Sumitomo Mitsui Financial Group (8316) AI Stock Analysis

• Market Cap: $13.43T
• Dividend Yield: 3.17%
• Average Volume (3M): 18.11M
• Price to Earnings (P/E): 11.7
• Beta (1Y): 1.24
• Revenue Growth: 16.80%
• EPS Growth: 60.24%
• Country: JP
• Employees: 120,000
• Sector: Financial
• Sector Strength: 84
• Industry: Banks - Diversified
• EPS (TTM): 105.22
• Shares Outstanding: 3,884,445,600
• 10 Day Avg. Volume: 13,393,290
• 30 Day Avg. Volume: 18,113,059
• PEG Ratio: 0.87
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: $3,964.46
• Price Target Upside: 14.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Sumitomo Mitsui Financial Group exhibits strong financial performance with notable revenue growth and profitability. However, high leverage typical of banks presents some risks. Technical analysis reveals a bearish trend, suggesting caution. The valuation is attractive due to a low P/E ratio and a solid dividend yield, indicating potential undervaluation and income prospects. Overall, the stock is well-positioned financially but faces some market challenges.

Positive Factors

Earnings

Strong lending income and higher fee income contributed to an earnings beat.

Management Guidance

Management anticipates record profits for FY25, surpassing previous net profit targets.

Negative Factors

Downside Risks

Potential downside lies in an increase in unrealized US Treasury losses and rising credit costs due to higher-than-expected US inflation.

Interest Rates

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

Sumitomo Mitsui Financial Group Business Overview & Revenue Model

Company Description

Sumitomo 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 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

Income Statement

Balance Sheet

Cash Flow

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
5.12T	4.43T	3.79T	3.42T	3.17T	3.68T
	Gross Profit
5.22T	4.43T	3.79T	3.42T	3.17T	3.68T
	EBIT
2.10T	1.67T	1.34T	788.92B	973.50B	345.32B
	EBITDA
2.03T	1.96T	1.37T	1.17T	899.42B	0.00
	Net Income Common Stockholders
1.31T	962.95B	805.84B	706.63B	512.81B	703.88B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.00T>	93.16T	73.21T	72.19T	69.66T	59.41T
	Total Assets
10.00T>	10.00T>	10.00T>	10.00T>	10.00T>	10.00T>
	Total Debt
57.40T	34.26T	29.38T	32.12T	30.36T	26.23T
	Net Debt
-17.14T	-43.89T	-46.53T	-42.67T	-42.21T	-35.53T
	Total Liabilities
10.00T>	10.00T>	10.00T>	10.00T>	10.00T>	10.00T>
	Stockholders Equity
15.14T	14.66T	12.68T	12.10T	11.83T	10.72T
Cash Flow		Free Cash Flow
0.00	250.98B	-6.19T	1.26T	18.47T	6.84T
	Operating Cash Flow
0.00	642.86B	-5.90T	1.55T	18.80T	7.09T
	Investing Cash Flow
0.00	-918.90B	5.93T	-2.41T	-7.68T	-3.01T
	Financing Cash Flow
0.00	280.69B	-357.78B	-485.34B	-562.58B	-1.02T

Sumitomo Mitsui Financial Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3461.00
• 50DMA: Negative
• 100DMA: Negative
• 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 3461 is above the 20-day moving average (MA) of 3337.05, below the 50-day MA of 3503.89, and above the 200-day MA of 3429.71, indicating a neutral trend. The MACD of 24.95 indicates Negative momentum. The RSI at 52.51 is Neutral, neither overbought nor oversold. The STOCH value of 68.50 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	74 Outperform	$13.43T	11.66	7.92%	3.17%	16.80%	60.24%
8308	66 Neutral	$2.75T	13.32	7.67%	1.95%	18.56%	44.11%
Sector *	64 Neutral	$12.82B	9.83	7.68%	17000.34%	12.38%	-5.56%
8411	62 Neutral	$9.26T	10.75	8.45%	3.34%	22.26%	36.36%
8306	61 Neutral	$22.03T	12.06	9.18%	3.09%	21.88%	-3.60%
7186	60 Neutral	¥1.05T	12.79	6.37%	3.04%	8.79%	19.19%
7181	59 Neutral	¥1.12T	9.37		3.44%	23.94%	22.80%

Sumitomo Mitsui Financial Group Corporate Events

Sumitomo Mitsui Completes Share Repurchase and Plans Cancellation

Sumitomo Mitsui Financial Group has completed its share repurchase program, acquiring approximately 13.9 million shares worth JPY 52.96 billion. Following this, the company plans to cancel 40.08 million shares, equivalent to 1% of its pre-cancellation issued shares. These actions aim to optimize the capital structure and improve shareholder returns, reflecting the company’s strategic financial management approach.

Sumitomo Mitsui Achieves Significant Earnings Growth in 2024

Sumitomo Mitsui Financial Group reported a substantial increase in earnings for the nine months ending December 31, 2024, with ordinary income rising by 14.4% and profit attributable to owners surging by 43.3% compared to the previous year. This growth is partly attributed to the company’s strategic stock split and share repurchase, which have positively impacted earnings per share. With the inclusion of JRI Holdings, Limited as a new consolidated subsidiary, SMFG aims to strengthen its market position further.