Sumitomo Electric Industries (5802) AI Stock Analysis

• Market Cap: ¥2.60T
• Dividend Yield: 2.31%
• Average Volume (3M): 3.14M
• Price to Earnings (P/E): 13.4
• Beta (1Y): 1.36
• Revenue Growth: 6.29%
• EPS Growth: 29.42%
• Country: JP
• Employees: 293,266
• Sector: Consumer Cyclical
• Sector Strength: 68
• Industry: Auto - Parts
• EPS (TTM): 102.70
• Shares Outstanding: 793,940,550
• 10 Day Avg. Volume: 3,459,300
• 30 Day Avg. Volume: 3,144,143
• PEG Ratio: 3.24
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥3,649.65
• Price Target Upside: 9.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 80 Outperform
• Price Target: ¥3,756.00 ▲(12.66%Upside)

Sumitomo Electric Industries scores highly due to its strong financial performance and positive technical indicators. The stock's fair valuation and attractive dividend yield further bolster its investment appeal. However, the lack of recent earnings call insights limits visibility into near-term strategic priorities.

Sumitomo Electric Industries Business Overview & Revenue Model

Company Description

Sumitomo Electric Industries, Ltd. is a Japanese multinational corporation that operates in multiple sectors including automotive, information and communications, electronics, environment and energy, and industrial materials. Founded in 1897, the company is headquartered in Osaka, Japan, and is renowned for its extensive range of products such as electric wires and cables, optical fibers, and advanced materials. Sumitomo Electric is committed to innovation and sustainability, providing solutions that cater to a variety of industries across the globe.

How the Company Makes Money

Sumitomo Electric Industries generates revenue through a diversified portfolio of products and services spanning several industries. The company's key revenue streams include the production and sale of automotive components, such as wiring harnesses, which are crucial for the electrical systems of vehicles. In the information and communications sector, Sumitomo Electric earns by manufacturing and selling optical fiber cables and related equipment, capitalizing on the growing demand for high-speed internet and telecommunications. Additionally, the company is involved in the electronics sector, providing semiconductor materials and electronic components. The environment and energy sector also contributes to its revenue through products like power cables and superconducting materials. Sumitomo Electric has strategic partnerships and collaborations with various global companies, enhancing its market reach and technological capabilities, which in turn, bolster its financial performance.

Sumitomo Electric Industries Financial Statement Overview

Summary

Sumitomo Electric Industries demonstrates robust financial health with strong revenue growth, solid profitability, and efficient cash flow management. While the balance sheet is stable with manageable leverage, further debt reduction could enhance resilience.

Income Statement

Sumitomo Electric Industries has shown strong revenue growth, increasing consistently over the past few years, with a notable rise of 6.3% from 2024 to 2025. The company also maintains healthy margins with a gross profit margin of 18.8% and an EBIT margin of 6.8% in 2025. The net profit margin has improved to 4.1%, indicating strong profitability. The EBITDA margin of 11.5% signifies solid operating efficiency. Overall, the income statement reflects robust financial health and strong growth trends.

Balance Sheet

The balance sheet of Sumitomo Electric Industries is stable, with a debt-to-equity ratio of 0.30, showcasing a manageable level of leverage. The return on equity (ROE) has improved to 8.5%, indicating effective use of shareholder equity to generate profits. The equity ratio stands at 51.6%, reflecting a strong capital structure and financial stability. Despite manageable debt levels, a focus on further reducing liabilities could enhance financial resilience.

Cash Flow

The company demonstrates strong cash flow management, with a significant free cash flow growth of -5.5% from 2024 to 2025, indicating a slight decline but still maintaining positive free cash flow. The operating cash flow to net income ratio of 2.08 suggests efficient cash generation relative to reported earnings. The free cash flow to net income ratio is 1.05, reinforcing strong cash flow conversion. Overall, the cash flow statement indicates a robust financial position with a focus on sustaining operational efficiency.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.68T	4.40T	4.01T	3.37T	2.92T
Gross Profit	880.13B	838.46B	669.98B	573.94B	531.34B
EBITDA	539.97B	474.20B	373.51B	303.55B	278.79B
Net Income	193.77B	149.72B	112.65B	96.31B	56.34B
Balance Sheet
Total Assets	4.44T	4.37T	4.01T	3.81T	3.38T
Cash, Cash Equivalents and Short-Term Investments	295.90B	269.74B	283.43B	259.58B	254.40B
Total Debt	687.99B	801.50B	944.20B	844.93B	671.75B
Total Liabilities	1.91T	1.93T	1.90T	1.75T	1.49T
Stockholders Equity	2.29T	2.21T	1.90T	1.77T	1.63T
Cash Flow
Free Cash Flow	202.43B	214.14B	80.72B	-98.06B	2.83B
Operating Cash Flow	402.25B	393.46B	265.19B	76.00B	169.66B
Investing Cash Flow	-223.90B	-123.81B	-147.82B	-165.45B	-163.43B
Financing Cash Flow	-150.82B	-292.31B	-98.29B	82.82B	-13.10B

Sumitomo Electric Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3334.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5802, the sentiment is Positive. The current price of 3334 is above the 20-day moving average (MA) of 3125.62, above the 50-day MA of 2952.78, and above the 200-day MA of 2667.41, indicating a bullish trend. The MACD of 109.78 indicates Negative momentum. The RSI at 68.05 is Neutral, neither overbought nor oversold. The STOCH value of 93.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5802.

Sumitomo Electric Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5802	80 Outperform	¥2.60T	13.42	8.51%	2.31%	6.29%	29.42%
6592	78 Outperform	¥271.99B	28.67	2.93%	3.61%	7.15%	-57.77%
6902	77 Outperform	$5.22T	13.49	7.87%	3.27%	0.24%	37.64%
5191	77 Outperform	¥187.20B	6.83		3.00%	2.91%	47.09%
5108	77 Outperform	¥4.19T	14.96	7.60%	3.67%	2.07%	-15.58%
Sector *	67 Neutral	¥252.20B	13.26	6.45%	2.68%	5.22%	-11.89%
5110	58 Neutral	$441.44B	50.94	-1.90%	5.54%	1.37%	-119.72%

Sumitomo Electric Industries Corporate Events

Sumitomo Electric Announces Executive Leadership Changes

Sumitomo Electric Industries, Ltd. announced significant changes in its executive leadership, including the resignation and appointment of several directors and executive officers. These changes, effective June 26, 2025, aim to restructure the company’s leadership to enhance its strategic direction and operational efficiency, potentially impacting its market positioning and stakeholder relations.

The most recent analyst rating on (JP:5802) stock is a Buy with a Yen3650.00 price target. To see the full list of analyst forecasts on Sumitomo Electric Industries stock, see the JP:5802 Stock Forecast page.

Sumitomo Electric Increases Year-End Dividend Amid Strong Financial Performance

Sumitomo Electric Industries announced an increase in its year-end dividend for the fiscal year ended March 31, 2025, to 61 yen per share, up from the previous forecast of 41 yen. This decision reflects the company’s strong financial performance, with consolidated net sales and profits exceeding both the previous year’s results and the annual forecast.

The most recent analyst rating on (JP:5802) stock is a Buy with a Yen3650.00 price target. To see the full list of analyst forecasts on Sumitomo Electric Industries stock, see the JP:5802 Stock Forecast page.

Sumitomo Electric Reports Strong Financial Growth for Fiscal Year 2025

Sumitomo Electric Industries reported a strong financial performance for the fiscal year ended March 31, 2025, with a notable increase in net sales and profits compared to the previous year. The company achieved a 6.3% increase in net sales and a substantial rise in operating and ordinary profits by 41.5% and 43.7%, respectively. The increase in dividends per share from 77 yen to 97 yen reflects the company’s commitment to providing value to its shareholders. Despite a decrease in comprehensive income, the overall financial health of the company appears robust, with improvements in return on equity and profit ratios, positioning Sumitomo Electric favorably in the industry.

The most recent analyst rating on (JP:5802) stock is a Buy with a Yen3650.00 price target. To see the full list of analyst forecasts on Sumitomo Electric Industries stock, see the JP:5802 Stock Forecast page.