tiprankstipranks
Sumitomo Electric Industries Ltd (JP:5802)
:5802
Want to see JP:5802 full AI Analyst Report?

Sumitomo Electric Industries (5802) AI Stock Analysis

12 Followers

Top Page

JP:5802

Sumitomo Electric Industries

(5802)

Select Model
Select Model
Select Model
Neutral 63 (OpenAI - 5.2)
Rating:63Neutral
Price Target:
¥2,299.00
▼(-6.89% Downside)
Action:Reiterated
Date:08/07/26
The score is primarily supported by improving financial performance—stronger profitability and a meaningfully de-risked balance sheet. This is offset by weak technicals (price below key moving averages and negative MACD) and only moderate/volatile cash-flow conversion, while valuation looks broadly reasonable with a modest dividend yield.
Positive Factors
Multi-year revenue growth
Sustained revenue scaling over multiple years indicates durable demand traction across product lines and successful commercial execution. Growing top-line supports scale economies, investment capacity and diversification benefits, making operational leverage and long-term margin improvement more attainable.
Negative Factors
Volatile free cash flow conversion
Intermittent free cash flow and working-capital sensitivity constrain the company’s ability to fund capex, pursue M&A or increase distributions without reducing liquidity. Persistent volatility raises execution risk on multi-year projects and limits predictability of cash available for strategic uses.
Read all positive and negative factors
Positive Factors
Negative Factors
Multi-year revenue growth
Sustained revenue scaling over multiple years indicates durable demand traction across product lines and successful commercial execution. Growing top-line supports scale economies, investment capacity and diversification benefits, making operational leverage and long-term margin improvement more attainable.
Read all positive factors

Sumitomo Electric Industries (5802) vs. iShares MSCI Japan ETF (EWJ)

Sumitomo Electric Industries Business Overview & Revenue Model

Company Description
Sumitomo Electric Industries, Ltd., headquartered in Osaka, Japan, is a global manufacturer and distributor primarily focused on electrical wires and cables. Its extensive operations are segmented into Automotive, Infocommunications, Electronics, ...
How the Company Makes Money
Sumitomo Electric makes money primarily by manufacturing and selling engineered products and systems, with revenue generated across several major business lines: 1) Automotive-related products - The company earns revenue by supplying automotive c...

Sumitomo Electric Industries Financial Statement Overview

Summary
Overall fundamentals are strengthening: revenue scaled materially over multiple years and profitability recovered with net margin expanding to ~7.2% (2026). The balance sheet has de-risked meaningfully with debt-to-equity improving to ~0.23 (2026). The main drag is cash-flow quality/consistency—free cash flow has been volatile historically and conversion is only moderate (~48% of net income in 2026).
Income Statement
74
Positive
Balance Sheet
80
Positive
Cash Flow
66
Positive
BreakdownTTMMar 2026Mar 2026Mar 2025Mar 2024Mar 2023
Income Statement
Total Revenue5.29T5.11T4.68T4.40T4.01T3.37T
Gross Profit1.09T1.03T880.13B767.59B669.98B573.94B
EBITDA772.89B738.72B540.65B474.20B408.64B346.83B
Net Income400.80B369.51B193.77B149.72B112.65B96.31B
Balance Sheet
Total Assets5.14T4.82T4.44T4.37T4.01T3.81T
Cash, Cash Equivalents and Short-Term Investments264.73B236.98B295.90B269.74B283.43B259.58B
Total Debt737.70B620.54B775.87B801.50B960.37B859.79B
Total Liabilities2.22T1.99T1.91T1.93T1.90T1.75T
Stockholders Equity2.83T2.74T2.29T2.21T1.90T1.77T
Cash Flow
Free Cash Flow0.00202.96B202.43B214.14B80.72B-98.06B
Operating Cash Flow0.00425.19B402.25B393.46B265.19B76.00B
Investing Cash Flow0.00-174.86B-223.90B-123.81B-147.82B-165.45B
Financing Cash Flow0.00-326.03B-150.82B-292.31B-98.29B82.82B

Sumitomo Electric Industries Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2469.00
Price Trends
50DMA
2716.51
Negative
100DMA
2650.16
Negative
200DMA
2178.10
Negative
Market Momentum
MACD
-146.13
Negative
RSI
41.59
Neutral
STOCH
50.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5802, the sentiment is Negative. The current price of 2469 is above the 20-day moving average (MA) of 2326.82, below the 50-day MA of 2716.51, and above the 200-day MA of 2178.10, indicating a bearish trend. The MACD of -146.13 indicates Negative momentum. The RSI at 41.59 is Neutral, neither overbought nor oversold. The STOCH value of 50.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5802.

Sumitomo Electric Industries Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥650.92B10.2610.96%2.75%12.73%81.53%
71
Outperform
¥5.42T12.268.64%3.26%7.51%13.94%
71
Outperform
¥1.87T9.9415.50%2.17%16.35%111.68%
71
Outperform
¥760.94B33.412.64%2.28%6.85%-54.33%
63
Neutral
¥6.91T17.0014.96%1.56%12.30%103.31%
63
Neutral
¥1.60T9.898.25%2.92%5.69%27.94%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5802
Sumitomo Electric Industries
2,129.50
1,169.69
121.87%
JP:7276
Koito Manufacturing Co
2,696.00
730.75
37.18%
JP:7259
Aisin Seiki Co
2,258.00
73.74
3.38%
JP:6902
DENSO
1,929.50
-107.74
-5.29%
JP:5334
NGK SPARK PLUG CO
9,837.00
4,920.81
100.09%
JP:7282
Toyoda Gosei Co
5,165.00
1,792.56
53.15%

Sumitomo Electric Industries Corporate Events

Sumitomo Electric Posts Strong Q1 Gains and Adjusts Outlook After Stock Split
Jul 31, 2026
Sumitomo Electric reported strong consolidated results for the three months ended June 30, 2026, with net sales up 15.9% year-on-year to ¥1,330.6 billion and profit attributable to owners of the parent surging 89.1% to ¥66.4 billion, dri...
Sumitomo Electric Lifts Year-End Dividend After Earnings Beat
May 12, 2026
Sumitomo Electric Industries has announced a sharp increase in its year-end dividend for the fiscal year ended March 31, 2026, after its board approved a payout of 104 yen per share, up from 61 yen a year earlier and well above the latest forecast...
Sumitomo Electric Posts Profit Surge, Hikes Dividend and Plans Stock Split
May 12, 2026
Sumitomo Electric Industries reported strong consolidated results for the fiscal year ended March 31, 2026, with net sales rising 9.2% to ¥5.11 trillion and operating profit jumping 30.4% to ¥418.2 billion. Profit attributable to owners ...
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: Aug 07, 2026