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Sumco Corporation (SUOPY)
:SUOPY
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Sumco
(OTC:SUOPY)
Rating:68Neutral
Price Target:
$16.50
▲(4.96%Upside)
Sumco (SUOPY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.69B
Dividend Yield0.7%
Average Volume (3M)12.00
Price to Earnings (P/E)23.1
Beta (1Y)1.26
Revenue Growth-6.29%
EPS Growth-46.62%
CountryUS
Employees9,850
SectorTechnology
Sector Strength84
IndustrySemiconductors
Share Statistics
EPS (TTM)0.11
Shares Outstanding175,083,620
10 Day Avg. Volume38
30 Day Avg. Volume12
Financial Highlights & Ratios
PEG Ratio0.18
Price to Book (P/B)1.13
Price to Sales (P/S)0.00
P/FCF Ratio11.15
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Sumco Business Overview & Revenue Model
Company DescriptionSumco Corporation is a leading global manufacturer and supplier of silicon wafers, which are essential components in the production of semiconductors. The company operates in the semiconductor industry and specializes in the development and production of high-quality silicon wafers used in various electronic devices and integrated circuits. Sumco's core products include polished wafers, epitaxial wafers, and silicon ingots, which are supplied to semiconductor manufacturers worldwide.
How the Company Makes MoneySumco makes money primarily through the sale of its silicon wafer products to semiconductor manufacturers across the globe. The company generates revenue by producing and supplying different types of silicon wafers, such as polished and epitaxial wafers, which are used in the fabrication of integrated circuits and various electronic components. Sumco's key revenue streams include contracts and orders from major semiconductor producers who require high-quality wafers for their operations. Additionally, the company's revenue is influenced by its ability to maintain strong relationships and partnerships with leading semiconductor companies, ensuring a steady demand for its products. Market demand for advanced semiconductors, driven by trends like the rise of mobile devices, data centers, and IoT, also plays a significant role in Sumco's earnings.
Sumco Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 15.76%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Negative
The earnings call highlights stable sales performance and interim dividend guidance, but significant lowlights include projected declines in profitability, increased depreciation expenses, and challenges from Forex and tariffs. The company's outlook is cautious due to these negative factors.Q1-2025 Updates
Positive Updates
Q1 Operating Profit Exceeds Forecast
The company exceeded its forecast for operating profit and ordinary profit in Q1 fiscal 2025 due to delays in incurring depreciation.
Stable Sales Performance
Q1 sales were largely in line with forecasts, indicating stability in the company's revenue streams.
Positive Forex Impact in Q1
A positive impact of ¥1.6 billion from Forex contributed to operating profit, despite other cost increases.
Guidance for Interim Dividend
Guiding for an interim dividend of ¥10, taking into account EBITDA and available cash.
Negative Updates
Projected Decline in Profitability
For Q2 2025, the company projects breakeven at the operating profit level, a loss of ¥1 billion for ordinary profit, and a loss of ¥2 billion in net profit.
Increased Depreciation Expenses
Projected increase in depreciation expenses of ¥4.3 billion Q-on-Q, impacting profitability negatively.
Forex and Cost Challenges
A negative Q-on-Q impact of ¥2.7 billion from Forex is expected, along with an increase in costs related to materials and labor.
Weakness in 200 mm and 300 mm Wafer Demand
Ongoing weakness in 200 mm wafers, with 300 mm also seeing a Q-on-Q decline in Q1. AI is the only strong driver for 300 mm wafers.
High Inventory Levels
Customer wafer inventory levels have been rising again, especially for NAND memory and legacy logic applications.
Tariff Uncertainty
Uncertainty around the impact of U.S. tariffs on silicon wafers, with potential secondary economic impacts.
Company Guidance
During the Q1 fiscal 2025 results briefing, significant guidance was provided regarding the company's financial outlook and market conditions. Chairman Hashimoto highlighted that while Q1 sales were in line with forecasts, operating and ordinary profits exceeded expectations due to delayed depreciation expenses. Looking ahead to Q2, the company projects flat sales quarter-on-quarter (Q-on-Q) but anticipates a breakeven at the operating profit level, with an ordinary profit loss of ¥1 billion and a net profit loss of ¥2 billion. Key factors impacting profitability include a projected ¥4.3 billion Q-on-Q depreciation increase and a ¥2.7 billion negative impact from a stronger Yen, totaling a ¥7 billion negative effect. Despite an unchanged sales forecast, the company expects a decline in profitability due to these factors, partly mitigated by a shift towards 300 mm wafer shipments. Additionally, the interim dividend guidance was set at ¥10, and ongoing challenges from macroeconomic conditions, inventory adjustments, and potential impacts from U.S. tariffs were discussed. The company plans to focus on cost management, improving its production capabilities, and adapting to market shifts, particularly the transition to 300 mm wafers driven by AI demand.Sumco Financial Statement Overview
Summary
Sumco presents a mixed financial outlook with strengths in maintaining a strong equity base and moderate leverage. However, challenges include declining profitability, negative free cash flow, and a significant decrease in the net profit margin. The company must address revenue growth and operational efficiency to improve financial health.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.65
Positive
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.78
Positive
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.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 403.56B | 396.62B | 425.94B | 441.08B | 335.67B | 291.33B |
| Gross Profit | 81.71B | 72.73B | 108.25B | 143.35B | 80.12B | 65.17B |
| EBITDA | 118.67B | 113.25B | 144.66B | 169.53B | 104.33B | 84.67B |
| Net Income | 26.85B | 19.88B | 63.88B | 70.20B | 41.12B | 25.50B |
Balance Sheet | ||||||
| Total Assets | 1.19T | 1.17T | 1.07T | 892.55B | 764.82B | 593.44B |
| Cash, Cash Equivalents and Short-Term Investments | 155.24B | 95.67B | 156.35B | 259.31B | 224.67B | 82.97B |
| Total Debt | 339.23B | 353.95B | 224.45B | 141.38B | 141.07B | 149.90B |
| Total Liabilities | 530.44B | 515.45B | 437.56B | 301.07B | 241.98B | 238.44B |
| Stockholders Equity | 593.74B | 592.11B | 572.15B | 533.55B | 476.15B | 315.11B |
Cash Flow | ||||||
| Free Cash Flow | 81.72B | -177.62B | -160.57B | 54.01B | 36.92B | 30.45B |
| Operating Cash Flow | 81.72B | 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
15.72
Price Trends
13.93
Positive
14.26
Positive
15.88
Negative
Market Momentum
0.49
Negative
62.98
Neutral
85.37
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 15.72 is above the 20-day moving average (MA) of 14.43, above the 50-day MA of 13.93, and below the 200-day MA of 15.88, indicating a neutral trend. The MACD of 0.49 indicates Negative momentum. The RSI at 62.98 is Neutral, neither overbought nor oversold. The STOCH value of 85.37 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SUOPY.
Sumco Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $3.74B | 31.03 | 24.82% | 1.62% | 32.63% | 46.16% | |
74 Outperform | $1.56B | 17.82 | 9.79% | 8.29% | 0.61% | 80.97% | |
72 Outperform | $4.74B | 24.18 | 7.88% | ― | 5.22% | -58.99% | |
68 Neutral | $2.69B | 23.08 | 3.01% | 0.70% | -6.29% | -46.62% | |
64 Neutral | $4.85B | ― | -14.77% | ― | 2.16% | -55.38% | |
63 Neutral | $33.24B | 5.92 | -11.55% | 1.90% | 5.54% | -20.14% | |
62 Neutral | $3.77B | ― | -93.41% | ― | 13.83% | 88.14% |
* Technology Sector Average
Performance Comparison
SUOPY
Sumco
15.34
-15.12
-49.64%
CAMT
Camtek
87.52
-44.73
-33.82%
HIMX
Himax Technologies
9.16
1.62
21.49%
SMTC
Semtech
43.96
10.94
33.13%
SLAB
Silicon Laboratories
152.70
40.48
36.07%
TSEM
Tower
43.67
3.43
8.52%
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.