Sumitomo Mitsui Financial Group (8316) AI Stock Analysis

• Market Cap: $13.93T
• Dividend Yield: 3.27%
• Average Volume (3M): 12.85M
• Price to Earnings (P/E): 11.9
• Beta (1Y): 1.26
• Revenue Growth: 5.50%
• EPS Growth: 25.15%
• Country: JP
• Employees: 120,000
• Sector: Financial
• Sector Strength: 78
• Industry: Banks - Diversified
• EPS (TTM): 105.22
• Shares Outstanding: 3,884,445,600
• 10 Day Avg. Volume: 11,058,610
• 30 Day Avg. Volume: 12,852,860
• PEG Ratio: 0.62
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.17
• 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: $4,065.27
• Price Target Upside: 13.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 80 Outperform
• Price Target: ¥4,143.00 ▲(16.05%Upside)

Sumitomo Mitsui Financial Group's strong financial performance is the primary driver of its stock score, supported by robust revenue growth and solid profitability. Technical analysis indicates positive momentum, though caution is warranted due to near overbought conditions. Fair valuation and a good dividend yield further enhance the stock's attractiveness.

Positive Factors

Dividends

FY25 dividend raised to JPY122/share, with management seeing higher dividends ahead.

Financial Performance

Management targets a new record net profit of JPY 1,300bn in FY26F, higher than the medium-term net profit target previously communicated.

Share Buyback

A share buyback of JPY 100bn has been approved and management will consider additional purchases depending on future financial progress, which is viewed positively.

Negative Factors

Interest Rates

Downside risks include declining domestic interest rates, changes in expectations for BOJ policy, and a stronger yen.

Net Profit

4QFY25 net profit weighed down by losses from sales of low-profit assets and booking of JPY90bn forward-looking provisions.

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 multiple streams, with its core banking operations at SMBC being the primary source. It earns money from interest income on loans and advances to individuals and corporations, as well as from fees and commissions on various financial services such as asset management, securities brokerage, and investment banking. The group also benefits from its credit card services, leasing operations, and consumer finance businesses, which contribute to non-interest income. SMFG's strategic partnerships and alliances with other financial institutions and its global presence further enhance its revenue by expanding its customer base and market reach.

Sumitomo Mitsui Financial Group Financial Statement Overview

Summary

Sumitomo Mitsui Financial Group exhibits strong financial performance with robust revenue growth, solid profitability, and a well-managed balance sheet. While cash flow management has improved, maintaining consistency in cash generation is essential.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
5.12T	9.66T	4.43T	3.79T	3.42T	3.17T
	Gross Profit
5.12T	4.72T	4.43T	3.79T	3.42T	3.17T
	EBIT
2.10T	1.70T	1.67T	1.34T	788.92B	672.24B
	EBITDA
2.03T	1.98T	1.96T	1.37T	1.17T	754.53B
	Net Income Common Stockholders
1.31T	1.18T	962.95B	805.84B	706.63B	512.81B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
74.54T	10.00T>	93.16T	73.21T	72.19T	69.66T
	Total Assets
10.00T>	10.00T>	10.00T>	10.00T>	10.00T>	10.00T>
	Total Debt
57.40T	58.30T	34.26T	29.38T	32.12T	30.36T
	Net Debt
-17.14T	-17.29T	-43.89T	-46.53T	-42.67T	-42.21T
	Total Liabilities
10.00T>	10.00T>	10.00T>	10.00T>	10.00T>	10.00T>
	Stockholders Equity
15.14T	14.70T	14.66T	12.68T	12.10T	11.83T
Cash Flow		Free Cash Flow
0.00	4.60T	250.98B	-6.19T	1.26T	18.47T
	Operating Cash Flow
0.00	4.97T	642.86B	-5.90T	1.55T	18.80T
	Investing Cash Flow
0.00	-4.51T	-918.90B	5.93T	-2.66T	-7.68T
	Financing Cash Flow
0.00	-480.15B	280.69B	-357.78B	-485.34B	-562.58B

Sumitomo Mitsui Financial Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3570.00
• 50DMA: Positive
• 100DMA: Negative
• 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:8316, the sentiment is Neutral. The current price of 3570 is below the 20-day moving average (MA) of 3612.25, above the 50-day MA of 3417.97, and above the 200-day MA of 3471.20, indicating a neutral trend. The MACD of 37.30 indicates Positive momentum. The RSI at 49.91 is Neutral, neither overbought nor oversold. The STOCH value of 24.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	80 Outperform	$13.93T	11.90	7.92%	3.27%	5.50%	25.15%
Sector *	64 Neutral	$12.93B	9.70	7.85%	78.03%	12.07%	-7.83%
RSNHF		$20.67B	14.83	7.67%	0.01%	―	―
JPSTF		$37.50B	15.62	4.38%	3.83%	―	―
MBFJF		$154.14B	12.77	9.18%	3.80%	―	―
MZHOF		$69.20B	11.84	8.45%	3.68%	―	―
NRSCF		$18.19B	7.96	9.88%	5.57%	―	―

Sumitomo Mitsui Financial Group Corporate Events

Sumitomo Mitsui Expands Employee Share-Based Compensation Plan

Sumitomo Mitsui Financial Group announced the inclusion of additional subsidiaries in its share-based compensation plan for employees, aiming to enhance employee engagement and align interests with company performance. The acquisition of SMFG shares for this plan is set to occur between May 22 and May 30, 2025, with a maximum budget of JPY 612 million, indicating a strategic move to strengthen employee incentives.

The most recent analyst rating on (JP:8316) stock is a Buy with a Yen11700.00 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 Opposes Shareholder Proposals and Announces Dividend Increase

Sumitomo Mitsui Financial Group’s Board of Directors has resolved to oppose shareholder proposals related to amendments in the Articles of Incorporation concerning financial risk audits and climate change transition plans. The company has also announced an increase in dividends for FY2024 and FY2025, along with a share buyback plan, indicating a strong capital position and commitment to shareholder returns.

The most recent analyst rating on (JP:8316) stock is a Buy with a Yen11700.00 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 Announces Share Repurchase and Cancellation

Sumitomo Mitsui Financial Group has announced a strategic move to repurchase and subsequently cancel up to 40 million of its own shares, equivalent to 1% of its issued shares, with the aim of enhancing shareholder returns and improving capital efficiency. This decision, expected to be executed between May 15 and July 31, 2025, underscores the company’s commitment to optimizing its capital structure and delivering value to its stakeholders.

The most recent analyst rating on (JP:8316) stock is a Buy with a Yen11700.00 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 Year-End Dividend Amid Strong Financial Performance

Sumitomo Mitsui Financial Group announced an increase in its year-end dividend to 62 yen per share, reflecting a strong financial performance with profits exceeding forecasts. This decision aligns with the company’s policy of a 40% dividend payout ratio, aiming to balance shareholder returns and growth investments.

The most recent analyst rating on (JP:8316) stock is a Buy with a Yen11700.00 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 Financial Results and Strategic Moves

Sumitomo Mitsui Financial Group reported a significant increase in its consolidated financial results for the fiscal year ending March 31, 2025, with ordinary income rising by 8.8% and profit attributable to owners of the parent increasing by 22.3%. The company also announced a three-for-one stock split and a repurchase of its own shares, indicating a strategic move to enhance shareholder value. These developments suggest a strong financial position and a positive outlook for stakeholders.

The most recent analyst rating on (JP:8316) stock is a Buy with a Yen11700.00 price target. To see the full list of analyst forecasts on Sumitomo Mitsui Financial Group stock, see the JP:8316 Stock Forecast page.