Sumitomo (8053) AI Stock Analysis

• Market Cap: ¥6.53T
• Dividend Yield: 2.5%
• Average Volume (3M): 3.13M
• Price to Earnings (P/E): 10.7
• Beta (1Y): 1.13
• Revenue Growth: 3.19%
• EPS Growth: 72.26%
• Country: JP
• Employees: 74,920
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 107.93
• Shares Outstanding: 1,211,426,600
• 10 Day Avg. Volume: 3,548,010
• 30 Day Avg. Volume: 3,131,623
• PEG Ratio: 0.16
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 0.56
• P/FCF Ratio: 8.02
• 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: ¥4,819.31
• Price Target Upside: -3.79% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 479.26
• Revenue Forecast (FY): ¥7.41T

• Rating: 77 Outperform
• Price Target: ¥5,831.00 ▲(16.41% Upside)

Sumitomo's strong financial performance and attractive valuation are the primary drivers of its overall score. The technical analysis indicates a positive trend, though caution is advised due to potential overbought conditions. The absence of earnings call and corporate events data does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates Sumitomo's ability to expand its market reach and sustain its business model across diverse sectors.

Cash Generation

Strong cash generation enhances financial flexibility, supporting investment in growth opportunities and providing a buffer against economic downturns.

Profitability

Improved profitability through a higher net profit margin suggests effective cost management and operational efficiency, contributing to long-term financial health.

Negative Factors

Earnings Call Data

Lack of recent earnings call data limits insights into management's strategic direction and operational updates, potentially impacting investor confidence.

Corporate Events

Absence of recent corporate events may signal a lack of strategic initiatives or partnerships, potentially hindering competitive positioning and growth.

Debt Levels

While moderate, the debt level requires careful management to ensure it does not constrain financial flexibility or increase risk during economic fluctuations.

Sumitomo Business Overview & Revenue Model

Company Description

Sumitomo Corporation engages in general trading business worldwide. It operates through six segments: Metal Products; Transportation & Construction Systems; Infrastructure; Media & Digital; Living Related & Real Estate; and Mineral Resources, Energy, Chemical & Electronics. The company provides steel sheets and tubular products; and manufactures, leases, sells, services, and finances ships, aircrafts, motor vehicles, construction equipment, and components and parts. It is also involved in the development of renewable energy projects comprising power generation and power plant engineering, procurement, and construction activities; electricity retail; industrial facilities and equipment, water, transportation systems and infrastructure, airports, smart city project, environmental solutions, and storage battery businesses; development and operation of industrial parks; arranging insurance; and provision of logistics services. In addition, the company engages in the cable television, 5G related technologies, programming distribution, movies, digital media and video content, TV shopping, and e-commerce businesses; cell phone, ICT platform, digital solution, and venture capital businesses; provision of smart communications infrastructure; operation of food supermarkets and drugstore chains; trade of cement and building materials; and real estate businesses. Further, it develops and trades in coal, iron ore, manganese, uranium, non-ferrous and precious metals, petroleum, natural gas and liquefied natural gas, and commodity derivative transactions; trades in non-ferrous metal products, liquefied petroleum gas, storage batteries, carbon products, plastics, organic and inorganic chemicals, silicon wafers, LEDs, pharmaceuticals, agricultural chemicals, household insecticides, fertilizers, and veterinary drugs; engages in the investing activities; and provides electronics manufacturing services. The company was incorporated in 1919 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Sumitomo Corporation generates revenue through multiple streams, primarily by acting as a trading intermediary for various commodities and products. Key revenue sources include the sale of metals and materials, machinery and equipment trading, and investments in infrastructure projects. The company also earns significant income from joint ventures and partnerships in sectors like energy and real estate development. Additionally, Sumitomo's extensive global network allows it to capitalize on trading activities, providing logistical and procurement services that enhance its earnings potential.

Sumitomo Financial Statement Overview

Summary

Sumitomo demonstrates strong financial health with significant revenue growth and improved profitability. The balance sheet reflects a stable leverage position with a strong equity base. Cash flow generation is robust, supporting future growth and financial flexibility. While operational efficiency could be enhanced, the overall financial position is solid, positioning the company well for future opportunities.

Income Statement

Sumitomo shows strong revenue growth with a 22.2% increase in TTM, indicating robust business expansion. The gross profit margin is healthy at 19.95%, and the net profit margin has improved to 8.30%, reflecting enhanced profitability. However, the EBIT margin has slightly decreased to 6.74%, suggesting some pressure on operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is 0.83, indicating a balanced leverage position. Return on equity is strong at 13.21%, showcasing effective use of equity to generate profits. The equity ratio stands at 40.34%, reflecting a solid equity base relative to total assets, though there is room for improvement in reducing debt levels.

Cash Flow

Sumitomo's free cash flow growth is impressive at 3.61%, supporting future investments and debt reduction. The operating cash flow to net income ratio is 0.20, suggesting good cash generation relative to net income. The free cash flow to net income ratio is high at 0.84, indicating strong cash flow efficiency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.31T	7.29T	6.91T	6.82T	5.50T	4.65T
Gross Profit	1.47T	1.44T	1.34T	1.23T	1.01T	729.46B
EBITDA	724.44B	736.02B	654.25B	723.04B	624.65B	158.58B
Net Income	609.13B	561.86B	386.35B	565.18B	463.69B	-153.07B
Balance Sheet
Total Assets	11.98T	11.63T	11.03T	10.11T	9.58T	8.08T
Cash, Cash Equivalents and Short-Term Investments	924.18B	589.90B	691.20B	669.38B	749.98B	613.38B
Total Debt	3.79T	3.87T	3.71T	3.65T	3.51T	3.41T
Total Liabilities	6.84T	6.75T	6.36T	6.13T	6.20T	5.38T
Stockholders Equity	4.88T	4.65T	4.45T	3.78T	3.20T	2.53T
Cash Flow
Free Cash Flow	585.71B	509.48B	515.47B	162.51B	124.35B	400.75B
Operating Cash Flow	686.78B	612.28B	608.85B	232.80B	194.07B	467.10B
Investing Cash Flow	-405.10B	-447.70B	-216.12B	-91.53B	49.04B	-120.11B
Financing Cash Flow	-363.79B	-261.07B	-415.48B	-250.46B	-139.92B	-466.37B

Sumitomo Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5009.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8053, the sentiment is Positive. The current price of 5009 is above the 20-day moving average (MA) of 4910.15, above the 50-day MA of 4688.98, and above the 200-day MA of 3911.24, indicating a bullish trend. The MACD of 158.65 indicates Negative momentum. The RSI at 75.96 is Negative, neither overbought nor oversold. The STOCH value of 95.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8053.

Sumitomo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8015	77 Outperform	$4.98T	13.48	13.49%	2.17%	5.32%	9.73%
8053	77 Outperform	¥6.53T	10.72	12.86%	2.50%	3.19%	72.26%
8031	74 Outperform	$10.72T	13.36	11.47%	2.28%	-1.33%	-7.40%
8058	73 Outperform	¥14.26T	21.44	7.39%	2.79%	-7.54%	-35.70%
8002	71 Outperform	$6.43T	11.13	15.34%	2.18%	9.62%	25.71%
8001	70 Outperform	$12.91T	13.34	15.80%	2.05%	0.93%	15.80%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Sumitomo Corporate Events

Sumitomo Corporation Reports Strong Financial Performance for H1 2025

Sumitomo Corporation reported its consolidated financial results for the six-month period ending September 30, 2025. The company saw a modest increase in revenues by 0.5% compared to the same period last year, with significant growth in profit before tax by 12.9% and profit for the period attributable to owners of the parent by 18.6%. Comprehensive income for the period surged by 514%, indicating a strong recovery and positive financial performance. The company also announced an increase in dividends, reflecting confidence in its ongoing financial health.