Sumco (SUOPY) AI Stock Analysis

• Market Cap: $3.66B
• Dividend Yield: 1.13%
• Average Volume (3M): 163.00
• Price to Earnings (P/E): 53.5
• Beta (1Y): 1.39
• Revenue Growth: -0.22%
• EPS Growth: -62.06%
• Country: US
• Employees: 9,850
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): <0.01
• Shares Outstanding: 175,083,620
• 10 Day Avg. Volume: 10
• 30 Day Avg. Volume: 163
• PEG Ratio: -0.30
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 1.03
• P/FCF Ratio: -2.30
• Enterprise Value/Market Cap: 1.41
• Enterprise Value/Revenue: 0.01
• Enterprise Value/Gross Profit: 0.07
• Enterprise Value/Ebitda: 0.05
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: $18.00 ▼(-12.07% Downside)

Sumco's overall stock score reflects a mixed financial performance with stable balance sheet but declining profitability and negative cash flow. Technical analysis shows positive momentum, but valuation concerns persist with a high P/E ratio. The earnings call highlighted both opportunities and significant challenges, impacting the outlook.

Sumco Business Overview & Revenue Model

Company Description

Sumco Corporation, together with its subsidiaries, manufactures and sells silicon wafers for the semiconductor industry primarily in Japan, the United States, China, Taiwan, Korea, and internationally. It provides monocrystalline ingots, as well as polished, annealed, epitaxial, junction isolated, silicon-on-insulator, and reclaimed polished wafers. The company was formerly known as Sumitomo Mitsubishi Silicon Corp. and changed its name to Sumco Corporation in August 2005. Sumco Corporation was incorporated in 1999 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Sumco generates revenue primarily through the sale of silicon wafers to semiconductor manufacturers, which are essential components in the production of microchips. The company's revenue model is based on direct sales to clients, with pricing determined by wafer specifications, volume commitments, and market demand. Key revenue streams include long-term supply agreements with major semiconductor companies, which provide a stable income base, alongside spot market sales. Additionally, partnerships with technology developers and research institutions enhance Sumco's innovation capabilities, enabling them to offer advanced products that command premium pricing. Factors contributing to its earnings include the global demand for semiconductors, technological advancements in wafer production, and the company's strategic positioning in the supply chain.

Sumco Financial Statement Overview

Summary

Sumco's financial performance is mixed. While the balance sheet is stable with moderate leverage, the income statement shows declining profitability and negative revenue growth. Cash flow is concerning with negative free cash flow due to high capital expenditures.

Income Statement

Sumco's income statement reflects a mixed performance. The gross profit margin improved from 25.4% in 2020 to 27.5% in 2023, indicating better cost management. However, net profit margin declined significantly from 15% in 2022 to 4.7% in 2023, raising concerns about rising expenses or one-time charges. Revenue growth rate was negative over the past two years, with a notable decline of 6.9% in 2023, suggesting a potential challenge in market demand or competitive pressures. EBIT and EBITDA margins have decreased, reflecting reduced operational efficiency.

Balance Sheet

The balance sheet shows a stable financial position with a debt-to-equity ratio of 0.60 in 2023, indicating moderate leverage. The equity ratio improved from 53.4% in 2020 to 53.4% in 2023, signaling sound capital structure. However, the return on equity decreased from 13.2% in 2022 to 3.4% in 2023, which may indicate decreased profitability for shareholders. The company maintains a strong equity base, which provides a cushion against potential risks.

Cash Flow

Cash flow analysis reveals a concerning trend with free cash flow turning negative at -177.6 billion in 2023, down from -160.6 billion in 2022, due to high capital expenditures. The operating cash flow to net income ratio decreased, indicating potential challenges in converting income to cash. While operating cash flow remains positive, the free cash flow to net income ratio is negative, suggesting that the company needs to improve its cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	403.72B	396.62B	425.94B	441.08B	335.67B	291.33B
Gross Profit	71.86B	72.73B	108.25B	143.35B	80.12B	65.17B
EBITDA	104.70B	113.25B	144.66B	169.53B	104.33B	84.67B
Net Income	10.34B	19.88B	63.88B	70.20B	41.12B	25.50B
Balance Sheet
Total Assets	1.16T	1.17T	1.07T	892.55B	764.82B	593.44B
Cash, Cash Equivalents and Short-Term Investments	80.91B	95.67B	156.35B	259.31B	224.67B	82.97B
Total Debt	364.52B	353.95B	224.45B	141.38B	141.07B	149.90B
Total Liabilities	505.89B	515.45B	437.56B	301.07B	241.98B	238.44B
Stockholders Equity	589.54B	592.11B	572.15B	533.55B	476.15B	315.11B
Cash Flow
Free Cash Flow	0.00	-177.62B	-160.57B	54.01B	36.92B	30.45B
Operating Cash Flow	0.00	69.63B	96.34B	179.46B	104.71B	84.19B
Investing Cash Flow	0.00	-247.88B	-247.68B	-126.35B	-67.34B	-55.19B
Financing Cash Flow	0.00	112.29B	43.46B	-23.15B	99.10B	-16.24B

Sumco Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SUOPY, the sentiment is Positive. The current price of 20.47 is below the 20-day moving average (MA) of 21.80, above the 50-day MA of 20.11, and above the 200-day MA of 16.13, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 44.45 is Neutral, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SUOPY.

Sumco Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UMC	―	$19.36B	15.20	10.97%	6.16%	5.87%	-20.93%
AMKR	―	$9.35B	30.49	7.27%	1.95%	0.13%	-16.17%
ASX	―	$34.77B	15.39	8.40%	2.22%	104.60%	123.50%
SUOPY	―	$3.66B	53.54	1.76%	1.13%	-0.22%	-62.06%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
STM	―	$21.89B	42.90	3.00%	1.42%	-17.33%	-76.71%
GFS	―	$19.68B	―	-1.01%	―	-0.65%	-114.26%

Sumco Corporate Events

Sumco Corporation Navigates Mixed Earnings Call

The recent earnings call of Sumco Corporation presented a mixed sentiment, reflecting both positive developments and significant challenges. While the company showcased strong performance in certain segments and an improvement in cash flow trends, it also faces forecasted losses, structural changes in the market, and geopolitical uncertainties. High inventory levels and increased depreciation contribute to a cautious outlook.

SUMCO Corporation Reports Mixed Financial Results for 2025

SUMCO Corporation is a leading manufacturer in the semiconductor industry, specializing in the production of silicon wafers, which are essential components in semiconductor devices. The company is listed on the Tokyo Stock Exchange and is known for its focus on developing high-precision and distinctive products to meet the evolving demands of the technology sector.