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Sumitomo Realty & Development Co Ltd (JP:8830)
:8830
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Sumitomo Realty & Development Co (8830) AI Stock Analysis

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JP:8830

Sumitomo Realty & Development Co

(8830)

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Neutral 56 (OpenAI - 5.2)
Rating:56Neutral
Price Target:
¥3,517.00
▼(-4.43% Downside)
Action:Reiterated
Date:05/15/26
The score is primarily constrained by weak and volatile cash flow versus earnings and ongoing leverage risk, despite solid profitability and revenue growth. Technicals are mixed with the stock trading below key short/intermediate moving averages, and valuation appears only average with a low dividend yield.
Positive Factors
Revenue Growth
Consistent multi-year revenue growth, including a recent acceleration, indicates sustained demand for the company’s development and leasing offerings. Over 2–6 months this supports durable cash inflows tied to completed projects and leased assets, aiding planning and reinvestment.
Negative Factors
Weak Cash Conversion
Reported earnings convert poorly into operating cash, with OCF covering only a fraction of net income and recurring negative FCF in some years. This structural cash conversion gap raises funding risk for capex, debt service and shareholder returns absent improvement in working capital or project timing.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Consistent multi-year revenue growth, including a recent acceleration, indicates sustained demand for the company’s development and leasing offerings. Over 2–6 months this supports durable cash inflows tied to completed projects and leased assets, aiding planning and reinvestment.
Read all positive factors

Sumitomo Realty & Development Co (8830) vs. iShares MSCI Japan ETF (EWJ)

Sumitomo Realty & Development Co Business Overview & Revenue Model

Company Description
Sumitomo Realty & Development Co., Ltd. (8830) is a Japan-based real estate company engaged in real estate development, leasing, sales, and related services. The company develops and manages a portfolio that includes office buildings and other com...
How the Company Makes Money
Sumitomo Realty & Development makes money primarily through a mix of recurring rental income and transaction-based real estate sales and related services. (1) Rental/leasing revenue: A major earnings driver is leasing office buildings and other co...

Sumitomo Realty & Development Co Financial Statement Overview

Summary
Income statement strength (78) is offset by meaningful balance-sheet leverage (62) and, most importantly, very weak/volatile cash flow (38) with low operating cash flow conversion versus net income and negative free cash flow in multiple years.
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
38
Negative
BreakdownMar 2026Mar 2026Mar 2025Mar 2024Mar 2023
Income Statement
Total Revenue1.06T1.01T967.69B939.90B939.43B
Gross Profit307.76B276.40B259.23B249.82B241.80B
EBITDA407.12B369.12B344.34B312.55B297.33B
Net Income212.53B191.68B177.17B161.93B150.45B
Balance Sheet
Total Assets7.19T6.72T6.68T6.37T5.81T
Cash, Cash Equivalents and Short-Term Investments59.17B99.02B103.91B185.12B151.39B
Total Debt3.98T3.89T3.96T3.94T3.56T
Total Liabilities4.71T4.55T4.63T4.57T4.17T
Stockholders Equity2.47T2.17T2.05T1.80T1.63T
Cash Flow
Free Cash Flow-18.35B87.66B43.64B-284.23B13.41B
Operating Cash Flow127.29B253.17B232.03B165.11B192.97B
Investing Cash Flow-154.39B-143.62B-310.69B-489.80B-209.98B
Financing Cash Flow-12.76B-116.85B-3.65B355.56B-21.92B

Sumitomo Realty & Development Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
¥214.13B9.4929.49%1.49%3.31%72.40%
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
61
Neutral
¥827.36B10.4510.89%4.23%17.22%1.86%
61
Neutral
¥140.64B7.8414.49%2.93%3.39%-6.00%
59
Neutral
¥712.84B11.248.82%3.34%16.54%13.29%
58
Neutral
¥1.33T11.0313.09%3.51%22.88%16.05%
56
Neutral
¥3.23T14.139.02%1.20%5.41%19.07%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8830
Sumitomo Realty & Development Co
3,415.00
468.95
15.92%
JP:3003
Hulic Co
1,734.50
216.57
14.27%
JP:8848
Leopalace21
629.00
-113.16
-15.25%
JP:3231
Nomura Real Estate Holdings
908.60
26.67
3.02%
JP:8934
Sun Frontier Fudousan Co
2,469.00
316.33
14.69%
JP:8804
Tokyo Tatemono Co
3,340.00
671.20
25.15%
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.Date of analysis: May 15, 2026