Sumitomo Metal Mining Co (5713) AI Stock Analysis

• Market Cap: ¥2.57T
• Dividend Yield: 1.98%
• Average Volume (3M): 2.79M
• Price to Earnings (P/E): 105.2
• Beta (1Y): 1.31
• Revenue Growth: 3.15%
• EPS Growth: -63.65%
• Country: JP
• Employees: 7,496
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 97.85
• Shares Outstanding: 290,814,030
• 10 Day Avg. Volume: 3,464,060
• 30 Day Avg. Volume: 2,792,036
• PEG Ratio: -0.75
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.56
• P/FCF Ratio: 32.44
• 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: ¥5,762.92
• Price Target Upside: -38.43% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: ¥10,003.00 ▲(6.87% Upside)

The score is held back primarily by weak profitability and deteriorating free cash flow despite strong revenue growth, alongside a very high P/E multiple. Technicals are supportive due to a strong uptrend, but extremely overbought momentum signals increase near-term risk.

Positive Factors

Integrated value chain

Owning upstream mining, midstream smelting/refining and downstream advanced materials creates durable vertical integration. This reduces reliance on third parties, captures value across the chain, and supports long-term margin capture and supply resilience in battery and industrial markets.

Strong revenue growth (TTM 89.2%)

Sustained, large top-line expansion indicates expanding production, asset monetization or growing end-market demand. Higher scale can enable better contract leverage, longer-term customer relationships, and funding for capex, supporting structural competitiveness over months to years.

Manageable leverage (D/E 0.33)

A relatively low debt-to-equity ratio limits refinancing and interest-rate stress, preserving financial flexibility to fund mining development and processing capacity. This balance sheet room supports multi‑year capex cycles and resiliency across commodity cycles.

Negative Factors

Weak profitability margins

Very slim gross and net margins and negative EBIT reflect limited pricing power or elevated operating costs. Persistently low margins constrain reinvestment, weaken cushioning against commodity and input cost swings, and hinder sustainable shareholder returns.

Sharp free cash flow decline

A steep fall in free cash flow growth and low cash conversion indicate earnings are not converting to spendable cash. This undermines the firm's ability to self‑fund capex, dividends or exploration, increasing reliance on external financing for long‑term projects.

Low return on equity (ROE 1.18%)

Very low ROE signals poor capital efficiency and weak value creation versus equity invested. Over time this limits the company's ability to compound shareholder wealth, reduces appeal for reinvestment, and pressures management to improve asset allocation or operational performance.

Sumitomo Metal Mining Co Business Overview & Revenue Model

Company Description

Sumitomo Metal Mining Co., Ltd., together with its subsidiaries, engages in mining, smelting, and refining non-ferrous metals in Japan and internationally. It operates through three segments: Mineral Resources, Smelting & Refining, and Materials. The company provides metal products, including copper, nickel/cobalt, gold/precious metal, and other deposits. It also offers Battery Materials, such as nickel hydroxides and lithium nickel-cobalt-aluminum oxides; crystal materials, including lithium tantalates/lithium niobates, optical isolators, and faraday rotators; powder materials comprising thick film pastes, nickel powders, fine copper powders, nickel oxides, near-infrared shielding materials, deep-tinting materials, sputtering targets/tablets, electromagnetic sheets and coils, rare earth magnetic materials, and lubricants; package materials consisting of copper-clad polyimide films and printed wiring boards; automotive/chemical, hydro processing (HPC), rejuvenation and regeneration of HPC, and petrochemical catalysts products; construction materials; and terminal and connectors, and lens barrels. In addition, the company is involved in the water and precious recycling; water treatment and environment-related engineering; sterilization and property modification by irradiation; and domestic marine transportation businesses. Additionally, it engages in the real estate and technical engineering businesses. The company was formerly known as Seika Kogyo (Mining) Co., Ltd. and changed its name to Sumitomo Metal Mining Co., Ltd. in June 1952. Sumitomo Metal Mining Co., Ltd. was founded in 1590 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Sumitomo Metal Mining generates revenue primarily through the extraction, processing, and sale of non-ferrous metals. The main revenue streams include the sales of copper, gold, and nickel, which are sold to various industries worldwide. The company's mining operations in countries like Japan, the Philippines, and Peru contribute significantly to its output. Additionally, SMM earns income from smelting and refining services, as well as from by-products generated during these processes. Strategic partnerships and joint ventures, particularly in mineral exploration and development, further enhance its earnings potential. The demand for advanced materials, especially in sectors like electronics and renewable energy, also positions SMM favorably in a growing market, thereby contributing to its overall profitability.

Sumitomo Metal Mining Co Financial Statement Overview

Summary

Financials are mixed: very strong TTM revenue growth (89.2%) is offset by weak profitability (gross margin 2.96%, net margin 1.40%) and a negative EBIT margin. Cash generation is pressured with sharply lower free cash flow growth (-71.16% TTM) and only moderate cash conversion (operating cash flow to net income 0.34). Balance sheet leverage is manageable (debt-to-equity 0.33), but returns are low (ROE 1.18%).

Income Statement

The income statement shows a mixed performance. The TTM data indicates a significant revenue growth rate of 89.2%, but profitability metrics such as gross profit margin (2.96%) and net profit margin (1.40%) are relatively low. The EBIT margin is negative, reflecting operational challenges. Historical data shows declining margins, indicating potential issues in cost management or pricing power.

Balance Sheet

The balance sheet reflects moderate financial stability. The debt-to-equity ratio is 0.33, suggesting manageable leverage. Return on equity is low at 1.18%, indicating limited efficiency in generating returns on shareholders' equity. The equity ratio is reasonable, showing a balanced capital structure.

Cash Flow

Cash flow analysis reveals challenges, with a significant decline in free cash flow growth (-71.16% TTM). The operating cash flow to net income ratio is 0.34, indicating moderate cash generation efficiency. The free cash flow to net income ratio is 0.35, suggesting limited free cash flow relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.58T	1.59T	1.45T	1.42T	1.26T	926.12B
Gross Profit	63.37B	58.51B	166.13B	250.11B	257.79B	150.88B
EBITDA	72.08B	116.50B	170.31B	234.09B	252.98B	154.16B
Net Income	23.92B	16.49B	58.60B	160.59B	281.04B	94.60B
Balance Sheet
Total Assets	3.02T	3.07T	3.02T	2.71T	2.27T	1.89T
Cash, Cash Equivalents and Short-Term Investments	142.21B	164.02B	151.02B	215.01B	213.98B	158.37B
Total Debt	591.22B	560.30B	530.29B	467.23B	341.81B	371.93B
Total Liabilities	1.03T	1.02T	1.05T	918.60B	711.34B	663.02B
Stockholders Equity	1.80T	1.85T	1.78T	1.63T	1.45T	1.11T
Cash Flow
Free Cash Flow	17.11B	27.49B	82.60B	-10.53B	102.92B	51.05B
Operating Cash Flow	110.72B	149.64B	210.68B	120.38B	159.49B	91.52B
Investing Cash Flow	-93.15B	-138.88B	-298.89B	-185.50B	9.80B	-32.39B
Financing Cash Flow	-54.84B	-6.18B	7.09B	49.34B	-129.62B	-55.76B

Sumitomo Metal Mining Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9360.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5713, the sentiment is Positive. The current price of 9360 is above the 20-day moving average (MA) of 7987.10, above the 50-day MA of 6579.16, and above the 200-day MA of 4544.12, indicating a bullish trend. The MACD of 784.20 indicates Negative momentum. The RSI at 74.81 is Negative, neither overbought nor oversold. The STOCH value of 85.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5713.

Sumitomo Metal Mining Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5715	77 Outperform	¥167.86B	11.04	11.58%	1.62%	9.81%	30.20%
1515	74 Outperform	¥290.28B	29.11	6.77%	2.30%	8.19%	34.88%
5727	68 Neutral	¥132.45B	38.50	5.78%	1.49%	0.82%	-1.72%
5714	64 Neutral	¥548.26B	27.12	5.02%	2.12%	-7.98%	-42.51%
5711	63 Neutral	¥581.11B	39.03	2.14%	2.83%	-0.64%	-65.65%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5713	53 Neutral	¥2.57T	105.19	1.33%	1.98%	3.15%	-63.65%

Sumitomo Metal Mining Co Corporate Events

Sumitomo Metal Mining Reports Improved Profit Despite Sales Dip

Sumitomo Metal Mining Co., Ltd. reported a slight decline in net sales for the six months ending September 30, 2025, compared to the same period last year. Despite this, the company saw an increase in profit before tax and profit attributable to owners of the parent, indicating improved operational efficiency. The company has revised its forecast for the fiscal year ending March 31, 2026, expecting a significant increase in profit, which suggests a positive outlook for stakeholders.

The most recent analyst rating on (JP:5713) stock is a Hold with a Yen5592.00 price target. To see the full list of analyst forecasts on Sumitomo Metal Mining Co stock, see the JP:5713 Stock Forecast page.