Sumitomo (8053) AI Stock Analysis

• Market Cap: $4.47T
• Dividend Yield: 3.57%
• Average Volume (3M): 2.46M
• Price to Earnings (P/E): 8.0
• Beta (1Y): 1.16
• Revenue Growth: 5.52%
• EPS Growth: 46.81%
• Country: JP
• Employees: 74,920
• Sector: Industrials
• Sector Strength: 83
• Industry: Conglomerates
• EPS (TTM): 120.12
• Shares Outstanding: 1,211,099,400
• 10 Day Avg. Volume: 2,936,200
• 30 Day Avg. Volume: 2,461,960
• PEG Ratio: 0.23
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.98
• 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: $4,572.54
• Price Target Upside: 23.62% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 79 Outperform
• Price Target: ¥4,186.00 ▲(13.17%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 its extensive and diverse business operations. The company earns money by trading, investing in, and managing a wide array of businesses and assets globally. Key revenue streams include the sale of metal products, such as steel and aluminum, and the provision of infrastructure and transportation systems, including the development of logistics services and transportation equipment. The company also invests in energy projects, both conventional and renewable, contributing to its earnings. Additionally, Sumitomo is involved in the development and management of real estate properties and provides services in the media and digital sectors. Strategic partnerships and joint ventures with other global companies further enhance its revenue potential, enabling it to tap into new markets and technologies.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	7.29T	6.91T	6.82T	5.50T	4.65T
Gross Profit	1.44T	1.34T	1.23T	1.01T	729.46B
EBITDA	736.02B	654.25B	723.04B	624.65B	158.58B
Net Income	561.86B	386.35B	565.18B	463.69B	-153.07B
Balance Sheet
Total Assets	11.63T	11.03T	10.11T	9.58T	8.08T
Cash, Cash Equivalents and Short-Term Investments	589.90B	691.20B	793.21B	1.00T	728.43B
Total Debt	3.78T	3.71T	3.65T	3.51T	3.41T
Total Liabilities	6.75T	6.36T	6.13T	6.20T	5.38T
Stockholders Equity	4.65T	4.45T	3.78T	3.20T	2.53T
Cash Flow
Free Cash Flow	509.48B	515.47B	162.51B	124.35B	400.75B
Operating Cash Flow	612.28B	608.85B	232.80B	194.07B	467.10B
Investing Cash Flow	-447.70B	-216.12B	-91.53B	49.04B	-120.11B
Financing Cash Flow	-261.07B	-415.48B	-250.46B	-139.92B	-466.37B

Sumitomo Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3699.00
• 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 3699 is above the 20-day moving average (MA) of 3627.30, above the 50-day MA of 3578.46, and above the 200-day MA of 3336.66, indicating a bullish trend. The MACD of 3.51 indicates Positive momentum. The RSI at 52.42 is Neutral, neither overbought nor oversold. The STOCH value of 44.04 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	$4.47T	7.97	12.19%	3.57%	5.52%	46.81%
Sector *	65 Neutral	$10.56B	15.49	5.57%	1.96%	2.71%	-26.29%
ITOCF		$74.67B	12.58	15.55%	2.50%	―	―
MARUF		$32.89B	10.07	13.98%	3.22%	―	―
MITSF		$56.69B	9.79	11.74%	3.35%	―	―
MSBHF		$74.59B	12.24	10.17%	3.41%	―	―
TYHOF		$22.86B	9.27	14.04%	0.02%	―	―

Sumitomo Corporate Events

Sumitomo Announces Share Repurchase and Cancellation Plan

Sumitomo Corporation has announced a strategic decision to repurchase up to 35 million shares of its common stock, representing approximately 2.9% of its outstanding shares, with a total repurchase amount of up to 80 billion yen. This move, aimed at improving capital efficiency and enhancing shareholder returns, will see the cancellation of all repurchased shares, excluding 1 million shares allocated for stock compensation, by April 10, 2026.

Sumitomo Corporation Reports Significant Financial Growth in FY2025

Sumitomo Corporation reported a significant improvement in its financial results for the fiscal year ending March 31, 2025, compared to the previous year. The company experienced a 5.5% increase in revenues, driven by strong performance in real estate and overseas power projects, and a substantial rebound from prior losses in its nickel mining and refining business in Madagascar, leading to a notable rise in profits.