Sumitomo Mitsui Financial logged a -3.2% change during today's afternoon session, and is now trading at a price of $8.21 per share.
Sumitomo Mitsui Financial shares moved 41.6% over the last 52 weeks, with a high of $9.18 and a low of $5.39. During this time, the stock outperformed the S&P 500 index by 41.0%. As of January 2022, the company's 50-day average price is $8.0. Sumitomo Mitsui Financial Group, Inc., together with its subsidiaries, provides commercial banking, leasing, securities, consumer finance, and other services in Japan, the Americas, Europe, the Middle East, Asia, and Oceania. The large-cap Finance company has 101,000 full time employees and is based in Tokyo, Japan. Sumitomo Mitsui Financial has returned a 2594.3% dividend yield over the last 12 months.
Snapshot of the Company's Thinner Margins Than the 26.96% Industry Average:
| 2020-03-31 | 2021-03-31 | 2022-03-31 | |
|---|---|---|---|
| Revenue (MM) | $3,677,535 | $3,166,525 | $3,423,105 |
| Revenue Growth | n/a | -13.9% | 8.1% |
| Net Margins | 19.14% | 16.19% | 20.64% |
| Net Margins Growth | n/a | -15.41% | 27.49% |
| Earnings Per Share | $102.31 | $74.82 | $0.92 |
| EPS Growth | n/a | -26.87% | -98.77% |
| Diluted Shares (MM) | 6,876 | 6,854 | 6,797 |
| Free Cash Flow (MM) | $6,836,624 | $18,471,240 | $1,257,235 |
| FCF Growth | n/a | 170.18% | -93.19% |
| Capital Expenditures (MM) | -$250,836 | -$324,711 | -$288,188 |
| Net Debt / EBITDA | -14.96 | -18.91 | -15.86 |
Sumitomo Mitsui Financial Is Reasonably Valued:
Compared to the Finance sector's average of 14.34, Sumitomo Mitsui Financial has a trailing twelve month P/E ratio of 8.9 and, according to its EPS guidance of 0.91, an expected P/E ratio of 9.0. Sumitomo Mitsui Financial's PEG ratio is -0.15 based on its -61.1% compound average growth rate of historical and projected earnings per share. This indicates that the company's shares are overvalued.
However, Sumitomo Mitsui Financial is likely undervalued in terms of its equity because its P/B ratio is 0.0 compared to its sector average of 1.57. The company's shares are currently trading -99.5% below their Graham number, implying there is a margin of safety for the stock. The Graham number is calculated according to the formula:
√(22.5 * 3-year average EPS * book value per share) = √(22.5 * 59.35 * 1818.4958) = $1558.32
Sumitomo Mitsui Financial's elevated P/B ratio notwithstanding, the company's strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued.
Most of the Market Indicators on Sumitomo Mitsui Financial Are Negative:
The only analyst following Sumitomo Mitsui Financial has set a target price of $9.28 per share, which is -11.58 away from its current price. This analyst rates the stock as buy.
