Sumitomo Warehouse Co., Ltd. (9303) AI Stock Analysis

• Market Cap: ¥306.02B
• Dividend Yield: 2.94%
• Average Volume (3M): 102.44K
• Price to Earnings (P/E): 19.1
• Beta (1Y): 0.38
• Revenue Growth: 4.50%
• EPS Growth: 82.34%
• Country: JP
• Employees: 4,463
• Sector: Industrials
• Sector Strength: 72
• Industry: Integrated Freight & Logistics
• EPS (TTM): 46.53
• Shares Outstanding: 77,747,314
• 10 Day Avg. Volume: 106,170
• 30 Day Avg. Volume: 102,436
• PEG Ratio: 0.17
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 1.11
• P/FCF Ratio: 11.66
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 210.2
• Revenue Forecast (FY): ¥196.60B

• Rating: 67 Neutral
• Price Target: ¥4,015.00 ▲(12.15% Upside)
• Action: Downgraded Date: 02/05/26
• Date: Action: Downgraded 02/05/26

Overall score is held back primarily by weak TTM cash-flow conversion and very low free cash flow versus net income despite solid profitability and an improving balance sheet. Technicals are moderately positive (price above key longer-term averages with neutral momentum), and valuation is reasonable (P/E ~13.5 with a ~2.78% yield).

Positive Factors

Solid Profitability

Sustained mid-teens EBITDA margin and double-digit net margin indicate the business generates robust operating profit from logistics operations. This level of profitability supports reinvestment, predictable earnings and resilience to cyclical swings in freight volumes over a multi-month horizon.

Improving Balance Sheet

Lower leverage and a steadily growing equity base reduce financial risk and increase strategic optionality. Manageable debt gives capacity for disciplined capex, facility expansion or selective M&A without stressing liquidity, improving resilience through industry cycles.

Integrated Logistics Business Model

A diversified service mix (warehousing, transport, forwarding, value-added logistics) creates multiple revenue streams and customer stickiness. Integrated offerings raise switching costs and enable cross-sell, aligning the company with structural outsourcing trends in supply-chain management.

Negative Factors

Weak Cash-Flow Conversion

Persistent shortfall of operating cash versus accounting profit and very low free cash flow constrain financial flexibility. This weak cash conversion limits the firm's ability to fund capex, pay consistent dividends, or pursue M&A without using external financing, a durable constraint.

Margins Retreating From Peaks

A downtrend in gross/EBITDA margins versus recent peaks suggests structural pressure from cost inflation, pricing competition, or lower operational leverage. If persistent, this erodes the company’s margin buffer and reduces earnings power even if revenue growth continues.

Moderate Return on Equity

ROE at mid-single digits indicates relatively modest capital efficiency versus prior years. Lower ROE reduces the payoff from reinvestment and can pressure long-term shareholder returns unless the company improves asset utilization or achieves higher-margin growth.

Sumitomo Warehouse Co., Ltd. Business Overview & Revenue Model

Company Description

The Sumitomo Warehouse Co., Ltd. provides integrated logistics services in Japan and internationally. It offers logistics services, such as warehousing and merchandise processing for cargo; and transportation services, including small-lot mixed load transportation, chartered transportation, and container transportation. The company also provides document storage/trunk room services that collect and deliver documents, magnetic tapes, videotapes, fixtures, fittings, etc.; and develops Internet trunk room systems for inventory management, as well as provides services to handle safe deposit boxes, household effects, works of art, valuables, clothing, furs, etc. In addition, it offers harbor transportation services comprising container terminal and conventional vessels operations; husbanding, documentation, and various other services as a ship agent; and marine transportation services. Further, the company develops, operates, and manages office and rental housing buildings, commercial buildings, distribution buildings, business hotels, and rental galleries, as well as provides real estate brokerage services; and operates as an indemnity insurance and air cargo agent. Additionally, it offers various information systems, such as SWIFT, an integrated distribution information system; and SWAN, a logistics management system. The Sumitomo Warehouse Co., Ltd. was founded in 1899 and is headquartered in Osaka, Japan.

How the Company Makes Money

Sumitomo Warehouse generates revenue primarily through its logistics and warehousing services. Key revenue streams include fees for storage and handling of goods, transportation services, and value-added services such as inventory management and order fulfillment. The company benefits from long-term contracts with major clients, which provide stable income. Additionally, partnerships with other logistics providers and technology firms enhance its service offerings and operational efficiency, contributing to its earnings. Economic growth in Japan and the broader Asia-Pacific region also plays a significant role in driving demand for logistics services, further supporting the company's revenue.

Sumitomo Warehouse Co., Ltd. Financial Statement Overview

Summary

Profitability is solid (TTM net margin ~10.8%, EBITDA margin ~21.9%) and leverage is manageable with improving debt-to-equity (~0.29). The main weakness is cash-flow quality: operating cash flow trails net income (coverage ~0.76) and free cash flow is very low versus net income (~5.3%) with a sharp TTM decline, constraining near-term flexibility.

Income Statement

TTM (Trailing-Twelve-Months) results show solid profitability, with net margin around 10.8% and healthy EBITDA margin around 21.9%. However, the revenue growth figure in TTM is unusually high versus recent annual growth rates, and margins have generally trended down from FY2022–FY2023 highs (e.g., gross margin and EBITDA margin), suggesting the earnings profile is positive but not consistently improving.

Balance Sheet

Leverage looks manageable with debt-to-equity around 0.29 in TTM (improved versus ~0.36–0.46 in earlier years), and equity has grown steadily over time. Returns on equity are moderate (~7.7% TTM), below the stronger FY2022–FY2023 levels, indicating a solid capital base and improving balance-sheet risk, but not top-tier capital efficiency.

Cash Flow

Operating cash flow is positive in TTM, but cash conversion is mixed: operating cash flow is below net income (coverage ~0.76) and free cash flow is very low versus net income (~5.3%) with a sharp TTM free-cash-flow decline. While prior years show the business can generate strong free cash flow (e.g., FY2022 and FY2023), the latest period suggests heavier cash outflows (likely investment/working-capital pressure), making cash-flow quality the key weakness.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	196.43B	193.40B	184.66B	223.94B	231.46B	192.02B
Gross Profit	23.31B	22.80B	22.29B	35.61B	38.43B	20.70B
EBITDA	43.08B	41.12B	28.52B	51.53B	40.91B	22.98B
Net Income	21.24B	20.07B	12.49B	22.45B	19.70B	8.45B
Balance Sheet
Total Assets	494.40B	439.85B	436.92B	385.79B	373.72B	348.97B
Cash, Cash Equivalents and Short-Term Investments	37.66B	47.85B	52.21B	48.99B	43.07B	27.64B
Total Debt	86.43B	79.41B	91.18B	82.41B	86.10B	87.56B
Total Liabilities	187.78B	165.70B	172.12B	156.85B	159.78B	152.73B
Stockholders Equity	295.72B	263.83B	255.24B	217.55B	203.72B	189.24B
Cash Flow
Free Cash Flow	1.74B	18.48B	-1.12B	16.98B	24.66B	4.29B
Operating Cash Flow	32.95B	31.73B	22.03B	29.82B	31.42B	20.61B
Investing Cash Flow	-27.89B	-10.04B	-16.02B	-4.57B	-5.88B	-16.37B
Financing Cash Flow	-12.66B	-25.27B	-5.01B	-20.52B	-10.27B	-13.12B

Sumitomo Warehouse Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3580.00
• 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:9303, the sentiment is Positive. The current price of 3580 is below the 20-day moving average (MA) of 3858.25, below the 50-day MA of 3736.00, and above the 200-day MA of 3285.15, indicating a bullish trend. The MACD of 86.28 indicates Negative momentum. The RSI at 70.84 is Negative, neither overbought nor oversold. The STOCH value of 87.09 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9303.

Sumitomo Warehouse Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9065	74 Outperform	¥468.15B	10.72	10.92%	2.55%	6.45%	24.72%
9025	74 Outperform	¥179.92B	9.98	―	3.65%	7.73%	-19.90%
9301	68 Neutral	¥534.14B	11.01	12.56%	2.81%	8.22%	48.07%
9303	67 Neutral	¥306.02B	19.08	―	2.94%	4.50%	82.34%
9069	66 Neutral	¥312.25B	12.68	8.30%	2.50%	7.94%	-13.01%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9302	57 Neutral	¥290.03B	20.24	―	1.28%	8.11%	-9.27%

Sumitomo Warehouse Co., Ltd. Corporate Events

Sumitomo Warehouse Lifts Nine-Month Profit but Signals Lower Full-Year Earnings While Holding Dividend

Sumitomo Warehouse reported consolidated operating revenue of ¥146.8 billion for the nine months ended 31 December 2025, a 2.1% year-on-year increase, while operating profit fell 15.4% to ¥8.6 billion and ordinary profit declined 9.4% to ¥12.9 billion. Profit attributable to owners of parent, however, rose 12.6% to ¥10.4 billion and basic earnings per share increased to ¥136.32, supported by a lower average share count and strong comprehensive income of ¥44.2 billion, while total assets expanded to ¥494.4 billion and equity rose to ¥295.7 billion, leaving the equity ratio broadly stable at just under 60%. For the full fiscal year to March 31, 2026, the company maintained its forecast, projecting modest revenue growth to ¥197.0 billion but lower profits, with operating profit expected to fall 9.6% and profit attributable to owners of parent down 13.3% to ¥17.4 billion, and confirmed its plan to keep the annual dividend unchanged at ¥103 per share, signaling a continued focus on shareholder returns despite anticipated earnings pressure.

The most recent analyst rating on (JP:9303) stock is a Buy with a Yen4238.00 price target. To see the full list of analyst forecasts on Sumitomo Warehouse Co., Ltd. stock, see the JP:9303 Stock Forecast page.

Sumitomo Warehouse Reports Increased Profitability Amid Revenue Growth

Sumitomo Warehouse Co., Ltd. reported its consolidated financial results for the six months ending September 30, 2025, showing a slight increase in operating revenue by 1.5% year-on-year. Despite a decline in operating and ordinary profits, the company saw a significant rise in profit attributable to owners of the parent by 33.8%, indicating improved profitability. The company’s equity-to-asset ratio also improved slightly, reflecting a stable financial position. The forecast for the fiscal year ending March 31, 2026, anticipates a modest increase in operating revenue but a decline in profits, suggesting challenges in maintaining profit margins.

The most recent analyst rating on (JP:9303) stock is a Hold with a Yen3352.00 price target. To see the full list of analyst forecasts on Sumitomo Warehouse Co., Ltd. stock, see the JP:9303 Stock Forecast page.