Sumitomo Mitsui Financial Group, Inc. Fundamental Analysis
Sumitomo Mitsui Financial Group, Inc. Fundamental Analysis
Sumitomo Mitsui Financial Group, Inc. (SMFG) shows strong financial fundamentals with a PE ratio of 9.27, profit margin of 16.32%, and ROE of 16.47%. The company generates $9339.5B in annual revenue with strong year-over-year growth of 10.16%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SMFG's fundamental strength across five key dimensions:
Efficiency Score
WeakSMFG struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSMFG trades at attractive valuation levels.
Growth Score
ExcellentSMFG delivers strong and consistent growth momentum.
Financial Health Score
ModerateSMFG shows balanced financial health with some risks.
Profitability Score
ExcellentSMFG achieves industry-leading margins.
Key Financial Metrics
Is SMFG Expensive or Cheap?
P/E Ratio
SMFG trades at 9.27 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SMFG's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Sumitomo Mitsui Financial Group, Inc. at 1.47 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.34 times EBITDA. This is generally considered low.
How Well Does SMFG Make Money?
Net Profit Margin
For every $100 in sales, Sumitomo Mitsui Financial Group, Inc. keeps $16.32 as profit after all expenses.
Operating Margin
Core operations generate 22.94 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.47 in profit for every $100 of shareholder equity.
ROA
Sumitomo Mitsui Financial Group, Inc. generates $0.76 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sumitomo Mitsui Financial Group, Inc. generates strong operating cash flow of $4.57T, reflecting robust business health.
Free Cash Flow
Sumitomo Mitsui Financial Group, Inc. generates strong free cash flow of $4.45T, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1164.99 in free cash annually.
FCF Yield
SMFG converts 51.91% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.27
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.001
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.47
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.92
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.70
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.25
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.008
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How SMFG Stacks Against Its Sector Peers
| Metric | SMFG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.27 | 19.38 | Better (Cheaper) |
| ROE | 16.47% | 804.00% | Weak |
| Net Margin | 16.32% | -7623.00% (disorted) | Strong |
| Debt/Equity | 3.70 | 1.07 | Weak (High Leverage) |
| Current Ratio | 2.25 | 609.22 | Strong Liquidity |
| ROA | 0.76% | -20946.00% (disorted) | Weak |
SMFG outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sumitomo Mitsui Financial Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
229.55%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
76.69%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-25.97%
Industry Style: Value, Dividend, Cyclical
Declining