Sumitomo (8053) AI Stock Analysis

• Market Cap: $4.94T
• Dividend Yield: 3.16%
• Average Volume (3M): 2.37M
• Price to Earnings (P/E): 8.2
• Beta (1Y): 1.15
• Revenue Growth: 4.25%
• EPS Growth: 59.51%
• Country: JP
• Employees: 74,920
• Sector: Industrials
• Sector Strength: 79
• Industry: Conglomerates
• EPS (TTM): 141.18
• Shares Outstanding: 1,211,099,400
• 10 Day Avg. Volume: 1,941,170
• 30 Day Avg. Volume: 2,369,270
• 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: 1.62
• Enterprise Value/Revenue: 1.10
• Enterprise Value/Gross Profit: 5.54
• Enterprise Value/Ebitda: 12.05
• 1Y Price Target: $4,925.07
• Price Target Upside: 19.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 79 Outperform
• Price Target: ¥4,186.00 ▲(1.63% Upside)

Sumitomo's strong financial performance, characterized by robust revenue growth and efficient cash flow management, is a major strength. The bullish technical indicators further reinforce the stock's positive outlook. Additionally, the stock's attractive valuation, with a low P/E ratio and solid dividend yield, enhances its investment appeal. However, attention to high debt levels is advisable.

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 a diversified portfolio of businesses and investments across various sectors. Key revenue streams include trading and distribution of metal products, machinery, and infrastructure equipment, as well as investments in energy and mineral resources projects. The company also earns income from its real estate developments, media and digital content, and consumer-related businesses. Strategic partnerships and joint ventures play a crucial role in Sumitomo's operations, enhancing its ability to expand market reach and optimize resource allocation. Additionally, Sumitomo Corporation benefits from its global network, which enables it to capitalize on emerging market opportunities and maintain a competitive edge.

Sumitomo Financial Statement Overview

Summary

Sumitomo's financial health is robust, with strong revenue growth, efficient cost management, and enhanced profitability. The balance sheet remains stable, though high debt levels necessitate careful management. Cash flows are strong, supporting the company's operations and providing flexibility for future investments. Overall, Sumitomo is well-positioned for continued financial success, though attention to debt levels is advised.

Income Statement

Sumitomo has demonstrated strong revenue growth with a notable increase from 2024 to 2025. The gross profit margin has remained stable, reflecting efficient cost management. However, the EBIT margin shows some volatility, notably with a negative figure in 2023, which could indicate operational challenges. The net profit margin has improved significantly, suggesting enhanced profitability and cost control.

Balance Sheet

The balance sheet reflects a stable financial position with a favorable equity ratio, indicating a strong asset base relative to equity. The debt-to-equity ratio is moderate, suggesting manageable leverage levels. Return on equity has improved, highlighting effective utilization of equity capital for generating profits. However, the total debt remains substantial, posing potential risks if not managed carefully.

Cash Flow

The cash flow statement shows positive free cash flow growth, indicating healthy cash generation capabilities. The operating cash flow to net income ratio underscores efficient cash conversion, with operating cash flows consistently exceeding net income. Free cash flow to net income ratio also remains strong, reflecting effective capital expenditure management and robust cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.29T	7.29T	6.91T	6.82T	5.50T	4.65T
Gross Profit	1.44T	1.44T	1.34T	1.23T	1.01T	729.46B
EBITDA	664.09B	736.02B	654.25B	723.04B	624.65B	158.58B
Net Income	561.86B	561.86B	386.35B	565.18B	463.69B	-153.07B
Balance Sheet
Total Assets	11.63T	11.63T	11.03T	10.11T	9.58T	8.08T
Cash, Cash Equivalents and Short-Term Investments	589.90B	589.90B	691.20B	793.21B	1.00T	728.43B
Total Debt	3.78T	3.78T	3.71T	3.65T	3.51T	3.41T
Total Liabilities	6.75T	6.75T	6.36T	6.13T	6.20T	5.38T
Stockholders Equity	4.65T	4.65T	4.45T	3.78T	3.20T	2.53T
Cash Flow
Free Cash Flow	509.48B	509.48B	515.47B	162.51B	124.35B	400.75B
Operating Cash Flow	612.28B	612.28B	608.85B	232.80B	194.07B	467.10B
Investing Cash Flow	-461.11B	-447.70B	-216.12B	-91.53B	49.04B	-120.11B
Financing Cash Flow	-247.66B	-261.07B	-415.48B	-250.46B	-139.92B	-466.37B

Sumitomo Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4119.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 4119 is above the 20-day moving average (MA) of 4014.40, above the 50-day MA of 3838.84, and above the 200-day MA of 3482.80, indicating a bullish trend. The MACD of 75.46 indicates Positive momentum. The RSI at 67.24 is Neutral, neither overbought nor oversold. The STOCH value of 72.25 is Neutral, 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
8053	79 Outperform	$4.94T	8.15	13.26%	3.16%	4.25%	59.51%
Sector *	64 Neutral	$10.96B	16.35	8.89%	1.96%	2.68%	-15.17%
ITOCF	―	$80.11B	12.36	17.06%	2.31%	―	―
MARUF	―	$37.83B	10.92	14.30%	2.77%	―	―
MITSF	―	$65.00B	11.48	10.69%	2.86%	―	―
MSBHF	―	$86.18B	16.45	8.85%	2.95%	―	―
TYHOF	―	$27.78B	11.35	14.15%	2.95%	―	―

Sumitomo Corporate Events

Sumitomo Corporation Announces Strategic Share Repurchase Plan

Sumitomo Corporation has announced a tender offer to repurchase its own shares as part of its shareholder return policy under its Medium-Term Management Plan 2026. The decision aims to enhance shareholder returns and capital efficiency by avoiding potential market disruptions from large share sales by a major shareholder, Mitsui Sumitomo Insurance Company. This move is expected to improve key financial metrics such as earnings per share and return on equity, thereby strengthening Sumitomo’s market position and shareholder value.

The most recent analyst rating on (JP:8053) stock is a Hold with a Yen3590.00 price target. To see the full list of analyst forecasts on Sumitomo stock, see the JP:8053 Stock Forecast page.

Sumitomo Corporation Reports Q2 2025 Financial Results

Sumitomo Corporation reported its consolidated financial results for the three-month period ended June 30, 2025, showing a slight increase in revenues by 0.9% compared to the previous year. The company experienced significant growth in profit before tax and profit for the period, with increases of 26.0% and 36.0% respectively, indicating improved operational efficiency and profitability. However, comprehensive income for the period saw a substantial decrease of 69.6%. The company’s total assets slightly decreased, while equity attributable to owners of the parent showed a marginal increase, reflecting stable financial positioning. The dividend forecast for the year ending March 31, 2026, indicates an increase in cash dividends per share, suggesting confidence in future earnings.

The most recent analyst rating on (JP:8053) stock is a Hold with a Yen3590.00 price target. To see the full list of analyst forecasts on Sumitomo stock, see the JP:8053 Stock Forecast page.