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8053

Sumitomo TSE:8053 Stock Report

Last Price

JP¥1.83k

Market Cap

JP¥2.3t

7D

-0.3%

1Y

21.9%

Updated

27 Jun, 2022

Data

Company Financials +
8053 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance2/6
Financial Health4/6
Dividends4/6

8053 Stock Overview

Sumitomo Corporation engages in general trading business worldwide.

Rewards

Price-To-Earnings ratio (4.9x) is below the JP market (12.3x)

Became profitable this year

Risk Analysis

Earnings are forecast to decline by an average of 5.2% per year for the next 3 years

Debt is not well covered by operating cash flow

Dividend of 4.93% is not well covered by earnings


Sumitomo Competitors

Marubeni

TSE:8002

JP¥2.1t

Toyota Tsusho

TSE:8015

JP¥1.6t

ITOCHU

TSE:8001

JP¥5.4t

Mitsubishi

TSE:8058

JP¥5.9t

Price History & Performance

Summary of all time highs, changes and price drops for Sumitomo
Historical stock prices
Current Share PriceJP¥1,827.00
52 Week HighJP¥2,238.50
52 Week LowJP¥1,439.00
Beta0.92
1 Month Change-1.11%
3 Month Change-14.80%
1 Year Change21.88%
3 Year Change8.85%
5 Year Change23.61%
Change since IPO74.00%

Recent News & Updates

Shareholder Returns

8053JP Trade DistributorsJP Market
7D-0.3%-5.0%1.9%
1Y21.9%10.1%-6.2%

Return vs Industry: 8053 exceeded the JP Trade Distributors industry which returned 10.1% over the past year.

Return vs Market: 8053 exceeded the JP Market which returned -6.2% over the past year.

Price Volatility

Is 8053's price volatile compared to industry and market?
8053 volatility
8053 Average Weekly Movement4.3%
Trade Distributors Industry Average Movement3.6%
Market Average Movement4.2%
10% most volatile stocks in JP Market8.5%
10% least volatile stocks in JP Market2.3%

Stable Share Price: 8053 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 8053's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
191974,920Masayuki Hyodohttps://www.sumitomocorp.com

Sumitomo Corporation engages in general trading business worldwide. It operates through six segments: Metal Products; Transportation & Construction Systems; Infrastructure; Media & Digital; Living Related & Real Estate; and Mineral Resources, Energy, Chemical & Electronics. The company provides steel sheets and tubular products; and manufactures, leases, sells, services, and finances ships, aircrafts, motor vehicles, construction equipment, and components and parts.

Sumitomo Fundamentals Summary

How do Sumitomo's earnings and revenue compare to its market cap?
8053 fundamental statistics
Market CapJP¥2.28t
Earnings (TTM)JP¥463.48b
Revenue (TTM)JP¥5.50t

4.9x

P/E Ratio

0.4x

P/S Ratio

Is 8053 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
8053 income statement (TTM)
RevenueJP¥5.50t
Cost of RevenueJP¥4.49t
Gross ProfitJP¥1.01t
Other ExpensesJP¥546.12b
EarningsJP¥463.48b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)370.78
Gross Margin18.37%
Net Profit Margin8.43%
Debt/Equity Ratio89.4%

How did 8053 perform over the long term?

See historical performance and comparison

Dividends

4.9%

Current Dividend Yield

30%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 8053 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 8053?

Other financial metrics that can be useful for relative valuation.

8053 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1x
Enterprise Value/EBITDA11.2x
PEG Ratio-0.9x

Price to Earnings Ratio vs Peers

How does 8053's PE Ratio compare to its peers?

8053 PE Ratio vs Peers
The above table shows the PE ratio for 8053 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average6.3x
8002 Marubeni
5x-2.6%JP¥2.1t
8015 Toyota Tsusho
7.2x3.3%JP¥1.6t
8001 ITOCHU
6.6x-3.8%JP¥5.4t
8058 Mitsubishi
6.3x-5.1%JP¥5.9t
8053 Sumitomo
4.9x-5.2%JP¥2.3t

Price-To-Earnings vs Peers: 8053 is good value based on its Price-To-Earnings Ratio (4.9x) compared to the peer average (6.3x).

Price to Earnings Ratio vs Industry

How does 8053's PE Ratio compare vs other companies in the JP Trade Distributors Industry?

Price-To-Earnings vs Industry: 8053 is good value based on its Price-To-Earnings Ratio (4.9x) compared to the JP Trade Distributors industry average (7.9x)

Price to Earnings Ratio vs Fair Ratio

What is 8053's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

8053 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.9x
Fair PE Ratio12.8x

Price-To-Earnings vs Fair Ratio: 8053 is good value based on its Price-To-Earnings Ratio (4.9x) compared to the estimated Fair Price-To-Earnings Ratio (12.8x).

Share Price vs Fair Value

What is the Fair Price of 8053 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 8053 (¥1827) is trading above our estimate of fair value (¥1819.29)

Significantly Below Fair Value: 8053 is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: 8053's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

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Future Growth

How is Sumitomo forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE

-5.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 8053's earnings are forecast to decline over the next 3 years (-5.2% per year).

Earnings vs Market: 8053's earnings are forecast to decline over the next 3 years (-5.2% per year).

High Growth Earnings: 8053's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 8053's revenue (2.8% per year) is forecast to grow slower than the JP market (4.5% per year).

High Growth Revenue: 8053's revenue (2.8% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 8053's Return on Equity is forecast to be low in 3 years time (9.9%).

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Past Performance

How has Sumitomo performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE

-16.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 8053 has high quality earnings.

Growing Profit Margin: 8053 became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: 8053's earnings have declined by 16.1% per year over the past 5 years.

Accelerating Growth: 8053 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 8053 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Trade Distributors industry (37.8%).

Return on Equity

High ROE: 8053's Return on Equity (14.3%) is considered low.

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Financial Health

How is Sumitomo's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 8053's short term assets (¥4,645.5B) exceed its short term liabilities (¥3,076.8B).

Long Term Liabilities: 8053's short term assets (¥4,645.5B) exceed its long term liabilities (¥3,124.1B).

Debt to Equity History and Analysis

Debt Level: 8053's net debt to equity ratio (67.2%) is considered high.

Reducing Debt: 8053's debt to equity ratio has reduced from 137.4% to 89.4% over the past 5 years.

Debt Coverage: 8053's debt is not well covered by operating cash flow (6.4%).

Interest Coverage: 8053 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Sumitomo current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

4.93%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 8053's dividend (4.93%) is higher than the bottom 25% of dividend payers in the JP market (1.68%).

High Dividend: 8053's dividend (4.93%) is in the top 25% of dividend payers in the JP market (3.74%)

Stability and Growth of Payments

Stable Dividend: 8053's dividend payments have been volatile in the past 10 years.

Growing Dividend: 8053's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (29.7%), 8053's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (90.5%), 8053's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure

CEO

Masayuki Hyodo (63 yo)

4.17yrs

Tenure

Mr. Masayuki Hyodo has been the President and Chief Executive Officer at Sumitomo Corporation since April 1, 2018 and has been its Representative Director since June 2018. Mr. Hyodo was Senior Managing Exe...

Leadership Team

Experienced Management: 8053's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.

Board Members

Experienced Board: 8053's board of directors are considered experienced (4 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

Company Information

Sumitomo Corporation's employee growth, exchange listings and data sources

Key Information

  • Name: Sumitomo Corporation
  • Ticker: 8053
  • Exchange: TSE
  • Founded: 1919
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Implied Market Cap: JP¥2.284t
  • Shares outstanding: 1.25b
  • Website: https://www.sumitomocorp.com

Number of Employees

Location

  • Sumitomo Corporation
  • Otemachi Place East Tower
  • 3-2 Otemachi 2-Chome
  • Tokyo
  • 100-8601
  • Japan

Listings

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.