Sumitomo Electric Industries (5802) AI Stock Analysis

• Market Cap: $3.20T
• Dividend Yield: 1.86%
• Average Volume (3M): 4.06M
• Price to Earnings (P/E): 16.2
• Beta (1Y): 1.37
• Revenue Growth: 4.17%
• EPS Growth: 9.78%
• Country: JP
• Employees: 293,266
• Sector: Consumer Cyclical
• Sector Strength: 83
• Industry: Auto - Parts
• EPS (TTM): 45.03
• Shares Outstanding: 793,940,550
• 10 Day Avg. Volume: 3,361,340
• 30 Day Avg. Volume: 4,064,720
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 0.66
• Enterprise Value/Gross Profit: 3.48
• Enterprise Value/Ebitda: 5.82
• 1Y Price Target: $4,094.93
• Price Target Upside: -1.09% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 76 Outperform
• Price Target: ¥4,025.00 ▼(-2.78% Downside)

Sumitomo Electric Industries' strong financial performance is the most significant factor driving the score, with robust growth, profitability, and effective cash flow management. While technical analysis indicates strong bullish momentum, caution is warranted due to overbought signals. Valuation is moderate, providing a balanced view of growth and income potential.

Sumitomo Electric Industries Business Overview & Revenue Model

Company Description

Sumitomo Electric Industries, Ltd. manufactures and sells electric wires and cables worldwide. It operates through Automotive, Infocommunications, Electronics, Environment and Energy, and Industrial Materials and Others segments. The company offers wiring harnesses and electrical components; steel cords for tire reinforcement; steel wires for springs; wiring materials; optical lenses for infrared devices; abrasion-resistant parts/materials; heat shrink and heat-resistant tubing/tapes; magnet and aluminum bars/wires; spinel products; products for electronic devices; sintered parts; and EV quick-charger connector assemblies. It also provides fiber optics products; fusion splicer and accessories; data center solutions; intelligent transport systems; remote monitoring systems; NanoPlug series; CATV systems; set top boxes; optical transceiver modules, and optical and wireless devices; optical lenses for infrared devices; AirMT, non-contact multi-fiber interconnects; and low profile fiber-array for silicon photonics. In addition, the company offers electronic wires; flexible printed circuits; heat-shrinkable tubings; cladded/plated and electroplated wires; thermoplastic molded components; PTFE membranes; spiral shielded and electronic wires; cross linked fluorine resins; coaxial cables; flat components; thunderbolt cables; plated and alloy wires; abrasion-resistant parts/materials; and RGB laser modules. Further, it provides various energy and environment systems; products for railway and transport machinery; steel wires for springs; abrasion-resistant parts/materials; magnet wires; diamond/CBN grinding wheels; PC steel wires and high-strength shear reinforcement; drills/endmills; CBN/PCD; milling and turning tools; laser optics; and magnesium alloy parts. The company was formerly known as Sumitomo Electric Wire & Cable Works and changed its name to Sumitomo Electric Industries, Ltd. in 1939. The company was founded in 1897 and is headquartered in Osaka, Japan.

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 showcases strong financial performance across the board with robust growth and profitability, driven by consistent revenue growth and healthy margins. The balance sheet is solid with manageable leverage and strong equity, while cash flow management is effective, sustaining positive free cash flows.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.68T	4.68T	4.40T	4.01T	3.37T	2.92T
Gross Profit	880.13B	880.13B	767.59B	669.98B	573.94B	531.34B
EBITDA	526.70B	540.65B	474.20B	408.64B	346.83B	284.93B
Net Income	193.77B	193.77B	149.72B	112.65B	96.31B	56.34B
Balance Sheet
Total Assets	4.44T	4.44T	4.37T	4.01T	3.81T	3.38T
Cash, Cash Equivalents and Short-Term Investments	295.90B	295.90B	269.74B	283.43B	259.58B	254.40B
Total Debt	756.56B	756.56B	784.95B	944.20B	844.93B	671.75B
Total Liabilities	1.91T	1.91T	1.93T	1.90T	1.75T	1.49T
Stockholders Equity	2.29T	2.29T	2.21T	1.90T	1.77T	1.63T
Cash Flow
Free Cash Flow	0.00	202.43B	214.14B	80.72B	-98.06B	2.83B
Operating Cash Flow	0.00	402.25B	393.46B	265.19B	76.00B	169.66B
Investing Cash Flow	0.00	-223.90B	-123.81B	-147.82B	-165.45B	-163.43B
Financing Cash Flow	0.00	-150.82B	-292.31B	-98.29B	82.82B	-13.10B

Sumitomo Electric Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4140.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 4140 is above the 20-day moving average (MA) of 4031.60, above the 50-day MA of 3643.22, and above the 200-day MA of 2919.24, indicating a bullish trend. The MACD of 131.85 indicates Positive momentum. The RSI at 64.69 is Neutral, neither overbought nor oversold. The STOCH value of 53.94 is Neutral, 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	76 Outperform	$3.20T	16.23	8.70%	1.86%	4.17%	9.78%
Sector *	61 Neutral	$17.99B	12.87	-3.58%	2.97%	1.27%	-14.28%
BRDCF	―	$32.99B	21.89	5.62%	4.93%	―	―
DNZOF	―	$39.05B	16.02	7.99%	3.01%	―	―
MBUMF	―	$2.21B	34.18	3.00%	4.74%	―	―
SMTUF	―	$3.12B	52.12	-2.19%	5.15%	―	―
5191	74 Outperform	¥233.30B	8.56		2.40%	0.49%	27.98%

Sumitomo Electric Industries Corporate Events

Sumitomo Electric Industries Revises Financial Forecasts Upward for FY 2026

Sumitomo Electric Industries has revised its consolidated financial forecasts for the fiscal year ending March 31, 2026, due to stronger than expected performance in the automotive and infocommunications sectors and a lower impact from U.S. tariffs. The company anticipates increased net sales and profits, reflecting a positive outlook for the remainder of the fiscal year.

Sumitomo Electric Industries Reports Modest Sales Growth Amidst Decline in Comprehensive Income

Sumitomo Electric Industries reported a modest increase in net sales by 2.9% for the three months ended June 30, 2025, compared to the previous year. The company achieved a notable rise in operating profit by 13.2% and profit attributable to owners of the parent by 10.6%. Despite these positive financial indicators, comprehensive income saw a significant decline of 78.8%. The company also announced a revision to its financial forecasts for the fiscal year ending March 31, 2026, indicating a cautious outlook with slight decreases in net sales and operating profit.