# Sumitomo Metal Mining (5713.JP)

Canonical: https://gigainvestors.com/s/5713.JP

Analysis as of: 2026-10-15T07:10:41.109Z. Financial observations: FY2013–FY2026.

Listing currency: JPY. Reporting currency: JPY.

## Verdict

Not a wonderful business

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

Share price: JPY 8,608.00 per share; close as of 2026-10-15.

Estimated value: low JPY 9,132.54 per share, central JPY 12,916.69 per share, high JPY 15,120.20 per share. Buy at or below the central value JPY 12,916.69 per share. Valuation as of 2026-10-15T07:10:41.109Z; scenarios are not confidence intervals.

Expected annual return: 13.4% at the stated quote. About 13.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; JP 10-year bond 2.9% + 4 points).

## Checklist

### understandable: fail

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

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 1

- Operating margin variation: 0.50×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.10×

- FY2018: 0.12×

- FY2019: 0.11×

- FY2020: 0.10×

- FY2021: 0.14×

- FY2022: 0.29×

- FY2023: 0.17×

- FY2024: 0.08×

- FY2025: 0.03×

- FY2026: 0.16×

### moat: fail

- ROIC median below threshold

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

- Recent gross margin fell 4.2pp below the typical margin (limit 4pp)

- ROIC, median of available years: 6.5%

- ROIC, second-lowest year: 3.4%

- Typical minus recent gross margin: 4.2 pp

- Typical gross margin (annual median): 15.7%

- Recent gross margin (lower of latest and 3-year median): 11.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 5.5%

- ROIC including acquisitions, ten-year median: 5.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 4.7%

- FY2018: 7.8%

- FY2019: 5.4%

- FY2020: 5.3%

- FY2021: 7.7%

- FY2022: 19.2%

- FY2023: 9.3%

- FY2024: 3.4%

- FY2025: 1.4%

- FY2026: 7.6%

### economics: pass

- Owner earnings / net income, 5-yr: 0.91×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: JPY 632B

- Net income, five-year total: JPY 693B

- Return on incremental invested capital: 22.6%

- Working capital / revenue, annual change: -0.1 pp

- Working capital / revenue, change between three-year averages: -0.6 pp

- Working capital / revenue, final three-year average: 34.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.00×

- FY2023: 1.00×

- FY2024: -0.04×

- FY2025: 1.00×

- FY2026: 1.00×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 5.4% vs 3.4%

- Per-share earnings: -0.56 to 213.28 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -6.8%

- Ordinary dilution, 5-year annual growth: -0.2%

- Market cap gain: JPY 1.53T

- Cumulative retained earnings: JPY 696B

- Diluted shares, 10-year annual growth: -6.8%

- Diluted shares, 5-year annual growth: -0.2%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value change: JPY 213.84

- Per-share value, starting three-year median: JPY -0.56

- Per-share value, ending three-year median: JPY 213.28

- Buybacks concentrated in cheaper years (correlation): -0.50

- Average buyback yield: 0.2%

- Buyback history: 3 years

- Debt-funded buybacks: No

- Acquisition spending: JPY 206B

- Cumulative net income, 10 years: JPY 987B

- ROIC, first three-year median: 5.4%

- ROIC, last three-year median: 3.4%

Chart: Earnings per share; fiscal year observations.

- FY2017: JPY -67.22

- FY2018: JPY 327.26

- FY2019: JPY 243.06

- FY2020: JPY 220.54

- FY2021: JPY 344.29

- FY2022: JPY 1K

- FY2023: JPY 584.44

- FY2024: JPY 213.28

- FY2025: JPY 59.99

- FY2026: JPY 649.55

### accounting: pass

- Sloan accruals: 2.1%

- Receivables to sales index (DSRI): 1.17×

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.58×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.00×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -3.6%

- FY2018: 0.7%

- FY2019: -2.7%

- FY2020: -4.4%

- FY2021: 0.2%

- FY2022: 5.4%

- FY2023: 1.5%

- FY2024: -5.0%

- FY2025: -4.3%

- FY2026: 2.1%

## Holders

## Price story

Down 32% since Feb 2026 · sales +9.3%

Story as of 2026-10-16T10:00:14.381Z; price observation 2026-10-15.

Price needs cash profits to grow 1.2% a year for ten years

### Sales · FY2025–2026

sales +9.3%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YJ6N.pdf; observed 2026-06-24.

- FY2017: JPY 786B 

- FY2018: JPY 930B 

- FY2019: JPY 912B 

- FY2020: JPY 852B 

- FY2021: JPY 926B 

- FY2022: JPY 1.26T 

- FY2023: JPY 1.42T 

- FY2024: JPY 1.45T 

- FY2025: JPY 1.59T 

- FY2026: JPY 1.74T 

### Gross margin · FY2026

gross margin 15.8%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YJ6N.pdf; observed 2026-06-24.

- FY2017: 15.6% 

- FY2018: 16.0% 

- FY2019: 13.9% 

- FY2020: 12.8% 

- FY2021: 16.3% 

- FY2022: 20.5% 

- FY2023: 17.6% 

- FY2024: 11.5% 

- FY2025: 3.7% 

- FY2026: 15.8% 

## Owner memo

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

### How it makes money

Annual sales are JPY 1.7 trillion.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YJ6N.pdf (filed 2026-06-24); FY2026: revenue 1741586000000; grossProfit 274503000000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 3.7% to 15.8% during 2024–26; it earns 6.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); FY2024: grossProfit / revenue = 11.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); FY2025: grossProfit / revenue = 3.7%.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YJ6N.pdf (filed 2026-06-24); FY2026: grossProfit / revenue = 15.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); 10-year return on capital observations [[2017,0.04721622818478987],[2018,0.07811688872602954],[2019,0.05376915971924861],[2020,0.05299314906728268],[2021,0.07738442313927182],[2022,0.19243760655517086],[2023,0.09333742794686081],[2024,0.03436745903469173],[2025,0.014187332669503677],[2026,0.07649559502389622]]; median 0.06513237737157242. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 43.6% of cash earnings; earns 22.6% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); FY2018: growth capex 0; upkeep 42791000000; owner earnings 94198000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); FY2019: growth capex 0; upkeep 51184000000; owner earnings 59147000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); FY2020: growth capex 0; upkeep 46473000000; owner earnings 59482000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); FY2021: growth capex 0; upkeep 40470000000; owner earnings 99863000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); FY2022: growth capex 10115000000; upkeep 46455000000; owner earnings 281037000000. Growth capex / owner earnings = 0.03599170216021378.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); FY2023: growth capex 77600000000; upkeep 53310000000; cash acquisitions 28811000000; owner earnings 160585000000. Growth capex plus acquisitions / owner earnings = 0.6626459507425974.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); FY2025: growth capex 55082000000; upkeep 67074000000; cash acquisitions 23994000000; owner earnings 16487000000. Growth capex plus acquisitions / owner earnings = 4.79626372293322.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YJ6N.pdf (filed 2026-06-24); FY2026: growth capex 25749000000; upkeep 59842000000; cash acquisitions 51048000000; owner earnings 176290000000. Growth capex plus acquisitions / owner earnings = 0.43562879346531286.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); Incremental return on capital 0.225831854751597, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); Dividend observations: [[2017,8274000000],[2018,12686000000],[2019,32151000000],[2020,16762000000],[2021,16762000000],[2022,58252000000],[2023,76386000000],[2024,41215000000],[2025,30773000000],[2026,32712000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://query2.finance.yahoo.com/ws/fundamentals-timeseries/v1/finance/timeseries/5713.T (filed 2026-06-24); FY2026: cash repurchases 15025000000 JPY.

### What the price says

The price assumes cash profits grow 1.2% yearly over ten years; actual growth was 64.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-24); Ten-year compound average after fade. Initial solved rate 0.004942587366283502. Price 8608; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 4.525307443365696 → FY2026 649.55. Closing-price date 2026-10-15.

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

- 2016-11: JPY 3,056.00 per share

- 2016-12: JPY 3,014.00 per share

- 2017-01: JPY 3,064.00 per share

- 2017-02: JPY 3,122.00 per share

- 2017-03: JPY 3,167.00 per share

- 2017-04: JPY 3,023.00 per share

- 2017-05: JPY 2,692.00 per share

- 2017-06: JPY 3,001.00 per share

- 2017-07: JPY 3,337.00 per share

- 2017-08: JPY 3,790.00 per share

- 2017-09: JPY 3,614.00 per share

- 2017-10: JPY 4,456.00 per share

- 2017-11: JPY 4,355.00 per share

- 2017-12: JPY 5,178.00 per share

- 2018-01: JPY 5,108.00 per share

- 2018-02: JPY 5,032.00 per share

- 2018-03: JPY 4,480.00 per share

- 2018-04: JPY 4,698.00 per share

- 2018-05: JPY 4,166.00 per share

- 2018-06: JPY 4,238.00 per share

- 2018-07: JPY 4,015.00 per share

- 2018-08: JPY 3,590.00 per share

- 2018-09: JPY 3,986.00 per share

- 2018-10: JPY 3,560.00 per share

- 2018-11: JPY 3,305.00 per share

- 2018-12: JPY 2,947.50 per share

- 2019-01: JPY 3,136.00 per share

- 2019-02: JPY 3,264.00 per share

- 2019-03: JPY 3,270.00 per share

- 2019-04: JPY 3,479.00 per share

- 2019-05: JPY 2,862.00 per share

- 2019-06: JPY 3,219.00 per share

- 2019-07: JPY 3,115.00 per share

- 2019-08: JPY 2,991.50 per share

- 2019-09: JPY 3,347.00 per share

- 2019-10: JPY 3,656.00 per share

- 2019-11: JPY 3,316.00 per share

- 2019-12: JPY 3,544.00 per share

- 2020-01: JPY 3,164.00 per share

- 2020-02: JPY 2,685.50 per share

- 2020-03: JPY 2,218.00 per share

- 2020-04: JPY 2,718.50 per share

- 2020-05: JPY 3,001.00 per share

- 2020-06: JPY 3,009.00 per share

- 2020-07: JPY 3,134.00 per share

- 2020-08: JPY 3,237.00 per share

- 2020-09: JPY 3,245.00 per share

- 2020-10: JPY 3,223.00 per share

- 2020-11: JPY 3,887.00 per share

- 2020-12: JPY 4,579.00 per share

- 2021-01: JPY 4,544.00 per share

- 2021-02: JPY 5,142.00 per share

- 2021-03: JPY 4,779.00 per share

- 2021-04: JPY 4,639.00 per share

- 2021-05: JPY 4,908.00 per share

- 2021-06: JPY 4,325.00 per share

- 2021-07: JPY 4,418.00 per share

- 2021-08: JPY 4,224.00 per share

- 2021-09: JPY 4,065.00 per share

- 2021-10: JPY 4,423.00 per share

- 2021-11: JPY 4,233.00 per share

- 2021-12: JPY 4,350.00 per share

- 2022-01: JPY 5,248.00 per share

- 2022-02: JPY 5,746.00 per share

- 2022-03: JPY 6,163.00 per share

- 2022-04: JPY 5,671.00 per share

- 2022-05: JPY 5,416.00 per share

- 2022-06: JPY 4,250.00 per share

- 2022-07: JPY 4,214.00 per share

- 2022-08: JPY 4,405.00 per share

- 2022-09: JPY 4,160.00 per share

- 2022-10: JPY 4,182.00 per share

- 2022-11: JPY 4,645.00 per share

- 2022-12: JPY 4,671.00 per share

- 2023-01: JPY 5,248.00 per share

- 2023-02: JPY 5,060.00 per share

- 2023-03: JPY 5,049.00 per share

- 2023-04: JPY 5,009.00 per share

- 2023-05: JPY 4,230.00 per share

- 2023-06: JPY 4,631.00 per share

- 2023-07: JPY 4,914.00 per share

- 2023-08: JPY 4,520.00 per share

- 2023-09: JPY 4,399.00 per share

- 2023-10: JPY 4,216.00 per share

- 2023-11: JPY 4,292.00 per share

- 2023-12: JPY 4,246.00 per share

- 2024-01: JPY 4,101.00 per share

- 2024-02: JPY 3,904.00 per share

- 2024-03: JPY 4,588.00 per share

- 2024-04: JPY 5,314.00 per share

- 2024-05: JPY 5,115.00 per share

- 2024-06: JPY 4,878.00 per share

- 2024-07: JPY 4,610.00 per share

- 2024-08: JPY 4,084.00 per share

- 2024-09: JPY 4,291.00 per share

- 2024-10: JPY 4,291.00 per share

- 2024-11: JPY 3,696.00 per share

- 2024-12: JPY 3,613.00 per share

- 2025-01: JPY 3,588.00 per share

- 2025-02: JPY 3,278.00 per share

- 2025-03: JPY 3,245.00 per share

- 2025-04: JPY 3,181.00 per share

- 2025-05: JPY 3,319.00 per share

- 2025-06: JPY 3,560.00 per share

- 2025-07: JPY 3,355.00 per share

- 2025-08: JPY 4,035.00 per share

- 2025-09: JPY 4,767.00 per share

- 2025-10: JPY 5,077.00 per share

- 2025-11: JPY 5,132.00 per share

- 2025-12: JPY 6,357.00 per share

- 2026-01: JPY 9,360.00 per share

- 2026-02: JPY 12,625.00 per share

- 2026-03: JPY 8,855.00 per share

- 2026-04: JPY 9,423.00 per share

- 2026-05: JPY 9,093.00 per share

- 2026-06: JPY 7,469.00 per share

- 2026-07: JPY 8,185.00 per share

- 2026-08: JPY 11,115.00 per share

- 2026-09: JPY 9,911.00 per share

- 2026-10: JPY 9,514.00 per share

## Annual estimated value (JPY per share)

- FY2020: low JPY 2,701.34 per share, central JPY 3,004.30 per share, high JPY 3,407.61 per share

- FY2021: low JPY 3,081.05 per share, central JPY 3,435.68 per share, high JPY 3,907.78 per share

- FY2022: low JPY 5,761.58 per share, central JPY 6,461.24 per share, high JPY 7,392.64 per share

- FY2023: low JPY 8,270.86 per share, central JPY 11,524.20 per share, high JPY 13,418.62 per share

- FY2024: low JPY 8,156.06 per share, central JPY 11,460.68 per share, high JPY 13,384.96 per share

- FY2025: low JPY 8,964.10 per share, central JPY 12,606.10 per share, high JPY 14,726.84 per share

- FY2026: low JPY 9,132.54 per share, central JPY 12,916.69 per share, high JPY 15,120.20 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/S100YJ6N.pdf); period 2026-03-31, filed 2026-06-24.

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.