Financials Sumitomo Heavy Industries, Ltd.

Equities

6302

JP3405400007

Industrial Machinery & Equipment

Market Closed - Japan Exchange Other stock markets 02:00:00 2024-04-26 am EDT			5-day change	1st Jan Change
4,532 ^JPY	+0.87%		+0.49%	+27.48%

Apr. 03	Sumitomo Heavy Industries Starts Purchases Under 10 Billion Yen Buyback Program	MT
Apr. 01	Tranche Update on Sumitomo Heavy Industries, Ltd.'s Equity Buyback Plan announced on February 14, 2024.	CI

Valuation

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Capitalization ¹	383,484	311,914	341,662	323,703	435,436	553,554	-	-
Enterprise Value (EV) ¹	383,207	349,517	366,562	323,703	493,208	578,840	584,493	581,068
P/E ratio	8.4 x	9.51 x	12.8 x	56 x	13.3 x	12.3 x	10.8 x	9.76 x
Yield	3.58%	3.57%	2.33%	3.4%	3.38%	2.79%	3.25%	3.71%
Capitalization / Revenue	0.42 x	0.36 x	0.4 x	0.38 x	0.4 x	0.51 x	0.49 x	0.48 x
EV / Revenue	0.42 x	0.4 x	0.43 x	0.38 x	0.46 x	0.53 x	0.52 x	0.51 x
EV / EBITDA	3.79 x	4.13 x	4.52 x	4.35 x	4.45 x	5.44 x	5.02 x	4.69 x
EV / FCF	-371 x	-16.3 x	18 x	-20.3 x	21.6 x	28.4 x	30.1 x	17.9 x
FCF Yield	-0.27%	-6.15%	5.57%	-4.92%	4.64%	3.53%	3.32%	5.59%
Price to Book	0.85 x	0.67 x	0.7 x	0.57 x	0.7 x	0.89 x	0.82 x	0.78 x
Nbr of stocks (in thousands)	122,519	122,511	122,503	122,429	122,486	122,143	-	-
Reference price ²	3,130	2,546	2,789	2,644	3,555	4,532	4,532	4,532
Announcement Date	5/8/19	5/28/20	5/10/21	2/13/23	2/14/24	-	-	-

¹JPY in Million²JPY

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net sales ¹	903,051	864,490	849,065	854,093	1,081,533	1,089,740	1,133,300	1,148,167
EBITDA ¹	101,219	84,686	81,088	74,437	110,741	106,500	116,475	123,867
EBIT ¹	75,244	56,821	51,342	44,803	74,367	71,600	80,600	80,800
Operating Margin	8.33%	6.57%	6.05%	5.25%	6.88%	6.57%	7.11%	7.04%
Earnings before Tax (EBT) ¹	67,070	52,657	43,775	17,761	51,444	68,525	77,050	84,825
Net income ¹	45,650	32,807	26,764	5,782	32,742	44,920	51,340	56,250
Net margin	5.06%	3.79%	3.15%	0.68%	3.03%	4.12%	4.53%	4.9%
EPS ²	372.6	267.8	218.5	47.20	267.3	367.8	421.5	464.3
Free Cash Flow ¹	-1,032	-21,489	20,400	-15,913	22,868	20,408	19,388	32,491
FCF margin	-0.11%	-2.49%	2.4%	-1.86%	2.11%	1.87%	1.71%	2.83%
FCF Conversion (EBITDA)	-	-	25.16%	-	20.65%	19.16%	16.65%	26.23%
FCF Conversion (Net income)	-	-	76.22%	-	69.84%	45.43%	37.76%	57.76%
Dividend per Share ²	112.0	91.00	65.00	90.00	120.0	126.7	147.2	168.2
Announcement Date	5/8/19	5/28/20	5/10/21	2/13/23	2/14/24	-	-	-

¹JPY in Million²JPY

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: December	2019 S2	2020 S1	2020 S2	2021 S1	2021 Q3	2021 Q4	2022 Q1	2022 Q2	2022 S1	2022 Q3	2022 Q4	2023 Q1	2023 Q2	2023 S1	2023 Q3	2023 Q4	2024 Q1	2024 Q2	2024 Q3	2024 Q4	2025 Q1
Net sales ¹	479,390	424,697	439,793	391,701	208,170	249,194	262,871	314,208	577,079	262,440	277,445	248,236	261,823	510,059	262,446	309,028	254,811	259,700	273,700	327,100	266,900
EBITDA	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
EBIT ¹	41,158	27,197	29,624	21,163	15,178	15,001	21,532	14,781	36,313	11,952	18,070	16,157	14,498	30,655	19,077	24,635	18,434	13,600	17,600	26,500	17,300
Operating Margin	8.59%	6.4%	6.74%	5.4%	7.29%	6.02%	8.19%	4.7%	6.29%	4.55%	6.51%	6.51%	5.54%	6.01%	7.27%	7.97%	7.23%	5.24%	6.43%	8.1%	6.48%
Earnings before Tax (EBT) ¹	-	25,799	-	19,128	14,433	10,214	-	-	-	-	-	16,235	16,349	32,584	17,295	1,565	18,595	13,100	17,100	23,300	16,100
Net income ¹	24,288	16,437	16,370	10,866	9,769	6,129	-	10,311	-	-	-13,220	10,809	11,667	22,476	11,843	-1,577	13,599	7,400	11,400	14,900	9,400
Net margin	5.07%	3.87%	3.72%	2.77%	4.69%	2.46%	-	3.28%	-	-	-4.76%	4.35%	4.46%	4.41%	4.51%	-0.51%	5.34%	2.85%	4.17%	4.56%	3.52%
EPS	-	134.2	-	88.69	79.74	50.03	-	-	-	-	-	88.24	95.25	183.5	96.68	-12.87	111.1	-	-	-	-
Dividend per Share	-	56.00	-	9.000	-	-	-	-	45.00	-	-	-	-	60.00	-	-	-	-	-	-	-
Announcement Date	5/8/19	10/31/19	5/28/20	10/30/20	1/29/21	5/10/21	6/29/22	8/5/22	8/5/22	11/11/22	2/13/23	5/12/23	8/7/23	8/7/23	11/9/23	2/14/24	4/26/24	-	-	-	-

¹JPY in Million

Estimates

Balance Sheet Analysis

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net Debt ¹	-	37,603	24,900	-	57,772	25,286	30,939	27,514
Net Cash position ¹	277	-	-	-	-	-	-	-
Leverage (Debt/EBITDA)	-	0.444 x	0.3071 x	-	0.5217 x	0.2374 x	0.2656 x	0.2221 x
Free Cash Flow ¹	-1,032	-21,489	20,400	-15,913	22,868	20,408	19,389	32,491
ROE (net income / shareholders' equity)	10.3%	7.1%	5.6%	1%	5.5%	7.3%	7.77%	7.4%
ROA (Net income/ Total Assets)	7.85%	5.4%	4.89%	3.9%	6%	3.9%	4.73%	5.15%
Assets ¹	581,325	607,209	547,186	148,256	545,700	1,151,795	1,084,649	1,092,233
Book Value Per Share ²	3,701	3,791	4,005	4,647	5,060	5,076	5,539	5,846
Cash Flow per Share	585.0	495.0	461.0	-	564.0	-	-	-
Capex ¹	56,205	41,316	43,589	36,544	42,502	59,000	47,667	48,000
Capex / Sales	6.22%	4.78%	5.13%	4.28%	3.93%	5.41%	4.21%	4.18%
Announcement Date	5/8/19	5/28/20	5/10/21	2/13/23	2/14/24	-	-	-

¹JPY in Million²JPY

Estimates

EPS & Dividend

Year-on-year evolution of the PER

Year-on-year evolution of the Yield

Change in Enterprise Value/EBITDA

Ratings for Sumitomo Heavy Industries, Ltd.

Trading Rating

Investor Rating

ESG Refinitiv

B-

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

OUTPERFORM

Number of Analysts

Last Close Price

4,532 JPY

Average target price

4,600 JPY

Spread / Average Target

+1.50%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

Sector Other Industrial Machinery & Equipment

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SUMITOMO HEAVY INDUSTRIES, LTD.	+27.48%	3.52B
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SANDVIK AB	+4.22%	26B
TECHTRONIC INDUSTRIES CO. LTD.	+16.93%	25.5B
DOVER CORPORATION	+17.14%	24.76B

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