Sumitomo Riko Company Limited (5191) AI Stock Analysis

• Market Cap: ¥268.49B
• Dividend Yield: 2.94%
• Average Volume (3M): 130.73K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 1.12
• Revenue Growth: 2.19%
• EPS Growth: 27.44%
• Country: JP
• Employees: 25,692
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 57.41
• Shares Outstanding: 104,042,810
• 10 Day Avg. Volume: 132,620
• 30 Day Avg. Volume: 130,730
• PEG Ratio: 0.14
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.29
• P/FCF Ratio: 5.43
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: ¥2,968.00 ▲(14.73% Upside)

Sumitomo Riko Company Limited demonstrates strong financial performance with robust revenue and profit growth, efficient debt management, and solid cash flow generation. The technical indicators show a strong upward trend, although caution is advised due to potential overbought conditions. The stock's valuation is attractive with a low P/E ratio and a decent dividend yield, making it an appealing investment in the Auto - Parts industry.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Profitability

Improved profitability reflects efficient cost management and strong pricing power, enhancing the company's competitive position.

Debt Management

Effective debt management reduces financial risk and increases the company's ability to invest in growth opportunities.

Negative Factors

Free Cash Flow Decline

Declining free cash flow growth can limit the company's ability to fund new projects and return capital to shareholders.

Equity Ratio Stability

While stability is generally positive, a lack of improvement in the equity ratio may indicate missed opportunities for optimizing capital structure.

Free Cash Flow to Net Income

Although the ratio is positive, the decline in free cash flow growth could signal potential cash flow challenges if not addressed.

Sumitomo Riko Company Limited Business Overview & Revenue Model

Company Description

Sumitomo Riko Company Limited manufactures and sells automotive parts. It provides automotive products, including anti-vibration rubber products, such as heat-resistant rubber products, chassis parts, lightweight parts, active control parts, and dampers; hoses, including rubber and resin fuel, air control, water, oil, canisters, hydrogen, and air conditioner hoses; sound controlling and insulation products comprising standing wave spacers and engine cover products; heat conducting and sound reducing materials, including magnetic induction foaming; and interior equipment consisting of head rests and arm rests. The company also offers seal products, consisting of connector and wire seals; cell gaskets for fuel cell vehicles; and electronic products, including charging and developer rolls, cleaning blades, intermediate transfer belts, sponge and paper feeder rollers, water-developable flexographic printing plates. In addition, it provides hydraulic hoses used in heavy construction equipment and forklifts; industrial hoses for construction and civil engineering industry; anti-vibration rubber for rolling stocks; disc rubber bearings and seismic isolation rubber bearings used in bridges, highways, and railways; and landscape materials. Further, the company offers housing environment products, such as seismic control systems for wooden houses and buildings, dampers for traffic vibration mitigation, heavy floor impact noise countering dampers, window films against heat, and concrete molds used in construction and building; and health and nursing products, including body pressure sensors, training and evaluation systems for chest compression, and active mattress, as well as micro-fluid chips. The company was formerly known as Tokai Rubber Industries, Ltd. and changed its name to Sumitomo Riko Company Limited in October 2014. The company was founded in 1929 and is headquartered in Nagoya, Japan.

How the Company Makes Money

Sumitomo Riko generates revenue primarily through the sale of its rubber products and automotive components. Key revenue streams include the production and supply of vibration-damping systems, seals, and hoses for the automotive sector, which constitutes a significant portion of its earnings. The company also sells industrial rubber products and materials used in electronics and other applications. Strategic partnerships with leading automotive manufacturers enhance its market reach and contribute to consistent sales. Additionally, Sumitomo Riko invests in research and development to create advanced products, positioning itself competitively in the marketplace and driving future revenue growth.

Sumitomo Riko Company Limited Financial Statement Overview

Summary

Sumitomo Riko demonstrates a stable financial position with consistent profitability and a strong balance sheet. However, declining revenue growth and negative cash flow trends are areas of concern that need attention.

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	640.50B	633.33B	615.45B	541.01B	445.99B	397.94B
Gross Profit	109.39B	105.75B	99.72B	76.92B	58.90B	57.89B
EBITDA	74.58B	72.73B	65.30B	48.59B	32.18B	32.41B
Net Income	29.11B	27.42B	18.64B	6.68B	-6.36B	-4.96B
Balance Sheet
Total Assets	442.02B	450.43B	441.76B	420.01B	408.28B	379.50B
Cash, Cash Equivalents and Short-Term Investments	41.06B	55.02B	42.01B	29.67B	28.48B	31.87B
Total Debt	59.34B	79.80B	92.71B	114.89B	114.43B	99.58B
Total Liabilities	189.60B	207.62B	219.31B	230.34B	229.25B	208.03B
Stockholders Equity	223.41B	214.77B	196.36B	167.10B	157.88B	152.64B
Cash Flow
Free Cash Flow	29.84B	33.29B	40.20B	6.83B	-13.14B	5.07B
Operating Cash Flow	65.17B	66.05B	68.55B	33.34B	14.15B	29.83B
Investing Cash Flow	-34.73B	-31.78B	-24.14B	-25.51B	-24.96B	-26.13B
Financing Cash Flow	-42.86B	-23.64B	-32.41B	-8.91B	6.94B	-6.03B

Sumitomo Riko Company Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2587.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 2587 is below the 20-day moving average (MA) of 2591.65, above the 50-day MA of 2469.52, and above the 200-day MA of 1959.11, indicating a neutral trend. The MACD of 23.87 indicates Positive momentum. The RSI at 61.54 is Neutral, neither overbought nor oversold. The STOCH value of 51.72 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
6995	81 Outperform	¥270.97B	7.48	―	3.34%	1.36%	139.77%
7296	80 Outperform	¥181.10B	10.62	―	4.44%	2.01%	25.09%
5191	79 Outperform	¥268.49B	9.22	―	2.94%	2.19%	27.44%
7283	77 Outperform	¥145.65B	10.68	―	3.22%	0.29%	9.87%
5161	71 Outperform	¥109.80B	18.73	―	5.92%	-4.26%	17.85%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7220	61 Neutral	¥172.94B	18.91	―	1.90%	-3.23%	24.93%

Sumitomo Riko Company Limited Corporate Events

Sumitomo Riko Announces Amendments to Tender Offer Notice by Sumitomo Electric

Sumitomo Riko Company Limited has announced amendments to its previous notice regarding a tender offer by Sumitomo Electric Industries, Ltd., its controlling shareholder. The tender offer aims to make Sumitomo Riko a wholly owned subsidiary, indicating a strategic consolidation move that could impact its market operations and shareholder structure.

Sumitomo Riko Approves Tender Offer by Sumitomo Electric

Sumitomo Riko Company Limited’s board of directors has approved a tender offer by its controlling shareholder, Sumitomo Electric Industries, Ltd., to acquire all remaining shares and make the company a wholly-owned subsidiary. This move is expected to lead to the delisting of Sumitomo Riko’s stock, significantly impacting its market presence and shareholder structure.

Sumitomo Riko Revises Financial Forecasts and Dividend Plans Amid Tender Offer

Sumitomo Riko Company Limited has announced revisions to its full-year financial results forecast for the fiscal year ending March 31, 2026, reflecting changes in net sales and profits due to business restructuring expenses. The company has also decided to increase its interim dividend by 4 yen per share, while eliminating the year-end dividend, as part of a strategic move related to a tender offer by Sumitomo Electric Industries, Ltd., which aims to make Sumitomo Riko a wholly-owned subsidiary and delist its shares.

Sumitomo Riko Reports Strong Q2 FY2025 Financial Results

Sumitomo Riko Company Limited reported a 2.3% increase in net sales for the second quarter of FY2025, driven primarily by growth in the automotive products segment, which saw a 3.0% increase in sales. Despite a decline in general industrial products, the company achieved a 12.6% rise in business profit, reflecting improved operational efficiency and strategic market positioning. The geographical segment analysis showed notable sales growth in Japan and the Americas, while Asia experienced a decline. The company’s financial performance indicates a strong recovery trajectory, with positive implications for stakeholders and a stable outlook for future growth.

Sumitomo Riko Reports Modest Growth but Lowers Full-Year Forecast

Sumitomo Riko Company Limited reported a modest increase in its consolidated financial results for the six months ending September 30, 2025, with net sales rising by 2.3% year-on-year. Despite the positive performance in the first half of the fiscal year, the company revised its full-year financial forecasts downward, indicating expected declines in net sales, business profit, operating profit, and profit before tax, which may impact stakeholders’ expectations.