Sumitomo Electric Industries, Ltd.
Sumitomo Electric Industries, Ltd. Fundamental Analysis
Sumitomo Electric Industries, Ltd. (SMTOY) shows moderate financial fundamentals with a PE ratio of 23.08, profit margin of 7.25%, and ROE of 15.13%. The company generates $5181.2B in annual revenue with moderate year-over-year growth of 6.29%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SMTOY's fundamental strength across five key dimensions:
Efficiency Score
WeakSMTOY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSMTOY trades at attractive valuation levels.
Growth Score
ExcellentSMTOY delivers strong and consistent growth momentum.
Financial Health Score
ExcellentSMTOY maintains a strong and stable balance sheet.
Profitability Score
WeakSMTOY struggles to sustain strong margins.
Key Financial Metrics
Is SMTOY Expensive or Cheap?
P/E Ratio
SMTOY trades at 23.08 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SMTOY's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Sumitomo Electric Industries, Ltd. at 3.15 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 12.60 times EBITDA. This signals the market has high growth expectations.
How Well Does SMTOY Make Money?
Net Profit Margin
For every $100 in sales, Sumitomo Electric Industries, Ltd. keeps $7.25 as profit after all expenses.
Operating Margin
Core operations generate 8.20 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.13 in profit for every $100 of shareholder equity.
ROA
Sumitomo Electric Industries, Ltd. generates $7.75 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sumitomo Electric Industries, Ltd. generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Sumitomo Electric Industries, Ltd. generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
SMTOY converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.08
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.002
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.15
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.67
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.23
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.80
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How SMTOY Stacks Against Its Sector Peers
| Metric | SMTOY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.08 | 23.70 | Neutral |
| ROE | 15.13% | 1185.00% | Weak |
| Net Margin | 7.25% | 2505.00% | Weak |
| Debt/Equity | 0.23 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 1.80 | 2.86 | Neutral |
| ROA | 7.75% | -8133.00% (disorted) | Weak |
SMTOY outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sumitomo Electric Industries, Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
50.63%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
166.47%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
52.02%
Industry Style: Cyclical, Growth, Discretionary
High Growth