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Sumco (SUOPY) AI Stock Analysis
Sumco
(Other OTC:SUOPY)
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.
Sumco (SUOPY) vs. SPDR S&P 500 ETF (SPY)
- 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
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.
Q4-2025 Updates
Positive Updates
Negative Updates
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
32NegativeBalance Sheet
48NeutralCash Flow
38Negative| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 424.80B | 429.53B | 396.62B | 425.94B | 441.08B | 335.67B |
| Gross Profit | 35.19B | 52.33B | 72.73B | 108.25B | 143.35B | 80.12B |
| EBITDA | 110.57B | 117.89B | 113.25B | 144.66B | 169.53B | 104.33B |
| Net Income | -28.15B | -12.32B | 19.88B | 63.88B | 70.20B | 41.12B |
Balance Sheet | ||||||
| Total Assets | 1.14T | 1.13T | 1.17T | 1.07T | 892.55B | 764.82B |
| Cash, Cash Equivalents and Short-Term Investments | 111.77B | 75.35B | 95.67B | 156.35B | 259.31B | 224.67B |
| Total Debt | 367.34B | 354.10B | 353.95B | 224.45B | 141.38B | 141.07B |
| Total Liabilities | 495.62B | 480.51B | 515.45B | 437.56B | 301.07B | 241.98B |
| Stockholders Equity | 568.16B | 578.77B | 592.11B | 572.15B | 533.55B | 476.15B |
Cash Flow | ||||||
| Free Cash Flow | 0 | -11.53B | -177.62B | -160.57B | 54.01B | 36.92B |
| Operating Cash Flow | 0 | 104.89B | 69.63B | 96.34B | 179.46B | 104.71B |
| Investing Cash Flow | 0 | -116.85B | -247.88B | -247.68B | -126.35B | -67.34B |
| Financing Cash Flow | 0 | -9.15B | 112.29B | 43.46B | -23.15B | 99.10B |
Sumco Technical Analysis
Price Trends
Market Momentum
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
ENTG71Outperform
VECO63Neutral
AXTI58Neutral
DQ43Neutral
SUOPY40Underperform
WOLF34Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| 71Outperform | $23.59B | 60.07 | 9.53% | 0.26% | 9.38% | 35.10% | |
| 63Neutral | $2.38B | 101.46 | 2.62% | ― | -2.52% | -64.30% | |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| 58Neutral | $3.61B | 117.55 | 5.40% | ― | 89.14% | ― | |
| 43Neutral | $728.76M | -3.16 | -5.24% | ― | -20.69% | 33.71% | |
| 40Underperform | $5.15B | -29.27 | -4.82% | 0.67% | 0.55% | -361.99% | |
| 34Underperform | $1.16B | -1.08 | -282.74% | ― | -12.21% | -39.87% |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| SUOPY | Sumco Corporation | 29.48 | 9.01 | 44.03% | |
| AXTI | AXT Inc | 55.06 | 46.60 | 550.83% | |
| DQ | Daqo New Energy | 10.77 | -21.18 | -66.29% | |
| ENTG | Entegris Inc | 154.39 | 63.29 | 69.47% | |
| VECO | Veeco Instruments Inc | 38.87 | 9.37 | 31.76% | |
| WOLF | Wolfspeed Inc | 21.98 | -1.78 | -7.49% |
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