OTCPK:SMFN.F

Stock Analysis Report

Sumitomo Mitsui Financial Group

Executive Summary

Sumitomo Mitsui Financial Group, Inc., together with its subsidiaries, provides commercial banking, leasing, securities, consumer finance, and other services primarily in Japan.


Snowflake Analysis

Undervalued with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SMFN.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.2%

SMFN.F

14.6%

US Banks

9.4%

US Market


1 Year Return

-27.6%

SMFN.F

-24.3%

US Banks

-6.8%

US Market

Return vs Industry: SMFN.F underperformed the US Banks industry which returned -24.3% over the past year.

Return vs Market: SMFN.F underperformed the US Market which returned -6.8% over the past year.


Shareholder returns

SMFN.FIndustryMarket
7 Day3.2%14.6%9.4%
30 Day-12.5%-4.4%-3.9%
90 Day-28.0%-33.9%-16.5%
1 Year-27.6%-27.6%-22.0%-24.3%-4.8%-6.8%
3 Year-28.5%-28.5%-8.3%-15.1%23.4%15.2%
5 Year-38.4%-38.4%16.7%3.3%41.3%25.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

36.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SMFN.F ($25.58) is trading below our estimate of fair value ($40.01)

Significantly Below Fair Value: SMFN.F is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SMFN.F is good value based on its PE Ratio (7.2x) compared to the Banks industry average (8.9x).

PE vs Market: SMFN.F is good value based on its PE Ratio (7.2x) compared to the US market (13.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SMFN.F is good value based on its PB Ratio (0.3x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is Sumitomo Mitsui Financial Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

-0.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SMFN.F's earnings are forecast to decline over the next 3 years (-0.4% per year).

Earnings vs Market: SMFN.F's earnings are forecast to decline over the next 3 years (-0.4% per year).

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

Revenue vs Market: SMFN.F's revenue (1.2% per year) is forecast to grow slower than the US market (6.9% per year).

High Growth Revenue: SMFN.F's revenue (1.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SMFN.F's Return on Equity is forecast to be low in 3 years time (5.8%).


Next Steps

Past Performance

How has Sumitomo Mitsui Financial Group performed over the past 5 years?

-4.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SMFN.F has high quality earnings.

Growing Profit Margin: SMFN.F's current net profit margins (21.4%) are lower than last year (23.9%).


Past Earnings Growth Analysis

Earnings Trend: SMFN.F's earnings have declined by -4.5% per year over the past 5 years.

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

Earnings vs Industry: SMFN.F had negative earnings growth (-30.6%) over the past year, making it difficult to compare to the Banks industry average (10.8%).


Return on Equity

High ROE: SMFN.F's Return on Equity (4.8%) is considered low.


Next Steps

Financial Health

How is Sumitomo Mitsui Financial Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: SMFN.F's level of assets compared to its equity is moderate.

Allowance for Bad Loans: SMFN.F has a low allowance for bad loans.

Low Risk Liabilities: SMFN.F's liabilities are made up of primarily low risk sources of funding.

Loan Level: SMFN.F has an acceptable proportion of non-loan assets held.

Low Risk Deposits: SMFN.F's loans are broadly funded by customer deposits.

Level of Bad Loans: SMFN.F has an appropriate level of bad loans (0.82%)


Next Steps

Dividend

What is Sumitomo Mitsui Financial Group's current dividend yield, its reliability and sustainability?

6.60%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SMFN.F's dividend (6.6%) is higher than the bottom 25% of dividend payers in the US market (1.87%).

High Dividend: SMFN.F's dividend (6.6%) is in the top 25% of dividend payers in the US market (5.12%)


Stability and Growth of Payments

Stable Dividend: SMFN.F's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (48.5%), SMFN.F'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

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

2.0yrs

Average management tenure


CEO

Jun Ohta (61yo)

1

Tenure

JP¥100,000,000

Compensation

Mr. Jun Ohta has been Group CEO, President at Sumitomo Mitsui Financial Group, Inc. since April 1, 2019 and serves as its Officer in charge of Public Relations Department, Corporate Planning Department, Fi ...


CEO Compensation Analysis

Compensation vs Market: Jun's total compensation ($USD922.42K) is below average for companies of similar size in the US market ($USD11.76M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jun Ohta
President1yrJP¥100.00m0.0016% ¥537.4k
Toru Nakashima
Senior Managing Corporate Executive Officer0.83yrno data0.00063% ¥217.0k
Kohei Ohashi
SVP (IR Department)no datano datano data
Toshikazu Yaku
Deputy President2.83yrsno data0.0013% ¥440.9k
Nobuaki Kurumatani
Deputy Presidentno datano datano data
Haruyuki Nagata
Senior Managing Corporate Executive Officer0.83yrno data0.0013% ¥434.0k
Katsunori Tanizaki
Senior Managing Executive Officer4.83yrsno data0.0012% ¥420.3k
Hiroshi Munemasa
Senior Managing Corporate Executive Officer & Head of Global Market Business Unitno datano data0.0011% ¥378.9k
Masahiko Oshima
Deputy President2yrsno data0.0013% ¥458.2k
Naoki Tamura
Senior Managing Corporate Executive Officer & Head of Retail Business Unit2yrsno data0.0012% ¥420.3k

2.0yrs

Average Tenure

58yo

Average Age

Experienced Management: SMFN.F's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jun Ohta
President1yrJP¥100.00m0.0016% ¥537.4k
Toru Nakashima
Senior Managing Corporate Executive Officer0.83yrno data0.00063% ¥217.0k
Toshikazu Yaku
Deputy President2.83yrsno data0.0013% ¥440.9k
Haruyuki Nagata
Senior Managing Corporate Executive Officer0.83yrno data0.0013% ¥434.0k
Katsunori Tanizaki
Senior Managing Executive Officer4.83yrsno data0.0012% ¥420.3k
Kitayama Teisuke
Chairman of Sumitomo Mitsui Banking Corporationno dataJP¥128.00mno data
Takeshi Kunibe
Chairman of the Board1yrJP¥143.00m0.0039% ¥1.4m
Masayuki Matsumoto
Outside Director2.83yrsno data0.000060% ¥20.7k
Yoshinobu Tsutsui
Outside Directorno datano datano data
Katsuyoshi Shinbo
Outside Director2.83yrsno data0.000060% ¥20.7k

2.8yrs

Average Tenure

63yo

Average Age

Experienced Board: SMFN.F's board of directors are not considered experienced ( 2.8 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 Mitsui Financial Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sumitomo Mitsui Financial Group, Inc.
  • Ticker: SMFN.F
  • Exchange: OTCPK
  • Founded: 2002
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: JP¥3.735t
  • Listing Market Cap: JP¥34.448b
  • Shares outstanding: 1.37b
  • Website: https://www.smfg.co.jp

Number of Employees


Location

  • Sumitomo Mitsui Financial Group, Inc.
  • 1-2, Marunouchi 1-chome
  • Chiyoda-ku
  • Tokyo
  • 100-0005
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SMFN.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDDec 2002
8316TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYDec 2002
XMFDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2002
SMFGNYSE (New York Stock Exchange)ADR EACH REPR 1/5 ORD NPVUSUSDFeb 2003
XMFADB (Deutsche Boerse AG)ADR EACH REPR 1/5 ORD NPVDEEURFeb 2003
0LAFLSE (London Stock Exchange)ADR EACH REPR 1/5 ORD NPVGBUSDFeb 2003

Biography

Sumitomo Mitsui Financial Group, Inc., together with its subsidiaries, provides commercial banking, leasing, securities, consumer finance, and other services primarily in Japan. It operates through four segments: Wholesale Business Unit, Retail Business Unit, International Business Unit, and Global Markets Business Unit. The Wholesale Business Unit segment offers financing, investment management, risk hedging, and settlement services, as well as financial solutions related to mergers and acquisition, and other advisory services primarily for large-and mid-sized corporate clients; and various leasing services, including equipment, and operating and leveraged leasing. The Retail Business Unit segment offers wealth management, settlement, consumer finance, and housing loan products and services, as well as business and asset succession services to individuals and small-sized companies. The International Business Unit segment offers loans, deposits, clearing services, trade finance, project finance, loan syndication, derivatives, and cash management services; underwriting services; and leasing services related to the construction machinery, transportation equipment, industrial machinery, medical equipment, and aircraft leasing. The Global Markets Business Unit segment offers solutions through foreign exchange products, derivatives, bonds, stocks, and other marketable financial products. It also undertakes asset liability management operations. The company also offers credit card, Internet banking, system development and engineering, data processing, management consulting and economic research, and investment advisory and investment trust management services. Sumitomo Mitsui Financial Group, Inc. was founded in 2002 and is headquartered in Tokyo, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 03:17
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
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.