Sumitomo Electric Industries (5802) AI Stock Analysis

• Market Cap: $4.73T
• Dividend Yield: 1.36%
• Average Volume (3M): 3.20M
• Price to Earnings (P/E): 21.9
• Beta (1Y): 1.41
• Revenue Growth: 4.96%
• EPS Growth: 8.64%
• Country: JP
• Employees: 293,266
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 80.54
• Shares Outstanding: 793,940,550
• 10 Day Avg. Volume: 3,506,780
• 30 Day Avg. Volume: 3,202,623
• PEG Ratio: 0.34
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.41
• P/FCF Ratio: 9.50
• Enterprise Value/Market Cap: 0.65
• Enterprise Value/Revenue: 0.65
• Enterprise Value/Gross Profit: 3.42
• Enterprise Value/Ebitda: 5.67
• 1Y Price Target: $5,535.01
• Price Target Upside: -17.03% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥7,074.00 ▲(6.04% Upside)

Sumitomo Electric Industries demonstrates strong financial performance with robust growth and effective cash flow management. Technical analysis supports a positive outlook with strong upward trends. However, the valuation indicates moderate pricing, which slightly tempers the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and effective product demand, supporting long-term business sustainability.

Healthy Margins

Sustained healthy margins reflect operational efficiency and pricing power, contributing to robust profitability and competitive positioning.

Strong Balance Sheet

A strong balance sheet with low leverage enhances financial stability and provides flexibility for strategic investments and growth opportunities.

Negative Factors

Decline in Free Cash Flow

A decline in free cash flow, despite remaining positive, may limit the company's ability to invest in growth initiatives and manage unexpected expenses.

Room for Debt Reduction

Reducing debt levels could improve financial resilience, reduce interest costs, and enhance the company's ability to withstand economic downturns.

Limited Dividend Yield

A low dividend yield may deter income-focused investors and limit the attractiveness of the stock for those seeking regular income returns.

Sumitomo Electric Industries Business Overview & Revenue Model

Company Description

Sumitomo Electric Industries, Ltd. is a leading Japanese multinational corporation primarily engaged in the manufacture and sale of electric wire and cable products, as well as various components for automotive, telecommunications, and electronics industries. The company operates through multiple segments, including Energy and Industrial Products, Automotive, and Information and Communications, offering a wide range of products such as optical fibers, power cables, and electronic components. With a strong focus on innovation and sustainability, Sumitomo Electric aims to contribute to society through advanced technological solutions.

How the Company Makes Money

Sumitomo Electric Industries generates revenue through the sale of its diverse product range across several key sectors. The company's primary revenue streams include the production and distribution of electrical wires and cables, automotive components, and telecommunications equipment. The company has established significant partnerships with major automotive manufacturers and telecommunications firms, which help drive consistent demand for its products. Additionally, Sumitomo Electric invests in research and development to enhance its product offerings and maintain a competitive edge, while also capitalizing on emerging markets and technologies, such as renewable energy and smart infrastructure, to further bolster its revenue generation.

Sumitomo Electric Industries Financial Statement Overview

Summary

Sumitomo Electric Industries showcases strong financial performance with consistent revenue growth, healthy profit margins, and effective cash flow management. The balance sheet is stable with manageable leverage, although there is room for further debt reduction.

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	4.71T	4.68T	4.40T	4.01T	3.37T	2.92T
Gross Profit	896.27B	880.13B	767.59B	669.98B	573.94B	531.34B
EBITDA	540.56B	540.65B	474.20B	408.64B	346.83B	284.93B
Net Income	197.13B	193.77B	149.72B	112.65B	96.31B	56.34B
Balance Sheet
Total Assets	4.48T	4.44T	4.37T	4.01T	3.81T	3.38T
Cash, Cash Equivalents and Short-Term Investments	314.04B	295.90B	269.74B	283.43B	259.58B	254.40B
Total Debt	729.36B	775.87B	801.50B	960.37B	859.79B	685.09B
Total Liabilities	1.97T	1.91T	1.93T	1.90T	1.75T	1.49T
Stockholders Equity	2.28T	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: 6671.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 6671 is above the 20-day moving average (MA) of 6415.15, above the 50-day MA of 5508.48, and above the 200-day MA of 3659.41, indicating a bullish trend. The MACD of 382.01 indicates Negative momentum. The RSI at 58.54 is Neutral, neither overbought nor oversold. The STOCH value of 74.38 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
6902	79 Outperform	$5.51T	15.74	6.98%	3.06%	2.41%	11.03%
5191	79 Outperform	¥269.43B	9.25	―	2.93%	2.19%	27.44%
6592	75 Outperform	$337.78B	16.58	6.33%	2.74%	0.75%	35.26%
5802	74 Outperform	$4.73T	21.89	8.97%	1.36%	4.96%	8.64%
5108	73 Outperform	$4.60T	23.34	6.59%	3.07%	0.24%	-23.93%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
5110	59 Neutral	$482.57B	-33.33	4.89%	2.67%	-0.26%	129.15%

Sumitomo Electric Industries Corporate Events

Sumitomo Electric Industries Revises Financial and Dividend Forecasts Upwards

Sumitomo Electric Industries has announced that its financial results for the first half of the fiscal year ending March 31, 2026, have surpassed previous forecasts due to strong demand in key sectors and effective cost management. Consequently, the company has revised its full-year financial and dividend forecasts upwards, reflecting improved business performance and a strategic focus on maintaining stable dividend payouts. Additionally, the company is undergoing a reorganization of its listed subsidiaries, which may impact future financial results.

Sumitomo Electric Industries Reports Positive Financial Growth for 2025

Sumitomo Electric Industries reported a 5.6% increase in net sales and a 29.3% rise in profit attributable to owners for the six months ending September 30, 2025, compared to the same period in 2024. The company has revised its financial forecasts and cash dividends for the fiscal year ending March 31, 2026, indicating a positive outlook for future growth and shareholder returns.