Sumitomo Realty & Development Co (8830) AI Stock Analysis

• Market Cap: ¥4.99T
• Dividend Yield: 0.97%
• Average Volume (3M): 1.51M
• Price to Earnings (P/E): 22.5
• Beta (1Y): 1.12
• 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): 60.83
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥4,776.84
• Price Target Upside: -9.67% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 229.92
• Revenue Forecast (FY): ¥1.06T

• Rating: 73 Outperform
• Price Target: ¥5,708.00 ▲(7.94% Upside)
• Action: Reiterated Date: 02/11/26
• Date: Action: Reiterated 02/11/26

The score is driven primarily by strong financial performance—steady growth, healthy margins, and robust cash flow—partly offset by leverage risk. Technicals show a strong uptrend but are very overbought, which reduces near-term attractiveness. Valuation is acceptable but held back by a low dividend yield.

Positive Factors

Strong cash generation

High operating cash conversion (OCF / net income 1.32) and a large year-over-year free cash flow increase indicate durable internal funding. This supports reinvestment in developments, debt servicing, and working capital without heavy reliance on external financing, improving resilience across cycles.

Healthy profit margins

Sustained gross and net margins near mid-teens to mid-30s reflect pricing power and cost control across leasing and development operations. Steady margins increase earnings predictability, cushion cyclicality in property sales, and support long-term return on invested capital.

Diversified real estate model

A mix of recurring rental income, lumpy development sales, and fee-based services spreads revenue sources across cycles. Recurring leasing revenues stabilize cashflows while development and services provide growth and margin expansion potential, reducing single-market dependence over time.

Negative Factors

Elevated leverage

A 1.80 debt-to-equity ratio, while common in real estate, raises sensitivity to interest rates and refinancing cycles. High leverage can restrict capital flexibility, increase funding costs with rising rates, and amplify downside in weaker leasing or development periods over a multi-month horizon.

Low shareholder yield

A sub-1% dividend yield limits direct cash returns to shareholders and reduces income appeal versus peers. For long-term investors seeking yield or steady distributions, low payout constrains the stock's defensive characteristics and could pressure sentiment if earnings growth slows.

Revenue growth inconsistency

Conflicting growth metrics reflect volatility tied to lumpy development sales and timing of project recognition. This makes top-line forecasting less predictable and can amplify earnings variability quarter-to-quarter, complicating capital allocation and investor visibility into sustainable organic growth.

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

Strong and consistent operating results with revenue up 4.9% (2024→2025), solid profitability (34.6% gross margin; 18.9% net margin), and robust cash generation (operating cash flow to net income of 1.32; free cash flow growth of 100.9%). Leverage remains elevated (debt-to-equity 1.80), which moderates the score.

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	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
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: 5288.00
• 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 5288 is above the 20-day moving average (MA) of 4908.95, above the 50-day MA of 4422.63, and above the 200-day MA of 3449.68, indicating a bullish trend. The MACD of 234.41 indicates Negative momentum. The RSI at 76.56 is Negative, neither overbought nor oversold. The STOCH value of 82.90 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	¥892.50B	15.45	10.73%	2.94%	-19.09%	16.31%
8830	73 Outperform	¥4.99T	22.46	8.82%	0.97%	0.49%	12.19%
8934	73 Outperform	¥134.64B	8.22	17.98%	2.93%	84.20%	137.87%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3003	65 Neutral	¥1.56T	13.75	12.91%	3.25%	45.15%	19.80%
8848	58 Neutral	¥232.55B	19.49	22.14%	1.49%	2.50%	-71.61%
3231	57 Neutral	¥1.05T	18.02	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.