- Company name
- Sumitomo Corporation
- Sector
- Trading and investment conglomerate
- About
- Sumitomo Corporation (Sumitomo) is a Japanese integrated trading and investment company. Its ten business groups are Steel, Automotive, Transportation & Construction Systems, Diverse Urban Development, Communication Services, Digital AI, Lifestyle Business, Mineral Resources, Chemical Solutions and Energy Transformation Business. It owns all of the IT services company SCSK, and in 2026 it bought Sumisho Air Lease, which made its aircraft leasing business the second largest in the world. Revenues were ¥3,918.6 billion and profit attributable to owners of the parent was ¥347.9 billion in the six months to September 30, 2026. The shares trade on the Tokyo Stock Exchange (8053). American depositary receipts trade over the counter as SSUMY. One ADR represents one share, and Citibank is the depositary. The head office is in Tokyo. Shingo Ueno is President and Chief Executive Officer.
- Thesis
- The market values Sumitomo close to the AI estimate, as a group of many businesses whose profit depends partly on commodity prices and on a weak yen. In the six months to September 2026, high copper and coal prices and a weak yen helped profit. Investors doubt that a return on equity of about 14% lasts when these prices fall. For the shares to earn more, three things must be true. Profit from businesses without commodity risk, such as SCSK, aircraft leasing and construction equipment, must keep growing. Sumitomo must keep selling weak assets, as it did with the nickel business in Madagascar, without large losses. And it must pay at least 40% of profit to shareholders while net debt falls back to about 0.6 times equity. The Q3 report, expected in early February 2027, and the results for the fiscal year to March 2027 with a new medium-term plan, expected in early May 2027, are the next tests.
- Valuation
- The intrinsic value for Sumitomo Corporation is an AI estimate from November 11, 2026. It is not an analyst's value. An AI research agent calculated it from Sumitomo's own reports. The values are per American depositary receipt (ADR) in U.S. dollars. The ADR page of Sumitomo's investor website gives a ratio of 1 ADR to 1 ordinary share, with Citibank, N.A. as depositary. The company reports in yen under IFRS. The method is a multiple of profit per share for the fiscal year to March 2028. The consolidated financial results for the six months ended September 30, 2026 (November 2, 2026) give profit attributable to owners of the parent of ¥347.9 billion, a forecast for the fiscal year to March 2027 of ¥670.0 billion, raised from ¥630.0 billion, an annual dividend forecast of ¥44 per share, net interest-bearing liabilities of ¥3,855.6 billion and 4,725,549,108 shares outside treasury at September 30, 2026, after a 4-for-1 share split on July 1, 2026. The results presentation of the same date gives profit of ¥600.3 billion for the fiscal year to March 2026, an expected return on equity of about 14%, a loss buffer of ¥30.0 billion in the forecast and an exchange rate assumption of ¥150 per U.S. dollar for the second half. Profit is after interest, so the estimate makes no debt adjustment. It uses an exchange rate of ¥157.98 per U.S. dollar, the market rate on November 10, 2026, as an assumption. The estimate assumes 4,700 million shares after more repurchases. The profit for the fiscal year to March 2028 and the multiples are assumptions. The low case assumes lower commodity prices and a stronger yen, with profit of ¥600 billion, or ¥127.66 per share, at 10 times. It gives ¥1,276.60, or $8.08 per ADR. The base case assumes profit of ¥700 billion, or ¥148.94 per share, at 12.5 times. It gives ¥1,861.75, or $11.78 per ADR. The high case assumes growth in SCSK, aircraft leasing and other non-commodity businesses, with profit of ¥770 billion, or ¥163.83 per share, at 14.5 times. It gives ¥2,375.54, or $15.04 per ADR. The estimate assumes weights of 25%, 50% and 25%. The weighted intrinsic value is $11.67 per ADR. The value moves with the yen. Sumitomo has large positions in many industries and a wide network of partners, which help it find and finance deals. But other Japanese trading companies have similar networks, many of its businesses sell commodities at market prices, and returns depend on the price of each new investment. The estimate does not expect an advantage that lasts 10 years or more.
As of Nov 11, 2026.
- Risks
- Mineral Resources profit depends on the prices of copper, coal, iron ore and manganese. High prices helped results in 2026, and a fall would lower profit.
Profit from overseas businesses is converted into yen. A stronger yen lowers profit, and it lowered equity by about ¥100 billion in the six months to September 2026.
Net interest-bearing liabilities rose to ¥3,855.6 billion after the purchases of SCSK shares and Sumisho Air Lease. Higher interest rates raise the cost of this debt.
Sumitomo sells and buys many businesses. Sales can cause losses, such as the Madagascar nickel sale, and impairments, such as at the South African iron ore business in 2026.
The conflict in the Middle East and disruptions in the Strait of Hormuz raise energy costs and can slow the world economy and trade.
- Balance sheet
- Cash: ¥637.2B
Debt: ¥4,492.8B
Net debt: ¥3,855.6B
Ratings: Moody's Baa1 (stable outlook), S&P A- (negative outlook)
Sumitomo funds its business with bonds, bank loans and cash flow. At September 30, 2026, bonds and borrowings were ¥4,492.8 billion, without lease liabilities. Cash and cash equivalents were ¥621.3 billion and time deposits were ¥15.9 billion, so net interest-bearing liabilities were ¥3,855.6 billion, up from ¥3,147.2 billion in March 2026 because of the purchases of Sumisho Air Lease and of more SCSK shares. Shareholders' equity was ¥4,737.5 billion, and the net debt to equity ratio was 0.81. Sumitomo expects it to fall to about 0.6 by March 2027 with profit and asset sales. Operating cash flow was ¥130.5 billion and investing cash flow was minus ¥449.1 billion in the six months. As of December 2025, Moody's rated Sumitomo Baa1 (stable), S&P A- (negative) and Rating and Investment Information AA- (stable). At September 30, 2026, there were 4,725,549,108 shares outside treasury.
As of Sep 30, 2026.
- Checkpoints
- Nov 2, 2026: Results for the six months to September 2026. Passed. Watch: Profit progress of about half of the annual forecast or more passes; a cut in the forecast fails. Outcome: Profit rose 15.5% to ¥347.9 billion, and Sumitomo raised its annual forecast to ¥670.0 billion.
Feb 2, 2027 (estimate): Results for the nine months to December 2026. Pending. Watch: Profit on track for the ¥670.0 billion forecast passes; a lower forecast fails.
May 2027 (estimate): Results for the fiscal year to March 2027 and the new medium-term plan. Pending. Watch: Profit of ¥670.0 billion or more and a plan with growth in businesses without commodity risk pass; lower profit or a lower dividend fails.
- Recent events
- Nov 2, 2026: Sumitomo reported results for the six months to September 30, 2026. Profit attributable to owners of the parent rose 15.5% to ¥347.9 billion. Sumitomo raised its forecast for the fiscal year to March 2027 to ¥670.0 billion from ¥630.0 billion, and its dividend forecast to ¥44 per share from ¥40. It expects a return on equity of about 14%.
Nov 2, 2026: In the same report, Sumitomo said that it completed the purchase of Sumisho Air Lease, an investment of about ¥330 billion, and that it sold its nickel mining and refining business in Madagascar. The sale gave a loss of ¥73.0 billion before a tax benefit of ¥72.0 billion.
Sep 3, 2026: Sumitomo completed the share repurchase of ¥80.0 billion that it announced on May 1, 2026.
Jul 1, 2026: Sumitomo split each share into four shares.
May 1, 2026: Sumitomo reported results for the fiscal year to March 2026, with profit attributable to owners of the parent of ¥600.3 billion. It forecast ¥630.0 billion for the next year and announced a share repurchase of up to ¥80.0 billion.