Sumitomo Realty & Development Co (8830) AI Stock Analysis

• Market Cap: $4.21T
• Dividend Yield: 0.97%
• Average Volume (3M): 1.51M
• Price to Earnings (P/E): 20.7
• Beta (1Y): 1.06
• Revenue Growth: 0.49%
• EPS Growth: 12.19%
• Country: JP
• Employees: 12,898
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): N/A
• Shares Outstanding: 936,000,000
• 10 Day Avg. Volume: 1,825,970
• 30 Day Avg. Volume: 1,508,313
• PEG Ratio: 1.65
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 2.61
• P/FCF Ratio: 30.19
• Enterprise Value/Market Cap: 1.92
• Enterprise Value/Revenue: 8.13
• Enterprise Value/Gross Profit: 22.67
• Enterprise Value/Ebitda: 23.06
• 1Y Price Target: $5,362.27
• Price Target Upside: 16.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥4,995.00 ▲(8.49% Upside)

Sumitomo Realty & Development Co's overall stock score is driven by strong financial performance and positive technical indicators, despite some valuation concerns. The company's robust cash flow and stable equity position support its financial health, while technical analysis suggests strong momentum. However, potential overbought conditions and a moderate valuation limit the score.

Positive Factors

Recurring rental income

Sumitomo Realty's large rental portfolio provides recurring, contract-like cash flows from office, commercial and residential leases plus management fees. That recurring income stabilizes operating cash flow, supports capital allocation, and cushions earnings against development cycle swings over months to years.

Strong cash generation

Robust operating cash flow and very strong FCF growth indicate efficient capex management and cash conversion. Durable cash generation gives the company flexibility to fund developments, service debt, sustain dividends, or reduce leverage without over-reliance on volatile capital markets over the medium term.

Stable margins & revenue growth

Consistent top-line growth and healthy gross and net margins reflect pricing power, diversified income streams and disciplined cost control. Sustained margins across periods support durable profitability, enabling reinvestment into assets and long-term returns even if sales mix shifts between leasing and development.

Negative Factors

High leverage

A debt-to-equity ratio near 1.8 raises refinancing and interest-rate sensitivity. Increases in rates or tighter financing conditions can materially raise interest expense and refinancing costs, compress cash available for development and distributions and reduce strategic flexibility over the coming months.

Lumpy development revenue

A meaningful portion of earnings comes from property development and unit sales, which are irregular by nature. That lumpy revenue profile creates earnings and cash-flow volatility tied to project timing and market absorption, complicating forecasting and potentially stressing liquidity in down cycles.

Macro & cost exposure

Earnings and asset values are structurally exposed to Japanese real estate demand, financing conditions and construction input costs. Weak office demand, rising financing costs or higher construction prices can erode occupancy, margins and development profitability over a multi-month horizon.

Sumitomo Realty & Development Co Business Overview & Revenue Model

Company Description

Sumitomo Realty & Development Co., Ltd. engages in the real estate business in Japan. It operates through five segments: Leasing, Sales, Construction, Brokerage, and Other. The Leasing segment leases and manages office buildings, rental apartments, etc., as well as operates and manages hotels, event halls, retail facilities, land lots, etc. The Sales segment sells condominium units, detached houses, etc. The Construction segment is involved in the construction and remodeling of detached houses, condominiums, etc. The Brokerage segment offers real estate brokerage services, as well as acts as a sales agent of residential properties. The Other segment is involved in the fitness and restaurant businesses. The company was formerly known as Izumi Real Estate Co., Ltd. and changed its name to Sumitomo Realty & Development Co., Ltd. in 1957. Sumitomo Realty & Development Co., Ltd. was incorporated in 1949 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Sumitomo Realty & Development generates revenue primarily through several key streams. The main source of income comes from the leasing of commercial and residential properties, which provides a stable and recurring revenue base. Additionally, the company earns revenue from real estate development projects, including residential condominiums and office buildings, where it typically sells units or space upon completion. Furthermore, property management services contribute to its earnings by managing properties for third-party owners. Significant partnerships with local governments and private entities also enhance its project pipeline and revenue opportunities, while market trends such as urbanization and increased demand for sustainable buildings positively influence its financial performance.

Sumitomo Realty & Development Co Financial Statement Overview

Summary

Sumitomo Realty & Development Co exhibits solid financial health with consistent revenue and profit growth, strong margins, and effective cash flow management. The high leverage typical of the real estate industry presents some risks, but the company maintains a stable equity position and generates strong returns for shareholders.

Income Statement

Sumitomo Realty & Development Co has demonstrated consistent revenue growth, with a notable increase of 4.9% from 2024 to 2025. Gross profit and net profit margins have remained stable, with the gross profit margin at 34.6% and net profit margin at 18.9% in 2025. EBIT and EBITDA margins have also shown strength, indicating effective cost management and profitability.

Balance Sheet

The company's balance sheet reflects a high debt-to-equity ratio of 1.80 in 2025, which is typical for the real estate sector but poses potential risks. However, the return on equity (ROE) is strong at 8.8%, and the equity ratio has improved to 32.2%, indicating a stable capital structure and prudent financial management.

Cash Flow

Operating cash flow remains robust, with a positive free cash flow growth rate of 100.9% from 2024 to 2025, reflecting efficient capital expenditure management. The operating cash flow to net income ratio of 1.32 in 2025 indicates healthy cash generation relative to earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	991.83B	1.01T	967.69B	939.90B	939.43B	917.47B
Gross Profit	355.61B	351.28B	332.35B	314.45B	302.44B	287.91B
EBITDA	349.71B	369.12B	344.34B	305.91B	294.53B	277.06B
Net Income	190.92B	191.68B	177.17B	161.93B	150.45B	141.39B
Balance Sheet
Total Assets	6.72T	6.72T	6.68T	6.37T	5.81T	5.67T
Cash, Cash Equivalents and Short-Term Investments	47.79B	99.02B	103.91B	185.12B	151.39B	188.34B
Total Debt	3.89T	3.89T	3.96T	3.94T	3.56T	3.56T
Total Liabilities	4.49T	4.55T	4.63T	4.57T	4.17T	4.17T
Stockholders Equity	2.23T	2.17T	2.05T	1.80T	1.63T	1.50T
Cash Flow
Free Cash Flow	0.00	87.66B	43.64B	-284.23B	13.41B	-129.48B
Operating Cash Flow	0.00	253.17B	232.03B	165.11B	192.97B	225.95B
Investing Cash Flow	0.00	-143.62B	-310.69B	-489.80B	-209.98B	-336.68B
Financing Cash Flow	0.00	-116.85B	-3.65B	355.56B	-21.92B	102.09B

Sumitomo Realty & Development Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4604.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8830, the sentiment is Positive. The current price of 4604 is above the 20-day moving average (MA) of 4226.80, above the 50-day MA of 4016.07, and above the 200-day MA of 3253.25, indicating a bullish trend. The MACD of 107.29 indicates Negative momentum. The RSI at 74.49 is Negative, neither overbought nor oversold. The STOCH value of 88.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8830.

Sumitomo Realty & Development Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8804	78 Outperform	¥782.00B	12.94	10.73%	2.94%	-19.09%	16.31%
8830	76 Outperform	$4.21T	20.66	8.82%	0.97%	0.49%	12.19%
1766	74 Outperform	¥202.61B	12.01	―	2.33%	6.06%	40.37%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3003	65 Neutral	¥1.40T	12.22	12.91%	3.25%	45.15%	19.80%
8848	58 Neutral	¥225.56B	19.06	22.14%	1.49%	2.50%	-71.61%
3231	57 Neutral	¥978.53B	16.22	8.38%	3.68%	3.52%	-17.58%

Sumitomo Realty & Development Co Corporate Events

Sumitomo Realty Reports Progress on ¥30 Billion Share Buyback Program

Sumitomo Realty & Development Co., Ltd. has reported progress on its ongoing share repurchase program, buying back 391,500 shares of common stock on the Tokyo Stock Exchange between December 1 and December 31, 2025, for a total of approximately ¥2.88 billion. These purchases form part of a broader board-approved buyback plan, authorized in November 2025, allowing repurchases of up to 10 million shares or ¥30 billion through March 31, 2026; as of December 31, 2025, the company has cumulatively repurchased 939,000 shares for about ¥6.82 billion, signaling continued capital return to shareholders and potential support for its share price and capital efficiency metrics.

The most recent analyst rating on (JP:8830) stock is a Hold with a Yen7700.00 price target. To see the full list of analyst forecasts on Sumitomo Realty & Development Co stock, see the JP:8830 Stock Forecast page.

Sumitomo Realty Announces Strategic Share Repurchase Plan

Sumitomo Realty & Development Co., Ltd. has announced a share repurchase plan, leveraging increased core business income and proceeds from selling listed shares. This strategic move is part of their current Medium-term Management Plan, aiming to enhance shareholder returns while continuing to invest in growth areas such as redevelopment projects, human capital, and digital initiatives.

The most recent analyst rating on (JP:8830) stock is a Buy with a Yen7624.00 price target. To see the full list of analyst forecasts on Sumitomo Realty & Development Co stock, see the JP:8830 Stock Forecast page.