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Sumitomo Riko Company Limited (JP:5191)
:5191
Japanese Market
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Sumitomo Riko Company Limited (5191) AI Stock Analysis

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JP:5191

Sumitomo Riko Company Limited

(5191)

Rating:77Outperform
Price Target:
¥2,062.00
▲(11.70%Upside)
Sumitomo Riko Company Limited's stock is bolstered by strong financial performance and attractive valuation metrics, with a particularly low P/E ratio and a solid dividend yield. The technical analysis supports a bullish outlook, although caution is warranted due to potential overbought conditions. The lack of recent earnings call data or corporate events does not detract from the positive overall assessment.

Sumitomo Riko Company Limited (5191) vs. iShares MSCI Japan ETF (EWJ)

Sumitomo Riko Company Limited Business Overview & Revenue Model

Company DescriptionSumitomo 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 MoneySumitomo 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 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
70
Positive
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
65
Positive
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
68
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue633.33B615.45B541.01B445.99B397.94B
Gross Profit105.75B99.72B76.92B58.90B57.89B
EBITDA72.73B65.30B48.59B32.18B32.41B
Net Income27.42B18.64B6.68B-6.36B-4.96B
Balance Sheet
Total Assets450.43B441.76B420.01B408.28B379.50B
Cash, Cash Equivalents and Short-Term Investments55.02B42.01B29.67B29.64B31.87B
Total Debt79.80B92.71B114.89B114.43B99.58B
Total Liabilities207.62B219.31B230.34B229.25B208.03B
Stockholders Equity214.77B196.36B167.10B157.88B152.64B
Cash Flow
Free Cash Flow33.29B40.20B6.83B-13.14B5.07B
Operating Cash Flow66.05B68.55B33.34B14.15B29.83B
Investing Cash Flow-31.78B-24.14B-25.51B-24.96B-26.13B
Financing Cash Flow-23.64B-32.41B-8.91B6.94B-6.03B

Sumitomo Riko Company Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1846.00
Price Trends
50DMA
1696.84
Positive
100DMA
1655.41
Positive
200DMA
1605.93
Positive
Market Momentum
MACD
48.28
Negative
RSI
64.89
Neutral
STOCH
76.15
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 1846 is above the 20-day moving average (MA) of 1749.90, above the 50-day MA of 1696.84, and above the 200-day MA of 1605.93, indicating a bullish trend. The MACD of 48.28 indicates Negative momentum. The RSI at 64.89 is Neutral, neither overbought nor oversold. The STOCH value of 76.15 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥114.54B26.81
4.02%2.32%-21.60%
78
Outperform
¥149.55B9.36
3.32%6.80%31.44%
77
Outperform
¥213.84B7.41
3.83%-0.95%21.31%
77
Outperform
¥194.16B7.04
2.89%2.91%47.09%
76
Outperform
¥116.75B8.56
3.69%7.29%13.03%
70
Outperform
¥223.47B27.86
1.50%-0.78%-2.01%
62
Neutral
AU$2.94B27.784.69%4.95%2.28%-33.31%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5191
Sumitomo Riko Company Limited
1,870.00
542.15
40.83%
JP:5161
Nishikawa Rubber Co., Ltd.
2,859.00
1,936.89
210.05%
JP:6995
TOKAI RIKA CO., LTD.
2,456.00
513.79
26.45%
JP:7220
Musashi Seimitsu Industry Co., Ltd.
3,340.00
1,355.42
68.30%
JP:7283
Aisan Industry Co., Ltd.
1,809.00
571.38
46.17%
JP:7296
F.C.C.Co., Ltd.
3,010.00
915.29
43.70%

Sumitomo Riko Company Limited Corporate Events

Sumitomo Riko Affirms Independence and Shareholder Protections in Parent Company Relations
Jun 20, 2025

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
May 9, 2025

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
May 9, 2025

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
May 9, 2025

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.

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.Date of analysis: Jul 18, 2025