Sumitomo Heavy Industries (6302) AI Stock Analysis

• Market Cap: $409.41B
• Dividend Yield: 3.74%
• Average Volume (3M): 563.69K
• Price to Earnings (P/E): 709.4
• Beta (1Y): 1.12
• Revenue Growth: -4.25%
• EPS Growth: -110.18%
• Country: JP
• Employees: 25,337
• Sector: Industrials
• Sector Strength: 83
• Industry: Industrial - Machinery
• EPS (TTM): 49.13
• Shares Outstanding: 122,905,480
• 10 Day Avg. Volume: 722,260
• 30 Day Avg. Volume: 563,686
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 0.46
• Enterprise Value/Gross Profit: 1.91
• Enterprise Value/Ebitda: 6.31
• 1Y Price Target: $3,396.17
• Price Target Upside: 1.62% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 57 Neutral
• Price Target: ¥3,396.00 ▲(1.62% Upside)

The stock's overall score is primarily affected by its high P/E ratio indicating overvaluation despite a strong dividend yield. Financial performance is stable but challenged by low profitability and cash flow issues. Technical analysis signals short-term bullish momentum, though caution is advised due to potential overbought conditions.

Sumitomo Heavy Industries Business Overview & Revenue Model

Company Description

Sumitomo Heavy Industries, Ltd. (6302) is a Japanese company that operates in various sectors, including machinery, engineering, and manufacturing. The company is known for its diverse range of products and services, which span across industrial machinery, precision machinery, construction machinery, ships, and environmental facilities. Sumitomo Heavy Industries serves a wide array of industries, providing innovative and technologically advanced solutions to meet the varying needs of its global clientele.

How the Company Makes Money

Sumitomo Heavy Industries generates revenue through the sale of its diverse range of machinery and equipment, which includes industrial and construction machinery, precision machinery, and ships. The company also earns from providing engineering and maintenance services across its various sectors. Key revenue streams include the sale of construction machinery such as excavators and cranes, as well as industrial solutions like pumps and compressors. Additionally, the company's precision machinery division, which produces components for semiconductor and medical equipment, contributes significantly to its earnings. Sumitomo Heavy Industries also benefits from strategic partnerships and contracts with both public and private sector clients, enhancing its market presence and financial performance.

Sumitomo Heavy Industries Financial Statement Overview

Summary

The company shows financial stability with a strong equity position but faces profitability and cash flow challenges. Declining income margins and negative free cash flow indicate a need for improved operational efficiency and capital management.

Income Statement

The company's revenue has shown slight fluctuations, with recent revenue slightly declining from the previous year. Gross profit margin is stable at approximately 24%. However, net profit margin has significantly decreased from 3% to 0.7% due to reduced net income. EBIT and EBITDA margins have also decreased, indicating potential challenges in maintaining operational efficiency.

Balance Sheet

The balance sheet reveals a strong equity position, with a consistent equity ratio above 50%, highlighting financial stability. The debt-to-equity ratio has increased recently, indicating higher leverage, which could pose a risk if not managed carefully. Nevertheless, the return on equity remains moderate at around 1.2%.

Cash Flow

The company's free cash flow has turned negative, reflecting higher capital expenditures and a decline in operating cash flow. The operating cash flow to net income ratio remains robust, suggesting good cash generation relative to net earnings. However, the negative free cash flow to net income ratio highlights the need for better capital management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.07T	1.08T	1.14T	943.98B	849.07B
Gross Profit	257.00B	255.25B	251.54B	211.96B	185.45B
EBITDA	62.69B	110.74B	102.80B	96.53B	79.17B
Net Income	7.72B	32.74B	7.71B	44.05B	26.76B
Balance Sheet
Total Assets	1.26T	1.20T	1.15T	1.09T	1.03T
Cash, Cash Equivalents and Short-Term Investments	111.13B	104.46B	97.48B	88.78B	99.52B
Total Debt	238.62B	162.23B	171.74B	111.25B	124.44B
Total Liabilities	613.82B	573.39B	571.95B	528.09B	525.76B
Stockholders Equity	640.68B	619.77B	569.26B	551.39B	490.70B
Cash Flow
Free Cash Flow	-34.92B	25.91B	-15.18B	16.04B	24.29B
Operating Cash Flow	12.76B	65.37B	21.37B	61.68B	64.13B
Investing Cash Flow	-49.48B	-43.27B	-37.28B	-49.68B	-43.73B
Financing Cash Flow	41.91B	-17.21B	21.68B	-28.11B	-7.96B

Sumitomo Heavy Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3342.00
• 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:6302, the sentiment is Positive. The current price of 3342 is above the 20-day moving average (MA) of 3290.90, above the 50-day MA of 3080.30, and above the 200-day MA of 3050.86, indicating a bullish trend. The MACD of 87.32 indicates Positive momentum. The RSI at 58.19 is Neutral, neither overbought nor oversold. The STOCH value of 45.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6302.

Sumitomo Heavy Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6005	75 Outperform	¥331.13B	13.65		2.07%	48.63%	30.73%
5631	72 Outperform	€696.74B	37.22	10.57%	0.78%	9.43%	21.15%
Sector *	71 Outperform	¥268.21B	15.07	8.32%	2.78%	6.19%	11.34%
6268	67 Neutral	$373.60B	30.10	4.68%	2.60%	4.14%	33.45%
6406	66 Neutral	¥427.39B	30.35		2.93%	2.84%	-20.37%
6481	60 Neutral	$505.58B	69.33	2.00%	6.22%	0.85%	-46.23%
6302	57 Neutral	$409.41B	709.43	-0.47%	3.74%	-4.25%	-110.18%

Sumitomo Heavy Industries Corporate Events

Sumitomo Heavy Industries Enhances Stock Compensation Plan

Sumitomo Heavy Industries has resolved to continue its stock compensation plan, initially introduced in 2022, for its Directors and Vice Presidents. The company will make an additional trust contribution to acquire more shares, enhancing the plan’s effectiveness and aligning management’s interests with shareholder value.

The most recent analyst rating on (JP:6302) stock is a Hold with a Yen3000.00 price target. To see the full list of analyst forecasts on Sumitomo Heavy Industries stock, see the JP:6302 Stock Forecast page.

Sumitomo Heavy Industries to Dispose Treasury Shares for Stock Compensation Plan

Sumitomo Heavy Industries announced the disposal of 75,700 treasury shares through a third-party allotment as part of its ongoing stock compensation plan. This move aims to align the interests of its directors and vice presidents with the company’s stock value, encouraging them to enhance corporate value over the medium to long term. The disposal is expected to have a minimal dilutive effect on the company’s shares, reflecting a strategic effort to strengthen corporate governance and shareholder value.

The most recent analyst rating on (JP:6302) stock is a Hold with a Yen3000.00 price target. To see the full list of analyst forecasts on Sumitomo Heavy Industries stock, see the JP:6302 Stock Forecast page.

Sumitomo Heavy Industries Reports Decline in First Half 2025 Financial Results

Sumitomo Heavy Industries reported a decline in its financial performance for the first half of 2025, with net sales decreasing by 4.9% and operating profit dropping by 35% compared to the previous year. The company’s ordinary profit and profit attributable to owners also saw significant declines, indicating challenging market conditions and potential impacts on stakeholders.

The most recent analyst rating on (JP:6302) stock is a Hold with a Yen3000.00 price target. To see the full list of analyst forecasts on Sumitomo Heavy Industries stock, see the JP:6302 Stock Forecast page.

Sumitomo Heavy Industries Announces Subsidiary Merger for Strategic Optimization

Sumitomo Heavy Industries announced the merger of its wholly owned subsidiaries, Sumitomo Heavy Industries Himatex Co., Ltd. and Sumitomo Heavy Industries Finetech, Ltd., into its Industrial Equipment Division, effective January 1, 2026. This strategic move aims to streamline operations and enhance the company’s positioning in the metal processing business, reflecting its ongoing efforts to reform its business portfolio and optimize management resources.

The most recent analyst rating on (JP:6302) stock is a Hold with a Yen3000.00 price target. To see the full list of analyst forecasts on Sumitomo Heavy Industries stock, see the JP:6302 Stock Forecast page.