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Sumitomo Electric Industries
(5802)
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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)
Market Cap
¥6.91T
Dividend Yield1.76%
Average Volume (3M)3.20M
Price to Earnings (P/E)17.0
Beta (1Y)1.85
Revenue Growth12.30%
EPS Growth103.31%
CountryJP
Employees302,972
SectorConsumer Cyclical
Sector Strength84
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)128.48
Shares Outstanding3,175,762,200
10 Day Avg. Volume3,506,780
30 Day Avg. Volume3,202,623
Financial Highlights & Ratios
PEG Ratio0.20
Price to Book (P/B)2.38
Price to Sales (P/S)1.28
P/FCF Ratio32.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥3,633.25Price Target Upside47.15% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)110.3
Revenue Forecast (FY)¥5.32T
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
Income Statement
74
Positive
Balance Sheet
80
Positive
Cash Flow
66
Positive
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.29T | 5.11T | 4.68T | 4.40T | 4.01T | 3.37T |
| Gross Profit | 1.09T | 1.03T | 880.13B | 767.59B | 669.98B | 573.94B |
| EBITDA | 772.89B | 738.72B | 540.65B | 474.20B | 408.64B | 346.83B |
| Net Income | 400.80B | 369.51B | 193.77B | 149.72B | 112.65B | 96.31B |
Balance Sheet | ||||||
| Total Assets | 5.14T | 4.82T | 4.44T | 4.37T | 4.01T | 3.81T |
| Cash, Cash Equivalents and Short-Term Investments | 264.73B | 236.98B | 295.90B | 269.74B | 283.43B | 259.58B |
| Total Debt | 737.70B | 620.54B | 775.87B | 801.50B | 960.37B | 859.79B |
| Total Liabilities | 2.22T | 1.99T | 1.91T | 1.93T | 1.90T | 1.75T |
| Stockholders Equity | 2.83T | 2.74T | 2.29T | 2.21T | 1.90T | 1.77T |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 202.96B | 202.43B | 214.14B | 80.72B | -98.06B |
| Operating Cash Flow | 0.00 | 425.19B | 402.25B | 393.46B | 265.19B | 76.00B |
| Investing Cash Flow | 0.00 | -174.86B | -223.90B | -123.81B | -147.82B | -165.45B |
| Financing Cash Flow | 0.00 | -326.03B | -150.82B | -292.31B | -98.29B | 82.82B |
Sumitomo Electric Industries Technical Analysis
Negative
2469.00
Price Trends
2716.51
Negative
2650.16
Negative
2178.10
Negative
Market Momentum
-146.13
Negative
41.59
Neutral
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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥650.92B | 10.26 | 10.96% | 2.75% | 12.73% | 81.53% | |
71 Outperform | ¥5.42T | 12.26 | 8.64% | 3.26% | 7.51% | 13.94% | |
71 Outperform | ¥1.87T | 9.94 | 15.50% | 2.17% | 16.35% | 111.68% | |
71 Outperform | ¥760.94B | 33.41 | 2.64% | 2.28% | 6.85% | -54.33% | |
63 Neutral | ¥6.91T | 17.00 | 14.96% | 1.56% | 12.30% | 103.31% | |
63 Neutral | ¥1.60T | 9.89 | 8.25% | 2.92% | 5.69% | 27.94% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
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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.