Sumitomo Corporation (JP:8053)
:8053
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Sumitomo
(8053)
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Rating:64Neutral
Price Target:
¥7,319.00
▲(21.68% Upside)
Action:ReiteratedDate:05/02/26
The score is driven primarily by solid financial performance supported by strong free cash flow and steady profitability since 2022, tempered by sharp TTM revenue decline and meaningful leverage. Technicals add only modest support because momentum indicators are weak (negative MACD, neutral RSI). Valuation is reasonable but not a clear bargain, keeping the overall score in the mid-range.
Positive Factors
Strong free cash flow generation
Sumitomo's free cash flow has materially improved in the TTM, covering roughly 0.83 of net income and with operating and free cash flows consistently positive. Durable cash conversion supports reinvestment, project financing, and dividend capacity even through cycles, enhancing strategic flexibility over months.
Negative Factors
Sharp TTM revenue decline
A roughly 24% TTM revenue decline highlights material top-line cyclicality that can pressure operating leverage and margin sustainability. For a trading and asset-heavy conglomerate, sustained or repeated revenue contractions over several quarters would reduce cash flow predictability and constrain investment and payout strategies.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Sumitomo's free cash flow has materially improved in the TTM, covering roughly 0.83 of net income and with operating and free cash flows consistently positive. Durable cash conversion supports reinvestment, project financing, and dividend capacity even through cycles, enhancing strategic flexibility over months.
Read all positive factors
Sumitomo (8053) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥8.16T
Dividend Yield2.48%
Average Volume (3M)3.21M
Price to Earnings (P/E)9.0
Beta (1Y)1.24
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
¥7,265.45Price Target Upside20.79% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)530.05
Revenue Forecast (FY)¥7.74T
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, Ener...
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 | 398.26B | 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
Positive
6015.00
Price Trends
6041.80
Negative
5748.06
Positive
4921.81
Positive
Market Momentum
46.38
Negative
50.81
Neutral
27.00
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 6015 is above the 20-day moving average (MA) of 5962.38, below the 50-day MA of 6041.80, and above the 200-day MA of 4921.81, indicating a neutral trend. The MACD of 46.38 indicates Negative momentum. The RSI at 50.81 is Neutral, neither overbought nor oversold. The STOCH value of 27.00 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | ¥9.64T | 20.63 | 13.39% | 2.29% | 6.11% | 9.13% | |
69 Neutral | ¥18.12T | 25.47 | 7.39% | 2.94% | 1.60% | -10.27% | |
68 Neutral | ¥15.46T | 17.70 | 15.23% | 2.11% | 0.67% | 3.97% | |
67 Neutral | ¥7.28T | 18.80 | 13.49% | 2.10% | 12.15% | 2.20% | |
64 Neutral | ¥8.16T | 9.00 | 12.86% | 2.48% | 0.62% | 7.66% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
54 Neutral | ¥16.21T | 19.09 | 11.47% | 2.28% | -4.55% | -5.17% |
* 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...
Sumitomo Posts Stable Nine-Month Earnings, Lifts Annual Dividend to ¥140
Feb 4, 2026
Sumitomo Corporation reported consolidated results for the nine months ended 31 December 2025 showing modest top-line growth and mostly flat earnings. Revenues edged up 1.2% year on year to ¥5.38 trillion, while profit before tax slipped 1.0%...
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.