Sumitomo Realty & Development Co (8830) AI Stock Analysis

• Market Cap: ¥2.86T
• Dividend Yield: 1.14%
• Average Volume (3M): 1.03M
• Price to Earnings (P/E): 14.9
• Beta (1Y): 1.09
• Revenue Growth: -3.73%
• EPS Growth: -1.31%
• Country: JP
• Employees: 12,898
• Sector: Real Estate
• Sector Strength: 47
• Industry: Real Estate - Services
• EPS (TTM): 157.91
• Shares Outstanding: 476,085,970
• 10 Day Avg. Volume: 1,029,550
• 30 Day Avg. Volume: 1,032,050
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• 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: ¥6,904.52
• Price Target Upside: 14.50% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 72 Outperform
• Price Target: ¥6,102.00 ▲(1.19% Upside)

Sumitomo Realty & Development Co's strong financial performance is the primary driver of its stock score, supported by consistent revenue and profit growth. The technical analysis indicates neutral to slightly bearish market conditions, and the valuation suggests the stock is fairly priced. The absence of significant corporate events or earnings call insights limits the overall impact on the score.

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 Co. primarily generates revenue through its diversified real estate operations. The company earns a significant portion of its income from leasing office buildings and commercial facilities, capitalizing on its extensive portfolio of high-quality properties in prime locations. Additionally, it engages in the development and sale of residential units, catering to the housing demand in urban areas. The construction segment also contributes to its earnings, providing architectural design, construction, and renovation services. Furthermore, the company benefits from property management fees, derived from managing its own properties and those owned by third parties. These combined activities, along with strategic partnerships and investments, form the foundation of Sumitomo Realty & Development's revenue model.

Sumitomo Realty & Development Co Financial Statement Overview

Summary

Solid financial health with consistent revenue and profit growth, strong margins, and effective cash flow management. High leverage is typical for the industry, 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.01T	967.69B	939.90B	939.43B	917.47B
Gross Profit	351.28B	332.35B	314.45B	302.44B	287.91B
EBITDA	346.40B	327.79B	305.91B	294.53B	277.06B
Net Income	191.68B	177.17B	161.93B	150.45B	141.39B
Balance Sheet
Total Assets	6.72T	6.68T	6.37T	5.81T	5.67T
Cash, Cash Equivalents and Short-Term Investments	99.02B	103.91B	185.12B	151.39B	188.34B
Total Debt	3.89T	3.96T	3.94T	3.56T	3.56T
Total Liabilities	4.55T	4.63T	4.57T	4.17T	4.17T
Stockholders Equity	2.17T	2.05T	1.80T	1.63T	1.50T
Cash Flow
Free Cash Flow	87.66B	43.64B	-284.23B	13.41B	-129.48B
Operating Cash Flow	253.17B	232.03B	165.11B	192.97B	225.95B
Investing Cash Flow	-143.62B	-310.69B	-489.80B	-209.98B	-336.68B
Financing Cash Flow	-116.85B	-3.65B	355.56B	-21.92B	102.09B

Sumitomo Realty & Development Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6030.00
• 50DMA: Positive
• 100DMA: Positive
• 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:8830, the sentiment is Positive. The current price of 6030 is above the 20-day moving average (MA) of 5698.00, above the 50-day MA of 5663.50, and above the 200-day MA of 5235.74, indicating a bullish trend. The MACD of 153.46 indicates Negative momentum. The RSI at 68.57 is Neutral, neither overbought nor oversold. The STOCH value of 79.85 is Neutral, 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
8830	72 Outperform	¥2.86T	14.86	8.98%	1.14%	-3.73%	-1.31%
Sector *	65 Neutral	£934.97M	14.21	6.19%	6.63%	15.71%	68.63%
HULCF	―	$7.97B	11.04	12.70%	1.95%	―	―
MQI	―	€1.92B	17.45	15.36%	―	―	―
NMEHF	―	$5.62B	10.69	10.32%	3.77%	―	―
TYTMF	―	$3.91B	9.56	10.28%	6.28%	―	―
1766	81 Outperform	¥195.35B	12.38		2.23%	7.57%	76.43%

Sumitomo Realty & Development Co Corporate Events

Sumitomo Realty Announces Strategic Asset Utilization and Shareholding Reduction Plans

Sumitomo Realty & Development Co., Ltd. has announced plans to actively utilize 200 billion yen in non-prime fixed assets through a revolving business model, enhancing its portfolio and ensuring future growth despite potential declines in rental income from these assets. Additionally, the company plans to reduce its strategic shareholdings by 400 billion yen over the next decade, leveraging capital gains and dividends to offset rising interest expenses and support sustainable growth, particularly in light of promising developments in India.

The most recent analyst rating on (JP:8830) stock is a Buy with a Yen6300.00 price target. To see the full list of analyst forecasts on Sumitomo Realty & Development Co stock, see the JP:8830 Stock Forecast page.