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Sumitomo Corporation (JP:8053)
:8053
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Sumitomo (8053) AI Stock Analysis

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JP:8053

Sumitomo

(OTC:8053)

Rating:79Outperform
Price Target:
¥4,186.00
▲(7.31% 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 (8053) vs. iShares MSCI Japan ETF (EWJ)

Sumitomo Business Overview & Revenue Model

Company DescriptionSumitomo Corporation, established in 1919, is a leading integrated trading and investment business enterprise headquartered in Tokyo, Japan. The company operates globally across multiple sectors, including metal products, transportation and construction systems, infrastructure, media and digital, living-related and real estate, mineral resources, and energy. Sumitomo Corporation provides a wide array of products and services, leveraging its extensive network and expertise to drive business development and innovation in various industries.
How the Company Makes MoneySumitomo 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
75
Positive
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
70
Positive
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
80
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue7.29T6.91T6.82T5.50T4.65T
Gross Profit1.44T1.34T1.23T1.01T729.46B
EBITDA736.02B654.25B723.04B624.65B158.58B
Net Income561.86B386.35B565.18B463.69B-153.07B
Balance Sheet
Total Assets11.63T11.03T10.11T9.58T8.08T
Cash, Cash Equivalents and Short-Term Investments589.90B691.20B793.21B1.00T728.43B
Total Debt3.78T3.71T3.65T3.51T3.41T
Total Liabilities6.75T6.36T6.13T6.20T5.38T
Stockholders Equity4.65T4.45T3.78T3.20T2.53T
Cash Flow
Free Cash Flow509.48B515.47B162.51B124.35B400.75B
Operating Cash Flow612.28B608.85B232.80B194.07B467.10B
Investing Cash Flow-447.70B-216.12B-91.53B49.04B-120.11B
Financing Cash Flow-261.07B-415.48B-250.46B-139.92B-466.37B

Sumitomo Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3901.00
Price Trends
50DMA
3708.34
Positive
100DMA
3579.73
Positive
200DMA
3416.10
Positive
Market Momentum
MACD
56.28
Negative
RSI
64.65
Neutral
STOCH
46.10
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 3901 is above the 20-day moving average (MA) of 3789.70, above the 50-day MA of 3708.34, and above the 200-day MA of 3416.10, indicating a bullish trend. The MACD of 56.28 indicates Negative momentum. The RSI at 64.65 is Neutral, neither overbought nor oversold. The STOCH value of 46.10 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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥4.72T7.7813.26%3.33%4.25%59.51%
64
Neutral
$10.63B16.035.49%2.12%2.74%-23.62%
$75.06B11.8517.06%2.53%
$34.76B10.0014.30%3.15%
$60.28B11.2210.69%3.22%
$79.04B15.298.85%3.29%
$26.33B9.3814.15%4.05%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8053
Sumitomo
3,901.00
906.60
30.28%
ITOCF
Itochu
53.65
8.31
18.33%
MARUF
Marubeni
20.14
4.65
30.02%
MITSF
Mitsui & Co
21.10
1.64
8.43%
MSBHF
Mitsubishi
20.60
2.14
11.59%
TYHOF
Toyota Tsusho
21.71
6.07
38.81%

Sumitomo Corporate Events

Sumitomo Corporation Announces Strategic Share Repurchase Plan
Jul 31, 2025

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
Jul 31, 2025

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.

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.Date of analysis: May 27, 2025