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Sumitomo Heavy Industries
(6302)
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Rating:69Neutral
Price Target:
¥6,263.00
▲(18.71% Upside)
Action:Reiterated
Date:08/05/26
Overall score reflects improving fundamentals and a solid balance sheet, offset by weaker cash-flow conversion and historically choppy free cash flow. Technicals are a meaningful positive (price above key moving averages with positive MACD), while valuation is reasonable but not compelling given modest profitability and ROE.
Positive Factors
Diverse business model & after-sales
Sumitomo Heavy's mix of equipment sales, engineered project delivery and recurring lifecycle services creates durable revenue diversity. Recurring service and aftermarket revenue tied to an installed base smooths cyclicality from new-capex cycles and supports long-term customer relationships and margin stability.
Negative Factors
Weak cash conversion
Low free-cash-flow conversion versus accounting profits signals that reported earnings are not efficiently becoming discretionary cash. This limits capacity for organic investment, debt reduction or shareholder returns and increases reliance on working-capital management to fund operations over months.
Read all positive and negative factors
Positive Factors
Negative Factors
Diverse business model & after-sales
Sumitomo Heavy's mix of equipment sales, engineered project delivery and recurring lifecycle services creates durable revenue diversity. Recurring service and aftermarket revenue tied to an installed base smooths cyclicality from new-capex cycles and supports long-term customer relationships and margin stability.
Read all positive factors
Sumitomo Heavy Industries (6302) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥641.67B
Dividend Yield2.58%
Average Volume (3M)672.00K
Price to Earnings (P/E)20.3
Beta (1Y)1.40
Revenue Growth2.18%
EPS Growth5504.89%
CountryJP
Employees25,123
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)326.73
Shares Outstanding122,905,480
10 Day Avg. Volume577,350
30 Day Avg. Volume672,000
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)0.83
Price to Sales (P/S)0.53
P/FCF Ratio49.94
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥5,500.00Price Target Upside4.25% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)299.66
Revenue Forecast (FY)¥1.09T
Sumitomo Heavy Industries Business Overview & Revenue Model
Company Description
Sumitomo Heavy Industries, Ltd. manufactures and sells general machinery worldwide. It operates through four segments: Mechatronics, Industrial Machinery, Logistics & Construction, and Energy & Lifelines. The Mechatronics segment offers gearmotors...
How the Company Makes Money
Sumitomo Heavy Industries makes money primarily by selling industrial machinery, engineered systems, and related components, and by providing after-sales services tied to its installed base. Revenue is generated through (1) equipment sales: custom...
Sumitomo Heavy Industries Earnings Call Summary
Earnings Call Date:Aug 07, 2024
(Q2-2024)
| % Change Since: |
Next Earnings Date:Oct 30, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a mixed performance with positive outcomes in net sales and operating profit due to favorable exchange rates and certain segment successes. However, significant challenges remain in terms of decreased orders in key segments, negative cash flow, and slow recovery in critical markets such as semiconductors and energy. The progress on the Medium-Term Management Plan 2026 offers a strategic outlook for future growth.Positive Updates
Overall Increase in Net Sales
Despite challenges, net sales increased overall due to foreign exchange gains and backlog orders in various segments.
Negative Updates
Decreased Orders and Sales in Key Segments
Orders and sales decreased in Mechatronics and Industrial Machinery due to inventory adjustments and lower demand in the semiconductor sector.
Read all updates
Q2-2024 Updates
Positive
Negative
Overall Increase in Net Sales
Despite challenges, net sales increased overall due to foreign exchange gains and backlog orders in various segments.
Read all positive updates
Company Guidance
During the Q2 2024 earnings call, Shinji Shimomura, the company president, provided comprehensive guidance on multiple financial metrics and strategic initiatives. The company reported receiving orders totaling JPY 453.1 billion, net sales of JPY 520.4 billion, and an operating profit of JPY 33.3 billion. Compared to the previous fiscal year, orders decreased due to inventory adjustments and lower semiconductor demand, although net sales increased overall, aided by foreign exchange gains. The forecast for FY 2024 has been revised to JPY 1.03 trillion in orders, JPY 1.07 trillion in net sales, and JPY 65 billion in operating profit. The interim dividend was set at JPY 60 per share, with a total return ratio of 65.9% and a return on invested capital of 5.6%. The company also outlined its Medium-Term Management Plan 2026, emphasizing business portfolio reformation, sustainability initiatives, and advancements in robotics and automation, semiconductor production, and offshore wind projects.Sumitomo Heavy Industries Financial Statement Overview
Summary
Income Statement
70
Positive
Balance Sheet
74
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Mar 2026 | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.11T | 1.07T | 1.07T | 1.08T | 1.14T | 943.98B |
| Gross Profit | 276.95B | 261.11B | 257.00B | 255.25B | 251.48B | 211.96B |
| EBITDA | 105.70B | 88.05B | 62.69B | 90.30B | 64.70B | 94.03B |
| Net Income | 39.16B | 30.94B | 7.72B | 32.74B | 7.71B | 44.05B |
Balance Sheet | ||||||
| Total Assets | 1.35T | 1.32T | 1.26T | 1.20T | 1.15T | 1.09T |
| Cash, Cash Equivalents and Short-Term Investments | 133.10B | 111.07B | 111.13B | 104.46B | 97.48B | 88.78B |
| Total Debt | 271.64B | 262.93B | 248.28B | 171.00B | 171.74B | 111.25B |
| Total Liabilities | 640.05B | 634.30B | 613.83B | 573.39B | 571.95B | 528.09B |
| Stockholders Equity | 702.43B | 681.67B | 640.68B | 619.77B | 569.26B | 551.39B |
Cash Flow | ||||||
| Free Cash Flow | 13.80B | 11.33B | -34.92B | 25.91B | -15.18B | -15.18B |
| Operating Cash Flow | 61.51B | 63.67B | 12.76B | 65.37B | 21.37B | 21.37B |
| Investing Cash Flow | -55.13B | -59.36B | -49.48B | -43.27B | -37.28B | -37.28B |
| Financing Cash Flow | 4.79B | -7.14B | 41.91B | -17.21B | 21.68B | 21.68B |
Sumitomo Heavy Industries Technical Analysis
Positive
5276.00
Price Trends
5233.01
Positive
5175.34
Positive
4833.68
Positive
Market Momentum
128.61
Negative
65.60
Neutral
91.32
Negative
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 5276 is below the 20-day moving average (MA) of 5310.10, above the 50-day MA of 5233.01, and above the 200-day MA of 4833.68, indicating a bullish trend. The MACD of 128.61 indicates Negative momentum. The RSI at 65.60 is Neutral, neither overbought nor oversold. The STOCH value of 91.32 is Negative, 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | ¥641.67B | 20.35 | 4.72% | 2.56% | 2.18% | 5504.89% | |
69 Neutral | ¥852.82B | 28.83 | 5.83% | 2.16% | 10.26% | -2.04% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | ¥549.99B | 28.02 | 6.59% | 1.65% | -7.97% | 77.19% | |
54 Neutral | ¥310.09B | 23.32 | ― | 1.65% | 5.02% | 19.84% | |
49 Neutral | ¥551.45B | 28.66 | 9.48% | 1.03% | 10.58% | 7.11% | |
45 Neutral | ¥750.54B | 52.69 | -22.79% | 3.14% | 1.98% | -48.28% |
* Industrials Sector Average
JP:6302
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Sumitomo Heavy Industries Corporate Events
Sumitomo Heavy Industries Lifts H1 Profits and Raises 2026 Outlook, Dividend
Aug 4, 2026
Sumitomo Heavy Industries reported a strong rebound for the first half of fiscal 2026, with net sales rising 12.0% year on year to ¥554.2 billion and operating profit surging 72.9% to ¥37.4 billion. Profit attributable to owners of the p...
Sumitomo Heavy Industries Advances ¥10 Billion Share Buyback Program
Aug 3, 2026
Sumitomo Heavy Industries has continued to execute its share repurchase program, acquiring 161,600 common shares for approximately ¥842 million via market purchases on the Tokyo Stock Exchange between July 1 and July 31, 2026. This latest tra...
Sumitomo Heavy Industries Advances Share Buyback Program, Nears ¥7 Billion in Repurchases
Jul 1, 2026
Sumitomo Heavy Industries has continued its share buyback program, repurchasing 88,200 common shares for approximately ¥445.6 million on the Tokyo Stock Exchange between June 1 and June 30, 2026. This latest tranche forms part of a broader re...
Sumitomo Heavy Industries to Consolidate Crane and Material Handling Subsidiaries
Jun 29, 2026
Sumitomo Heavy Industries will merge its wholly owned units Sumitomo Heavy Industries Material Handling Systems and Sumitomo Heavy Industries Construction Cranes into the parent company in an absorption-type merger effective January 1, 2027. The m...
Sumitomo Heavy Industries Exceeds Target in Voluntary Retirement Program
Jun 22, 2026
Sumitomo Heavy Industries has completed a voluntary retiree incentive program at the parent company and certain domestic subsidiaries, targeting employees aged 55 to under 65 with at least three years of service. The program, which offered additio...
Sumitomo Heavy Industries Advances Aggressive Share Buyback Program
Jun 1, 2026
Sumitomo Heavy Industries has reported progress on its ongoing share repurchase program, buying back 490,600 common shares on the Tokyo Stock Exchange between May 1 and May 31, 2026, for a total of about ¥2.55 billion. The move is part of a b...
Sumitomo Heavy Industries Advances Share Buyback Under ¥10 Billion Program
May 7, 2026
Sumitomo Heavy Industries has reported progress on its ongoing share buyback program, repurchasing 109,400 common shares for approximately ¥546 million on the Tokyo Stock Exchange between April 1 and April 30, 2026. The buyback is being execu...
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.