Sumitomo Electric Industries (5802) AI Stock Analysis

• Market Cap: ¥2.43T
• Dividend Yield: 2.63%
• Average Volume (3M): 3.36M
• Price to Earnings (P/E): 12.6
• Beta (1Y): 1.37
• Revenue Growth: 6.29%
• EPS Growth: 29.42%
• Country: JP
• Employees: 293,266
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Auto - Parts
• EPS (TTM): 102.70
• Shares Outstanding: 793,940,550
• 10 Day Avg. Volume: 3,058,210
• 30 Day Avg. Volume: 3,358,253
• PEG Ratio: 0.69
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.39
• 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: ¥2,897.34
• Price Target Upside: -7.17% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 78 Outperform
• Price Target: ¥3,223.00 ▲(3.27%Upside)

Sumitomo Electric Industries receives a strong score driven by robust financial performance, healthy valuation metrics, and strong technical indicators. The company's financial health is reflected in consistent revenue growth and solid profitability. The stock's attractive valuation and high dividend yield enhance its appeal, though technical indicators suggest a need for caution due to overbought conditions.

Sumitomo Electric Industries Business Overview & Revenue Model

Company Description

Sumitomo Electric Industries, Ltd. is a leading global manufacturer and provider of a wide array of products and services spanning multiple sectors, including automotive, information and communications technology, electronics, and industrial materials. Established in Japan, the company is renowned for its innovative solutions in wire and cable systems, optical fibers, and cutting-edge electronic components, which are integral to modern infrastructure and technology applications worldwide.

How the Company Makes Money

Sumitomo Electric Industries generates revenue through its diversified portfolio, which is primarily categorized into five segments: Automotive, Info-communications, Electronics, Environment and Energy, and Industrial Materials. The Automotive segment, a significant revenue driver, supplies wiring harnesses and related components essential for vehicle connectivity and safety systems. The Info-communications segment provides optical fibers and network solutions that support telecommunications infrastructure, capitalizing on the growing demand for high-speed internet and data services. In Electronics, the company manufactures various components, including flexible printed circuits, catering to consumer electronics and industrial markets. The Environment and Energy segment focuses on products such as power cables and superconducting materials, which are pivotal in energy transmission and sustainable energy solutions. Lastly, the Industrial Materials segment offers a range of advanced materials for manufacturing and construction industries. Strategic partnerships with global technology firms and continuous investment in research and development further bolster Sumitomo Electric Industries' market position and revenue streams.

Sumitomo Electric Industries Financial Statement Overview

Summary

Sumitomo Electric Industries showcases strong financial performance. The income statement reflects robust growth and profitability, with consistent revenue growth and healthy margins. The balance sheet is solid with manageable leverage and strong equity. Cash flow management is effective, maintaining 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.62T	4.68T	4.40T	4.01T	3.37T	2.92T
Gross Profit	849.26B	880.13B	838.46B	669.98B	573.94B	531.34B
EBITDA	530.09B	539.97B	474.20B	373.51B	303.55B	278.79B
Net Income	186.22B	193.77B	149.72B	112.65B	96.31B	56.34B
Balance Sheet
Total Assets	4.64T	4.44T	4.37T	4.01T	3.81T	3.38T
Cash, Cash Equivalents and Short-Term Investments	338.85B	295.90B	269.74B	283.43B	259.58B	254.40B
Total Debt	837.97B	687.99B	801.50B	944.20B	844.93B	671.75B
Total Liabilities	2.09T	1.91T	1.93T	1.90T	1.75T	1.49T
Stockholders Equity	2.31T	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: 3121.00
• 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 3121 is above the 20-day moving average (MA) of 2954.35, above the 50-day MA of 2722.60, and above the 200-day MA of 2609.08, indicating a bullish trend. The MACD of 84.06 indicates Negative momentum. The RSI at 61.23 is Neutral, neither overbought nor oversold. The STOCH value of 79.95 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	78 Outperform	¥2.43T	12.56	8.51%	2.63%	6.29%	29.42%
5108	77 Outperform	$4.15T	14.84	7.60%	3.90%	2.07%	-15.58%
6902	76 Outperform	¥5.18T	13.39	7.87%	3.28%	0.24%	37.64%
6592	74 Outperform	$268.81B	28.33	2.93%	3.66%	7.15%	-57.77%
5191	69 Neutral	¥171.62B	6.26		4.32%	2.91%	47.09%
Sector *	67 Neutral	¥251.03B	13.17	6.57%	2.80%	5.06%	-11.36%
5110	55 Neutral	$435.52B	50.94	-1.90%	4.27%	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.