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Market Cap

JP¥2.0t

Last Updated

2021/05/08 08:27 UTC

Data Sources

Company Financials +

Executive Summary

Sumitomo Corporation imports, exports, and sells various goods and commodities worldwide. More Details


Snowflake Analysis

Moderate growth potential with mediocre balance sheet.


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Share Price & News

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


Latest Share Price and Events

Stable Share Price: 8053 is less volatile than 75% of JP stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 8053's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

4.9%

8053

3.3%

JP Trade Distributors

1.5%

JP Market


1 Year Return

20.8%

8053

45.6%

JP Trade Distributors

31.6%

JP Market

Return vs Industry: 8053 underperformed the JP Trade Distributors industry which returned 45.6% over the past year.

Return vs Market: 8053 underperformed the JP Market which returned 31.6% over the past year.


Shareholder returns

8053IndustryMarket
7 Day4.9%3.3%1.5%
30 Day0.4%-0.8%-1.8%
90 Day8.8%13.5%1.6%
1 Year26.7%20.8%50.8%45.6%34.5%31.6%
3 Year-6.5%-19.0%28.8%14.6%15.3%7.3%
5 Year77.7%42.8%123.4%86.4%61.4%43.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

0.82x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 8053 (¥1560.5) is trading above our estimate of fair value (¥1410.18)

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


Price To Earnings Ratio

PE vs Industry: 8053 is unprofitable, so we can't compare its PE Ratio to the JP Trade Distributors industry average.

PE vs Market: 8053 is unprofitable, so we can't compare its PE Ratio to the JP market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8053's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8053 is overvalued based on its PB Ratio (0.8x) compared to the JP Trade Distributors industry average (0.7x).


Future Growth

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

55.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 8053 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0%).

Earnings vs Market: 8053 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 8053's is expected to become profitable in the next 3 years.

Revenue vs Market: 8053's revenue (4.4% per year) is forecast to grow slower than the JP market (5.6% per year).

High Growth Revenue: 8053's revenue (4.4% 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 (10%).


Past Performance

How has Sumitomo performed over the past 5 years?

2.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8053 is currently unprofitable.

Growing Profit Margin: 8053 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 8053 is unprofitable, but has reduced losses over the past 5 years at a rate of 2.5% per year.

Accelerating Growth: Unable to compare 8053's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 8053 is unprofitable, making it difficult to compare its past year earnings growth to the Trade Distributors industry (-14.3%).


Return on Equity

High ROE: 8053 has a negative Return on Equity (-5.35%), as it is currently unprofitable.


Financial Health

How is Sumitomo's financial position?


Financial Position Analysis

Short Term Liabilities: 8053's short term assets (¥3,385.6B) exceed its short term liabilities (¥2,186.3B).

Long Term Liabilities: 8053's short term assets (¥3,385.6B) exceed its long term liabilities (¥3,053.3B).


Debt to Equity History and Analysis

Debt Level: 8053's debt to equity ratio (116.4%) is considered high.

Reducing Debt: 8053's debt to equity ratio has reduced from 159.1% to 116.4% over the past 5 years.

Debt Coverage: 8053's debt is not well covered by operating cash flow (16%).

Interest Coverage: 8053 is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Dividend

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

4.49%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 8053's dividend (4.49%) is higher than the bottom 25% of dividend payers in the JP market (1.24%).

High Dividend: 8053's dividend (4.49%) is in the top 25% of dividend payers in the JP market (2.83%)


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.


Current Payout to Shareholders

Dividend Coverage: 8053 is paying a dividend but the company is unprofitable.


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

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

3.1yrs

Average management tenure


CEO

Masayuki Hyodo (61 yo)

3.08yrs

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 considered experienced (3.1 years average tenure).


Board Members

Experienced Board: 8053's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


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 company bio, 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
  • Market Cap: JP¥1.950t
  • 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


Biography

Sumitomo Corporation imports, exports, and sells various goods and commodities worldwide. The company’s Metal Products segment offers steel sheets and tubular products; and non-ferrous metals, such as alum...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/08 08:27
End of Day Share Price2021/05/07 00:00
Earnings2020/12/31
Annual Earnings2020/03/31


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.