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Sumco (SUOPY) AI Stock Analysis

SUOPY

Sumco

(Other OTC:SUOPY)

Select Model
Rating:40Underperform
Price Target:$29.00â–¼(-1.63% Downside)
Action:downgraded
Date:10/23/26

SUOPY scores low primarily due to deteriorating fundamentals: an operating and net loss, sharply compressed gross margins, rising leverage, and a third straight year of negative free cash flow as the semiconductor wafer cycle works through its downturn. Technicals reinforce the caution, with the stock trading below all key moving averages and a negative MACD, though oversold RSI and stochastic readings suggest downside may be near-term stretched. Valuation offers little support given negative earnings and a minimal 0.61% dividend yield. Offsetting positives include solid equity of ¥579 billion, positive EBITDA of ¥118 billion, improving operating cash flow, and a market position that could benefit meaningfully from an eventual cycle recovery.

Positive Factors
Global wafer supplierServing global IDMs and foundries across several semiconductor end markets gives SUMCO a broad customer and application base. Its polished, epitaxial, and multiple-diameter wafer portfolio supports recurring relevance as chip production expands across computing, automotive, industrial, and consumer applications.
Negative Factors
Severe margin compressionThe sharp decline in gross margin and move to a net loss show that current wafer economics are under substantial pressure. If weaker profitability persists, SUMCO may have less capacity to absorb costs, support investment, or convert industry demand into durable shareholder earnings.

Sumco (SUOPY) vs. SPDR S&P 500 ETF (SPY)

-50%0%50%100%150%200%250%SUOPY+40.32%SPY+11.79%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
$4.97B
Dividend Yield
0.67%
Average Volume (3M)
30.74K
Price to Earnings (P/E)
-29.3
Beta (1Y)
1.91
Revenue Growth
0.55%
EPS Growth
-361.99%
Country
US
Employees
9,714
Sector
Technology
Sector Strength
61
Industry
Semiconductors

Sumco Business Overview & Revenue Model

Company Description

Sumco Corporation, operating globally alongside its affiliated entities, manufactures and distributes silicon wafers that are crucial for the semiconductor industry. Its primary sales territories encompass Japan, the United States, China, Taiwan, and...

How the Company Makes Money

SUMCO primarily makes money by manufacturing and selling silicon wafers to semiconductor manufacturers. Its core revenue stream is product sales of silicon wafers—especially 300mm wafers used in advanced, high-volume semiconductor production—where re...

Sumco Earnings Call Summary

Earnings Call Date:Feb 09, 2026(Q4-2025)|% Change Since:35.59%|Next Earnings Date:Nov 10, 2026
Earnings Call SentimentNeutral

The call presents a mixed picture: operational and cash-generation strengths (stable EBITDA, JPY 100b operating cash flow, material CapEx reduction, full-year operating profit) and clear execution/market headwinds (Q4 and full-year net losses, sharply higher depreciation, product-mix pressure, structural 200mm decline, legacy inventory overhang and near-term guidance for Q1 losses). Management is constructive on longer-term AI-driven demand and leading-edge positioning but warns of near-term inventory normalization and NAND capacity lag.

Positive Updates

Beat on Q4 Sales and Forecast
Q4 sales of JPY 105.2 billion, up JPY 6.1 billion Q-on-Q (≈+6.2% from JPY 99.1b). Sales overshot forecast by JPY 5.0 billion due to late arrival of goods and positive FX.

Negative Updates

Q4 and Q1 Profitability Weakness
Q4 operating profit was negative JPY 4.5 billion, ordinary loss JPY 5.9 billion and net loss attributable JPY 10.8 billion. Q1 guidance projects sales JPY 100 billion and an operating loss of JPY 6.0 billion with a net loss attributable of JPY 10.0 billion.

Company Guidance

Management guided Q1 with sales of JPY 100.0 billion, an operating loss of JPY 6.0 billion, an ordinary loss of JPY 10.0 billion and a net loss attributable to owners of the parent of JPY 10.0 billion, assuming FX of JPY 155/USD; they said Q1 operating losses widen JPY 1.5 billion Q‑on‑Q (sales down from JPY 105.2b to JPY 100.0b), driven by periodic plant maintenance and one‑off maintenance costs, costs rising JPY 2.1 billion Q‑on‑Q and depreciation declining JPY 4.3 billion Q‑on‑Q. For the full year ended Dec‑2025 they reported sales JPY 409.6 billion, operating profit JPY 1.3 billion, ordinary loss JPY 3.8 billion, net loss attributable JPY 11.7 billion, EBITDA JPY 112.4 billion, total CapEx JPY 79.9 billion (down from JPY 214.9b in 2024), depreciation JPY 115.6 billion (up JPY 36.7b YoY) and free cash flow negative JPY 11.4 billion after operating cash flow JPY 100.0 billion and investing outflow JPY 111.4 billion; balance sheet metrics include total assets JPY 1,127.9 billion, liabilities JPY 480.2 billion, equity‑to‑asset ratio 51.3% and gross D/E 0.61x, and the board set a fiscal year‑end dividend of JPY 10 per share. Management expects structural declines in 200‑mm (‑21% in 2023, ‑13% in 2024, ‑4% in 2025) but recovery in 300‑mm (‑11% in 2023, +2% in 2024, +9% in 2025), forecasts wafer consumption to grow from this year into next as NAND/DRAM capacity ramps (DRAM AI demand ~500–600k wafers/month today rising to ~1.5m over 3–4 years, NAND inference demand ~200k wafers/month), and said customer capacity additions will take ~12 months with leading‑edge wafer increases expected in H2 when the new plant comes online.

Sumco Financial Statement Overview

Summary

Financials are weak across the board. The income statement (32) shows a swing to a ¥12.3 billion net loss with gross margins collapsing from 18.3% to 12.2% and operating income turning negative, despite 6.4% revenue growth. Cash flow (38) remains strained with a third consecutive year of negative free cash flow (-¥11.5 billion) due to heavy capex, though operating cash flow improved to ¥105 billion. The balance sheet (48) is the relative bright spot with ¥579 billion of equity, but debt has climbed to ¥354 billion and debt-to-equity has more than doubled to 0.61 while returns turned negative.

Income Statement

32Negative

Balance Sheet

48Neutral

Cash Flow

38Negative
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue424.80B429.53B396.62B425.94B441.08B335.67B
Gross Profit35.19B52.33B72.73B108.25B143.35B80.12B
EBITDA110.57B117.89B113.25B144.66B169.53B104.33B
Net Income-28.15B-12.32B19.88B63.88B70.20B41.12B
Balance Sheet
Total Assets1.14T1.13T1.17T1.07T892.55B764.82B
Cash, Cash Equivalents and Short-Term Investments111.77B75.35B95.67B156.35B259.31B224.67B
Total Debt367.34B354.10B353.95B224.45B141.38B141.07B
Total Liabilities495.62B480.51B515.45B437.56B301.07B241.98B
Stockholders Equity568.16B578.77B592.11B572.15B533.55B476.15B
Cash Flow
Free Cash Flow0-11.53B-177.62B-160.57B54.01B36.92B
Operating Cash Flow0104.89B69.63B96.34B179.46B104.71B
Investing Cash Flow0-116.85B-247.88B-247.68B-126.35B-67.34B
Financing Cash Flow0-9.15B112.29B43.46B-23.15B99.10B

Sumco Technical Analysis

Technical Analysis SentimentNegative
Last Price29.48

Price Trends

50DMA38.83Negative
100DMA43.99Negative
200DMA36.06Negative

Market Momentum

MACD-3.00Positive
RSI33.38Neutral
STOCH48.46Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SUOPY, the sentiment is Negative. The current price of 29.48 is below the 20-day moving average (MA) of 36.34, below the 50-day MA of 38.83, and below the 200-day MA of 36.06, indicating a bearish trend. The MACD of -3.00 indicates Positive momentum. The RSI at 33.38 is Neutral, neither overbought nor oversold. The STOCH value of 48.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SUOPY.

Sumco Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

SUOPY against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
ENTGENTG71Outperform$23.59B60.079.53%0.26%9.38%35.10%
VECOVECO63Neutral$2.38B101.462.62%―-2.52%-64.30%
Sector *61Neutral$37.18B12.37-10.20%1.83%8.50%-7.62%
AXTIAXTI58Neutral$3.61B117.555.40%―89.14%―
DQDQ43Neutral$728.76M-3.16-5.24%―-20.69%33.71%
SUOPYSUOPY40Underperform$5.15B-29.27-4.82%0.67%0.55%-361.99%
WOLFWOLF34Underperform$1.16B-1.08-282.74%―-12.21%-39.87%

* Technology Sector Average

Performance Comparison

0%500%1000%1500%SUOPYAXTIDQENTGVECOWOLFDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
SUOPY and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
SUOPYSumco Corporation29.489.0144.03%
AXTIAXT Inc55.0646.60550.83%
DQDaqo New Energy10.77-21.18-66.29%
ENTGEntegris Inc154.3963.2969.47%
VECOVeeco Instruments Inc38.879.3731.76%
WOLFWolfspeed Inc21.98-1.78-7.49%
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.

Date of analysis: Oct 23, 2026