Sumida Corporation (6817) AI Stock Analysis

• Market Cap: ¥35.95B
• Dividend Yield: 4.84%
• Average Volume (3M): 202.40K
• Price to Earnings (P/E): 20.4
• Beta (1Y): 0.88
• Revenue Growth: -3.69%
• EPS Growth: -22.95%
• Country: JP
• Employees: 14,662
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 32.74
• Shares Outstanding: 33,108,215
• 10 Day Avg. Volume: 225,010
• 30 Day Avg. Volume: 202,396
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,162.00
• Price Target Upside: 6.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: ¥1,162.00 ▲(6.22% Upside)

Sumida Corporation's stock score is driven by stable financial performance and positive technical indicators. The fair valuation and attractive dividend yield further support the stock's appeal. However, challenges in revenue growth and profit conversion present risks that need to be addressed for sustained performance.

Sumida Corporation Business Overview & Revenue Model

Company Description

Sumida Corporation designs, manufactures, and sells electronic components and modules for consumer electronics, automotive, and industrial application in Japan, rest of Asia, Europe, and North and South America. It offers power and IF inductors, including surface mount, through hole, and LPF coils for digital amplifiers, as well as RF chip inductors; and power transformers, such as surface mount, through hole, and PoE transformers, as well as switching mode power supplies, reactors, and wireless power transfer coils. The company also provides signal magnetics comprising RF/communication, radio frequency identification tags, antennas, and other products; EMC coils consisting of AC and DC power line, normal mode chokes, and common mode chokes; and sensors and actuators, including rotor position sensors, ABS coils, and solenoid coils. In addition, it offers automotive modules comprising xenon ignitors, choke modules for inverters, module components, component carriers, power conversion modules, and components and modules; ceramic based passive components, electronic manufacturing services, and flexible flat cables; and components for medical equipment, such as network isolation and isolation transformers. The company was formerly known as Sumida Electric Co., Ltd and changed its name to Sumida Corporation in June 2000. Sumida Corporation was founded in 1956 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Sumida Corporation generates revenue primarily through the sale of its electronic components and modules. Key revenue streams include the automotive sector, where the company supplies inductors and coils for use in vehicles, and the consumer electronics industry, where its components are integrated into various devices such as smartphones, tablets, and home appliances. The industrial equipment sector also contributes significantly to its earnings, as Sumida provides components for machines and automation systems. Additionally, the company benefits from strategic partnerships and long-term contracts with major electronics manufacturers, ensuring a steady demand for its products. Sumida's focus on research and development allows it to continuously innovate and tailor its products to meet the evolving needs of its clients, thereby maintaining its competitive edge and ensuring sustainable revenue growth.

Sumida Corporation Financial Statement Overview

Summary

Sumida Corporation demonstrates stable financial performance with operational efficiency and a balanced financial structure. However, challenges in revenue growth and profit conversion need attention. Monitoring leverage and enhancing cash flow conversion are crucial for future growth.

Income Statement

Sumida Corporation's income statement shows a mixed performance. The company has experienced a decline in revenue growth, with a negative growth rate in the TTM period. However, the gross profit margin remains stable, and the EBIT and EBITDA margins are consistent, indicating operational efficiency. The net profit margin is low, suggesting challenges in converting revenue into profit.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio is slightly above 1, indicating a balanced approach to leveraging. Return on equity has improved over the years, showing effective use of equity to generate profits. The equity ratio suggests a stable asset base, but the company should monitor its debt levels closely.

Cash Flow

Cash flow analysis reveals some strengths and weaknesses. The free cash flow growth rate is positive in the TTM period, indicating improved cash generation. However, the operating cash flow to net income ratio is low, suggesting potential issues in converting income into cash. The free cash flow to net income ratio is moderate, reflecting a reasonable cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	142.08B	143.98B	147.67B	138.60B	104.92B	84.42B
Gross Profit	18.86B	18.01B	21.11B	19.30B	15.36B	11.10B
EBITDA	17.26B	15.54B	17.97B	16.44B	11.76B	8.84B
Net Income	1.77B	590.00M	5.06B	5.10B	2.63B	828.00M
Balance Sheet
Total Assets	142.06B	147.77B	142.79B	134.85B	117.72B	98.06B
Cash, Cash Equivalents and Short-Term Investments	5.43B	4.29B	3.11B	2.94B	4.24B	5.24B
Total Debt	57.04B	57.98B	57.20B	58.55B	54.76B	44.59B
Total Liabilities	83.10B	86.85B	85.47B	85.97B	77.63B	63.51B
Stockholders Equity	56.80B	58.65B	55.06B	46.83B	38.34B	32.99B
Cash Flow
Free Cash Flow	9.06B	7.07B	7.43B	1.39B	-6.14B	2.34B
Operating Cash Flow	15.55B	14.93B	18.34B	10.57B	600.00M	9.11B
Investing Cash Flow	-7.58B	-8.83B	-10.70B	-8.17B	-6.71B	-6.67B
Financing Cash Flow	-7.18B	-5.27B	-7.78B	-4.13B	4.75B	-447.00M

Sumida Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1094.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6817, the sentiment is Positive. The current price of 1094 is above the 20-day moving average (MA) of 1059.10, above the 50-day MA of 1033.44, and above the 200-day MA of 945.51, indicating a bullish trend. The MACD of 14.53 indicates Negative momentum. The RSI at 69.62 is Neutral, neither overbought nor oversold. The STOCH value of 91.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6817.

Sumida Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6951	78 Outperform	¥253.93B	13.08	13.68%	1.85%	10.15%	-18.57%
6787	76 Outperform	¥256.80B	16.37	13.79%	0.76%	15.13%	31.79%
6814	75 Outperform	¥181.68B	13.28	15.87%	1.91%	9.11%	114.88%
6817	70 Outperform	¥35.95B	20.42	―	4.84%	-3.69%	-22.95%
6996	70 Outperform	¥100.93B	19.10	4.84%	2.35%	-2.07%	-18.83%
6976	59 Neutral	¥418.83B	-85.65	0.73%	2.70%	4.21%	-135.36%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Sumida Corporation Corporate Events

Sumida Corporation Shows Strong Profit Growth Amid Revenue Decline

Sumida Corporation reported its consolidated financial results for the first half of fiscal year 2025, showing a slight decline in revenue by 2.6% compared to the previous year. However, the company experienced significant growth in operating profit and interim profit, with increases of 44.2% and 282% respectively. This indicates a strong recovery in profitability despite the revenue dip, positioning Sumida positively in the market. The company maintained its dividend forecast, reflecting confidence in its financial stability and future performance.

Sumida Corporation Maintains Interim Dividend Payout

Sumida Corporation announced that its Board of Directors has approved the payment of interim dividends of surplus, maintaining the dividend per share at 26 yen, consistent with the forecast for the fiscal year 2024. This decision reflects the company’s stable financial performance and commitment to returning value to shareholders, with dividends sourced from retained earnings.

Sumida Corporation Subsidiary Declares JPY 4 Billion Dividend

Sumida Corporation announced that its wholly-owned subsidiary, Sumida Electric Co., Ltd., has resolved to distribute a dividend of JPY 4,000 million from surplus retained earnings. This dividend will be recorded as operating revenue in Sumida Corporation’s non-consolidated financial statements for the fiscal year 2025, but it will not affect the company’s consolidated financial results.