, which are supplied to major automobile manufacturers around the world. The company also produces industrial materials, including thermal insulation and soundproofing materials, which are used in various infrastructure projects. Sumitomo Riko's earnings are bolstered by its strategic partnerships and collaborations with automotive OEMs, enabling it to secure long-term supply contracts. Additionally, the company invests in research and development to innovate and expand its product offerings, which helps maintain its competitive edge and drive sales growth.

Sumitomo Riko Company Limited Financial Statement Overview

Summary

Sumitomo Riko Company Limited exhibits a robust financial recovery with strong revenue and profit growth, supported by efficient operations and a stable balance sheet. The company's leverage is manageable, and cash flows are strengthening, though there is room for cash generation optimization.

Income Statement

Sumitomo Riko Company Limited shows a promising upward trend in revenue growth, with a notable increase of 2.91% from the previous year. Gross Profit Margin stands at 16.69%, and Net Profit Margin is 4.33%, indicating good profitability levels in the industry context. EBIT and EBITDA margins are healthy at 6.74% and 11.48%, respectively, reflecting efficient operations. The company has successfully turned around from losses in earlier years, marking a strong recovery.

Balance Sheet

The company's Debt-to-Equity Ratio is 0.37, showing a conservative capital structure. Return on Equity (ROE) is 12.77%, indicating effective use of equity. The Equity Ratio is 47.67%, which suggests a balanced approach between debt and equity financing. While leverage is moderate, the solid equity base provides stability.

Cash Flow

Free Cash Flow has shown growth, with an increase of 14.57% from the previous year, demonstrating improved cash generation capabilities. The Operating Cash Flow to Net Income Ratio is 2.41, and the Free Cash Flow to Net Income Ratio is 1.21, indicating strong cash flow coverage of earnings, although there's room for further optimization.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	633.33B	615.45B	541.01B	445.99B	397.94B
Gross Profit	105.75B	99.72B	76.92B	58.90B	57.89B
EBITDA	72.73B	65.30B	48.59B	32.18B	32.41B
Net Income	27.42B	18.64B	6.68B	-6.36B	-4.96B
Balance Sheet
Total Assets	450.43B	441.76B	420.01B	408.28B	379.50B
Cash, Cash Equivalents and Short-Term Investments	55.02B	42.01B	29.67B	29.64B	31.87B
Total Debt	79.80B	92.71B	114.89B	114.43B	99.58B
Total Liabilities	207.62B	219.31B	230.34B	229.25B	208.03B
Stockholders Equity	214.77B	196.36B	167.10B	157.88B	152.64B
Cash Flow
Free Cash Flow	33.29B	40.20B	6.83B	-13.14B	5.07B
Operating Cash Flow	66.05B	68.55B	33.34B	14.15B	29.83B
Investing Cash Flow	-31.78B	-24.14B	-25.51B	-24.96B	-26.13B
Financing Cash Flow	-23.64B	-32.41B	-8.91B	6.94B	-6.03B

Sumitomo Riko Company Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1736.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1736 is above the 20-day moving average (MA) of 1650.65, above the 50-day MA of 1643.66, and above the 200-day MA of 1582.63, indicating a bullish trend. The MACD of -1.25 indicates Negative momentum. The RSI at 57.14 is Neutral, neither overbought nor oversold. The STOCH value of 80.19 is Negative, 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
6995	81 Outperform	¥192.70B	6.80		4.48%	-0.95%	21.31%
5161	78 Outperform	¥104.17B	25.67		6.71%	2.32%	-21.60%
7296	78 Outperform	¥136.83B	8.60		4.52%	6.80%	31.44%
7220	70 Outperform	¥202.82B	26.05		1.62%	-0.78%	-2.01%
7283	70 Outperform	¥106.54B	7.93		4.40%	7.29%	13.03%
5191	69 Neutral	¥174.84B	6.38		4.28%	2.91%	47.09%
Sector *	66 Neutral	£1.85B	11.29	6.20%	3.10%	0.61%	-17.57%

Sumitomo Riko Company Limited Corporate Events

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.

Sumitomo Riko Achieves Compliance with Prime Market Listing Criteria

Sumitomo Riko Company Limited has successfully met the Tokyo Stock Exchange’s Prime Market Continued Listing Criteria as of March 31, 2025. This achievement follows a strategic plan initiated in 2021 to improve its tradable share ratio and other compliance metrics, ensuring the company’s continued presence in the Prime Market. The company has implemented measures such as selling shares by a corporate shareholder to enhance its tradable share ratio, reflecting its commitment to sustainable growth and enhanced corporate value over the medium to long term.

Sumitomo Riko Announces Increased Dividend and Extraordinary Loss

Sumitomo Riko Company Limited has announced an increased year-end dividend of 42 yen per share, up from the previous forecast of 36 yen, as part of its commitment to returning profits to shareholders. This decision aligns with the company’s Mid-Term Management Plan, which aims for a consolidated dividend payout ratio of 30% or more by the fiscal year ending March 31, 2026. Additionally, the company reported an extraordinary loss of 10,919 million yen in its non-consolidated financial statements due to a valuation loss on shares of associated companies and investments. However, this loss will not impact the consolidated profit or loss.

Sumitomo Riko Reports Modest Sales Growth and Dividend Increase Amid Profit Challenges

Sumitomo Riko Company Limited reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a modest increase in net sales by 2.9% to ¥633,331 million. Despite a decline in comprehensive income by 23.3%, the company experienced significant growth in operating profit and profit before tax, reflecting improved operational efficiency. The company also announced a substantial increase in annual dividends per share, indicating a positive outlook for shareholder returns. However, the forecast for the fiscal year ending March 31, 2026, suggests a slight decline in net sales and profits, highlighting potential challenges in maintaining growth momentum.