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Sumitomo Rubber Industries
(5110)
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Rating:72Outperform
Price Target:
¥2,150.00
▼(-6.62% Downside)
Action:Reiterated
Date:08/09/26
The score is driven primarily by improving profitability and margins alongside moderate balance-sheet risk, offset by weaker and more volatile cash-flow conversion (notably the sharp decline in free cash flow vs 2025). Technicals add support with strong uptrend signals across moving averages and positive MACD, while valuation is favorable with a low P/E and solid dividend yield.
Positive Factors
Margin Expansion
The sustained expansion in gross and net margins indicates a meaningful recovery in operating economics rather than simple revenue growth. Better profitability can strengthen internal funding capacity, support investment across the business, and provide greater resilience if demand becomes less favorable.
Negative Factors
Weak FCF Conversion
The sharp year-over-year decline in free cash flow and coverage below net income point to uneven earnings-to-cash conversion. If this persists, the company may have less internally generated funding for growth, debt reduction, or shareholder distributions, making reported profit less dependable.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Expansion
The sustained expansion in gross and net margins indicates a meaningful recovery in operating economics rather than simple revenue growth. Better profitability can strengthen internal funding capacity, support investment across the business, and provide greater resilience if demand becomes less favorable.
Read all positive factors
Sumitomo Rubber Industries (5110) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥509.12B
Dividend Yield4.34%
Average Volume (3M)1.52M
Price to Earnings (P/E)8.2
Beta (1Y)1.56
Revenue Growth4.82%
EPS GrowthN/A
CountryJP
Employees37,671
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)235.38
Shares Outstanding263,043,060
10 Day Avg. Volume1,848,380
30 Day Avg. Volume1,524,573
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)0.89
Price to Sales (P/S)0.53
P/FCF Ratio6.93
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥2,622.86Price Target Upside13.91% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)208.79
Revenue Forecast (FY)¥1.31T
Sumitomo Rubber Industries Business Overview & Revenue Model
Company Description
Sumitomo Rubber Industries, Ltd. is a global enterprise that, together with its subsidiaries, offers a diverse range of tires, sports equipment, and industrial and specialty products. Its extensive operations cover Japan, the broader Asian region,...
Sumitomo Rubber Industries Financial Statement Overview
Summary
Income Statement
71
Positive
Balance Sheet
70
Positive
Cash Flow
56
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.25T | 1.21T | 1.21T | 1.18T | 1.10T | 936.04B |
| Gross Profit | 396.33B | 368.37B | 358.29B | 326.50B | 253.22B | 259.70B |
| EBITDA | 188.47B | 179.28B | 106.71B | 152.68B | 101.52B | 115.29B |
| Net Income | 61.87B | 50.38B | 9.87B | 37.05B | 9.41B | 29.47B |
Balance Sheet | ||||||
| Total Assets | 1.51T | 1.46T | 1.34T | 1.27T | 1.23T | 1.09T |
| Cash, Cash Equivalents and Short-Term Investments | 98.69B | 98.64B | 100.38B | 90.25B | 73.85B | 75.09B |
| Total Debt | 347.78B | 322.05B | 315.52B | 310.93B | 357.89B | 283.75B |
| Total Liabilities | 737.41B | 723.62B | 665.31B | 625.30B | 661.34B | 572.63B |
| Stockholders Equity | 754.24B | 716.08B | 656.13B | 624.11B | 546.20B | 501.54B |
Cash Flow | ||||||
| Free Cash Flow | 46.81B | 91.53B | 47.53B | 106.50B | -39.45B | 15.36B |
| Operating Cash Flow | 117.39B | 150.43B | 104.33B | 169.80B | 27.87B | 63.09B |
| Investing Cash Flow | -93.58B | -186.56B | -64.66B | -62.23B | -78.70B | -53.24B |
| Financing Cash Flow | -23.32B | 30.88B | -35.62B | -95.57B | 41.56B | -14.11B |
Sumitomo Rubber Industries Technical Analysis
Negative
2302.50
Price Trends
2071.48
Negative
2141.04
Negative
2185.18
Negative
Market Momentum
-34.32
Positive
38.70
Neutral
12.76
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5110, the sentiment is Negative. The current price of 2302.5 is above the 20-day moving average (MA) of 1992.22, above the 50-day MA of 2071.48, and above the 200-day MA of 2185.18, indicating a bearish trend. The MACD of -34.32 indicates Positive momentum. The RSI at 38.70 is Neutral, neither overbought nor oversold. The STOCH value of 12.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5110.
Sumitomo Rubber Industries Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | ¥496.33B | 10.39 | 11.38% | 3.35% | 3.55% | -9.71% | |
77 Outperform | ¥136.52B | 12.06 | ― | 4.93% | 3.24% | 236.26% | |
74 Outperform | ¥4.86T | 12.30 | 11.45% | 2.95% | 6.06% | 120.85% | |
74 Outperform | ¥990.38B | 6.95 | 13.81% | 2.75% | 12.75% | 124.90% | |
72 Outperform | ¥509.12B | 8.23 | 8.66% | 4.34% | 4.82% | ― | |
70 Outperform | ¥576.56B | 9.70 | 10.53% | 17.63% | 12.94% | 40.34% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
JP:5110
Sumitomo Rubber Industries
1,937.00
192.74
11.05%
JP:5108
Bridgestone
3,987.00
716.70
21.92%
JP:7282
Toyoda Gosei Co
981.40
292.37
42.43%
JP:5105
Toyo Tire
4,029.00
-59.18
-1.45%
JP:5101
Yokohama Rubber Co
6,280.00
876.81
16.23%
JP:5161
Nishikawa Rubber Co., Ltd.
3,730.00
1,023.35
37.81%
Sumitomo Rubber Industries Corporate Events
Sumitomo Rubber Outlines 2026 Midyear Results, Forecast and Shareholder Return Plans
Aug 6, 2026
Sumitomo Rubber Industries released its financial report for the first half of 2026, outlining second-quarter results, changes in its consolidation scope and affiliated companies, and a detailed summary of performance highlights. The company also ...
Sumitomo Rubber Lifts First-Half Profit and Raises 2026 Outlook, Dividend
Aug 6, 2026
Sumitomo Rubber Industries reported an 8.3% rise in sales revenue to ¥619.8 billion for the six months ended June 30, 2026, with business profit jumping 40.6% and profit attributable to owners of the parent soaring 79.9%. Profitability improv...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.