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Sumitomo Mitsui Financial Group
(8316)
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Rating:67Neutral
Price Target:
¥3,379.00
▼(-50.26% Downside)
Action:Reiterated
Date:09/30/26
The score is driven primarily by improved fundamentals (stronger revenue, profitability, and ROE) but capped by high leverage and historical cash-flow volatility. Valuation is a positive offset (mid P/E and ~5% yield), while technicals are mixed with weaker near-term trend despite a still-positive longer-term setup.
Positive Factors
Strong Revenue Growth
Material revenue expansion across several years indicates that SMFG is growing its earnings base rather than relying only on temporary cost reductions. Continued growth across banking and financial services can support reinvestment, scale benefits, and stronger recurring income over the next several quarters.
Negative Factors
High Leverage
Elevated leverage limits financial flexibility and makes the balance sheet more sensitive to stressed credit or funding conditions. Although leverage is common in banking, a highly leveraged capital structure can amplify downside risks and constrain SMFG’s ability to deploy capital during a downturn.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
Material revenue expansion across several years indicates that SMFG is growing its earnings base rather than relying only on temporary cost reductions. Continued growth across banking and financial services can support reinvestment, scale benefits, and stronger recurring income over the next several quarters.
Read all positive factors
Sumitomo Mitsui Financial Group (8316) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥23.60T
Dividend Yield5.43%
Average Volume (3M)19.81M
Price to Earnings (P/E)14.0
Beta (1Y)1.41
Revenue Growth10.65%
EPS Growth46.42%
CountryJP
Employees123,000
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)223.13
Shares Outstanding7,602,250,000
10 Day Avg. Volume17,735,049
30 Day Avg. Volume19,809,743
Financial Highlights & Ratios
PEG Ratio0.33
Price to Book (P/B)1.22
Price to Sales (P/S)1.88
P/FCF Ratio2.78
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥3,830.00Price Target Upside-43.63% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)245.76
Revenue Forecast (FY)¥5.19T
Sumitomo Mitsui Financial Group Business Overview & Revenue Model
Company Description
Sumitomo Mitsui Financial Group, Inc. (SMFG), established in 2002 and headquartered in Tokyo, Japan, is a global financial services conglomerate. It provides a wide array of offerings, including commercial banking, leasing, securities, and consume...
How the Company Makes Money
SMFG primarily makes money by earning spread-based and fee-based income across its banking and financial services businesses. A major revenue driver is net interest income: the group collects interest on loans and other interest-earning assets (su...
Sumitomo Mitsui Financial Group Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
64
Positive
Cash Flow
57
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.47T | 10.21T | 9.66T | 8.77T | 5.78T | 3.80T |
| Gross Profit | 5.77T | 5.54T | 4.72T | 4.16T | 3.51T | 3.15T |
| EBITDA | 2.46T | 2.54T | 1.98T | 1.62T | 1.37T | 1.17T |
| Net Income | 1.71T | 1.58T | 1.18T | 962.95B | 805.84B | 706.63B |
Balance Sheet | ||||||
| Total Assets | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Cash, Cash Equivalents and Short-Term Investments | 71.50T | 90.44T | 75.59T | 78.14T | 75.91T | 74.79T |
| Total Debt | 59.16T | 58.41T | 58.30T | 53.88T | 46.16T | 51.48T |
| Total Liabilities | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Stockholders Equity | 16.10T | 15.79T | 14.70T | 14.66T | 12.68T | 12.10T |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 6.93T | 4.60T | 4.72T | -6.19T | 414.72B |
| Operating Cash Flow | 0.00 | 7.11T | 4.97T | 4.86T | -5.90T | 507.31B |
| Investing Cash Flow | 0.00 | -20.66T | -4.51T | -15.80T | 5.93T | -10.73T |
| Financing Cash Flow | 0.00 | 6.44T | -480.15B | 10.52T | -357.78B | 8.88T |
Sumitomo Mitsui Financial Group Technical Analysis
Negative
6794.00
Price Trends
3350.83
Negative
3301.39
Negative
3003.86
Positive
Market Momentum
-56.91
Positive
38.29
Neutral
26.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8316, the sentiment is Negative. The current price of 6794 is above the 20-day moving average (MA) of 3309.15, above the 50-day MA of 3350.83, and above the 200-day MA of 3003.86, indicating a neutral trend. The MACD of -56.91 indicates Positive momentum. The RSI at 38.29 is Neutral, neither overbought nor oversold. The STOCH value of 26.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8316.
Sumitomo Mitsui Financial Group Risk Analysis
Sumitomo Mitsui Financial Group disclosed 30 risk factors in its most recent earnings report. Sumitomo Mitsui Financial Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sumitomo Mitsui Financial Group Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ¥4.09T | 0.29 | 395.36% | 3.59% | 6.38% | 8.32% | |
71 Outperform | ¥10.59T | 17.66 | 6.46% | 2.50% | 39.22% | 43.01% | |
69 Neutral | ¥37.09T | 13.88 | 12.34% | 3.00% | 11.03% | 48.61% | |
68 Neutral | ¥18.06T | 13.34 | 12.28% | 1.97% | 5.93% | 59.55% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | ¥23.60T | 13.96 | 10.89% | 5.43% | 10.65% | 46.42% | |
66 Neutral | ¥4.93T | 18.03 | 9.18% | 1.54% | 17.19% | 19.44% |
* Financial Sector Average
JP:8316
Sumitomo Mitsui Financial Group
3,114.00
1,121.36
56.27%
JP:8308
Resona Holdings
2,141.50
701.62
48.73%
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Japan Post Bank Co
2,961.50
1,279.34
76.05%
JP:8306
Mitsubishi UFJ Financial Group
3,295.00
1,093.47
49.67%
JP:8411
Mizuho Financial Group
7,480.00
2,616.21
53.79%
JP:8604
Nomura Holdings
1,421.50
369.96
35.18%
Sumitomo Mitsui Financial Group Corporate Events
SMFG Moves to Intermediate Holding Structure for Japanese Equities Unit
Sep 29, 2026
Sumitomo Mitsui Financial Group is restructuring its Japanese securities operations as it deepens its focus on wholesale equities and investment banking. The group is consolidating oversight of SMBC Nikko Securities Inc. and its joint venture with...
Sumitomo Mitsui Financial Group Strengthens Capital Ratios as of June 2026
Aug 14, 2026
Sumitomo Mitsui Financial Group reported solid capital ratios as of June 30, 2026 on a consolidated basis, with a total capital ratio of 16.24%, Tier 1 ratio of 15.04%, and common equity Tier 1 ratio of 12.63%, all modestly higher than at March 31...
Sumitomo Mitsui Financial Group Adjusts Share Figures Following Treasury Share Cancellation
Aug 3, 2026
Sumitomo Mitsui Financial Group has updated disclosed figures related to its previously announced stock split following the cancellation of a portion of its treasury shares under Article 178 of the Companies Act. The board had resolved the cancell...
SMFG Completes ¥180 Billion Share Buyback and Sets August Share Cancellation
Aug 3, 2026
Sumitomo Mitsui Financial Group has completed a share repurchase program authorized by its board in May 2026, buying back a total of 28,018,600 common shares for approximately JPY 180 billion through market purchases. The latest tranche, executed ...
SMFG Delivers Strong Q1 Earnings and Confirms Outlook Ahead of Stock Split
Jul 31, 2026
Sumitomo Mitsui Financial Group reported a strong start to fiscal 2026, with ordinary income rising 16.6% year-on-year to ¥2.85 trillion and profit attributable to owners of parent jumping 33.0% to ¥501.4 billion, lifting diluted earning...
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.