Sumitomo Rubber Industries (5110) AI Stock Analysis

• Market Cap: ¥466.69B
• Dividend Yield: 2.9%
• Average Volume (3M): 2.34M
• Price to Earnings (P/E): 47.3
• Beta (1Y): 1.12
• Revenue Growth: 2.93%
• EPS Growth: -73.37%
• Country: JP
• Employees: 37,995
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Auto - Parts
• EPS (TTM): 37.51
• Shares Outstanding: 263,043,060
• 10 Day Avg. Volume: 2,083,850
• 30 Day Avg. Volume: 2,335,436
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥2,000.00
• Price Target Upside: 12.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Sumitomo Rubber Industries is experiencing consistent revenue growth and maintains a solid financial position with moderate leverage. However, challenges are evident in profitability margins and cash flow, which are exacerbated by a bearish technical outlook. Valuation metrics indicate the stock may be overvalued, but the dividend yield offers a slight positive. Investors should monitor cost efficiencies and cash management closely.

Sumitomo Rubber Industries Business Overview & Revenue Model

Company Description

Sumitomo Rubber Industries, Ltd. is a renowned Japanese company primarily engaged in the manufacturing and distribution of rubber products, with a strong focus on the tire industry. Established in 1909, the company operates through various segments, including tires, sports, and industrial products, and is known for its high-quality tire brands such as Dunlop and Falken. Sumitomo Rubber Industries serves a global market, providing products ranging from passenger car tires to commercial vehicle tires, as well as golf and tennis equipment under its sports division.

How the Company Makes Money

Sumitomo Rubber Industries generates revenue primarily through the sale of tires, which is its largest segment. The company's tire products cater to a wide range of vehicles, including passenger cars, trucks, buses, and motorcycles, serving both original equipment manufacturers (OEMs) and the replacement market. In addition to tires, the company earns revenue from its sports division, which offers golf clubs, balls, and tennis equipment under well-known brands. The industrial product segment contributes to earnings through the sale of rubber parts for industrial applications, including precision rubber parts and vibration control products. The company's global presence and strategic partnerships with automotive manufacturers and distributors play a crucial role in its revenue generation, enabling access to diverse markets and customer bases.

Sumitomo Rubber Industries Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.21T	1.18T	1.10T	936.04B	790.82B
	Gross Profit
358.29B	326.50B	253.22B	259.70B	232.18B
	EBIT
11.19B	77.67B	26.58B	49.17B	38.70B
	EBITDA
166.59B	155.01B	101.45B	115.20B	101.02B
	Net Income Common Stockholders
9.87B	37.05B	9.41B	29.47B	22.60B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
102.64B	93.15B	80.80B	77.19B	75.60B
	Total Assets
1.34T	1.27T	1.23T	1.09T	974.80B
	Total Debt
252.44B	245.38B	311.80B	238.65B	217.43B
	Net Debt
152.06B	155.12B	237.96B	163.55B	143.23B
	Total Liabilities
665.31B	625.30B	661.34B	572.63B	507.71B
	Stockholders Equity
656.13B	624.11B	546.20B	501.54B	454.74B
Cash Flow		Free Cash Flow
47.53B	97.51B	-47.05B	10.09B	77.50B
	Operating Cash Flow
104.33B	169.80B	27.87B	63.09B	123.50B
	Investing Cash Flow
-64.66B	-62.23B	-78.70B	-54.02B	-45.59B
	Financing Cash Flow
-35.62B	-95.57B	41.56B	-13.33B	-61.88B

Sumitomo Rubber Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1774.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5110, the sentiment is Positive. The current price of 1774.5 is above the 20-day moving average (MA) of 1644.40, above the 50-day MA of 1760.11, and above the 200-day MA of 1642.61, indicating a bullish trend. The MACD of -5.52 indicates Negative momentum. The RSI at 55.70 is Neutral, neither overbought nor oversold. The STOCH value of 87.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5110.

Sumitomo Rubber Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5108	74 Outperform	¥4.13T	14.25	7.90%	3.26%	2.70%	-13.42%
5105	74 Outperform	$400.24B	5.31	17.00%	4.51%	2.27%	3.51%
5101	68 Neutral	$499.84B	6.54	9.02%	2.96%	11.10%	11.55%
5122	61 Neutral	¥88.62B	16.31		2.35%	4.31%	-30.68%
Sector *	60 Neutral	$6.85B	11.57	3.09%	4.18%	2.37%	-21.38%
5110	56 Neutral	¥466.69B	47.33	1.45%	2.90%	2.93%	-73.37%
5103	40 Underperform	¥3.41B	―		―	-0.94%	71.30%

Sumitomo Rubber Industries Corporate Events

Sumitomo Rubber Completes Treasury Share Disposal for Compensation

Sumitomo Rubber Industries has completed the payment for the disposal of 10,000 treasury shares as restricted stock compensation, with a total disposal amount of 19,855,000 yen. This strategic move is aimed at aligning the interests of its directors with the company’s performance, potentially enhancing governance and operational efficiency.

Sumitomo Rubber Industries Enhances Corporate Governance and Diversity Initiatives

Sumitomo Rubber Industries has revised its corporate governance policies to enhance shareholder rights, transparency, and business efficiency. The company aims to improve its corporate value through strategic cross-shareholdings and diverse human resource initiatives, including promoting diversity and inclusion within its workforce.

Sumitomo Rubber Industries Exceeds 2024 Financial Forecasts

Sumitomo Rubber Industries reported a significant positive variance in their 2024 financial results compared to previous forecasts, attributing this to favorable exchange rates and effective cost containment. This improvement in financial performance strengthens the company’s market position and reflects their strategic capability in handling currency fluctuations and operational costs, which could positively impact stakeholders.