Sumitomo (8053) AI Stock Analysis

• Market Cap: ¥7.56T
• Dividend Yield: 2.48%
• Average Volume (3M): 3.21M
• Price to Earnings (P/E): 12.4
• Beta (1Y): 1.16
• 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: 3,975,170
• 30 Day Avg. Volume: 3,208,530
• 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: ¥6,106.47
• Price Target Upside: -2.28% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: ¥7,077.00 ▲(13.25% 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

Diversified business model

Sumitomo's multi‑pillar model (trading, operating businesses, equity investments) spreads revenue across sectors and regions. That diversification reduces reliance on any single cycle, provides multiple cashflow engines and supports resilience and stability over a multi‑month horizon.

Strong free cash flow growth

Double‑digit free cash flow growth indicates solid cash conversion and operational efficiency. Robust FCF enhances capacity to fund capex, project development, dividends and debt reduction, strengthening financial flexibility and endurance through economic cycles.

Balanced capital allocation

Moderate leverage alongside rising ROE suggests prudent financing and effective capital deployment. This balance supports investment activity and dividend capacity while retaining room to absorb shocks, enabling durable financial stability and optionality over the medium term.

Negative Factors

Commodity price sensitivity

Significant exposure to resource and commodity businesses links earnings and cash flows to volatile commodity cycles. Structural price swings can cause prolonged margin and cashflow variability, reducing predictability and increasing downside risk across reporting periods.

Modest organic revenue growth

Low single‑digit top‑line growth for a large, diversified conglomerate limits compounding of earnings. Without faster organic expansion or meaningful margin expansion, EPS growth may rely on financial or transactional drivers rather than underlying business scale increases.

Earnings dependent on affiliates

Heavy reliance on equity‑accounted affiliates and subsidiary earnings creates lumpy, partner‑dependent results. Equity income timing and one‑offs can reduce transparency and predictability of recurring profits and cash generation across reporting cycles.

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 exhibits strong financial health with consistent revenue and profit growth, a balanced capital structure, and substantial cash flows. The income statement, balance sheet, and cash flow scores reflect efficient operations and a solid financial foundation.

Income Statement

Sumitomo has demonstrated consistent revenue growth, with a TTM revenue growth rate of 3.4%. The gross profit margin is stable at approximately 20%, and the net profit margin has improved to 8.3% in the TTM, indicating enhanced profitability. EBIT and EBITDA margins are also healthy, reflecting efficient operations and cost management.

Balance Sheet

The company's debt-to-equity ratio is relatively moderate at 0.83, suggesting a balanced approach to leveraging. Return on equity has improved to 13.2% in the TTM, showcasing effective use of equity to generate profits. The equity ratio remains strong, indicating a solid financial foundation.

Cash Flow

Sumitomo's free cash flow has grown by 10.95% in the TTM, reflecting strong cash generation capabilities. The operating cash flow to net income ratio is robust, indicating efficient conversion of earnings into cash. The free cash flow to net income ratio is high, underscoring the company's ability to generate cash relative to its net income.

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	761.62B	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: 6249.00
• 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 6249 is above the 20-day moving average (MA) of 6033.20, above the 50-day MA of 5507.18, and above the 200-day MA of 4330.82, indicating a bullish trend. The MACD of 229.89 indicates Positive momentum. The RSI at 68.06 is Neutral, neither overbought nor oversold. The STOCH value of 63.67 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
8015	77 Outperform	¥5.94T	16.09	13.49%	2.10%	5.32%	9.73%
8053	77 Outperform	¥7.56T	12.40	12.86%	2.48%	3.19%	72.26%
8031	74 Outperform	¥14.37T	15.95	11.47%	2.28%	-1.33%	-7.40%
8002	71 Outperform	$8.57T	14.83	15.34%	2.29%	9.62%	25.71%
8001	68 Neutral	¥15.33T	14.82	15.80%	2.11%	0.93%	15.80%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
8058	60 Neutral	¥15.53T	23.34	7.39%	2.94%	-7.54%	-35.70%

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.

The most recent analyst rating on (JP:8053) stock is a Buy with a Yen4970.00 price target. To see the full list of analyst forecasts on Sumitomo stock, see the JP:8053 Stock Forecast page.