Sumitomo Mitsui Financial Group (8316) AI Stock Analysis

• Market Cap: ¥18.92T
• Dividend Yield: 2.85%
• Average Volume (3M): 11.61M
• Price to Earnings (P/E): 13.7
• Beta (1Y): 1.36
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥4,655.04
• Price Target Upside: -5.23% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: ¥5,406.00 ▲(10.06% Upside)

Sumitomo Mitsui Financial Group's strong financial performance and solid technical indicators are the primary drivers of its stock score. While the stock shows bullish momentum, caution is advised due to overbought technical signals. The reasonable valuation and attractive dividend yield further support the stock's investment case.

Positive Factors

Balance Sheet Health

A solid balance sheet with a favorable debt-to-equity ratio indicates prudent financial management, providing stability and resilience.

Profitability

Improved net profit margins reflect enhanced profitability, indicating effective cost management and business efficiency.

Cash Flow Management

Improved free cash flow suggests efficient cash management, enhancing the company's ability to invest in growth and meet obligations.

Negative Factors

Revenue Growth

Negative revenue growth indicates challenges in expanding market reach or product adoption, potentially impacting long-term growth prospects.

Cash Flow Consistency

Inconsistent cash flow generation can affect the company's ability to fund operations and growth initiatives reliably over time.

Operational Efficiency

Suboptimal EBIT and EBITDA margins suggest potential inefficiencies in operations, which could hinder profitability and competitive positioning.

Sumitomo Mitsui Financial Group Business Overview & Revenue Model

Company Description

Sumitomo Mitsui Financial Group (SMFG) is a leading financial services group based in Japan, primarily engaged in banking, leasing, and asset management. The group operates through various subsidiaries, including Sumitomo Mitsui Banking Corporation (SMBC), which provides a wide range of financial products and services such as corporate banking, retail banking, investment banking, and international trade finance. SMFG also has a presence in the securities and insurance sectors, enhancing its ability to serve diverse customer needs across both individual and corporate clients.

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 displays a strong financial position with robust revenue growth, solid profitability, and a well-managed balance sheet. While cash flow management has improved, maintaining consistency in cash generation will be 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	9.68T	9.66T	8.77T	5.78T	3.80T	3.57T
Gross Profit	4.83T	4.72T	4.16T	3.51T	3.15T	2.69T
EBITDA	1.95T	1.98T	1.64T	1.37T	1.17T	899.42B
Net Income	1.39T	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	72.60T	75.59T	78.14T	75.91T	74.79T	10.00T>
Total Debt	58.32T	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	15.17T	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: 4912.00
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 4912 is above the 20-day moving average (MA) of 4796.85, above the 50-day MA of 4401.28, and above the 200-day MA of 3849.17, indicating a bullish trend. The MACD of 162.01 indicates Positive momentum. The RSI at 62.00 is Neutral, neither overbought nor oversold. The STOCH value of 33.75 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
8411	77 Outperform	¥14.05T	14.04	9.14%	2.46%	-3.62%	23.01%
8316	77 Outperform	¥18.92T	13.72	9.09%	2.85%	-1.43%	21.70%
8306	76 Outperform	¥27.44T	14.86	9.01%	3.05%	-1.98%	6.56%
8604	76 Outperform	¥3.68T	10.31	10.65%	4.09%	-2.45%	35.60%
8308	72 Outperform	¥3.54T	14.58	8.37%	1.84%	8.28%	28.63%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7182	67 Neutral	¥7.29T	16.96	4.49%	2.86%	2.17%	9.55%

Sumitomo Mitsui Financial Group Corporate Events

Sumitomo Mitsui Financial Group Advances Share Repurchase Program

Sumitomo Mitsui Financial Group announced the progress of its share repurchase program, having repurchased over 7.2 million shares valued at approximately JPY 32.6 billion between November 17 and November 30, 2025. This repurchase is part of a larger plan approved by the Board of Directors to buy back up to 50 million shares by January 31, 2026, aiming to enhance shareholder value and optimize capital structure.

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.

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.

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.