Sumitomo Corporation (JP:8053)
:8053
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Sumitomo
(8053)
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Rating:71Outperform
Price Target:
¥6,916.00
▲(14.98% Upside)
Action:Reiterated
Date:05/08/26
The score is driven primarily by solid financial quality supported by strong free cash flow, offset by cyclical revenue performance and leverage. Technicals are constructive with clear upward momentum, though conditions appear stretched. Valuation adds support due to a low P/E and a moderate dividend yield.
Positive Factors
Diversified global trading platform
Sumitomo’s sogo shosha model and global network across minerals, energy, metals, chemicals, infrastructure and real estate create durable origination, financing and project capabilities. Diversified operations and long-standing relationships support recurring fee income, cross-selling and downside mitigation over cycles.
Negative Factors
Pronounced revenue cyclicality
Revenue volatility, including a TTM decline of ~24%, undermines revenue visibility and stresses margins. For a business combining trading and asset earnings, cyclical swings can quickly reduce operating profit, complicate capital allocation and increase the likelihood of reactive measures in weaker periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified global trading platform
Sumitomo’s sogo shosha model and global network across minerals, energy, metals, chemicals, infrastructure and real estate create durable origination, financing and project capabilities. Diversified operations and long-standing relationships support recurring fee income, cross-selling and downside mitigation over cycles.
Read all positive factors
Sumitomo (8053) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥7.47T
Dividend Yield2.48%
Average Volume (3M)3.21M
Price to Earnings (P/E)12.5
Beta (1Y)1.25
Revenue Growth0.62%
EPS Growth7.66%
CountryJP
Employees74,920
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)499.41
Shares Outstanding1,195,115,200
10 Day Avg. Volume3,975,170
30 Day Avg. Volume3,208,530
Financial Highlights & Ratios
PEG Ratio1.51
Price to Book (P/B)1.50
Price to Sales (P/S)0.95
P/FCF Ratio9.82
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥7,838.00Price Target Upside30.31% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)540.58
Revenue Forecast (FY)¥7.75T
Sumitomo Business Overview & Revenue Model
Company Description
Sumitomo Corporation operates as a diversified global trading company, conducting business across numerous sectors worldwide. Its extensive operations are categorized into six core segments: Metal Products; Transportation & Construction Systems; I...
How the Company Makes Money
Sumitomo Corporation makes money primarily through a combination of (1) trading and distribution margins, (2) earnings from operating and investing in businesses and assets, and (3) fees from arranging and managing projects.
1) Trading and distri...
Sumitomo Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
64
Positive
Cash Flow
74
Positive
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.34T | 7.29T | 6.91T | 6.82T | 5.50T |
| Gross Profit | 1.51T | 1.44T | 1.34T | 1.23T | 1.01T |
| EBITDA | 800.42B | 541.73B | 536.91B | 538.96B | 403.61B |
| Net Income | 600.33B | 561.86B | 386.35B | 565.33B | 463.69B |
Balance Sheet | |||||
| Total Assets | 13.64T | 11.63T | 11.03T | 10.11T | 9.58T |
| Cash, Cash Equivalents and Short-Term Investments | 1.03T | 589.90B | 691.20B | 669.38B | 749.98B |
| Total Debt | 4.71T | 4.22T | 4.13T | 4.08T | 3.92T |
| Total Liabilities | 8.90T | 6.75T | 6.36T | 6.13T | 6.20T |
| Stockholders Equity | 4.63T | 4.65T | 4.45T | 3.78T | 3.20T |
Cash Flow | |||||
| Free Cash Flow | 707.55B | 509.48B | 515.47B | 162.51B | 124.35B |
| Operating Cash Flow | 813.46B | 612.28B | 608.85B | 232.80B | 194.07B |
| Investing Cash Flow | -906.64B | -447.70B | -216.12B | -94.11B | 47.62B |
| Financing Cash Flow | 498.21B | -261.07B | -418.57B | -247.88B | -138.50B |
Sumitomo Technical Analysis
Negative
6015.00
Price Trends
6568.18
Negative
6313.43
Negative
5468.18
Positive
Market Momentum
-99.72
Positive
35.92
Neutral
8.43
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8053, the sentiment is Negative. The current price of 6015 is below the 20-day moving average (MA) of 6903.85, below the 50-day MA of 6568.18, and above the 200-day MA of 5468.18, indicating a neutral trend. The MACD of -99.72 indicates Positive momentum. The RSI at 35.92 is Neutral, neither overbought nor oversold. The STOCH value of 8.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8053.
Sumitomo Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | ¥7.47T | 12.46 | 12.86% | 2.48% | 0.62% | 7.66% | |
69 Neutral | ¥8.21T | 14.76 | 13.39% | 2.29% | 6.11% | 9.13% | |
69 Neutral | ¥16.26T | 21.58 | 8.81% | 2.94% | 1.60% | -10.27% | |
68 Neutral | ¥14.60T | 14.57 | 15.23% | 2.11% | 0.67% | 3.97% | |
67 Neutral | ¥6.54T | 17.59 | 13.49% | 2.10% | 12.15% | 2.20% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
54 Neutral | ¥13.74T | 16.67 | 11.47% | 2.28% | -4.55% | -5.16% |
* Industrials Sector Average
JP:8053
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Sumitomo Corporate Events
Sumitomo to Exit Ambatovy Nickel Project, Booking Large One-Off Loss
May 1, 2026
Sumitomo Corporation has decided to exit the Ambatovy Nickel Project in Madagascar, an integrated nickel mining and refining business it joined in 2005, by transferring its entire 54.17% indirect equity stake to Ambatovy Mineral Resources Investme...
Sumitomo Boosts Earnings with Deferred Tax Assets After SCSK Takeover
May 1, 2026
Sumitomo Corporation has recognized new deferred tax assets in its non-consolidated and consolidated financial statements for the year ended March 31, 2026, following its acquisition of all outstanding shares of IT services firm SCSK Corporation, ...
Sumitomo Updates Outlook for Medium-Term Management Plan 2026
May 1, 2026
Sumitomo Corporation has announced the current outlook for its Medium-Term Management Plan 2026, following a resolution by its board of directors on May 1, 2026. The company indicated that updated quantitative targets and related performance infor...
Sumitomo to Implement Four-for-One Share Split and Boost Authorized Shares
May 1, 2026
Sumitomo Corporation’s board has approved a four-for-one split of its common stock, effective July 1, 2026, for shareholders of record on June 30, 2026. The move is intended to lower the price per investment unit, improve liquidity and make ...
Sumitomo Launches ¥80 Billion Share Buyback With Full Cancellation Plan
May 1, 2026
Sumitomo Corporation has authorized a new share repurchase program of up to 22 million common shares, representing about 1.8% of its outstanding stock, for a total consideration of up to 80 billion yen to be conducted on the Tokyo Stock Exchange b...
Sumitomo Raises Annual Dividend Ahead of Share Split on Strong FY2025 Earnings
May 1, 2026
Sumitomo Corporation’s board has approved a year-end dividend of 80 yen per share for the fiscal year ended March 31, 2026, bringing the total annual dividend to 150 yen per share when combined with the 70 yen interim payout. This exceeds th...
Sumitomo Corp lifts profit, boosts dividend and plans four-for-one stock split
May 1, 2026
Sumitomo Corporation reported consolidated revenues of ¥7.34 trillion for the year ended March 31, 2026, a modest 0.6% increase, while profit for the year attributable to owners of the parent rose 6.8% to ¥600.3 billion and comprehensive...
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.