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Sumitomo Mitsui Financial Group (JP:8316)
:8316

Sumitomo Mitsui Financial Group (8316) AI Stock Analysis

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Sumitomo Mitsui Financial Group

(OTC:8316)

Rating:80Outperform
Price Target:
¥4,143.00
▲(14.61%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 (8316) vs. iShares MSCI Japan ETF (EWJ)

Sumitomo Mitsui Financial Group Business Overview & Revenue Model

Company DescriptionSumitomo Mitsui Financial Group (SMFG) is a leading Japanese financial institution headquartered in Tokyo, Japan. It operates primarily through its core banking unit, Sumitomo Mitsui Banking Corporation (SMBC), and offers a wide range of financial services, including commercial banking, leasing, securities, credit card services, and consumer finance. SMFG serves both individual and corporate clients globally, leveraging its extensive network and expertise in financial markets.
How the Company Makes MoneySumitomo 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
87
Very Positive
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
83
Very Positive
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
78
Positive
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
TTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
5.12T9.66T4.43T3.79T3.42T3.17T
Gross Profit
5.12T4.72T4.43T3.79T3.42T3.17T
EBIT
2.10T1.70T1.67T1.34T788.92B672.24B
EBITDA
2.03T1.98T1.96T1.37T1.17T754.53B
Net Income Common Stockholders
1.31T1.18T962.95B805.84B706.63B512.81B
Balance SheetCash, Cash Equivalents and Short-Term Investments
73.20T10.00T>93.16T73.21T72.19T69.66T
Total Assets
10.00T>10.00T>10.00T>10.00T>10.00T>10.00T>
Total Debt
31.87T58.30T34.26T29.38T32.12T30.36T
Net Debt
-41.33T-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
12.23T14.70T14.66T12.68T12.10T11.83T
Cash FlowFree Cash Flow
0.004.60T250.98B-6.19T1.26T18.47T
Operating Cash Flow
0.004.97T642.86B-5.90T1.55T18.80T
Investing Cash Flow
0.00-4.51T-918.90B5.93T-2.66T-7.68T
Financing Cash Flow
0.00-480.15B280.69B-357.78B-485.34B-562.58B

Sumitomo Mitsui Financial Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3615.00
Price Trends
50DMA
3445.33
Positive
100DMA
3609.98
Positive
200DMA
3457.46
Positive
Market Momentum
MACD
58.37
Positive
RSI
55.21
Neutral
STOCH
44.86
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 3615 is above the 20-day moving average (MA) of 3590.10, above the 50-day MA of 3445.33, and above the 200-day MA of 3457.46, indicating a bullish trend. The MACD of 58.37 indicates Positive momentum. The RSI at 55.21 is Neutral, neither overbought nor oversold. The STOCH value of 44.86 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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥14.03T11.997.92%3.11%5.50%25.15%
78
Outperform
$9.91T11.278.45%3.38%7.33%30.74%
75
Outperform
$22.21T12.279.18%3.11%10.56%28.68%
71
Outperform
$2.64T8.069.88%6.20%13.94%109.60%
66
Neutral
¥2.95T13.867.67%1.86%18.56%44.11%
65
Neutral
$5.44T13.294.38%3.60%-9.87%18.54%
64
Neutral
$12.87B9.817.76%16985.65%12.28%-7.83%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8316
Sumitomo Mitsui Financial Group
3,615.00
277.75
8.32%
JP:8604
Nomura Holdings
894.60
-9.80
-1.08%
JP:8306
Mitsubishi UFJ Financial Group
1,963.00
367.39
23.02%
JP:8308
Resona Holdings
1,281.00
254.51
24.79%
JP:8411
Mizuho Financial Group
3,948.00
916.96
30.25%
JP:7182
Japan Post Bank Co
1,523.00
39.79
2.68%

Sumitomo Mitsui Financial Group Corporate Events

Sumitomo Mitsui Expands Employee Share-Based Compensation Plan
May 14, 2025

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
May 14, 2025

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
May 14, 2025

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
May 14, 2025

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
May 14, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.