Sumitomo Mitsui Financial Group (8316) AI Stock Analysis

• Market Cap: $15.69T
• Dividend Yield: 3%
• Average Volume (3M): 11.61M
• Price to Earnings (P/E): 13.4
• Beta (1Y): 1.38
• Revenue Growth: -1.43%
• EPS Growth: 21.70%
• Country: JP
• Employees: 120,000
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): 144.57
• Shares Outstanding: 3,857,407,700
• 10 Day Avg. Volume: 12,491,479
• 30 Day Avg. Volume: 11,612,370
• PEG Ratio: 0.51
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 1.54
• P/FCF Ratio: 3.22
• Enterprise Value/Market Cap: 0.02
• Enterprise Value/Revenue: 0.03
• Enterprise Value/Gross Profit: 0.06
• Enterprise Value/Ebitda: 0.16
• 1Y Price Target: $4,655.20
• Price Target Upside: 4.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: ¥4,959.00 ▲(11.46% Upside)

Sumitomo Mitsui Financial Group's strong financial performance and positive technical indicators are the primary drivers of its stock score. The stock is fairly valued with an attractive dividend yield, but caution is advised due to technical indicators suggesting it may be approaching overbought levels.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust business expansion and effective market penetration, supporting long-term financial stability.

Balance Sheet Health

A strong balance sheet with low debt levels enhances financial flexibility and reduces risk, supporting sustainable growth.

Cash Flow Management

Improved cash flow management enhances liquidity and ensures the company can meet its obligations and invest in growth opportunities.

Negative Factors

Cash Flow Fluctuations

Inconsistent cash flow can hinder the company's ability to plan long-term investments and manage financial obligations effectively.

Operational Efficiency

Suboptimal operational efficiency may limit profitability improvements and affect competitive positioning in the long term.

Debt Involvement in AI Projects

High involvement in large debt deals for AI projects may increase financial risk if the projects do not yield expected returns.

Sumitomo Mitsui Financial Group Business Overview & Revenue Model

Company Description

Sumitomo Mitsui Financial Group, Inc., together with its subsidiaries, provides commercial banking, leasing, securities, consumer finance, and other services in Japan, the Americas, Europe, the Middle East, Asia, and Oceania. It operates through four segments: Wholesale Business Unit, Retail Business Unit, Global Business Unit, and Global Markets Business Unit. The Wholesale Business Unit segment offers financing, investment management, risk hedging, and settlement services, as well as financial solutions related to mergers and acquisition, and other advisory services primarily for large, mid, and small-sized corporate clients; various leasing services, including equipment, and operating and leveraged leasing; and digital services, such as robotic process automation and electronic contract services. The Retail Business Unit segment offers wealth management, settlement, consumer finance, and housing loan products and services, as well as business and asset succession services to high-net-worth customers. The Global Business Unit segment offers loans, deposits, clearing services, trade finance, project finance, loan syndication, derivatives, and cash management services; underwriting services; and leasing services related to the construction machinery, transportation equipment, industrial machinery, medical equipment, and aircraft leasing. The Global Markets Business Unit segment offers solutions through foreign exchange products, derivatives, bonds, stocks, and other marketable financial products. It also undertakes asset liability management operations. The company also offers credit card, internet banking, system development and engineering, data processing, management consulting and economic research, and investment advisory and investment trust management services. Sumitomo Mitsui Financial Group, Inc. was incorporated in 2002 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Sumitomo Mitsui Financial Group generates revenue through several key streams. The primary source of income is interest income from loans and advances made to individuals and businesses, which is facilitated by its banking operations. Additionally, the company earns fee-based income from various services such as investment banking, asset management, and advisory services. SMFG also engages in trading and investment activities, which contribute to its earnings through gains on securities and foreign exchange transactions. Significant partnerships, especially in international markets, bolster SMFG's ability to serve multinational corporations and expand its revenue base. Moreover, the group's diversified financial services portfolio allows it to mitigate risks and capitalize on various market opportunities.

Sumitomo Mitsui Financial Group Financial Statement Overview

Summary

Sumitomo Mitsui Financial Group shows strong revenue growth and solid profitability, with efficient cost management and a stable capital structure. Cash flow management has improved, yet consistency in cash generation remains crucial.

Income Statement

Sumitomo Mitsui Financial Group has demonstrated strong revenue growth, with a significant increase from the previous year, indicating robust business expansion. The gross profit margin is notable, reflecting efficient cost management. Net profit margin has improved, showcasing enhanced profitability. However, there is room for improvement in EBIT and EBITDA margins to further optimize operational efficiency.

Balance Sheet

The company's balance sheet is solid, with a favorable debt-to-equity ratio that indicates prudent financial management. The equity ratio suggests a stable capital structure, while ROE is strong, reflecting effective utilization of shareholder funds. The company has maintained a healthy level of cash and cash equivalents, underpinning its ability to meet short-term obligations.

Cash Flow

Cash flow performance shows improvement, with a significant increase in free cash flow indicating better cash management practices. The operating cash flow to net income ratio is strong, suggesting efficient cash conversion from earnings. However, historical fluctuations in cash flow highlight the need for consistent cash flow generation.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.56T	9.66T	8.77T	5.78T	3.80T	3.57T
Gross Profit	4.72T	4.72T	4.16T	3.51T	3.15T	2.69T
EBITDA	1.66T	1.98T	1.64T	1.37T	1.17T	899.42B
Net Income	1.18T	1.18T	962.95B	805.84B	706.63B	512.81B
Balance Sheet
Total Assets	10.00T>	10.00T>	10.00T>	10.00T>	10.00T>	10.00T>
Cash, Cash Equivalents and Short-Term Investments	72.27T	75.59T	78.14T	75.91T	74.79T	10.00T>
Total Debt	55.63T	58.30T	53.88T	46.16T	51.48T	46.66T
Total Liabilities	10.00T>	10.00T>	10.00T>	10.00T>	10.00T>	10.00T>
Stockholders Equity	14.47T	14.70T	14.66T	12.68T	12.10T	11.83T
Cash Flow
Free Cash Flow	0.00	4.60T	4.72T	-6.19T	414.72B	18.47T
Operating Cash Flow	0.00	4.97T	4.86T	-5.90T	507.31B	18.80T
Investing Cash Flow	0.00	-4.51T	-15.80T	5.93T	-10.73T	-7.68T
Financing Cash Flow	0.00	-480.15B	10.52T	-357.78B	8.88T	-562.58B

Sumitomo Mitsui Financial Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4449.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8316, the sentiment is Positive. The current price of 4449 is above the 20-day moving average (MA) of 4233.10, above the 50-day MA of 4123.24, and above the 200-day MA of 3747.38, indicating a bullish trend. The MACD of 96.71 indicates Negative momentum. The RSI at 64.28 is Neutral, neither overbought nor oversold. The STOCH value of 60.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8316.

Sumitomo Mitsui Financial Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8316	79 Outperform	$15.69T	13.37	9.09%	3.00%	-1.43%	21.70%
8411	77 Outperform	$12.72T	14.57	9.14%	2.59%	-3.62%	23.01%
8604	77 Outperform	$3.18T	8.91	10.65%	4.54%	-2.45%	35.60%
8306	76 Outperform	$26.38T	14.59	9.01%	3.02%	-2.27%	6.56%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7182	67 Neutral	$6.22T	14.83	4.49%	3.30%	2.17%	9.55%
8308	61 Neutral	$3.49T	15.28	8.37%	1.76%	8.29%	28.76%

Sumitomo Mitsui Financial Group Corporate Events

Sumitomo Mitsui Financial Group Announces Share Repurchase and Cancellation

Sumitomo Mitsui Financial Group announced a board resolution to repurchase up to 50 million of its own shares, equivalent to 1.3% of issued shares, to enhance shareholder returns and improve capital efficiency. The repurchased shares will be cancelled by February 2026, reflecting the company’s strategic focus on optimizing its capital structure and delivering value to shareholders.

The most recent analyst rating on (JP:8316) stock is a Hold with a Yen4610.00 price target. To see the full list of analyst forecasts on Sumitomo Mitsui Financial Group stock, see the JP:8316 Stock Forecast page.

Sumitomo Mitsui Financial Group Increases Dividend Forecast Amid Strong Earnings

Sumitomo Mitsui Financial Group announced an increase in interim dividends from surplus, with a revised dividend forecast for the fiscal year ending March 31, 2026. The interim dividend per share has been increased to ¥78, and the year-end dividend forecast has been revised to ¥79 per share, reflecting an overall positive revision in earnings forecasts. This adjustment indicates a strong financial performance and is likely to positively impact the company’s stakeholders, enhancing its market position.

The most recent analyst rating on (JP:8316) stock is a Hold with a Yen4610.00 price target. To see the full list of analyst forecasts on Sumitomo Mitsui Financial Group stock, see the JP:8316 Stock Forecast page.

Sumitomo Mitsui Financial Group Reports Strong Profit Growth Amid Revised Forecasts

Sumitomo Mitsui Financial Group reported a significant increase in profit attributable to owners of the parent by 28.7% for the six months ending September 30, 2025, despite a slight decrease in ordinary income. The company also revised its dividend forecast and earnings forecast for the fiscal year ending March 31, 2026, indicating a positive outlook for stakeholders.

The most recent analyst rating on (JP:8316) stock is a Hold with a Yen4610.00 price target. To see the full list of analyst forecasts on Sumitomo Mitsui Financial Group stock, see the JP:8316 Stock Forecast page.