Sumitomo Mitsui (SMFG) AI Stock Analysis

• Market Cap: $119.88B
• Dividend Yield: 2.63%
• Average Volume (3M): 2.26M
• Price to Earnings (P/E): 12.9
• Beta (1Y): 1.11
• Revenue Growth: -0.66%
• EPS Growth: 23.90%
• Country: US
• Employees: 120,000
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): 0.56
• Shares Outstanding: 6,429,012,700
• 10 Day Avg. Volume: 1,946,692
• 30 Day Avg. Volume: 2,256,424
• PEG Ratio: 0.29
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.94
• P/FCF Ratio: 1.97
• Enterprise Value/Market Cap: 0.27
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: <0.01
• Enterprise Value/Ebitda: 0.02
• 1Y Price Target: $32.78
• Price Target Upside: 83.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 1.51
• Revenue Forecast (FY): $29.13B

• Rating: 76 Outperform
• Price Target: $20.50 ▲(14.91% Upside)

Sumitomo Mitsui Financial Group's strong financial performance and positive technical indicators are the primary drivers of its stock score. The company's solid revenue growth, profitability, and robust cash flow generation support its financial stability. While the stock shows bullish momentum, caution is advised due to potential overbought conditions. The valuation is fair, with a reasonable P/E ratio and a decent dividend yield.

Positive Factors

Cash Generation

Efficient cash generation supports financial stability and provides flexibility for investments, debt reduction, or shareholder returns.

Revenue Growth

Strong revenue growth indicates expanding business operations and market presence, enhancing long-term profitability and competitive position.

Project Financing

Involvement in large-scale project financing showcases SMFG's capability to participate in significant industry trends, like the AI boom, boosting its market influence.

Negative Factors

Revenue Growth Decline

A decline in revenue growth can signal challenges in maintaining market share or adapting to market changes, potentially affecting long-term performance.

Moderate Leverage

While typical for banks, moderate leverage can limit financial flexibility, especially in volatile markets, impacting strategic initiatives.

Equity Ownership Increase

Increasing equity stakes in other firms can strain resources and may divert focus from core operations, affecting overall strategic execution.

Sumitomo Mitsui Business Overview & Revenue Model

Company Description

Sumitomo Mitsui Financial Group (SMFG) is a leading financial services company based in Japan, primarily engaged in banking, leasing, and investment activities. The group operates through its core subsidiary, Sumitomo Mitsui Banking Corporation (SMBC), which provides a broad range of financial services, including corporate banking, retail banking, and asset management. Additionally, SMFG is involved in securities, credit cards, and insurance services, catering to both individual and corporate clients across domestic and international markets.

How the Company Makes Money

SMFG generates revenue through multiple key streams: interest income from loans and advances made to customers, fees from various banking services, and revenue from investment activities. The company earns interest income primarily from its lending operations, which include corporate loans, consumer loans, and mortgages. Additionally, SMFG benefits from transaction fees related to payment processing, wealth management, and asset management services. The group also has significant investments in securities and other financial instruments that provide dividends and capital gains, contributing to its overall earnings. Strategic partnerships and collaborations with other financial institutions and corporations further enhance its service offerings and revenue potential.

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

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.68T	9.66T	8.77T	5.78T	3.80T	3.57T
Gross Profit	4.83T	4.72T	4.16T	3.51T	3.15T	2.69T
EBITDA	1.95T	1.98T	1.64T	1.37T	1.17T	899.42B
Net Income	1.39T	1.18T	962.95B	805.84B	706.63B	512.81B
Balance Sheet
Total Assets	10.00T>	10.00T>	10.00T>	10.00T>	10.00T>	10.00T>
Cash, Cash Equivalents and Short-Term Investments	72.60T	10.00T>	10.00T>	75.91T	74.79T	10.00T>
Total Debt	58.32T	58.30T	34.26T	46.16T	32.12T	30.36T
Total Liabilities	10.00T>	10.00T>	10.00T>	10.00T>	10.00T>	10.00T>
Stockholders Equity	15.17T	14.70T	14.66T	12.68T	12.10T	11.83T
Cash Flow
Free Cash Flow	0.00	4.60T	250.98B	-6.19T	1.26T	18.47T
Operating Cash Flow	0.00	4.97T	642.86B	-5.90T	1.55T	18.80T
Investing Cash Flow	0.00	-4.51T	-918.90B	5.93T	-2.41T	-7.68T
Financing Cash Flow	0.00	-480.15B	280.69B	-357.78B	-485.34B	-562.58B

Sumitomo Mitsui Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMFG, the sentiment is Positive. The current price of 17.84 is below the 20-day moving average (MA) of 17.91, above the 50-day MA of 16.83, and above the 200-day MA of 15.68, indicating a bullish trend. The MACD of 0.63 indicates Negative momentum. The RSI at 70.04 is Negative, neither overbought nor oversold. The STOCH value of 73.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SMFG.

Sumitomo Mitsui Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WFC	80 Outperform	$284.68B	14.94	11.56%	1.84%	-4.37%	26.41%
HSBC	78 Outperform	$245.54B	14.94	8.66%	4.36%	-9.54%	-22.46%
MUFG	77 Outperform	$178.66B	14.00	9.01%	2.50%	-1.09%	8.53%
SMFG	76 Outperform	$119.88B	12.85	9.09%	2.63%	-0.66%	23.90%
SAN	72 Outperform	$165.73B	10.97	12.54%	1.90%	-15.34%	16.71%
C	68 Neutral	$195.80B	15.39	6.88%	2.08%	-0.62%	105.57%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Sumitomo Mitsui Corporate Events

Sumitomo Mitsui Releases Interim Financial Results for September 2025

Sumitomo Mitsui Financial Group, Inc. has released its unaudited interim consolidated financial statements for the six months ended September 30, 2025. These statements, prepared in accordance with Japanese GAAP, highlight the company’s financial position and performance during this period. The report, published on November 28, 2025, shows a slight decrease in total assets from March 31, 2025, to September 30, 2025. This financial disclosure provides stakeholders with insights into the company’s operational health and strategic positioning within the financial industry.