Sumitomo Mitsui Financial Group Inc (JP:8316)
:8316
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Sumitomo Mitsui Financial Group
(8316)
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Rating:70Outperform
Price Target:
¥7,130.00
▲(27.37% Upside)
Action:Reiterated
Date:05/15/26
The score is driven primarily by improving fundamentals (stronger revenue/earnings and profitability into 2026) but is held back by high balance-sheet leverage and historical cash-flow volatility. Technically, the stock is in an uptrend, though near-term momentum looks somewhat stretched. Valuation is supportive with a reasonable P/E and a moderate dividend yield.
Positive Factors
Revenue and Margin Expansion
SMFG's multi-year revenue expansion and materially improved net margin show a strengthening core banking franchise and better earnings mix. Durable top-line growth and higher margins enhance internal capital generation and support sustained profitability and strategic investments over the next several months.
Negative Factors
Elevated Leverage
SMFG's leverage remains high compared with non-financial corporates and is meaningful even within banking norms. Elevated debt-to-equity increases sensitivity to credit losses and funding stress, limiting balance-sheet flexibility and amplifying earnings and equity volatility in downside scenarios over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Margin Expansion
SMFG's multi-year revenue expansion and materially improved net margin show a strengthening core banking franchise and better earnings mix. Durable top-line growth and higher margins enhance internal capital generation and support sustained profitability and strategic investments over the next several months.
Read all positive factors
Sumitomo Mitsui Financial Group (8316) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥25.36T
Dividend Yield2.73%
Average Volume (3M)11.61M
Price to Earnings (P/E)16.0
Beta (1Y)1.34
Revenue Growth5.38%
EPS Growth36.59%
CountryJP
Employees120,000
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)358.67
Shares Outstanding3,827,498,000
10 Day Avg. Volume12,491,479
30 Day Avg. Volume11,612,370
Financial Highlights & Ratios
PEG Ratio0.33
Price to Book (P/B)1.22
Price to Sales (P/S)1.88
P/FCF Ratio2.78
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥6,650.00Price Target Upside18.79% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)471.75
Revenue Forecast (FY)¥5.31T
Sumitomo Mitsui Financial Group Business Overview & Revenue Model
Company Description
Sumitomo Mitsui Financial Group, Inc. (SMFG), established in 2002 and headquartered in Tokyo, Japan, is a global financial services conglomerate. It provides a wide array of offerings, including commercial banking, leasing, securities, and consume...
How the Company Makes Money
SMFG primarily makes money through (1) net interest income, (2) fee and commission income, (3) trading and investment-related income, and (4) profits from non-banking financial subsidiaries.
1) Net interest income (spread lending business): The c...
Sumitomo Mitsui Financial Group Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
64
Positive
Cash Flow
57
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.68T | 10.21T | 9.66T | 8.77T | 5.78T | 3.80T |
| Gross Profit | 4.83T | 5.54T | 4.72T | 4.16T | 3.51T | 3.15T |
| EBITDA | 1.95T | 2.54T | 1.98T | 1.64T | 1.37T | 1.17T |
| Net Income | 1.39T | 1.58T | 1.18T | 962.95B | 805.84B | 706.63B |
Balance Sheet | ||||||
| Total Assets | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Cash, Cash Equivalents and Short-Term Investments | 72.60T | 90.44T | 75.59T | 78.14T | 75.91T | 74.79T |
| Total Debt | 58.32T | 58.41T | 58.30T | 53.88T | 46.16T | 51.48T |
| Total Liabilities | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Stockholders Equity | 15.17T | 15.79T | 14.70T | 14.66T | 12.68T | 12.10T |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 6.93T | 4.60T | 4.72T | -6.19T | 414.72B |
| Operating Cash Flow | 0.00 | 7.11T | 4.97T | 4.86T | -5.90T | 507.31B |
| Investing Cash Flow | 0.00 | -20.66T | -4.51T | -15.80T | 5.93T | -10.73T |
| Financing Cash Flow | 0.00 | 6.44T | -480.15B | 10.52T | -357.78B | 8.88T |
Sumitomo Mitsui Financial Group Technical Analysis
Positive
5598.00
Price Trends
5854.94
Positive
5640.97
Positive
5020.50
Positive
Market Momentum
204.16
Negative
61.59
Neutral
73.86
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 5598 is below the 20-day moving average (MA) of 6188.45, below the 50-day MA of 5854.94, and above the 200-day MA of 5020.50, indicating a bullish trend. The MACD of 204.16 indicates Negative momentum. The RSI at 61.59 is Neutral, neither overbought nor oversold. The STOCH value of 73.86 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | ¥25.36T | 16.02 | 9.58% | 2.73% | 5.38% | 36.59% | |
70 Outperform | ¥19.61T | 15.99 | 9.14% | 2.38% | -0.74% | 43.87% | |
69 Neutral | ¥5.13T | 19.68 | 8.37% | 1.80% | 16.12% | 22.97% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | ¥37.27T | 15.62 | 9.01% | 2.94% | 2.66% | 33.44% | |
62 Neutral | ¥11.69T | 22.22 | 5.28% | 2.73% | 26.25% | 28.43% | |
59 Neutral | ¥4.13T | 0.29 | 10.23% | 3.93% | 0.46% | 6.70% |
* Financial Sector Average
JP:8316
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Sumitomo Mitsui Financial Group Corporate Events
Sumitomo Mitsui Financial Group Reports Progress on Share Buyback Program
Jun 1, 2026
Sumitomo Mitsui Financial Group has disclosed the progress of its ongoing share repurchase program, buying back 5,439,500 shares of common stock for a total of ¥32.39 billion between May 14 and May 31, 2026, through market purchases under a d...
SMFG Expands Employee Share Plan and Sets ¥6.5 Billion Share Buy for ESOP
May 13, 2026
Sumitomo Mitsui Financial Group has expanded its employee share-based compensation framework to include SMBC Consumer Finance as an eligible subsidiary under its existing ESOP Trust, which already covers several key group companies. The move is pa...
SMFG Board Rejects Shareholder Bid to Curb Its Authority on Share Buybacks
May 13, 2026
Sumitomo Mitsui Financial Group’s board has formally opposed a shareholder proposal submitted for discussion at the June 26, 2026 annual general meeting, which sought to change how the company approves share buybacks. The proposal would have...
SMFG Launches Shareholder Perks to Promote Long-Term Investors and Olive Service
May 13, 2026
Sumitomo Mitsui Financial Group will introduce a new shareholder benefit program from the record date of September 30, 2026, designed to encourage long-term shareholding and broaden its investor base. The scheme is also intended to drive use of SM...
Sumitomo Mitsui Financial Group Announces Two-for-One Stock Split and ADR Ratio Change
May 13, 2026
Sumitomo Mitsui Financial Group will conduct a two-for-one split of its common stock, aiming to lower the share price per investment unit and make its stock more accessible to a broader base of investors. Following the split, the total number of i...
Sumitomo Mitsui Financial Group Launches ¥180 Billion Share Buyback and Cancellation Program
May 13, 2026
Sumitomo Mitsui Financial Group has approved a share repurchase and subsequent cancellation of the acquired stock as part of its capital management strategy. The group plans to buy back up to 40 million common shares, equivalent to about 1% of its...
SMFG Profit Surges on Strong Domestic and Fee-Driven Growth
May 13, 2026
Sumitomo Mitsui Financial Group reported consolidated results for the fiscal year ended March 31, 2026 that showed a notable improvement over the prior year, with ordinary income rising 6.1% to ¥10.79 trillion and ordinary profit jumping 34.0...
Sumitomo Mitsui Financial Group Unveils Detailed FY2026 Supplementary Financial Data
May 13, 2026
Sumitomo Mitsui Financial Group has released supplementary materials for its fiscal year ending March 2026, detailing consolidated and non‑consolidated financial results. The documents cover income analysis, interest spreads, securities perf...
Sumitomo Mitsui boosts profit, raises payouts and plans another stock split
May 13, 2026
Sumitomo Mitsui Financial Group reported solid earnings growth for the fiscal year ended March 31, 2026, with ordinary income rising 6.1% and profit attributable to owners of the parent climbing 34.4%, supported by sharply higher comprehensive inc...
SMFG Restructures Securities Arm Ahead of Japanese Equities Joint Venture with Jefferies
May 12, 2026
Sumitomo Mitsui Financial Group will shift its Japanese securities operations to an intermediate holding company structure, placing SMBC Nikko Securities under a new entity called SMBC Nikko Securities Holdings. The move, targeted for around Octob...
SMBC Group Sets New Decade-Long Vision to Deepen Japan Roots and Boost Global Reach
Apr 1, 2026
Sumitomo Mitsui Financial Group has introduced a new long-term group vision that positions it as a globally connected institution firmly rooted in Japan, aiming to be its customers’ most trusted partner. The vision underscores the group̵...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.