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Sumitomo Metal Mining Co Ltd (JP:5713)
:5713
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Sumitomo Metal Mining Co (5713) AI Stock Analysis

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JP:5713

Sumitomo Metal Mining Co

(OTC:5713)

Rating:54Neutral
Price Target:
¥3,564.00
▲(2.83%Upside)
The overall stock score of 54 reflects significant operational challenges and valuation concerns. Financial performance indicates profitability and cash flow struggles, while technical analysis shows mixed signals with some positive momentum. The high P/E ratio suggests overvaluation, offset slightly by a reasonable dividend yield.

Sumitomo Metal Mining Co (5713) vs. iShares MSCI Japan ETF (EWJ)

Sumitomo Metal Mining Co Business Overview & Revenue Model

Company DescriptionSumitomo 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 MoneySumitomo Metal Mining Co. generates revenue through several key streams. Its mining segment involves the exploration and extraction of mineral resources, primarily focusing on copper, nickel, and gold. The company processes these raw materials through its smelting and refining operations, producing high-quality metals for industrial applications. Additionally, SMM's advanced materials division supplies electronic materials and components, leveraging its expertise in metallurgy to cater to the semiconductor and automotive industries. Strategic partnerships and joint ventures, such as collaborations with global mining companies, also play a crucial role in enhancing its production capabilities and expanding market reach. The company's diversified portfolio and integrated operations across the supply chain enable it to capitalize on fluctuations in commodity prices and meet the demands of various industries.

Sumitomo Metal Mining Co Financial Statement Overview

Summary
Sumitomo Metal Mining Co faces operational and profitability challenges, with declining margins and profit growth. The balance sheet reflects a solid equity base but increasing debt levels, posing potential risks. Cash flow management requires attention, particularly in capital expenditures, to enhance free cash flow generation.
Income Statement
45
Neutral
Sumitomo Metal Mining Co experienced a decline in profitability, with a negative EBIT margin indicating operational challenges. The net profit margin decreased considerably as net income dropped sharply from the previous year. The company faced revenue growth challenges, showing only modest growth in recent years. However, EBITDA remains positive, suggesting some operational efficiency.
Balance Sheet
60
Neutral
The company maintains a strong equity position with a high equity ratio, reflecting stability in its capital structure. However, there is a noticeable increase in total debt, which raises potential leverage concerns. Return on equity has decreased, indicating reduced profitability from shareholders' investments.
Cash Flow
55
Neutral
Operating cash flow has stabilized, but free cash flow growth has turned negative, indicating stress in cash generation after capital expenditures. While the operating cash flow to net income ratio has improved, the company needs to manage its capital expenditures more effectively to ensure sustainable cash flow generation.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.59T1.45T1.42T1.26T926.12B
Gross Profit58.51B166.13B250.11B257.79B150.88B
EBITDA107.80B170.31B255.35B350.24B166.05B
Net Income16.49B58.60B160.59B281.04B94.60B
Balance Sheet
Total Assets3.07T3.02T2.71T2.27T1.89T
Cash, Cash Equivalents and Short-Term Investments159.71B151.02B221.28B263.32B162.37B
Total Debt560.30B530.29B457.26B331.23B360.43B
Total Liabilities1.02T1.05T918.60B711.34B663.02B
Stockholders Equity1.85T1.78T1.63T1.45T1.11T
Cash Flow
Free Cash Flow32.50B82.60B-10.53B102.92B51.05B
Operating Cash Flow149.64B210.68B120.38B159.49B91.52B
Investing Cash Flow-125.73B-298.89B-185.50B9.80B-32.39B
Financing Cash Flow-19.34B7.09B49.34B-129.62B-55.76B

Sumitomo Metal Mining Co Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3466.00
Price Trends
50DMA
3430.54
Positive
100DMA
3274.96
Positive
200DMA
3499.37
Negative
Market Momentum
MACD
15.53
Positive
RSI
48.88
Neutral
STOCH
34.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5713, the sentiment is Negative. The current price of 3466 is below the 20-day moving average (MA) of 3528.65, above the 50-day MA of 3430.54, and below the 200-day MA of 3499.37, indicating a neutral trend. The MACD of 15.53 indicates Positive momentum. The RSI at 48.88 is Neutral, neither overbought nor oversold. The STOCH value of 34.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5713.

Sumitomo Metal Mining Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
54
Neutral
$960.05B58.250.90%3.02%10.24%-71.82%
44
Neutral
C$976.69M-6.88-14.61%2.56%17.52%-32.77%
$2.02B11.286.92%3.11%
$2.02B9.075.00%4.35%
$646.16M22.676.35%1.80%
€728.84M12.756.29%2.92%
€504.94M4.3614.23%1.74%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5713
Sumitomo Metal Mining Co
3,466.00
-960.21
-21.69%
DWMNF
Dowa Holdings Co
33.54
-0.23
-0.68%
MIMTF
Mitsubishi Materials
15.60
-2.06
-11.66%
TTNNF
Toho Titanium Company
7.72
-0.86
-10.02%
DE:7GI
Nittetsu Mining Co., Ltd.
42.60
15.49
57.14%
DE:FUR
Furukawa Co., Ltd.
13.40
3.00
28.85%

Sumitomo Metal Mining Co Corporate Events

Sumitomo Metal Mining Announces Share Repurchase Status
Jul 1, 2025

Sumitomo Metal Mining Co., Ltd. announced the status of its share repurchase program, revealing that it has repurchased 1,047,000 common shares at a total cost of 3,501,183,800 yen between June 1, 2025, and June 30, 2025. This move is part of a broader strategy approved by the Board of Directors to repurchase up to 8,300,000 shares, aiming to enhance shareholder value and optimize capital structure, with the total repurchase period extending until September 22, 2025.

The most recent analyst rating on (JP:5713) stock is a Sell with a Yen3100.00 price target. To see the full list of analyst forecasts on Sumitomo Metal Mining Co stock, see the JP:5713 Stock Forecast page.

Sumitomo Metal Mining Announces Share Repurchase Plan
Jun 2, 2025

Sumitomo Metal Mining Co., Ltd. announced the repurchase of 1,547,400 of its own common shares for approximately 5 billion yen, as part of a broader plan to buy back up to 8.3 million shares by September 2025. This move is likely aimed at enhancing shareholder value and optimizing the company’s capital structure, reflecting a strategic approach to bolster its market positioning.

The most recent analyst rating on (JP:5713) stock is a Buy with a Yen4800.00 price target. To see the full list of analyst forecasts on Sumitomo Metal Mining Co stock, see the JP:5713 Stock Forecast page.

Sumitomo Metal Mining Announces Dividend of Surplus
May 22, 2025

Sumitomo Metal Mining Co., Ltd. has announced a resolution to pay dividends of surplus, with a record date of March 31, 2025, and an effective date of June 27, 2025. The proposed dividend per share is 55.00 yen, reflecting the company’s financial strategy to maintain a consolidated equity ratio greater than 50% and a payout ratio of 35% or more. This decision aligns with their 2021 3-Year Business Plan, considering future business development and financial performance, resulting in an expected annual dividend of 104.00 yen per share for the fiscal year.

The most recent analyst rating on (JP:5713) stock is a Buy with a Yen4800.00 price target. To see the full list of analyst forecasts on Sumitomo Metal Mining Co stock, see the JP:5713 Stock Forecast page.

Sumitomo Metal Mining Introduces Restricted Share Compensation Plan
May 22, 2025

Sumitomo Metal Mining Co., Ltd. has announced the introduction of a restricted share-based compensation plan for its directors, aimed at aligning their interests with shareholders and enhancing corporate value. The plan, pending shareholder approval, will grant restricted shares based on performance indicators, encouraging directors to contribute to the company’s sustainable growth and value-sharing with stakeholders.

The most recent analyst rating on (JP:5713) stock is a Buy with a Yen4800.00 price target. To see the full list of analyst forecasts on Sumitomo Metal Mining Co stock, see the JP:5713 Stock Forecast page.

Sumitomo Metal Mining Announces Share Repurchase Plan
May 12, 2025

Sumitomo Metal Mining Co., Ltd. has announced a decision by its Board of Directors to repurchase up to 8.3 million of its own shares, representing 3.02% of outstanding shares, for a total of up to 15 billion yen. This move is part of the company’s 3-Year Business Plan 2027, aimed at enhancing shareholder returns and improving capital efficiency, potentially strengthening its market position and delivering value to stakeholders.

Sumitomo Metal Mining Unveils Ambitious 3-Year Business Plan
May 12, 2025

Sumitomo Metal Mining Co., Ltd. has announced its 3-Year Business Plan 2027, which outlines strategic initiatives to enhance corporate value and achieve its long-term vision of becoming a world leader in the non-ferrous metals industry. The plan focuses on increasing productivity in key mining operations, expanding development projects in metals and battery recycling, and strengthening its management base through sustainability and governance improvements. The company has set ambitious financial targets, including a significant increase in profit before tax and capital expenditures, alongside a revised dividend policy to enhance shareholder returns.

Sumitomo Metal Mining Revises Dividend Policy for Greater Stability
May 9, 2025

Sumitomo Metal Mining Co., Ltd. has announced changes to its dividend policy, increasing the minimum dividend on equity (DOE) ratio from 1.5% to 2.5% to ensure more stable shareholder returns despite market fluctuations. This adjustment reflects the company’s strategy to mitigate the impact of volatile non-ferrous metal prices and exchange rates on its business performance, aiming to enhance medium- to long-term corporate value.

Sumitomo Metal Mining Faces Impairment Loss and Adjusts Executive Compensation
May 9, 2025

Sumitomo Metal Mining Co., Ltd. reported a significant impairment loss in its battery materials business, leading to a notable discrepancy between its forecasted and actual consolidated operating results for the fiscal year ended March 31, 2025. Despite an increase in net sales, profits were adversely affected by the strengthening yen and the impairment loss, resulting in lower-than-expected earnings. In response to these financial challenges, certain corporate officers have opted to return a portion of their compensation. The company’s dividend forecast remains unchanged, indicating a commitment to shareholder returns despite the financial setbacks.

Sumitomo Metal Mining Faces Profit Decline Amid Market Challenges
May 9, 2025

Sumitomo Metal Mining Co., Ltd. reported a challenging financial year ending March 31, 2025, with a notable decline in profits despite a rise in net sales. The company’s profit before tax and profit attributable to owners of the parent decreased significantly by 67.2% and 71.9%, respectively, compared to the previous year. This downturn reflects broader market challenges and impacts on the company’s operational efficiency. However, the company has announced an increase in dividends per share, indicating a commitment to returning value to shareholders. Looking ahead, Sumitomo Metal Mining forecasts a recovery in profits for the next fiscal year, signaling potential improvements in market conditions and operational strategies.

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 29, 2025