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Sumco Corporation (SUOPY)
OTHER OTC:SUOPY
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Sumco
(OTC:SUOPY)
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Rating:49Neutral
Price Target:
$22.50
▲(16.46% Upside)
Action:ReiteratedDate:02/18/26
The score is primarily weighed down by weakened financial performance (margin compression, 2025 net loss, and negative free cash flow) and cautious near-term guidance. Technicals are mixed but not bearish, while valuation remains challenged due to loss-making results and only a modest dividend yield.
Positive Factors
Leading-edge product recognition
Consistent customer recognition from a premier foundry (TSMC) signals durable technical competency and credibility in leading‑edge 300mm wafers. That endorsement supports long-term commercial access to advanced node capacity additions, sticky customer relationships and a high barrier to entry versus smaller competitors.
Operating cash flow resilience
Sustained positive operating cash flow (JPY 100b) despite reported net losses shows the business can generate cash from operations. This cash generation underpins funding for investment, working capital and a modest dividend, providing financial flexibility through semiconductor cycles and enabling strategic reinvestment when demand recovers.
Reasonable balance sheet posture
A majority equity base and sub‑1x gross debt/equity indicate moderate leverage and a meaningful capital buffer. This balance sheet structure maintains liquidity and credit capacity, reducing bankruptcy risk in downcycles and supporting continued capex funding and dividend policy without immediate need for dilutive capital raises.
Negative Factors
Margin compression and net losses
Gross margin declined materially (from ~33% in 2022 to ~12% in 2025) and the company reported a 2025 net loss with consecutive years of negative free cash flow. Persistent margin erosion reduces earnings power and leaves recovery dependent on sustained product‑mix improvements or structural demand recovery over multiple quarters.
High depreciation burden
Sharp uplift in depreciation from recent capex is non‑cash but directly reduces operating profit and compresses margins for years. Even with healthy EBITDA, elevated depreciation delays earnings recovery, weakens reported profitability metrics, and may constrain management's ability to restore dividend policy or discretionary spend until amortization stabilizes.
Legacy inventory & 200mm structural decline
Elevated legacy‑node inventory and a multi‑year structural decline in 200mm volumes create prolonged demand and pricing headwinds in commodity segments. Inventory normalization and shrinking 200mm market reduce utilization and margin contributions, pressuring cash conversion and requiring reallocation to 300mm/leading‑edge investments over time.
Sumco (SUOPY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.55B
Dividend Yield0.83%
Average Volume (3M)163.00
Price to Earnings (P/E)―
Beta (1Y)1.45
Revenue Growth1.51%
EPS Growth-88.37%
CountryUS
Employees9,850
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.40
Shares Outstanding175,083,620
10 Day Avg. Volume10
30 Day Avg. Volume163
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)0.84
Price to Sales (P/S)1.13
P/FCF Ratio-42.24
Enterprise Value/Market Cap239.93
Enterprise Value/Revenue2.11
Enterprise Value/Gross Profit11.85
Enterprise Value/Ebitda8.13
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
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:Feb 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Neutral
The call presents a mixed picture: operational and cash-generation strengths (stable EBITDA, JPY 100b operating cash flow, material CapEx reduction, full-year operating profit) and clear execution/market headwinds (Q4 and full-year net losses, sharply higher depreciation, product-mix pressure, structural 200mm decline, legacy inventory overhang and near-term guidance for Q1 losses). Management is constructive on longer-term AI-driven demand and leading-edge positioning but warns of near-term inventory normalization and NAND capacity lag.Q4-2025 Updates
Positive Updates
Beat on Q4 Sales and Forecast
Q4 sales of JPY 105.2 billion, up JPY 6.1 billion Q-on-Q (≈+6.2% from JPY 99.1b). Sales overshot forecast by JPY 5.0 billion due to late arrival of goods and positive FX.
Full-Year Operating Profit and EBITDA Resilience
Full-year sales of JPY 409.6 billion with operating profit of JPY 1.3 billion (in the black on an annual basis). EBITDA for the year was JPY 112.4 billion and largely unchanged YoY, demonstrating cash-earnings resilience.
Strong Operating Cash Flow
Operating cash flow for the year was positive JPY 100.0 billion, enabling the company to fund investments and maintain liquidity despite reported losses.
Material CapEx Reduction
Total CapEx fell to JPY 79.9 billion in 2025 from JPY 214.9 billion in 2024, a YoY reduction of JPY 135.0 billion (≈-62.8%), lowering near-term cash investment requirements.
Balance Sheet and Capital Metrics Stable
Total assets JPY 1,127.9 billion (down JPY 44.7b), liabilities JPY 480.2 billion (down JPY 35.2b). Equity-to-asset ratio remained healthy at 51.3% and gross D/E ratio was 0.61x.
Operational Wins and Customer Recognition
Leading-edge 300mm products highly rated by customers; company has received TSMC recognition for 12 consecutive years. Management highlights modernization plans and new plant capacity to meet leading-edge demand.
Maintained Dividend Policy
Despite a loss periods, fiscal year-end dividend set at JPY 10 per share, reflecting free cash flow considerations, cash position and significant retained earnings.
Negative Updates
Q4 and Q1 Profitability Weakness
Q4 operating profit was negative JPY 4.5 billion, ordinary loss JPY 5.9 billion and net loss attributable JPY 10.8 billion. Q1 guidance projects sales JPY 100 billion and an operating loss of JPY 6.0 billion with a net loss attributable of JPY 10.0 billion.
Full-Year Net Loss and Negative Free Cash Flow
Full-year net loss attributable to owners of the parent was JPY 11.7 billion and full-year free cash flow was negative JPY 11.4 billion (investment outflow JPY 111.4b vs operating inflow JPY 100.0b). Cash and deposits declined JPY 20.4 billion year-end.
Rising Depreciation Depressing Profitability
Depreciation rose JPY 36.7 billion YoY to JPY 115.6 billion (≈+46.5% vs prior-year depreciation of JPY 78.9b), accounting for the majority of the YoY operating profit decline (operating profit fell JPY 35.6b YoY).
Product-Mix and Margin Pressure (PW vs Epi)
Higher-than-expected polished wafer (PW) sales versus epitaxial wafers reduced marginal profitability; contribution from volume/mix to profit was only ~JPY 0.5 billion despite sales growth.
Structural Decline in 200-millimeter Market
200mm wafers declined structurally: -21% in 2023, -13% in 2024 and -4% in 2025. Commodity 200mm prices softened and company does not expect a structural rebound.
Legacy-Node Inventory Overhang
Significant elevated inventory in legacy logic nodes (non-leading edge); customers' purchase volumes currently exceed wafer inputs, prompting one-off inventory normalization actions that will pressure near-term demand.
NAND Capacity Constraints and Uncertain Timing
Management flagged potential NAND shortages driven by rising inference demand (inference NAND demand ≈200k wafers/month) but noted customers are slow to invest in NAND capacity; estimated ~12 months or more before capacity additions materialize.
Operational Disruptions and Maintenance Impact
Periodic maintenance at key plants and year-end closures reduced production in Q4 and are expected to widen Q1 operating losses (JPY 1.5b Q-on-Q loss widening attributed to maintenance and one-off maintenance expenses).
Company Guidance
Management guided Q1 with sales of JPY 100.0 billion, an operating loss of JPY 6.0 billion, an ordinary loss of JPY 10.0 billion and a net loss attributable to owners of the parent of JPY 10.0 billion, assuming FX of JPY 155/USD; they said Q1 operating losses widen JPY 1.5 billion Q‑on‑Q (sales down from JPY 105.2b to JPY 100.0b), driven by periodic plant maintenance and one‑off maintenance costs, costs rising JPY 2.1 billion Q‑on‑Q and depreciation declining JPY 4.3 billion Q‑on‑Q. For the full year ended Dec‑2025 they reported sales JPY 409.6 billion, operating profit JPY 1.3 billion, ordinary loss JPY 3.8 billion, net loss attributable JPY 11.7 billion, EBITDA JPY 112.4 billion, total CapEx JPY 79.9 billion (down from JPY 214.9b in 2024), depreciation JPY 115.6 billion (up JPY 36.7b YoY) and free cash flow negative JPY 11.4 billion after operating cash flow JPY 100.0 billion and investing outflow JPY 111.4 billion; balance sheet metrics include total assets JPY 1,127.9 billion, liabilities JPY 480.2 billion, equity‑to‑asset ratio 51.3% and gross D/E 0.61x, and the board set a fiscal year‑end dividend of JPY 10 per share. Management expects structural declines in 200‑mm (‑21% in 2023, ‑13% in 2024, ‑4% in 2025) but recovery in 300‑mm (‑11% in 2023, +2% in 2024, +9% in 2025), forecasts wafer consumption to grow from this year into next as NAND/DRAM capacity ramps (DRAM AI demand ~500–600k wafers/month today rising to ~1.5m over 3–4 years, NAND inference demand ~200k wafers/month), and said customer capacity additions will take ~12 months with leading‑edge wafer increases expected in H2 when the new plant comes online.Sumco Financial Statement Overview
Summary
Financials reflect a downcycle: margin compression and a 2025 net loss alongside persistently negative free cash flow (2023–2025). Operating cash flow remains positive and the balance sheet is still workable, but higher leverage and pressured cash conversion increase reliance on an earnings recovery.Income Statement
Revenue has been volatile (strong growth in 2022, declines in 2023–2024, then a return to growth in 2025). Profitability has weakened materially: gross margin compressed from ~33% (2022) to ~12% (2025) and the company swung from healthy profits in 2021–2024 to a net loss in 2025 (negative net margin). A positive is that EBITDA margin remains relatively strong (~27% in 2025), but the move to negative operating profit and net income signals meaningful cyclical and/or cost pressure.48
Neutral
Balance Sheet
The balance sheet is moderately leveraged and has deteriorated versus the stronger 2021–2022 setup. Debt to equity rose from ~0.26–0.30 (2021–2022) to ~0.60+ (2024–2025), reducing financial flexibility. Offsetting that, equity remains sizable relative to assets and the company has maintained a stable equity base across years, suggesting it is not overextended—though the higher leverage is a clear risk if earnings remain pressured.62
Positive
Cash Flow
Operating cash flow is positive but inconsistent versus profitability and capital needs. Free cash flow turned sharply negative in 2023–2025 (despite positive operating cash flow), implying heavy reinvestment/capex and weaker cash conversion. Coverage of earnings by operating cash flow has been mixed (stronger in 2021–2022, lower in 2023–2025), and with 2025 reporting a net loss while still generating operating cash flow, the near-term cash profile looks pressured by investment intensity.41
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 403.72B | 429.53B | 396.62B | 425.94B | 441.08B | 335.67B |
| Gross Profit | 71.86B | 52.33B | 72.73B | 108.25B | 143.35B | 80.12B |
| EBITDA | 104.70B | 117.89B | 113.25B | 144.66B | 169.53B | 104.33B |
| Net Income | 10.34B | -12.32B | 19.88B | 63.88B | 70.20B | 41.12B |
Balance Sheet | ||||||
| Total Assets | 1.16T | 1.13T | 1.17T | 1.07T | 892.55B | 764.82B |
| Cash, Cash Equivalents and Short-Term Investments | 80.91B | 75.35B | 95.67B | 156.35B | 259.31B | 224.67B |
| Total Debt | 364.52B | 354.10B | 353.95B | 224.45B | 141.38B | 141.07B |
| Total Liabilities | 505.89B | 480.51B | 515.45B | 437.56B | 301.07B | 241.98B |
| Stockholders Equity | 589.54B | 578.77B | 592.11B | 572.15B | 533.55B | 476.15B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -11.53B | -177.62B | -160.57B | 54.01B | 36.92B |
| Operating Cash Flow | 0.00 | 104.89B | 69.63B | 96.34B | 179.46B | 104.71B |
| Investing Cash Flow | 0.00 | -116.85B | -247.88B | -247.68B | -126.35B | -67.34B |
| Financing Cash Flow | 0.00 | -9.15B | 112.29B | 43.46B | -23.15B | 99.10B |
Sumco Technical Analysis
Negative
19.32
Price Trends
20.62
Negative
19.36
Positive
18.22
Positive
Market Momentum
-0.04
Positive
43.99
Neutral
26.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SUOPY, the sentiment is Negative. The current price of 19.32 is below the 20-day moving average (MA) of 21.05, below the 50-day MA of 20.62, and above the 200-day MA of 18.22, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 43.99 is Neutral, neither overbought nor oversold. The STOCH value of 26.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SUOPY.
Sumco Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $23.87B | 14.74 | 11.36% | 6.06% | 5.87% | -20.93% | |
69 Neutral | $24.33B | 21.96 | 7.68% | ― | 0.25% | -106.22% | |
68 Neutral | $11.04B | 26.10 | 8.73% | 0.81% | 0.13% | -16.17% | |
63 Neutral | $46.31B | 26.78 | 12.81% | 2.29% | 8.01% | 10.41% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $30.11B | 136.11 | 0.97% | 1.28% | -17.33% | -76.71% | |
49 Neutral | $3.55B | -39.52 | -2.01% | 0.83% | 1.51% | -88.37% |
* Technology Sector Average
SUOPY
Sumco
20.29
4.13
25.54%
ASX
ASE Technology Holding Co
21.52
12.00
126.10%
AMKR
Amkor
44.63
25.27
130.53%
STM
STMicroelectronics
33.46
8.37
33.34%
UMC
United Micro
9.47
3.07
48.04%
GFS
GlobalFoundries Inc
43.77
5.03
12.98%
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.