Sumitomo Mitsui Holdings (8309) AI Stock Analysis

• Market Cap: ¥2.69T
• Dividend Yield: 0.26%
• Average Volume (3M): 2.67M
• Price to Earnings (P/E): 10.5
• Beta (1Y): 1.03
• Revenue Growth: 25.32%
• EPS Growth: 174.52%
• Country: JP
• Employees: 22,911
• Sector: Financial
• Sector Strength: 76
• Industry: Banks - Regional
• EPS (TTM): 44.96
• Shares Outstanding: 713,283,750
• 10 Day Avg. Volume: 2,159,480
• 30 Day Avg. Volume: 2,667,803
• PEG Ratio: 0.60
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.66
• 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: ¥4,310.55
• Price Target Upside: 14.22% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: ―

Sumitomo Mitsui Holdings demonstrates solid financial performance with strong revenue growth and profitability. However, technical indicators suggest bearish sentiment, with the stock price below key moving averages. Valuation metrics indicate the stock may be undervalued, offering a compelling dividend yield. The absence of current earnings call highlights limits insights into near-term strategic direction.

Sumitomo Mitsui Holdings Business Overview & Revenue Model

Company Description

Sumitomo Mitsui Trust Holdings, Inc. operates as a trust bank in Japan and internationally. It offers supervising services for management strategies, and financial and human resource management; and corporate administration, operational process, risk, and compliance management services; and internal auditing services. The company also provides real estate brokerage and consulting services for individual and corporate clients. In addition, it offers stock transfer agency services; asset management services; and retail total solution, marketing, and fiduciary services. The company was formerly known as Chuo Mitsui Trust Holdings, Inc. and changed its name to Sumitomo Mitsui Trust Holdings, Inc. in 2011. Sumitomo Mitsui Trust Holdings, Inc. was incorporated in 2002 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Sumitomo Mitsui Financial Group makes money primarily through interest income generated from its extensive lending activities, including personal and corporate loans. Additionally, the company earns significant revenue through fees and commissions from its financial services, such as asset management, securities brokerage, and transaction services. The leasing and consumer finance segments also contribute to its earnings by providing leasing solutions and consumer credit. SMFG's international operations and strategic partnerships enhance its revenue streams by expanding its global reach and diversifying its service offerings. Furthermore, the group benefits from its investment banking activities by providing advisory services, underwriting, and capital markets solutions.

Sumitomo Mitsui Holdings Financial Statement Overview

Summary

Sumitomo Mitsui Holdings exhibits strong revenue growth and profitability, with effective cost management as reflected in the income statement. However, the balance sheet shows a low equity ratio, and cash flow challenges persist, indicating potential financial risks.

Income Statement

Sumitomo Mitsui Holdings has demonstrated strong revenue growth in the TTM (Trailing-Twelve-Months) period. The company achieved a gross profit margin of 117.32% and a net profit margin of 14.70% for the TTM, indicating efficient cost management. However, the EBIT margin of 42.54% and EBITDA margin of 7.89% suggest potential room for improvement in operational efficiency.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 4.93, indicating prudent financial leverage. The return on equity (ROE) is 8.21%, reflecting moderate profitability. The equity ratio of 3.98% suggests a relatively low proportion of assets financed by equity, which could pose a risk in volatile market conditions.

Cash Flow

Cash flow analysis reveals challenges in cash generation, with a significant decline in free cash flow and zero operating cash flow in the TTM period. The operating cash flow to net income ratio and free cash flow to net income ratio cannot be calculated due to missing data, highlighting concerns about cash flow stability.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
1.74T	2.75T	1.02T	1.14T	1.16T	1.09T
	Gross Profit
2.04T	0.00	1.02T	1.14T	1.16T	1.09T
	EBIT
740.70B	304.09B	518.62B	229.51B	188.12B	155.83B
	EBITDA
202.91B	304.09B	142.56B	312.23B	266.72B	242.43B
	Net Income Common Stockholders
255.91B	257.63B	79.20B	191.00B	169.08B	142.20B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
24.63T	0.00	22.83T	21.60T	18.22T	18.49T
	Total Assets
78.32T	78.25T	75.88T	69.02T	64.63T	62.16T
	Total Debt
15.37T	21.82T	17.68T	17.12T	16.72T	14.85T
	Net Debt
-9.26T	21.82T	-5.15T	-4.48T	-1.51T	-3.64T
	Total Liabilities
75.18T	75.12T	72.74T	12.87T	61.89T	59.44T
	Stockholders Equity
3.11T	3.10T	3.11T	2.79T	2.72T	2.69T
Cash Flow		Free Cash Flow
0.00	1.12T	1.40T	2.55T	-172.08B	6.49T
	Operating Cash Flow
0.00	1.13T	1.47T	2.62T	-120.26B	6.55T
	Investing Cash Flow
0.00	-971.48B	-2.58T	960.27B	-879.21B	-475.49B
	Financing Cash Flow
0.00	2.03T	-85.75B	-217.51B	-125.08B	-219.72B

Sumitomo Mitsui Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3774.00
• 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:8309, the sentiment is Neutral. The current price of 3774 is below the 20-day moving average (MA) of 3821.90, above the 50-day MA of 3605.90, and above the 200-day MA of 3582.78, indicating a neutral trend. The MACD of 37.61 indicates Positive momentum. The RSI at 51.34 is Neutral, neither overbought nor oversold. The STOCH value of 40.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8309.

Sumitomo Mitsui Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$12.73B	9.92	7.90%	78.88%	12.06%	-7.95%
8309	63 Neutral	¥2.69T	10.50	8.20%	0.26%	25.32%	174.52%
RSNHF		$20.73B	14.96	7.67%	0.01%	―	―
CCRDF		$7.40B	13.77	6.37%	0.02%	―	―
JPHLF		$27.23B	11.85	3.78%	0.02%	―	―
JPSTF		$37.61B	14.10	4.38%	3.83%	―	―
MZHOF		$68.54B	12.52	8.45%	3.48%	―	―

Sumitomo Mitsui Holdings Corporate Events

Sumitomo Mitsui Trust Group Addresses Insider Trading Incident with New Preventive Measures

Sumitomo Mitsui Trust Group has announced the results of an investigation into insider trading by a former employee of its subsidiary, Sumitomo Mitsui Trust Bank. The investigation, led by an independent committee, resulted in recommendations for preventing future occurrences, which the company is committed to implementing. These measures include enhancing employee education on ethical standards, strengthening preventive measures, and improving the management of insider information. The company aims to restore trust among its clients, shareholders, and stakeholders by reinforcing its internal management system and ensuring compliance with financial regulations.

Sumitomo Mitsui Trust Group Addresses Insider Trading Allegations

Sumitomo Mitsui Trust Group announced that a former employee of its subsidiary, Sumitomo Mitsui Trust Bank, has been accused of insider trading by the Securities and Exchange Surveillance Commission. The company has taken disciplinary actions and is cooperating with the investigation. To prevent future incidents, the company has established an Investigation Committee and is implementing measures such as revising internal guidelines, enhancing monitoring of transactions, and improving employee education. These efforts aim to restore trust among clients, shareholders, and stakeholders.

Sumitomo Mitsui Trust Group Announces Leadership Changes

Sumitomo Mitsui Trust Group has announced changes in its executive leadership, effective April 1, 2025. Masakatsu Sato will be appointed as the new Representative Executive Officer of the SuMi TRUST Group, while Futoshi Itani and Masakatsu Sato will take on roles as Representative Directors at SuMi TRUST Bank. These changes are part of a strategic leadership transition aimed at strengthening the company’s management structure.