# Sumco (3436.JP)

Canonical: https://gigainvestors.com/s/3436.JP

Analysis as of: 2026-10-15T07:09:52.427Z. Financial observations: FY2012–FY2025.

Listing currency: JPY. Reporting currency: JPY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: JPY 2,652.50 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 5 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 1

- Operating margin variation: 0.51×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.07×

- FY2017: 0.16×

- FY2018: 0.26×

- FY2019: 0.17×

- FY2020: 0.13×

- FY2021: 0.15×

- FY2022: 0.25×

- FY2023: 0.17×

- FY2024: 0.09×

- FY2025: 0.00×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 11.3pp below the typical margin (limit 4pp)

- ROIC, median of available years: 9.6%

- ROIC, second-lowest year: 3.2%

- Typical minus recent gross margin: 11.3 pp

- Typical gross margin (annual median): 24.6%

- Recent gross margin (lower of latest and 3-year median): 13.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 20.5%

- ROIC including acquisitions, ten-year median: 4.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 3.8%

- FY2017: 11.3%

- FY2018: 23.6%

- FY2019: 10.3%

- FY2020: 8.0%

- FY2021: 11.4%

- FY2022: 19.4%

- FY2023: 8.9%

- FY2024: 3.2%

- FY2025: 0.1%

### economics: fail

- Cash conversion uses consolidated free cash flow after all capital expenditure and consolidated net income (informational).

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: -1.22×

- Cash conversion uses consolidated totals: Yes

- Owner earnings, five-year total: JPY -259B

- Net income, five-year total: JPY 212B

- Return on incremental invested capital: -4.6%

- Working capital / revenue, annual change: -1.8 pp

- Working capital / revenue, change between three-year averages: -9.9 pp

- Working capital / revenue, final three-year average: 70.7%

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 11.3% vs 3.2%

- Per-share earnings: 70.06 to 56.84 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 2.2%

- Ordinary dilution, 5-year annual growth: 3.7%

- Market cap gain: JPY 59B

- Cumulative retained earnings: JPY 210B

- Diluted shares, 10-year annual growth: 2.2%

- Diluted shares, 5-year annual growth: 3.7%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -2.6%

- Per-share value change: JPY -13.22

- Per-share value, starting three-year median: JPY 70.06

- Per-share value, ending three-year median: JPY 56.84

- Buybacks concentrated in cheaper years (correlation): -1.00

- Average buyback yield: 0.3%

- Buyback history: 3 years

- Debt-funded buybacks: No

- Acquisition spending: JPY 0

- Cumulative net income, 10 years: JPY 334B

- ROIC, first three-year median: 11.3%

- ROIC, last three-year median: 3.2%

Chart: Earnings per share; fiscal year observations.

- FY2016: JPY 22.46

- FY2017: JPY 92.12

- FY2018: JPY 199.74

- FY2019: JPY 112.90

- FY2020: JPY 87.48

- FY2021: JPY 135.86

- FY2022: JPY 200.49

- FY2023: JPY 182.59

- FY2024: JPY 56.84

- FY2025: JPY -33.60

### accounting: pass

- Sloan accruals: -9.9%

- Receivables to sales index (DSRI): 0.94×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.01×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -4.2%

- FY2017: -4.7%

- FY2018: -6.0%

- FY2019: -7.7%

- FY2020: -9.9%

- FY2021: -8.3%

- FY2022: -12.2%

- FY2023: -3.0%

- FY2024: -4.2%

- FY2025: -9.9%

## Holders

## Price story

Down 34% since Jun 2026 · sales +3.3%

Story as of 2026-10-16T10:00:14.040Z; price observation 2026-10-15.

### Sales · FY2024–2025

sales +3.3%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100XRR5.pdf; observed 2026-03-26.

- FY2016: JPY 211B 

- FY2017: JPY 261B 

- FY2018: JPY 325B 

- FY2019: JPY 299B 

- FY2020: JPY 291B 

- FY2021: JPY 336B 

- FY2022: JPY 441B 

- FY2023: JPY 426B 

- FY2024: JPY 397B 

- FY2025: JPY 410B 

### Gross margin · FY2025

gross margin 13.3%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100XRR5.pdf; observed 2026-03-26.

- FY2016: 18.1% 

- FY2017: 26.1% 

- FY2018: 35.1% 

- FY2019: 26.1% 

- FY2020: 22.4% 

- FY2021: 23.9% 

- FY2022: 32.5% 

- FY2023: 25.4% 

- FY2024: 18.3% 

- FY2025: 13.3% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in semiconductor equipment & materials; annual sales are JPY 409.7 billion.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100XRR5.pdf (filed 2026-03-26); FY2025: revenue 409670000000; grossProfit 54502000000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 13.3% to 25.4% during 2023–25; it earns 9.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-26); FY2023: grossProfit / revenue = 25.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-26); FY2024: grossProfit / revenue = 18.3%.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100XRR5.pdf (filed 2026-03-26); FY2025: grossProfit / revenue = 13.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-26); 10-year return on capital observations [[2016,0.037848422915512395],[2017,0.11323457370354709],[2018,0.23585407073669937],[2019,0.10278783231766556],[2020,0.0801805249480663],[2021,0.11432371573274912],[2022,0.19415871918641678],[2023,0.08912138718291325],[2024,0.031939745050215726],[2025,0.0012373846130503238]]; median 0.09595460975028941. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-26); FY2016: growth capex 0; upkeep 18688000000; owner earnings 7909353846.153846. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-26); FY2017: growth capex 0; upkeep 15543000000; owner earnings 32207063190.564865. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-26); FY2018: growth capex 22385000000; upkeep 27910000000; owner earnings 57470813547.783165. Growth capex / owner earnings = 0.38950205535873195.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-26); FY2019: growth capex 0; upkeep 62165000000; owner earnings 13481121049.996048. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-26); FY2020: growth capex 0; upkeep 53740000000; owner earnings 17327443792.766373. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-26); FY2021: growth capex 16461000000; upkeep 51325000000; owner earnings 40923000000. Growth capex / owner earnings = 0.4022432372993182.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-26); FY2022: growth capex 65921000000; upkeep 59532000000; owner earnings 69979000000. Growth capex / owner earnings = 0.9420111747810057.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-26); Dividend observations: [[2016,4399000000],[2017,4399000000],[2018,14077000000],[2019,16716000000],[2020,8173000000],[2021,7553000000],[2022,21010000000],[2023,30464000000],[2024,9804000000],[2025,5602000000]]. Zero only counted when supported by a complete cash-flow statement.

### What the price says

The price is 2.3 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-26); Closing price 2652.5 JPY; reporting-to-trading FX 1; FY2025 annual sales per share 1171.3821802399796; price multiple 2.2644189443419616. FY2024 cash earnings/share -424.6371504754239. Closing-price date 2026-10-15.

## Monthly share-price history (JPY per share)

- 2016-11: JPY 1,253.00 per share

- 2016-12: JPY 1,510.00 per share

- 2017-01: JPY 1,771.00 per share

- 2017-02: JPY 1,652.00 per share

- 2017-03: JPY 1,854.00 per share

- 2017-04: JPY 1,949.00 per share

- 2017-05: JPY 1,831.00 per share

- 2017-06: JPY 1,627.00 per share

- 2017-07: JPY 1,796.00 per share

- 2017-08: JPY 1,616.00 per share

- 2017-09: JPY 1,770.00 per share

- 2017-10: JPY 2,467.00 per share

- 2017-11: JPY 2,823.00 per share

- 2017-12: JPY 2,888.00 per share

- 2018-01: JPY 2,972.00 per share

- 2018-02: JPY 2,883.00 per share

- 2018-03: JPY 2,790.00 per share

- 2018-04: JPY 2,702.00 per share

- 2018-05: JPY 2,649.00 per share

- 2018-06: JPY 2,237.00 per share

- 2018-07: JPY 2,383.00 per share

- 2018-08: JPY 1,984.00 per share

- 2018-09: JPY 1,648.00 per share

- 2018-10: JPY 1,526.00 per share

- 2018-11: JPY 1,740.00 per share

- 2018-12: JPY 1,227.00 per share

- 2019-01: JPY 1,506.00 per share

- 2019-02: JPY 1,413.00 per share

- 2019-03: JPY 1,231.00 per share

- 2019-04: JPY 1,460.00 per share

- 2019-05: JPY 1,203.00 per share

- 2019-06: JPY 1,282.00 per share

- 2019-07: JPY 1,450.00 per share

- 2019-08: JPY 1,317.00 per share

- 2019-09: JPY 1,450.00 per share

- 2019-10: JPY 1,821.00 per share

- 2019-11: JPY 1,691.00 per share

- 2019-12: JPY 1,826.00 per share

- 2020-01: JPY 1,740.00 per share

- 2020-02: JPY 1,641.00 per share

- 2020-03: JPY 1,393.00 per share

- 2020-04: JPY 1,550.00 per share

- 2020-05: JPY 1,651.00 per share

- 2020-06: JPY 1,649.00 per share

- 2020-07: JPY 1,615.00 per share

- 2020-08: JPY 1,438.00 per share

- 2020-09: JPY 1,475.00 per share

- 2020-10: JPY 1,585.00 per share

- 2020-11: JPY 2,114.00 per share

- 2020-12: JPY 2,263.00 per share

- 2021-01: JPY 2,206.00 per share

- 2021-02: JPY 2,430.00 per share

- 2021-03: JPY 2,526.00 per share

- 2021-04: JPY 2,832.00 per share

- 2021-05: JPY 2,541.00 per share

- 2021-06: JPY 2,725.00 per share

- 2021-07: JPY 2,517.00 per share

- 2021-08: JPY 2,323.00 per share

- 2021-09: JPY 2,251.00 per share

- 2021-10: JPY 2,164.00 per share

- 2021-11: JPY 2,488.00 per share

- 2021-12: JPY 2,349.00 per share

- 2022-01: JPY 2,077.00 per share

- 2022-02: JPY 1,887.00 per share

- 2022-03: JPY 2,027.00 per share

- 2022-04: JPY 1,897.00 per share

- 2022-05: JPY 2,097.00 per share

- 2022-06: JPY 1,759.00 per share

- 2022-07: JPY 1,848.00 per share

- 2022-08: JPY 1,910.00 per share

- 2022-09: JPY 1,688.00 per share

- 2022-10: JPY 1,889.00 per share

- 2022-11: JPY 2,023.00 per share

- 2022-12: JPY 1,757.00 per share

- 2023-01: JPY 1,910.00 per share

- 2023-02: JPY 1,879.00 per share

- 2023-03: JPY 1,981.00 per share

- 2023-04: JPY 1,865.00 per share

- 2023-05: JPY 1,991.00 per share

- 2023-06: JPY 2,028.00 per share

- 2023-07: JPY 2,070.00 per share

- 2023-08: JPY 1,947.00 per share

- 2023-09: JPY 1,949.00 per share

- 2023-10: JPY 1,935.00 per share

- 2023-11: JPY 2,216.50 per share

- 2023-12: JPY 2,114.50 per share

- 2024-01: JPY 2,256.00 per share

- 2024-02: JPY 2,344.00 per share

- 2024-03: JPY 2,406.50 per share

- 2024-04: JPY 2,384.00 per share

- 2024-05: JPY 2,358.00 per share

- 2024-06: JPY 2,315.50 per share

- 2024-07: JPY 2,493.50 per share

- 2024-08: JPY 1,669.00 per share

- 2024-09: JPY 1,542.00 per share

- 2024-10: JPY 1,493.00 per share

- 2024-11: JPY 1,203.00 per share

- 2024-12: JPY 1,183.00 per share

- 2025-01: JPY 1,157.00 per share

- 2025-02: JPY 1,136.00 per share

- 2025-03: JPY 1,007.50 per share

- 2025-04: JPY 984.00 per share

- 2025-05: JPY 982.70 per share

- 2025-06: JPY 1,135.00 per share

- 2025-07: JPY 1,197.00 per share

- 2025-08: JPY 1,246.50 per share

- 2025-09: JPY 1,577.00 per share

- 2025-10: JPY 1,577.50 per share

- 2025-11: JPY 1,233.00 per share

- 2025-12: JPY 1,435.00 per share

- 2026-01: JPY 1,614.00 per share

- 2026-02: JPY 1,827.50 per share

- 2026-03: JPY 1,659.50 per share

- 2026-04: JPY 2,476.00 per share

- 2026-05: JPY 3,994.00 per share

- 2026-06: JPY 4,029.00 per share

- 2026-07: JPY 3,357.00 per share

- 2026-08: JPY 3,400.00 per share

- 2026-09: JPY 3,316.00 per share

- 2026-10: JPY 3,133.00 per share

## Annual estimated value (JPY per share)

- FY2017: low JPY 1,055.67 per share, central JPY 1,173.85 per share, high JPY 1,331.18 per share

- FY2018: low JPY 1,558.28 per share, central JPY 1,744.85 per share, high JPY 1,993.22 per share

- FY2019: low JPY 1,437.12 per share, central JPY 1,609.00 per share, high JPY 1,837.80 per share

- FY2020: low JPY 885.20 per share, central JPY 974.76 per share, high JPY 1,093.99 per share

- FY2021: low JPY 2,198.00 per share, central JPY 2,401.77 per share, high JPY 2,673.03 per share

- FY2022: low JPY 2,803.06 per share, central JPY 3,697.70 per share, high JPY 4,218.65 per share

- FY2023: low JPY 1,340.15 per share, central JPY 1,641.66 per share, high JPY 1,849.74 per share

- FY2024: low JPY 1,009.25 per share, central JPY 1,139.79 per share, high JPY 1,284.85 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original EDINET filing](https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100XRR5.pdf); period 2025-12-31, filed 2026-03-26.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.