Sumitomo Heavy Industries (6302) AI Stock Analysis

• Market Cap: $543.30B
• Dividend Yield: 3.07%
• Average Volume (3M): 550.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.14
• Revenue Growth: -4.25%
• EPS Growth: -110.18%
• Country: JP
• Employees: 25,337
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 62.41
• Shares Outstanding: 122,905,480
• 10 Day Avg. Volume: 488,500
• 30 Day Avg. Volume: 550,180
• PEG Ratio: -0.67
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.37
• P/FCF Ratio: -11.23
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 0.46
• Enterprise Value/Gross Profit: 1.91
• Enterprise Value/Ebitda: 6.31
• 1Y Price Target: $3,379.72
• Price Target Upside: -17.00% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: ¥4,745.00 ▲(16.53% Upside)

The overall stock score is primarily influenced by strong technical analysis, indicating bullish momentum. However, financial performance challenges, particularly in profitability and cash flow management, weigh down the score. The valuation is also a concern due to the negative P/E ratio, despite a decent dividend yield.

Sumitomo Heavy Industries Business Overview & Revenue Model

Company Description

Sumitomo Heavy Industries, Ltd. (SHI) is a diversified manufacturing company based in Japan, primarily engaged in the production of machinery and equipment. It operates across multiple sectors, including industrial machinery, construction equipment, shipbuilding, and environmental solutions. The company is known for its high-quality products, which include hydraulic excavators, industrial robots, and large-scale machinery for various industries, as well as advanced technologies in energy and environmental sectors.

How the Company Makes Money

Sumitomo Heavy Industries generates revenue through a diverse range of business segments. Key revenue streams include the sale of construction machinery, such as hydraulic excavators and other heavy equipment, which are in demand in the global construction and mining industries. The company also earns income from its industrial machinery and systems division, which provides specialized equipment and automation solutions to various manufacturing sectors. Additionally, SHI engages in shipbuilding, contributing to its revenue through the construction of commercial vessels and specialized ships. Partnerships with other companies and government contracts, particularly in the environmental and energy sectors, also contribute significantly to its earnings, enabling SHI to leverage its technological capabilities and expand its market presence.

Sumitomo Heavy Industries Financial Statement Overview

Summary

Sumitomo Heavy Industries shows stability in its financial structure with a strong equity base. However, challenges in profitability and cash flow management are evident, with declining income margins and negative free cash flow. Improvements in operational efficiency and capital allocation are essential.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.06T	1.07T	1.08T	1.14T	943.98B	849.07B
Gross Profit	252.68B	257.00B	255.25B	251.54B	211.96B	185.45B
EBITDA	76.66B	62.69B	110.74B	102.80B	96.53B	79.17B
Net Income	617.00M	7.72B	32.74B	7.71B	44.05B	26.76B
Balance Sheet
Total Assets	1.25T	1.26T	1.20T	1.15T	1.09T	1.03T
Cash, Cash Equivalents and Short-Term Investments	121.97B	111.13B	104.46B	97.48B	88.78B	99.52B
Total Debt	261.20B	238.62B	162.23B	171.74B	111.25B	124.44B
Total Liabilities	623.56B	613.82B	573.39B	571.95B	528.09B	525.76B
Stockholders Equity	623.54B	640.68B	619.77B	569.26B	551.39B	490.70B
Cash Flow
Free Cash Flow	-24.88B	-34.92B	25.91B	-15.18B	16.04B	24.29B
Operating Cash Flow	13.52B	12.76B	65.37B	21.37B	61.68B	64.13B
Investing Cash Flow	-41.24B	-49.48B	-43.27B	-37.28B	-49.68B	-43.73B
Financing Cash Flow	49.96B	41.91B	-17.21B	21.68B	-28.11B	-7.96B

Sumitomo Heavy Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4072.00
• 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:6302, the sentiment is Positive. The current price of 4072 is above the 20-day moving average (MA) of 3758.50, above the 50-day MA of 3550.30, and above the 200-day MA of 3152.51, indicating a bullish trend. The MACD of 178.83 indicates Negative momentum. The RSI at 61.82 is Neutral, neither overbought nor oversold. The STOCH value of 49.64 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	―	¥336.32B	13.70	―	2.25%	48.63%	30.73%
5631	―	€754.16B	40.28	10.57%	0.80%	9.43%	21.15%
6268	―	$464.54B	37.43	4.68%	2.08%	4.14%	33.45%
6406	―	¥427.77B	30.38	―	3.00%	2.84%	-20.37%
6302	―	$543.30B	-157.30	-0.47%	3.07%	-4.25%	-110.18%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6481	―	$492.44B	71.80	2.00%	6.08%	0.85%	-46.23%

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 Earnings

Sumitomo Heavy Industries, Ltd. is a Japanese company engaged in the manufacturing of industrial machinery, mechatronics, logistics and construction equipment, and energy and lifeline systems. The company is known for its diverse product offerings and its commitment to sustainable development.

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.