Sumitomo Electric Industries (SMTOY) Stock Analysis & Winston Score

Sumitomo Electric Industries is a Japanese company that makes wiring systems, cables, and electronic components used in cars, buildings, and communication networks. Its biggest product line is automotive wiring harnesses — the bundles of wires that carry electricity through vehicles — and it sells these to major automakers around the world. The company also makes fiber optic cables, power cables, and hard metal tools used in manufacturing.

Sumitomo Electric earns money by selling these physical products to automakers, utility companies, telecom providers, and industrial customers. It operates globally, with factories and sales in Japan, Asia, Europe, and the Americas, and generates roughly $30 billion in annual revenue. Its deep, long-term relationships with automakers and its scale in wiring harness production give it a strong competitive position. The main risk the company faces is the shift to electric vehicles, which use different and simpler wiring systems than traditional cars, potentially reducing demand for its existing automotive products.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+17.0% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+144.2% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

1.7%ownership

Relatively low insider ownership

Cash Position

Cash flow positive

$954.1B cash & investments

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Sumitomo Electric Industries is a rare growth stock that's already generating positive cash flow while growing at 17%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

+0.0% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 6.24B (2022) → 6.24B (2026)

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Gross Margin

19.5%

Thin — 19.5% gross margin

Operating Margin

7.3%

Modest — 7.3% operating margin

ROCE

2.8%

Weak — 2.8% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Growth

Sales YoY

+14.2%

Fast-growing sales (+14.2% YoY)

EPS YoY

+106.7%

Earnings growing fast (+106.7% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency

7/8 quarters

Every recent quarter grew earnings vs last year

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Cash Flow

Cash Conversion

0%

Weak — only 0% of profit becomes cash

FCF Margin

0.0%

Thin free cash flow (0.0%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Stability

Debt / Equity

0.26

Conservative — low debt load (0.26)

Interest Cover

19.65x

Comfortably covers interest (19.7x)

Interest coverage above 8. Profits cover interest many times over.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Valuation

P/E Ratio (TTM)

0.1x

Attractive valuation — P/E 0.1

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward

+0.0

GROWING

Earnings roughly flat

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Dividends

Dividend Yield

1.78%

Small dividend — 1.78% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth

+92.7%

Dividend growing fast (92.7% YoY)

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

🔒 See full fundamentals and if they are improving or declining — click here for your free trial now.

Start free trial