DB:SMO

Stock Analysis Report

Sumitomo Electric Industries

Executive Summary

Sumitomo Electric Industries, Ltd. manufactures and sells electric wires and cables worldwide.

Snowflake

Fundamentals

Flawless balance sheet and good value.


Similar Companies

Share Price & News

How has Sumitomo Electric Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.9%

SMO

2.3%

DE Auto Components

1.4%

DE Market


1 Year Return

-4.3%

SMO

-11.1%

DE Auto Components

3.7%

DE Market

Return vs Industry: SMO exceeded the German Auto Components industry which returned -11.1% over the past year.

Return vs Market: SMO underperformed the German Market which returned 3.7% over the past year.


Shareholder returns

SMOIndustryMarket
7 Day0.9%2.3%1.4%
30 Day-0.02%-2.7%1.3%
90 Day3.2%1.2%3.4%
1 Year-1.0%-4.3%-7.3%-11.1%7.0%3.7%
3 Year-5.3%-13.2%-24.5%-30.8%18.5%8.3%
5 Year27.2%11.2%-17.1%-25.6%42.2%22.9%

Price Volatility Vs. Market

How volatile is Sumitomo Electric Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Sumitomo Electric Industries undervalued compared to its fair value and its price relative to the market?

30.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: SMO (€11.6) is trading below our estimate of fair value (€16.71)

Significantly Undervalued: SMO is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SMO is good value based on its PE Ratio (10.6x) compared to the Auto Components industry average (13.1x).

PE vs Market: SMO is good value based on its PE Ratio (10.6x) compared to the German market (19.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: SMO is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: SMO is good value based on its PB Ratio (0.7x) compared to the DE Auto Components industry average (1.2x).


Next Steps

Future Growth

How is Sumitomo Electric Industries forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

4.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SMO's forecast earnings growth (4.7% per year) is above the savings rate (0.2%).

Earnings vs Market: SMO's earnings (4.7% per year) are forecast to grow slower than the German market (12.7% per year).

High Growth Earnings: SMO's earnings are forecast to grow, but not significantly.

Revenue vs Market: SMO's revenue (1.1% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: SMO's revenue (1.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: SMO's Return on Equity is forecast to be low in 3 years time (6.6%).


Next Steps

Past Performance

How has Sumitomo Electric Industries performed over the past 5 years?

4.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SMO's earnings have grown by 4.2% per year over the past 5 years.

Accelerating Growth: SMO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SMO had negative earnings growth (-13.1%) over the past year, making it difficult to compare to the Auto Components industry average (-6.3%).


Return on Equity

High ROE: SMO's Return on Equity (6.6%) is considered low.


Return on Assets

ROA vs Industry: SMO's Return on Assets is below or equal to the Auto Components industry average last year.


Return on Capital Employed

ROCE Improving: SMO's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Sumitomo Electric Industries's financial position?


Financial Position Analysis

Short Term Liabilities: SMO's short term assets (¥1,518.8B) exceeds its short term liabilities (¥931.0B)

Long Term Liabilities: SMO's short term assets (1,518.8B) exceeds its long term liabilities (397.6B)


Debt to Equity History and Analysis

Debt Level: SMO's debt to equity ratio (34.3%) is considered satisfactory

Reducing Debt: SMO's debt to equity ratio has reduced from 39.9% to 34.3% over the past 5 years.

Debt Coverage: SMO's debt is well covered by operating cash flow (29.8%).

Interest Coverage: SMO's interest payments on its debt are well covered by EBIT (116.7x coverage).


Balance Sheet

Inventory Level: SMO has a high level of physical assets or inventory.

Debt Coverage by Assets: SMO's debt is covered by short term assets (assets are 2.549050x debt).


Next Steps

Dividend

What is Sumitomo Electric Industries's current dividend yield, its reliability and sustainability?

3.41%

Current Dividend Yield


Dividend Yield vs Market

company3.4%marketbottom25%1.5%markettop25%3.8%industryaverage4.1%forecastin3Years3.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SMO's dividend (3.41%) is higher than the bottom 25% of dividend payers in the German market (1.47%).

High Dividend: SMO's dividend (3.41%) is low compared to the top 25% of dividend payers in the German market (3.83%).

Stable Dividend: SMO's dividend payments have been volatile in the past 10 years.

Growing Dividend: SMO's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.1%), SMO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Sumitomo Electric Industries's salary, the management and board of directors tenure and is there insider trading?

0.8yrs

Average board tenure


CEO

Masayoshi Matsumoto 0

0yrs

Tenure

JP¥172,190,000

Compensation

Mr. Masayoshi Matsumoto serves as Chairman of the Board and Chief Executive Officer of Sumitomo Electric Industries Ltd. Mr. Matsumoto served as Senior Managing Director of Sumitomo Electric Industries Ltd ...


CEO Compensation Analysis

Compensation vs. Market: Masayoshi's total compensation ($USD0.00) is too low to compare against companies of similar size in the German market ($USD4.64M).

Compensation vs Earnings: Masayoshi's compensation has been consistent with company performance over the past year.


Board Age and Tenure

0.8yrs

Average Tenure

Experienced Board: SMO's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Masayoshi Matsumoto

    Chairman & CEO

    • Tenure: 0yrs
    • Compensation: JP¥172.19m
  • Akira Nishimura (61yo)

    Senior MD

    • Tenure: 3.3yrs
  • Osamu Inoue

    President & COO

    • Tenure: 0yrs
  • Mitsuo Nishida

    Executive VP

    • Tenure: 0yrs
  • Nozomi Ushijima

    Executive VP & Director

    • Tenure: 0.8yrs
  • Kenichi Urushibata

    Managing Executive Officer

    • Tenure: 0yrs
  • Yoshitomo Kasui

    Senior MD

    • Tenure: 0yrs
  • Junji Ito

    MD, GM of Research & Development Division and Director

    • Tenure: 0yrs
  • Toshiaki Kakii

    Managing Executive Officer and Deputy GM of Research & Development Division

    • Tenure: 0yrs
  • Yasuhiro Miyata

    Managing Executive Officer & GM of Electronics Sales Division

    • Tenure: 0yrs

Board Members

  • Masayoshi Matsumoto

    Chairman & CEO

    • Tenure: 0yrs
    • Compensation: JP¥172.19m
  • Akira Nishimura (61yo)

    Senior MD

    • Tenure: 3.3yrs
  • Osamu Inoue

    President & COO

    • Tenure: 0yrs
  • Mitsuo Nishida

    Executive VP

    • Tenure: 0yrs
  • Nozomi Ushijima

    Executive VP & Director

    • Tenure: 0.8yrs
  • Yoshitomo Kasui

    Senior MD

    • Tenure: 0yrs
  • Junji Ito

    MD, GM of Research & Development Division and Director

    • Tenure: 0yrs
  • Masaki Shirayama

    MD & Director

    • Tenure: 0yrs
  • Hideo Hato (62yo)

    Senior MD & Director

    • Tenure: 0.8yrs
  • Nobuyuki Kobayashi

    MD & Director

    • Tenure: 0.8yrs

Company Information

Sumitomo Electric Industries, Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sumitomo Electric Industries, Ltd.
  • Ticker: SMO
  • Exchange: DB
  • Founded: 1897
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: JP¥1.097t
  • Listing Market Cap: JP¥9.074b
  • Shares outstanding: 779.89m
  • Website: https://www.sei.co.jp

Number of Employees


Location

  • Sumitomo Electric Industries, Ltd.
  • 5-33, Kitahama 4-chome
  • Chuo-ku
  • Osaka
  • 541-0041
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SMTO.YOTCPK (Pink Sheets LLC)ADRUSUSDMar 1991
SMTO.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
5802TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
SMODB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992

Biography

Sumitomo Electric Industries, Ltd. manufactures and sells electric wires and cables worldwide. It operates in five segments: Automotive, Infocommunications, Electronics, Environment and Energy, and Industr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 20:49
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.