Fact based stock research
Sumitomo Mitsui Financial Group (TSE:8316)

JP3890350006

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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Sumitomo Mitsui Financial Group stock research in summary

smfg.co.jp

ANALYSIS: With an Obermatt Combined Rank of 78 (better than 78% compared with investment alternatives), Sumitomo Mitsui Financial Group (Diversified Banks, Japan) shares have much better financial characteristics than comparable stocks. Shares of Sumitomo Mitsui Financial Group are a good value (attractively priced) with a consolidated Value Rank of 55 (better than 55% of alternatives), show above-average growth (Growth Rank of 100) but are riskily financed (Safety Rank of 34), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 78, is a strong buy recommendation based on Sumitomo Mitsui Financial Group's financial characteristics. As the company Sumitomo Mitsui Financial Group's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 55) and above-average growth (Obermatt Growth Rank of 100), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 34) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	55
Growth Rank	100
Safety Rank	34
Combined Rank	78

Country	Japan
Industry	Diversified Banks
Index	TOPIX 100, Nikkei 225
Size class	X-Large

This stock has achievements: Top 10 Stock.

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Sumitomo Mitsui Financial Group

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	77	83	66	55
GROWTH
GROWTH	100	53	81	100
SAFETY
SAFETY	100	49	26	34
SENTIMENT
SENTIMENT	n/a	48	68	^new
360° VIEW
360° VIEW	n/a	73	70	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Sumitomo Mitsui Financial Group is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	77	83	66	55
GROWTH
GROWTH	100	53	81	100
SAFETY
SAFETY	100	49	26	34
COMBINED
COMBINED	100	75	65	78

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Sumitomo Mitsui Financial Group the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 55 (better than 55% compared with alternatives), Sumitomo Mitsui Financial Group shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Sumitomo Mitsui Financial Group. Price-to-Sales (P/S) is 55, which means that the stock price compared with what market professionals expect for future sales is lower than for 55% of comparable companies, indicating a good value concerning Sumitomo Mitsui Financial Group's revenue size. The same is valid for expected Price-to-Profits (or Price / Earnings, P/E), more favorable than for 52% of alternatives. It is also positive for expected dividend yields with a Dividend Yield rank of 50 (dividends are expected to be higher than 50% of other stocks). But, compared with other companies in the same industry, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is higher than average, making the stock more expensive. Only 53% of all competitors have an even higher price compared with book capital which puts the Price-to-Capital Rank for Sumitomo Mitsui Financial Group to 47. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 55, is a buy recommendation based on Sumitomo Mitsui Financial Group's stock price compared with the company's operational size and dividend yields. A low level of book capital means that the company has a business that is leaner in assets than its competitors. For instance, the company could be leasing its production facilities or be more focussed on intellectual property, such as its brand and software, which is less visible in its book capital. If that is the case, the three good value ranks for Sales, Profits, and Dividends are reliable indicators for the stock price value. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	68	79	66	55
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	66	73	58	52
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	86	71	48	47
DIVIDEND YIELD
DIVIDEND YIELD	66	56	54	50
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	77	83	66	55

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Sumitomo Mitsui Financial Group; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 100 (better than 100% compared with alternatives) for 2024, Sumitomo Mitsui Financial Group shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all four indicators above average for Sumitomo Mitsui Financial Group. Sales Growth has a value of 78, which means that, currently, professionals expect the company to grow more than 78% of its competitors. The same is valid for Profit Growth with a value of 83 and for Capital Growth with 69. In addition, Stock Returns had an above-average rank value of 100, which means they have been higher than 100% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 100, is a buy recommendation for growth and momentum investors. Since all Growth Ranks are positive, Sumitomo Mitsui Financial Group exhibits above-average growth momentum. This could be due to a uniquely strong market position, proprietary technology, or an extensive corporate acquisition strategy. Growth investors will find this an attractive investment opportunity, unless they expect that the current phase is transitory and will deteriorate in the future. The current performance could also be a temporary recovery from a very low point, such as a turn-around situation. In the case of a turn-around, the current performance may or may not be followed by a continuing positive development. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	98	7	43	78
PROFIT GROWTH
PROFIT GROWTH	45	81	50	83
CAPITAL GROWTH
CAPITAL GROWTH	n/a	51	75	69
STOCK RETURNS
STOCK RETURNS	56	65	79	100
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	100	53	81	100

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Sumitomo Mitsui Financial Group.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 34 (better than 34% compared with alternatives), the company Sumitomo Mitsui Financial Group has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Sumitomo Mitsui Financial Group is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Sumitomo Mitsui Financial Group and the other two below average. Leverage is at a rank of 78 meaning the company has a below-average debt-to-equity ratio. It has less debt than 78% of its competitors.Refinancing is at a rank of 23, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 77% of its competitors. Liquidity is at a rank of 41, meaning that the company generates less profit to service its debt than 59% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 34 (worse than 66% compared with alternatives), Sumitomo Mitsui Financial Group has a financing structure that is riskier than that of its competitors. This is an indication that the company is on the riskier side when it comes to debt service. There is only below-market average liquidity, and a short-term refinancing issue might be around the corner. But in the long-term, the debt levels of Sumitomo Mitsui Financial Group are on the safer side. Investors may have a short-term debt challenge and liquidity issues with Sumitomo Mitsui Financial Group and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	100	79	84	78
REFINANCING
REFINANCING	82	45	22	23
LIQUIDITY
LIQUIDITY	100	39	19	41
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	100	49	26	34

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Sumitomo Mitsui Financial Group and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	82	79	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	57	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	60	68	^new
MARKET PULSE
MARKET PULSE	n/a	6	27	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	48	68	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Sumitomo Mitsui Financial Group.
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