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Sumco Corporation (SUOPY)
OTHER OTC:SUOPY
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Sumco
(OTC:SUOPY)
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Rating:53Neutral
Price Target:
$15.50
▼(-19.77% Downside)
Sumco's overall stock score reflects significant challenges. The most impactful factors are the declining financial performance and bearish technical indicators. Valuation concerns and a mixed earnings outlook further contribute to a cautious stance.
Positive Factors
AI-related Growth
The strong growth in AI-related segments indicates Sumco's ability to capitalize on emerging technology trends, positioning it well for future demand in advanced semiconductor applications.
Completion of Major CapEx Program
The completion of major capital expenditures reduces future cash outflows, potentially improving free cash flow and allowing Sumco to focus on optimizing existing assets and operations.
Stable Balance Sheet
A stable balance sheet with moderate leverage provides a solid foundation for Sumco to weather industry volatility and invest in strategic growth opportunities.
Negative Factors
Projected Q3 Losses
Projected losses in Q3 highlight ongoing financial challenges, potentially affecting Sumco's ability to invest in growth and maintain competitive positioning.
Decline in 200-mm Wafer Market
The decline in the 200-mm wafer market reflects structural shifts that could reduce Sumco's market share and revenue from this segment, necessitating strategic adaptation.
High Customer Inventory Levels
Elevated customer inventories may suppress near-term demand for Sumco's products, impacting revenue and necessitating adjustments in production and sales strategies.
Sumco (SUOPY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.30B
Dividend Yield0.83%
Average Volume (3M)163.00
Price to Earnings (P/E)202.0
Beta (1Y)1.46
Revenue Growth1.51%
EPS Growth-88.37%
CountryUS
Employees9,850
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.16
Shares Outstanding175,083,620
10 Day Avg. Volume10
30 Day Avg. Volume163
Financial Highlights & Ratios
PEG Ratio-0.30
Price to Book (P/B)0.69
Price to Sales (P/S)1.03
P/FCF Ratio-2.30
Enterprise Value/Market Cap207.92
Enterprise Value/Revenue1.70
Enterprise Value/Gross Profit9.55
Enterprise Value/Ebitda6.56
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Sumco Business Overview & Revenue Model
Company DescriptionSumco Corporation, together with its subsidiaries, manufactures and sells silicon wafers for the semiconductor industry primarily in Japan, the United States, China, Taiwan, Korea, and internationally. It provides monocrystalline ingots, as well as polished, annealed, epitaxial, junction isolated, silicon-on-insulator, and reclaimed polished wafers. The company was formerly known as Sumitomo Mitsubishi Silicon Corp. and changed its name to Sumco Corporation in August 2005. Sumco Corporation was incorporated in 1999 and is headquartered in Tokyo, Japan.
How the Company Makes MoneySumco generates revenue primarily through the sale of silicon wafers to semiconductor manufacturers worldwide. The company's revenue model is based on direct sales to clients, long-term supply agreements, and contracts with major players in the electronics and technology sectors. Key revenue streams include the sale of standard silicon wafers, customized wafer products, and services related to wafer processing and fabrication. Significant partnerships with leading technology firms and ongoing investments in research and development help enhance Sumco's product offerings, contributing to its earnings growth. Additionally, fluctuations in global semiconductor demand and pricing dynamics also play a critical role in the company's financial performance.
Sumco Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 10, 2026
Earnings Call Sentiment Negative
The earnings call presented a mixed outlook. While there were some positive aspects such as exceeding Q2 revenue expectations and growth in AI-related segments, these were overshadowed by significant challenges, including projected losses for Q3, structural declines in the 200-mm wafer market, high customer inventory levels, and geopolitical uncertainties. The increase in depreciation also posed a major drag on profitability.Q2-2025 Updates
Positive Updates
Q2 FY2025 Revenue Exceeds Expectations
Sales reached JPY102.9 billion, slightly ahead of plan due to timing variance related to freight shipments, with operating profit at JPY1.5 billion, surpassing the forecast of breakeven.
Strong AI-related Growth
AI-related segments showed strong positive growth momentum, particularly in logic-use wafers for 7-nanometer and lower, growing at an annual rate of around 16%.
Completion of Major CapEx Program
CapEx significantly declined, reflecting the completion of major greenfield investments, with H1 CapEx at JPY51.9 billion, down from JPY124.7 billion YoY.
Negative Updates
Projected Q3 Losses
Q3 is forecasted to incur an operating loss of JPY3.5 billion, ordinary losses of JPY6 billion, and losses attributable to owners of the parent of JPY5.5 billion, driven by increased depreciation and a stronger yen.
Challenges in 200-mm Wafer Market
Demand for 200-mm wafers is declining due to structural changes, with a shift to 300-mm wafers and increased Chinese local production, impacting non-Chinese customers.
High Customer Inventory Levels
High inventory levels among customers are delaying a recovery in wafer purchase volumes, with LTAs contributing to elevated inventory.
Impact of Depreciation on Profitability
Depreciation increased significantly, impacting profitability with a negative impact of JPY13.7 billion YoY in H1.
Geopolitical and Tariff Uncertainties
Uncertainties around potential US tariffs on semiconductors and geopolitical tensions with China pose risks to market stability and demand.
Company Guidance
In the Q2 FY2025 results briefing held on August 7, 2025, the company reported sales of JPY102.9 billion, slightly exceeding expectations, and an operating profit (OP) of JPY1.5 billion, compared to a forecast of breakeven. The company projected Q3 sales to remain largely unchanged quarter-on-quarter, with an operating loss of JPY3.5 billion, ordinary losses of JPY6 billion, and net losses attributable to owners of the parent at JPY5.5 billion. A significant factor in these projections is the expected increase in depreciation, which is anticipated to rise by JPY3.4 billion quarter-on-quarter, contributing to a JPY5 billion decline in OP. The interim dividend was set at JPY10 per share, with the fiscal year-end dividend yet to be determined. The company highlighted a shift in the semiconductor market, particularly in the usage of 200-millimeter wafers, which is in decline due to increased local production in China and a structural transition to 300-millimeter wafers. The presentation also noted geopolitical risks and their impact on the market, as well as ongoing efforts to manage inventory levels.Sumco Financial Statement Overview
Summary
Sumco's financial performance is mixed. While the balance sheet is stable with moderate leverage, the income statement shows declining profitability and revenue. The cash flow is concerning with negative free cash flow, indicating challenges in cash management.Income Statement
Sumco's income statement reflects a mixed performance. The gross profit margin improved from 25.4% in 2020 to 27.5% in 2023, indicating better cost management. However, net profit margin declined significantly from 15% in 2022 to 4.7% in 2023, raising concerns about rising expenses or one-time charges. Revenue growth rate was negative over the past two years, with a notable decline of 6.9% in 2023, suggesting a potential challenge in market demand or competitive pressures. EBIT and EBITDA margins have decreased, reflecting reduced operational efficiency.Balance Sheet
The balance sheet shows a stable financial position with a debt-to-equity ratio of 0.60 in 2023, indicating moderate leverage. The equity ratio improved from 53.4% in 2020 to 53.4% in 2023, signaling sound capital structure. However, the return on equity decreased from 13.2% in 2022 to 3.4% in 2023, which may indicate decreased profitability for shareholders. The company maintains a strong equity base, which provides a cushion against potential risks.Cash Flow
Cash flow analysis reveals a concerning trend with free cash flow turning negative at -177.6 billion in 2023, down from -160.6 billion in 2022, due to high capital expenditures. The operating cash flow to net income ratio decreased, indicating potential challenges in converting income to cash. While operating cash flow remains positive, the free cash flow to net income ratio is negative, suggesting that the company needs to improve its cash management.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 403.72B | 396.62B | 425.94B | 441.08B | 335.67B | 291.33B |
| Gross Profit | 71.86B | 72.73B | 108.25B | 143.35B | 80.12B | 65.17B |
| EBITDA | 104.70B | 113.25B | 144.66B | 169.53B | 104.33B | 84.67B |
| Net Income | 10.34B | 19.88B | 63.88B | 70.20B | 41.12B | 25.50B |
Balance Sheet | ||||||
| Total Assets | 1.16T | 1.17T | 1.07T | 892.55B | 764.82B | 593.44B |
| Cash, Cash Equivalents and Short-Term Investments | 80.91B | 95.67B | 156.35B | 259.31B | 224.67B | 82.97B |
| Total Debt | 364.52B | 353.95B | 224.45B | 141.38B | 141.07B | 149.90B |
| Total Liabilities | 505.89B | 515.45B | 437.56B | 301.07B | 241.98B | 238.44B |
| Stockholders Equity | 589.54B | 592.11B | 572.15B | 533.55B | 476.15B | 315.11B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -177.62B | -160.57B | 54.01B | 36.92B | 30.45B |
| Operating Cash Flow | 0.00 | 69.63B | 96.34B | 179.46B | 104.71B | 84.19B |
| Investing Cash Flow | 0.00 | -247.88B | -247.68B | -126.35B | -67.34B | -55.19B |
| Financing Cash Flow | 0.00 | 112.29B | 43.46B | -23.15B | 99.10B | -16.24B |
Sumco Technical Analysis
Positive
19.32
Price Trends
17.70
Positive
18.70
Positive
16.57
Positive
Market Momentum
0.51
Negative
62.48
Neutral
88.62
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SUOPY, the sentiment is Positive. The current price of 19.32 is above the 20-day moving average (MA) of 17.85, above the 50-day MA of 17.70, and above the 200-day MA of 16.57, indicating a bullish trend. The MACD of 0.51 indicates Negative momentum. The RSI at 62.48 is Neutral, neither overbought nor oversold. The STOCH value of 88.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SUOPY.
Sumco Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $37.55B | 33.95 | 11.17% | 2.29% | 8.01% | 10.41% | |
69 Neutral | $12.61B | 42.14 | 7.27% | 0.81% | 0.13% | -16.17% | |
69 Neutral | $21.94B | 17.04 | 10.97% | 6.06% | 5.87% | -20.93% | |
63 Neutral | $21.62B | -466.55 | -0.38% | ― | 0.25% | -106.22% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $25.63B | 50.70 | 3.00% | 1.28% | -17.33% | -76.71% | |
53 Neutral | $3.30B | 201.96 | 1.76% | 0.83% | 1.51% | -88.37% |
* Technology Sector Average
SUOPY
Sumco
19.32
4.66
31.82%
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17.33
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75.40%
AMKR
Amkor
51.00
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103.51%
STM
STMicroelectronics
28.04
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18.26%
UMC
United Micro
8.55
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GFS
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38.91
-1.88
-4.61%
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.