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Sumitomo Heavy Industries
(6302)
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Rating:69Neutral
Price Target:
¥6,263.00
▲(7.70% Upside)
Action:Reiterated
Date:08/05/26
Overall score reflects improving fundamentals and a solid balance sheet, offset by weaker cash-flow conversion and historically choppy free cash flow. Technicals are a meaningful positive (price above key moving averages with positive MACD), while valuation is reasonable but not compelling given modest profitability and ROE.
Positive Factors
Improving revenue and profitability
The improving top line and recovery in net profitability indicate stronger operating performance across the business. Positive EBIT and EBITDA margins provide an earnings base that can support reinvestment, customer support, and continued participation in industrial equipment demand over the coming quarters.
Negative Factors
Weak cash conversion and volatile free cash flow
Positive reported earnings are not translating efficiently into discretionary cash, which can constrain internally funded investment and shareholder returns. The history of negative free cash flow also points to recurring execution or working-capital volatility, making cash generation less dependable through industrial cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving revenue and profitability
The improving top line and recovery in net profitability indicate stronger operating performance across the business. Positive EBIT and EBITDA margins provide an earnings base that can support reinvestment, customer support, and continued participation in industrial equipment demand over the coming quarters.
Read all positive factors
Sumitomo Heavy Industries (6302) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥715.05B
Dividend Yield2.31%
Average Volume (3M)783.18K
Price to Earnings (P/E)18.0
Beta (1Y)1.41
Revenue Growth7.75%
EPS GrowthN/A
CountryJP
Employees25,123
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)326.73
Shares Outstanding122,905,480
10 Day Avg. Volume953,780
30 Day Avg. Volume783,183
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)0.83
Price to Sales (P/S)0.53
P/FCF Ratio49.94
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥6,250.00Price Target Upside7.48% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)352.49
Revenue Forecast (FY)¥1.12T
Sumitomo Heavy Industries Business Overview & Revenue Model
Company Description
Sumitomo Heavy Industries, Ltd. manufactures and sells general machinery worldwide. It operates through four segments: Mechatronics, Industrial Machinery, Logistics & Construction, and Energy & Lifelines. The Mechatronics segment offers gearmotors...
How the Company Makes Money
Sumitomo Heavy Industries makes money primarily by selling industrial machinery, engineered systems, and related components, and by providing after-sales services tied to its installed base. Revenue is generated through (1) equipment sales: custom...
Sumitomo Heavy Industries Earnings Call Summary
Earnings Call Date:Aug 07, 2024
(Q2-2024)
| % Change Since: |
Next Earnings Date:Oct 30, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a mixed performance with positive outcomes in net sales and operating profit due to favorable exchange rates and certain segment successes. However, significant challenges remain in terms of decreased orders in key segments, negative cash flow, and slow recovery in critical markets such as semiconductors and energy. The progress on the Medium-Term Management Plan 2026 offers a strategic outlook for future growth.Positive Updates
Overall Increase in Net Sales
Despite challenges, net sales increased overall due to foreign exchange gains and backlog orders in various segments.
Negative Updates
Decreased Orders and Sales in Key Segments
Orders and sales decreased in Mechatronics and Industrial Machinery due to inventory adjustments and lower demand in the semiconductor sector.
Read all updates
Q2-2024 Updates
Positive
Negative
Overall Increase in Net Sales
Despite challenges, net sales increased overall due to foreign exchange gains and backlog orders in various segments.
Read all positive updates
Company Guidance
During the Q2 2024 earnings call, Shinji Shimomura, the company president, provided comprehensive guidance on multiple financial metrics and strategic initiatives. The company reported receiving orders totaling JPY 453.1 billion, net sales of JPY 520.4 billion, and an operating profit of JPY 33.3 billion. Compared to the previous fiscal year, orders decreased due to inventory adjustments and lower semiconductor demand, although net sales increased overall, aided by foreign exchange gains. The forecast for FY 2024 has been revised to JPY 1.03 trillion in orders, JPY 1.07 trillion in net sales, and JPY 65 billion in operating profit. The interim dividend was set at JPY 60 per share, with a total return ratio of 65.9% and a return on invested capital of 5.6%. The company also outlined its Medium-Term Management Plan 2026, emphasizing business portfolio reformation, sustainability initiatives, and advancements in robotics and automation, semiconductor production, and offshore wind projects.Sumitomo Heavy Industries Financial Statement Overview
Summary
Income Statement
70
Positive
Balance Sheet
74
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Mar 2026 | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.11T | 1.07T | 1.07T | 1.08T | 1.14T | 943.98B |
| Gross Profit | 276.95B | 261.11B | 257.00B | 255.25B | 251.48B | 211.96B |
| EBITDA | 105.90B | 88.05B | 62.69B | 90.30B | 68.24B | 92.73B |
| Net Income | 39.16B | 30.94B | 7.72B | 32.74B | 7.71B | 44.05B |
Balance Sheet | ||||||
| Total Assets | 1.35T | 1.32T | 1.26T | 1.20T | 1.15T | 1.09T |
| Cash, Cash Equivalents and Short-Term Investments | 133.10B | 111.07B | 111.13B | 104.46B | 97.48B | 88.78B |
| Total Debt | 271.64B | 262.93B | 248.28B | 171.00B | 171.74B | 111.25B |
| Total Liabilities | 640.05B | 634.30B | 613.83B | 573.39B | 571.95B | 528.09B |
| Stockholders Equity | 702.43B | 681.67B | 640.68B | 619.77B | 569.26B | 551.39B |
Cash Flow | ||||||
| Free Cash Flow | 13.80B | 11.33B | -34.92B | 25.91B | -15.18B | -15.18B |
| Operating Cash Flow | 61.51B | 63.67B | 12.76B | 65.37B | 21.37B | 21.37B |
| Investing Cash Flow | -55.13B | -59.36B | -49.48B | -43.27B | -37.28B | -37.28B |
| Financing Cash Flow | 4.79B | -7.14B | 41.91B | -17.21B | 21.68B | 21.68B |
Sumitomo Heavy Industries Technical Analysis
Positive
5815.00
Price Trends
5789.12
Positive
5492.61
Positive
5235.16
Positive
Market Momentum
95.52
Positive
47.34
Neutral
24.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6302, the sentiment is Positive. The current price of 5815 is below the 20-day moving average (MA) of 5906.90, above the 50-day MA of 5789.12, and above the 200-day MA of 5235.16, indicating a neutral trend. The MACD of 95.52 indicates Positive momentum. The RSI at 47.34 is Neutral, neither overbought nor oversold. The STOCH value of 24.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6302.
Sumitomo Heavy Industries Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | ¥715.05B | 17.97 | 5.80% | 2.31% | 7.75% | ― | |
67 Neutral | ¥499.98B | 24.09 | 10.00% | 1.38% | -1.12% | 11.05% | |
65 Neutral | ¥788.43B | 24.26 | 6.29% | 2.44% | 17.77% | 20.56% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | ¥569.45B | 28.60 | 7.86% | 1.67% | -7.97% | 70.99% | |
49 Neutral | ¥366.91B | 23.28 | ― | 4.13% | 5.19% | 13.96% | |
47 Neutral | ¥751.66B | 18.41 | -14.41% | 3.26% | ― | ― |
* Industrials Sector Average
JP:6302
Sumitomo Heavy Industries
5,837.00
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71.16%
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Sumitomo Heavy Industries Corporate Events
Sumitomo Heavy Industries Nears Budget Limit in Ongoing Share Buyback Program
Oct 1, 2026
Sumitomo Heavy Industries has disclosed progress on its ongoing share buyback program, reporting the repurchase of 73,200 common shares for approximately ¥416 million via market purchases on the Tokyo Stock Exchange between September 1 and Se...
Sumitomo Heavy Industries Nears Buyback Cap with Ongoing Share Repurchases
Sep 1, 2026
Sumitomo Heavy Industries has continued its share repurchase program, buying 109,700 of its own common shares for approximately ¥633.6 million through market purchases on the Tokyo Stock Exchange between August 1 and August 31, 2026. This mov...
Sumitomo Heavy Industries Lifts H1 Profits and Raises 2026 Outlook, Dividend
Aug 4, 2026
Sumitomo Heavy Industries reported a strong rebound for the first half of fiscal 2026, with net sales rising 12.0% year on year to ¥554.2 billion and operating profit surging 72.9% to ¥37.4 billion. Profit attributable to owners of the p...
Sumitomo Heavy Industries Advances ¥10 Billion Share Buyback Program
Aug 3, 2026
Sumitomo Heavy Industries has continued to execute its share repurchase program, acquiring 161,600 common shares for approximately ¥842 million via market purchases on the Tokyo Stock Exchange between July 1 and July 31, 2026. This latest tra...
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.