# Sumitomo Electric Industries (5802.JP)

Canonical: https://gigainvestors.com/s/5802.JP

Analysis as of: 2026-10-15T07:10:41.698Z. 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 2,107.50 per share; close as of 2026-10-15.

Estimated value: low JPY 791.18 per share, central JPY 1,047.87 per share, high JPY 1,219.96 per share. Buy at or below the central value JPY 1,047.87 per share. Valuation as of 2026-10-15T07:10:41.698Z; scenarios are not confidence intervals.

Expected annual return: 6.5% at the stated quote. About 6.5% 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: pass

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

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.25×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.05×

- FY2018: 0.06×

- FY2019: 0.05×

- FY2020: 0.04×

- FY2021: 0.04×

- FY2022: 0.04×

- FY2023: 0.04×

- FY2024: 0.05×

- FY2025: 0.07×

- FY2026: 0.08×

### moat: fail

- ROIC median below threshold

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

- ROIC, median of available years: 6.1%

- ROIC, second-lowest year: 3.7%

- Typical minus recent gross margin: -0.5 pp

- Typical gross margin (annual median): 18.3%

- Recent gross margin (lower of latest and 3-year median): 18.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 5.4%

- ROIC including acquisitions, ten-year median: 4.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 6.5%

- FY2018: 6.8%

- FY2019: 6.2%

- FY2020: 4.6%

- FY2021: 3.7%

- FY2022: 3.6%

- FY2023: 4.7%

- FY2024: 6.0%

- FY2025: 8.6%

- FY2026: 10.5%

### economics: pass

- Owner earnings / net income, 5-yr: 0.95×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: JPY 878B

- Net income, five-year total: JPY 922B

- Return on incremental invested capital: 27.3%

- Working capital / revenue, annual change: 0.5 pp

- Working capital / revenue, change between three-year averages: 2.9 pp

- Working capital / revenue, final three-year average: 28.7%

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

- FY2022: 0.92×

- FY2023: 0.94×

- FY2024: 1.05×

- FY2025: 0.93×

- FY2026: 0.94×

### 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: 6.5% vs 8.6%

- Per-share earnings: 137.61 to 248.47 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.2%

- Ordinary dilution, 5-year annual growth: 0.0%

- Market cap gain: JPY 1.27T

- Cumulative retained earnings: JPY 829B

- Diluted shares, 10-year annual growth: -0.2%

- Diluted shares, 5-year annual growth: 0.0%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 7.7%

- Per-share value change: JPY 110.86

- Per-share value, starting three-year median: JPY 137.61

- Per-share value, ending three-year median: JPY 248.47

- Buybacks concentrated in cheaper years (correlation): -0.18

- Average buyback yield: 0.6%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: JPY 29B

- Cumulative net income, 10 years: JPY 1.40T

- ROIC, first three-year median: 6.5%

- ROIC, last three-year median: 8.6%

Chart: Earnings per share; fiscal year observations.

- FY2017: JPY 137.61

- FY2018: JPY 154.29

- FY2019: JPY 151.38

- FY2020: JPY 93.24

- FY2021: JPY 72.25

- FY2022: JPY 123.49

- FY2023: JPY 144.45

- FY2024: JPY 191.98

- FY2025: JPY 248.47

- FY2026: JPY 473.78

### accounting: pass

- Sloan accruals: -1.2%

- Receivables to sales index (DSRI): 0.97×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.15×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.02×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -3.5%

- FY2018: -4.0%

- FY2019: -2.0%

- FY2020: -6.2%

- FY2021: -3.4%

- FY2022: 0.5%

- FY2023: -3.8%

- FY2024: -5.6%

- FY2025: -4.7%

- FY2026: -1.2%

## Holders

## Price story

Down 33% since May 2026 · sales +9.2%

Story as of 2026-10-16T10:00:14.391Z; price observation 2026-10-15.

Price needs cash profits to grow 14.1% a year for ten years

### Sales · FY2025–2026

sales +9.2%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YL2M.pdf; observed 2026-06-26.

- FY2017: JPY 2.81T 

- FY2018: JPY 3.08T 

- FY2019: JPY 3.18T 

- FY2020: JPY 3.11T 

- FY2021: JPY 2.92T 

- FY2022: JPY 3.37T 

- FY2023: JPY 4.01T 

- FY2024: JPY 4.40T 

- FY2025: JPY 4.68T 

- FY2026: JPY 5.11T 

### Gross margin · FY2026

gross margin 20.2%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YL2M.pdf; observed 2026-06-26.

- FY2017: 18.8% 

- FY2018: 18.6% 

- FY2019: 18.4% 

- FY2020: 17.8% 

- FY2021: 18.2% 

- FY2022: 17.0% 

- FY2023: 16.7% 

- FY2024: 17.4% 

- FY2025: 18.8% 

- FY2026: 20.2% 

## Owner memo

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

### How it makes money

Annual sales are JPY 5.1 trillion.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YL2M.pdf (filed 2026-06-26); FY2026: revenue 5110171000000; grossProfit 1034031000000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 17.4% to 20.2% during 2024–26; it earns 6.1% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-26); FY2024: grossProfit / revenue = 17.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-26); FY2025: grossProfit / revenue = 18.8%.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YL2M.pdf (filed 2026-06-26); FY2026: grossProfit / revenue = 20.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-26); 10-year return on capital observations [[2017,0.0654153288838463],[2018,0.06821736519254469],[2019,0.06229558480221543],[2020,0.04563890912409584],[2021,0.03688859531534332],[2022,0.03617062781666179],[2023,0.04749736198931556],[2024,0.06005072545989526],[2025,0.08567016840197277],[2026,0.1046185741676606]]; median 0.06117315513105534. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 17% gross margin through 2022 cost inflation.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YL2M.pdf (filed 2026-06-26); Gross margin observations: [[2021,0.18205531457078442],[2022,0.17041785844614227],[2023,0.1672614647486332]]; range within 2 percentage points.

### Where the cash goes

Spends 3.6% of cash earnings on expansion; earns 27.3% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-26); FY2017: growth capex 0; upkeep 175170000000; owner earnings 69703104594.5625. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-26); FY2018: growth capex 30512000000; upkeep 141439000000; owner earnings 120328000000. Growth capex / owner earnings = 0.25357356558739447.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-26); FY2019: growth capex 26605888759.898132; upkeep 151440111240.10187; owner earnings 115774304727.54808. Growth capex / owner earnings = 0.22980823614108353.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-26); FY2020: growth capex 0; upkeep 192874000000; owner earnings 39698571137.79768. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-26); FY2021: growth capex 0; upkeep 166831000000; owner earnings 46235531895.097984. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-26); FY2022: growth capex 0; upkeep 174059000000; owner earnings 88659601028.24014. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-26); FY2023: growth capex 0; upkeep 184467000000; owner earnings 105979000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-26); FY2024: growth capex 0; upkeep 179323000000; owner earnings 156977000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-26); FY2025: growth capex 0; upkeep 199824000000; owner earnings 179917000000. Growth capex / owner earnings = 0.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YL2M.pdf (filed 2026-06-26); FY2026: growth capex 12386000000; upkeep 209842000000; owner earnings 346830000000. Growth capex / owner earnings = 0.03571202029812877.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-26); Incremental return on capital 0.2729287883933559, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-26); Dividend observations: [[2017,27541000000],[2018,34324000000],[2019,38224000000],[2020,37444000000],[2021,24963000000],[2022,31983000000],[2023,39004000000],[2024,39004000000],[2025,68646000000],[2026,86588000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YL2M.pdf (filed 2026-06-26); FY2026: cash repurchases 13000000 JPY.

### What the price says

The price assumes cash profits grow 14.1% yearly over ten years; actual growth was 14.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-26); Ten-year compound average after fade. Initial solved rate 0.19074381883168623. Price 2107.5; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 114.72999999999999 → FY2026 444.70246219297013. Closing-price date 2026-10-15.

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

- 2016-11: JPY 400.63 per share

- 2016-12: JPY 421.63 per share

- 2017-01: JPY 411.88 per share

- 2017-02: JPY 457.38 per share

- 2017-03: JPY 461.50 per share

- 2017-04: JPY 454.13 per share

- 2017-05: JPY 438.88 per share

- 2017-06: JPY 432.50 per share

- 2017-07: JPY 446.88 per share

- 2017-08: JPY 430.50 per share

- 2017-09: JPY 459.50 per share

- 2017-10: JPY 480.38 per share

- 2017-11: JPY 489.63 per share

- 2017-12: JPY 476.25 per share

- 2018-01: JPY 465.13 per share

- 2018-02: JPY 424.50 per share

- 2018-03: JPY 405.88 per share

- 2018-04: JPY 419.88 per share

- 2018-05: JPY 411.13 per share

- 2018-06: JPY 412.50 per share

- 2018-07: JPY 428.50 per share

- 2018-08: JPY 439.50 per share

- 2018-09: JPY 445.50 per share

- 2018-10: JPY 385.50 per share

- 2018-11: JPY 398.13 per share

- 2018-12: JPY 365.50 per share

- 2019-01: JPY 386.63 per share

- 2019-02: JPY 387.25 per share

- 2019-03: JPY 367.13 per share

- 2019-04: JPY 368.63 per share

- 2019-05: JPY 327.88 per share

- 2019-06: JPY 353.63 per share

- 2019-07: JPY 338.50 per share

- 2019-08: JPY 312.75 per share

- 2019-09: JPY 342.75 per share

- 2019-10: JPY 374.13 per share

- 2019-11: JPY 408.50 per share

- 2019-12: JPY 413.00 per share

- 2020-01: JPY 370.00 per share

- 2020-02: JPY 322.63 per share

- 2020-03: JPY 284.50 per share

- 2020-04: JPY 278.38 per share

- 2020-05: JPY 313.63 per share

- 2020-06: JPY 309.88 per share

- 2020-07: JPY 291.50 per share

- 2020-08: JPY 312.25 per share

- 2020-09: JPY 294.75 per share

- 2020-10: JPY 286.38 per share

- 2020-11: JPY 298.50 per share

- 2020-12: JPY 341.63 per share

- 2021-01: JPY 348.13 per share

- 2021-02: JPY 386.63 per share

- 2021-03: JPY 414.50 per share

- 2021-04: JPY 406.50 per share

- 2021-05: JPY 419.13 per share

- 2021-06: JPY 409.75 per share

- 2021-07: JPY 386.88 per share

- 2021-08: JPY 367.63 per share

- 2021-09: JPY 374.00 per share

- 2021-10: JPY 376.63 per share

- 2021-11: JPY 372.38 per share

- 2021-12: JPY 374.88 per share

- 2022-01: JPY 378.13 per share

- 2022-02: JPY 380.63 per share

- 2022-03: JPY 365.50 per share

- 2022-04: JPY 349.63 per share

- 2022-05: JPY 356.38 per share

- 2022-06: JPY 374.75 per share

- 2022-07: JPY 368.38 per share

- 2022-08: JPY 400.63 per share

- 2022-09: JPY 366.00 per share

- 2022-10: JPY 388.50 per share

- 2022-11: JPY 400.13 per share

- 2022-12: JPY 376.13 per share

- 2023-01: JPY 388.63 per share

- 2023-02: JPY 418.88 per share

- 2023-03: JPY 424.25 per share

- 2023-04: JPY 431.00 per share

- 2023-05: JPY 413.50 per share

- 2023-06: JPY 439.25 per share

- 2023-07: JPY 455.00 per share

- 2023-08: JPY 446.38 per share

- 2023-09: JPY 450.38 per share

- 2023-10: JPY 392.25 per share

- 2023-11: JPY 458.50 per share

- 2023-12: JPY 448.88 per share

- 2024-01: JPY 494.00 per share

- 2024-02: JPY 555.13 per share

- 2024-03: JPY 588.63 per share

- 2024-04: JPY 610.25 per share

- 2024-05: JPY 636.13 per share

- 2024-06: JPY 625.63 per share

- 2024-07: JPY 577.50 per share

- 2024-08: JPY 602.13 per share

- 2024-09: JPY 573.88 per share

- 2024-10: JPY 595.63 per share

- 2024-11: JPY 721.50 per share

- 2024-12: JPY 713.38 per share

- 2025-01: JPY 728.13 per share

- 2025-02: JPY 654.63 per share

- 2025-03: JPY 616.50 per share

- 2025-04: JPY 572.25 per share

- 2025-05: JPY 759.00 per share

- 2025-06: JPY 773.75 per share

- 2025-07: JPY 939.50 per share

- 2025-08: JPY 1,050.75 per share

- 2025-09: JPY 1,054.50 per share

- 2025-10: JPY 1,412.50 per share

- 2025-11: JPY 1,535.25 per share

- 2025-12: JPY 1,581.25 per share

- 2026-01: JPY 1,681.00 per share

- 2026-02: JPY 2,593.75 per share

- 2026-03: JPY 2,095.00 per share

- 2026-04: JPY 2,547.50 per share

- 2026-05: JPY 3,146.25 per share

- 2026-06: JPY 2,927.00 per share

- 2026-07: JPY 2,184.00 per share

- 2026-08: JPY 2,221.00 per share

- 2026-09: JPY 2,318.00 per share

- 2026-10: JPY 2,329.00 per share

## Annual estimated value (JPY per share)

- FY2020: low JPY 1,550.07 per share, central JPY 1,736.34 per share, high JPY 1,984.30 per share

- FY2021: low JPY 1,218.97 per share, central JPY 1,358.65 per share, high JPY 1,544.60 per share

- FY2022: low JPY 1,458.99 per share, central JPY 1,630.32 per share, high JPY 1,858.39 per share

- FY2023: low JPY 2,027.83 per share, central JPY 2,684.61 per share, high JPY 3,102.66 per share

- FY2024: low JPY 2,131.60 per share, central JPY 2,776.58 per share, high JPY 3,211.93 per share

- FY2025: low JPY 2,268.45 per share, central JPY 2,924.33 per share, high JPY 3,378.95 per share

- FY2026: low JPY 3,164.73 per share, central JPY 4,191.46 per share, high JPY 4,879.85 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/S100YL2M.pdf); period 2026-03-31, filed 2026-06-26.

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.

## Reported holder observations