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Sumitomo Mitsui Financial Group Inc (SMFG)
NYSE:SMFG

Sumitomo Mitsui (SMFG) AI Stock Analysis

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Sumitomo Mitsui

(NYSE:SMFG)

Rating:72Outperform
Price Target:
$16.50
â–²(11.56%Upside)
Sumitomo Mitsui Financial Group's strong financial performance, characterized by robust revenue growth and profitability, is the primary driver of its stock score. Technical indicators suggest neutral momentum, while fair valuation and attractive dividend yield further support the stock's position. The absence of significant earnings call insights or corporate events does not affect the overall assessment.

Sumitomo Mitsui (SMFG) vs. SPDR S&P 500 ETF (SPY)

Sumitomo Mitsui Business Overview & Revenue Model

Company DescriptionSumitomo Mitsui Financial Group, Inc., together with its subsidiaries, provides commercial banking, leasing, securities, consumer finance, and other services in Japan, the Americas, Europe, the Middle East, Asia, and Oceania. It operates through four segments: Wholesale Business Unit, Retail Business Unit, Global Business Unit, and Global Markets Business Unit. The Wholesale Business Unit segment offers financing, investment management, risk hedging, and settlement services, as well as financial solutions related to mergers and acquisition, and other advisory services primarily for large, mid, and small-sized corporate clients; various leasing services, including equipment, and operating and leveraged leasing; and digital services, such as robotic process automation and electronic contract services. The Retail Business Unit segment offers wealth management, settlement, consumer finance, and housing loan products and services, as well as business and asset succession services to high-net-worth customers. The Global Business Unit segment offers loans, deposits, clearing services, trade finance, project finance, loan syndication, derivatives, and cash management services; underwriting services; and leasing services related to the construction machinery, transportation equipment, industrial machinery, medical equipment, and aircraft leasing. The Global Markets Business Unit segment offers solutions through foreign exchange products, derivatives, bonds, stocks, and other marketable financial products. It also undertakes asset liability management operations. The company also offers credit card, internet banking, system development and engineering, data processing, management consulting and economic research, and investment advisory and investment trust management services. Sumitomo Mitsui Financial Group, Inc. was incorporated in 2002 and is headquartered in Tokyo, Japan.
How the Company Makes MoneySMFG generates revenue through a variety of financial services and products. The primary revenue stream comes from its banking operations, where the company earns interest income from loans and other credit products. Additionally, SMFG benefits from fees and commissions on its banking services, such as transaction processing, asset management, and advisory services. The company also has significant income from its securities business, which includes underwriting, trading, and brokerage services. Furthermore, SMFG has a strong presence in the consumer finance sector, providing personal loans and credit card services, which contribute to its earnings. Strategic partnerships and investments across different sectors, both domestically and internationally, also play a crucial role in expanding its revenue base and market presence.

Sumitomo Mitsui Financial Statement Overview

Summary
Sumitomo Mitsui Financial Group presents a solid financial profile with strong revenue growth and profitability. The balance sheet shows a healthy equity position and moderate leverage, typical for the banking sector. Cash flow generation is robust, supporting the company's financial stability and growth prospects.
Income Statement
85
Very Positive
Sumitomo Mitsui has demonstrated strong revenue growth, with a notable increase from 2024 to 2025. The gross profit margin is robust, indicating effective cost management. Net profit margin is healthy, reflecting profitability. EBIT and EBITDA margins are also strong, suggesting efficient operations.
Balance Sheet
78
Positive
The company maintains a solid equity base with a positive equity ratio, reflecting financial stability. The debt-to-equity ratio shows moderate leverage, which is typical for the banking sector. Return on equity is good, indicating effective use of equity to generate profits.
Cash Flow
82
Very Positive
Sumitomo Mitsui exhibits strong free cash flow growth, highlighting efficient cash generation. The operating cash flow to net income ratio is positive, indicating good cash profitability. Free cash flow to net income ratio is strong, reflecting the company's ability to convert net income into cash.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue5.22T4.43T3.79T3.42T3.17T
Gross Profit4.72T4.43T3.79T3.42T3.17T
EBITDA1.98T1.96T1.37T1.17T899.42B
Net Income1.18T962.95B805.84B706.63B512.81B
Balance Sheet
Total Assets10.00T>10.00T>10.00T>10.00T>10.00T>
Cash, Cash Equivalents and Short-Term Investments10.00T>10.00T>73.21T72.19T69.66T
Total Debt58.30T34.26T29.38T32.12T30.36T
Total Liabilities10.00T>10.00T>10.00T>10.00T>10.00T>
Stockholders Equity14.70T14.66T12.68T12.10T11.83T
Cash Flow
Free Cash Flow4.60T4.47T-6.19T1.26T18.47T
Operating Cash Flow4.97T4.86T-5.90T1.55T18.80T
Investing Cash Flow-4.51T-918.90B5.93T-2.41T-7.68T
Financing Cash Flow-480.15B8.09T-357.78B-485.34B-562.58B

Sumitomo Mitsui Technical Analysis

Technical Analysis Sentiment
Negative
Last Price14.79
Price Trends
50DMA
14.79
Negative
100DMA
14.81
Negative
200DMA
14.36
Positive
Market Momentum
MACD
0.04
Positive
RSI
45.15
Neutral
STOCH
37.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMFG, the sentiment is Negative. The current price of 14.79 is below the 20-day moving average (MA) of 15.03, below the 50-day MA of 14.79, and above the 200-day MA of 14.36, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 45.15 is Neutral, neither overbought nor oversold. The STOCH value of 37.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SMFG.

Sumitomo Mitsui Risk Analysis

Sumitomo Mitsui disclosed 30 risk factors in its most recent earnings report. Sumitomo Mitsui reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Sumitomo Mitsui Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$211.95B11.2610.83%3.25%-1.91%-6.79%
BABAC
76
Outperform
$366.50B14.539.46%2.14%8.23%16.15%
CC
76
Outperform
$163.61B13.846.30%2.56%2.97%87.82%
76
Outperform
$151.70B12.879.18%1.99%5.39%20.82%
WFWFC
74
Outperform
$267.95B14.7911.05%1.94%3.51%16.51%
72
Outperform
$95.94B12.517.92%2.56%0.23%18.12%
67
Neutral
$16.89B11.809.79%3.77%12.07%-8.35%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SMFG
Sumitomo Mitsui
14.79
0.97
7.02%
BAC
Bank of America
47.15
6.41
15.73%
C
Citigroup
85.57
20.78
32.07%
HSBC
HSBC Holdings
61.57
20.95
51.58%
MUFG
Mitsubishi UFJ
13.55
2.68
24.66%
WFC
Wells Fargo
81.59
23.27
39.90%
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: Jul 09, 2025