Sumitomo Heavy Industries Ltd (JP:6302)
:6302
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Sumitomo Heavy Industries
(6302)
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Rating:60Neutral
Price Target:
¥5,837.00
▲(14.12% Upside)
Action:Reiterated
Date:04/03/26
Overall score reflects mixed fundamentals: balance sheet strength and a reasonable valuation are positives, but the financial profile is held back by volatile cash generation and uneven profitability. Technical signals are also soft (below key short-term averages with negative MACD), limiting near-term confidence.
Positive Factors
Manageable leverage / balance sheet
Moderate leverage and a growing equity base give the company durable financial flexibility. This supports funding capital projects and bidding on engineered contracts without urgent refinancing, providing a structural cushion through industrial cycles and enabling steady operational continuity.
Negative Factors
Volatile cash generation
Inconsistent operating cash and intermittent negative free cash flow reduce the quality of reported earnings and limit internally funded investment. Weak cash conversion increases reliance on external financing for capex, dividends or project work, raising structural funding risk for a capital-intensive industrial.
Read all positive and negative factors
Positive Factors
Negative Factors
Manageable leverage / balance sheet
Moderate leverage and a growing equity base give the company durable financial flexibility. This supports funding capital projects and bidding on engineered contracts without urgent refinancing, providing a structural cushion through industrial cycles and enabling steady operational continuity.
Read all positive factors
Sumitomo Heavy Industries (6302) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥638.73B
Dividend Yield2.95%
Average Volume (3M)672.00K
Price to Earnings (P/E)20.3
Beta (1Y)1.36
Revenue Growth2.18%
EPS Growth5504.89%
CountryJP
Employees25,123
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)257.42
Shares Outstanding122,905,480
10 Day Avg. Volume577,350
30 Day Avg. Volume672,000
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
¥5,500.00Price Target Upside7.53% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)284.16
Revenue Forecast (FY)¥1.09T
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 designing, manufacturing, and selling industrial products and engineered systems across multiple business lines, supplemented by aftermarket services and project-based engineering work. Key revenu...
Sumitomo Heavy Industries Earnings Call Summary
Earnings Call Date:Aug 07, 2024
(Q2-2024)
| % Change Since: |
Next Earnings Date:Aug 11, 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
62
Positive
Balance Sheet
72
Positive
Cash Flow
48
Neutral
| Breakdown | Mar 2026 | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.07T | 1.07T | 1.08T | 1.14T | 943.98B |
| Gross Profit | 261.11B | 257.00B | 255.25B | 251.48B | 211.96B |
| EBITDA | 88.05B | 62.69B | 90.30B | 64.70B | 94.03B |
| Net Income | 30.94B | 7.72B | 32.74B | 7.71B | 44.05B |
Balance Sheet | |||||
| Total Assets | 1.32T | 1.26T | 1.20T | 1.15T | 1.09T |
| Cash, Cash Equivalents and Short-Term Investments | 111.07B | 111.13B | 104.46B | 97.48B | 88.78B |
| Total Debt | 262.93B | 248.28B | 171.00B | 171.74B | 111.25B |
| Total Liabilities | 634.30B | 613.83B | 573.39B | 571.95B | 528.09B |
| Stockholders Equity | 681.67B | 640.68B | 619.77B | 569.26B | 551.39B |
Cash Flow | |||||
| Free Cash Flow | 11.33B | -34.92B | 25.91B | -15.18B | -15.18B |
| Operating Cash Flow | 63.67B | 12.76B | 65.37B | 21.37B | 21.37B |
| Investing Cash Flow | -59.36B | -49.48B | -43.27B | -37.28B | -37.28B |
| Financing Cash Flow | -7.14B | 41.91B | -17.21B | 21.68B | 21.68B |
Sumitomo Heavy Industries Technical Analysis
Negative
5115.00
Price Trends
5260.64
Negative
5292.82
Negative
4625.52
Positive
Market Momentum
34.32
Negative
47.94
Neutral
25.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6302, the sentiment is Negative. The current price of 5115 is below the 20-day moving average (MA) of 5223.45, below the 50-day MA of 5260.64, and above the 200-day MA of 4625.52, indicating a neutral trend. The MACD of 34.32 indicates Negative momentum. The RSI at 47.94 is Neutral, neither overbought nor oversold. The STOCH value of 25.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥596.80B | 37.74 | 5.25% | 2.13% | -7.11% | 68.57% | |
69 Neutral | ¥907.28B | 30.67 | 5.14% | 3.31% | 10.26% | -2.04% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | ¥411.73B | 30.97 | ― | 1.65% | 5.02% | 19.84% | |
60 Neutral | ¥638.73B | 20.25 | 4.83% | 2.95% | 2.18% | 5504.89% | |
56 Neutral | ¥846.10B | 59.39 | 1.88% | 6.16% | 1.98% | -48.28% | |
49 Neutral | ¥568.58B | 29.55 | 11.66% | 1.03% | 10.58% | 7.11% |
* Industrials Sector Average
JP:6302
Sumitomo Heavy Industries
5,214.00
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Sumitomo Heavy Industries Corporate Events
Sumitomo Heavy Industries Exceeds Target in Voluntary Retirement Program
Jun 22, 2026
Sumitomo Heavy Industries has completed a voluntary retiree incentive program at the parent company and certain domestic subsidiaries, targeting employees aged 55 to under 65 with at least three years of service. The program, which offered additio...
Sumitomo Heavy Industries Advances Aggressive Share Buyback Program
Jun 1, 2026
Sumitomo Heavy Industries has reported progress on its ongoing share repurchase program, buying back 490,600 common shares on the Tokyo Stock Exchange between May 1 and May 31, 2026, for a total of about ¥2.55 billion. The move is part of a b...
Sumitomo Heavy Industries Advances Share Buyback Under ¥10 Billion Program
May 7, 2026
Sumitomo Heavy Industries has reported progress on its ongoing share buyback program, repurchasing 109,400 common shares for approximately ¥546 million on the Tokyo Stock Exchange between April 1 and April 30, 2026. The buyback is being execu...
Sumitomo Heavy Industries Delivers Profit Growth in FY2026 First Quarter
Apr 28, 2026
Sumitomo Heavy Industries reported higher earnings for the first quarter of fiscal 2026, with net sales rising 5.8% year on year to ¥255.6 billion and operating profit climbing 19.6% to ¥13.4 billion. Ordinary profit increased 26.9% to &...
Sumitomo Heavy Industries Advances ¥10 Billion Share Buyback Program
Apr 1, 2026
Sumitomo Heavy Industries has repurchased 659,500 of its own common shares on the Tokyo Stock Exchange between March 2 and March 31, 2026, for a total cost of about ¥3.45 billion. This transaction is part of a broader share buyback program au...
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.