Sumitomo Heavy Industries Ltd SOHVY

IndustrialsMachinery, Tools, Heavy Vehicles, Trains & ShipsJapan

Last close 8.18 USD on Nov 1, 2026, +22.7% year to date

Quant rating

Quant rating A Rank 31 of 418 in Industrials

Growth A 49 of 418
Valuation A 24 of 418
Quality B 119 of 418
Revisions A 53 of 418
Momentum B 166 of 418

Wall Street consensus Hold (2.67)Average target 42.44 USD +418.8%

Historical valuation

Multiples use consensus estimates for the next twelve months. The dashed line is the 5-year average.

Key data

Market cap: 4.1B
Enterprise value: 5.0B
52-week range: 6.28 – 10.16
3-year range: 4.66 – 10.16
Dividend yield: 2.58%
Beta (5 years): 0.63
Shares outstanding: 123M
Next earnings: Oct 30, 2026

About the company

Sumitomo Heavy Industries Ltd is a Japan-based company engaged in the provision of general heavy machinery. It has four business segments. Mechatronics segment provides transmissions, motors, inverters, laser processing systems and precision positioning devices, and operates in North America, Europe, Southeast Asia, China and Japan. Industrial Machinery segment provides plastic processing machinery, cryogenic freezers, accelerators, medical machinery and equipment, forging presses and others in Japan, North America and Europe. Logistics & Construction segment provides hydraulic excavators and road machinery, construction cranes, transport and loading machinery, logistics systems, parking systems and forklifts in Japan, China, Indonesia and North America. Energy & Lifeline segment provides boilers and air pollution control equipment, water treatment equipment, industrial turbines and pumps, reaction vessels, food machinery and ships. It also has real estate, software and other business.

Growth and profitability fiscal year ends December 31

Growth and profitability by fiscal year
	2025	2024	2023	2022	2021	5Y avg
Revenue (mil)	6,811	6,815	7,667	6,514	7,670	–
Revenue growth	−0.1%	−11.1%	17.7%	−15.1%	−4.6%	−3.3%
EPS (basic, normalized)	1.67	0.42	1.78	0.36	–	–
EPS growth	297.7%	−76.4%	398.0%	–	–	–
Gross margin	24.5%	24.0%	23.6%	22.1%	21.8%	23.2%
Net margin	2.9%	0.7%	3.0%	0.7%	3.2%	2.1%
ROE	4.7%	1.2%	5.5%	–	5.6%	4.3%

Balance sheet, last quarter
Cash & short-term investments (mil)	819
Current ratio	1.94x
Long-term debt (mil)	805
Net debt (mil)	881
Total equity (mil)	4,322
Net debt / equity	0.20x
Net debt / EBITDA	1.51x

Estimates and valuation

Consensus estimates and implied multiples
	Sales (mil)			EBITDA (mil)			EPS
Fiscal year	Mean est.	Growth	EV/Sales	Mean est.	Growth	EV/EBITDA	Mean est.	Growth	P/E
2025 actual	6,811	−0.1%	0.7x	583	−6.4%	8.6x	1.67	+297.7%	4.9x
2026	7,168	+5.2%	0.7x	740	+26.8%	6.8x	2.22	+33.1%	3.7x
2027	7,765	+8.3%	0.6x	815	+10.2%	6.2x	2.89	+30.0%	2.8x
2028	8,084	+4.1%	0.6x	902	+10.7%	5.6x	3.29	+14.0%	2.5x

Estimate revisions

Change in consensus estimates over 1, 3 and 6 months
	Sales				EPS
Fiscal year	Estimate (mil)	1M	3M	6M	Estimate	1M	3M	6M
2026	7,168	−0.3%	+3.5%	+2.9%	2.22	−5.1%	+16.8%	+23.4%
2027	7,765	0.0%	+5.5%	+4.7%	2.89	0.0%	+20.4%	+30.6%
2028	8,084	0.0%	+6.5%	+6.3%	3.29	0.0%	+20.4%	+29.7%

Earnings surprises EPS beat in 4 of the last 4 quarters

Reported results versus consensus, last 10 fiscal quarters
Quarter ended	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Sales reported (mil)	254,811	265,542	251,719	299,054	241,536	253,091	258,584	313,670	255,566	298,610
Sales mean (mil)	248,700	248,400	254,600	361,509	235,100	242,582	237,636	286,540	249,100	260,067
Surprise	+2.5%	+6.9%	−1.1%	−17.3%	+2.7%	+4.3%	+8.8%	+9.5%	+2.6%	+14.8%
EPS reported	111.13	81.96	6.56	−136.69	54.04	49.13	62.41	91.84	65.96	118.63
EPS mean	–	–	–	111.30	–	–	54.90	83.90	58.00	66.60
Surprise	–	–	–	−222.8%	–	–	+13.7%	+9.5%	+13.7%	+78.1%

Peer comparison Machinery, Tools, Heavy Vehicles, Trains & Ships

Peers in the same industry group, by market capitalization
Company	Market cap	Net debt/EBITDA	Net margin	P/B	FY1 P/E	FY2 P/E	FY1 EV/EBITDA	FY2 EV/EBITDA
SOHVY Sumitomo Heavy Industries Ltd	4.1B	1.51x	2.9%	0.89x	3.7x	2.8x	6.8x	6.2x
ALH Alliance Laundry Holdings Inc.	4.3B	3.95x	6.0%	8.69x	16.3x	14.7x	12.6x	11.8x
BMI Badger Meter, Inc.	4.2B	−0.31x	15.5%	6.51x	33.2x	29.8x	19.9x	18.3x
FELE Franklin Electric Co., Inc.	4.2B	1.22x	6.9%	2.91x	20.1x	17.9x	12.1x	10.7x
KRNTY Krones AG	4.0B	−0.37x	5.3%	1.63x	5.8x	5.5x	5.4x	5.1x
DNIYY Danieli & C Officine Meccaniche SpA	4.0B	–	6.2%	1.23x	8.7x	8.1x	1.6x	1.5x
Mean		1.20x	7.1%	3.65x	14.6x	13.1x	9.7x	8.9x
Median		1.22x	6.1%	2.27x	12.5x	11.4x	9.5x	8.4x

Technical analysis

1M−13.5%
3M+0.7%
1Y+19.4%
3Y+41.3%

Financial statements in millions of USD

Income statement in millions of USD, fiscal years

Income statement, Sumitomo Heavy Industries Ltd, fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Total revenue	6,811	6,815	7,667	6,514	7,670	8,040
Cost of revenue	5,145	5,180	5,858	5,076	5,995	6,233
Gross profit	1,665	1,635	1,809	1,439	1,675	1,807
Selling, general & administrative expenses	1,139	1,072	1,107	964	1,036	1,104
Research & development	197	213	175	133	176	174
Interest expense (income), operating	–	–	–	–	–	–
Unusual expense (income)	27.0	175	145	194	52.1	–
Other operating expenses	0	0	0	0	0	0
Operating income	302	176	382	147	412	528
Net interest income (expense)	−7.1	−17.0	−1.9	1.5	0.1	−12.8
Gain (loss) on sale of assets	–	–	–	–	–	–
Other non-operating income (expense)	−8.3	−20.7	−15.6	−13.3	−16.3	−25.9
Net income before taxes	286	138	365	135	395	490
Provision for taxes	87.5	84.4	133	101	137	166
Minority interest	−1.3	−4.6	0.2	9.5	−17.0	−18.7
Equity in affiliates	–	–	–	–	–	–
U.S. GAAP adjustment	–	–	–	–	–	–
Net income before extraordinary items	197	49.1	232	44.1	242	305
Extraordinary items	–	–	–	–	–	–
Net income	197	49.1	232	44.1	242	305
EBIT, normalized	329	351	527	342	464	528
EBITDA, normalized	575	588	785	588	733	787
Basic EPS, normalized	1.67	0.42	1.78	0.36	–	–

Balance sheet in millions of USD, fiscal years

Balance sheet, Sumitomo Heavy Industries Ltd, fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Assets
Cash & short-term investments	709	707	741	743	899	810
Receivables	1,988	1,941	2,038	2,247	2,526	2,493
Total inventory	2,099	2,124	2,276	2,102	1,808	1,869
Prepaid expenses	–	–	–	–	–	–
Other current assets	226	219	250	334	310	341
Total current assets	5,023	4,991	5,305	5,426	5,543	5,513
Property, plant & equipment	2,383	2,214	2,339	2,441	2,491	2,493
Goodwill	70.5	51.0	137	147	265	268
Intangibles	141	129	186	285	428	421
Long-term investments	155	142	147	134	213	191
Note receivable	61.6	52.2	39.7	23.8	24.0	29.9
Other long-term assets	597	439	359	306	346	348
Total assets	8,430	8,018	8,513	8,763	9,311	9,264
Liabilities
Accounts payable	935	974	1,282	1,421	1,448	1,474
Payable/accrued	–	–	–	–	–	–
Accrued expenses	58.3	50.7	55.0	57.3	–	–
Short-term debt	714	648	448	469	286	587
Current portion of long-term debt	76.1	179	162	229	57.4	75.4
Other current liabilities	831	795	1,004	1,014	1,290	1,264
Total current liabilities	2,614	2,646	2,951	3,190	3,082	3,401
Long-term debt	888	753	602	612	890	609
Minority interest	29.1	36.5	54.5	58.4	129	123
Other liabilities	547	506	512	560	778	812
Total liabilities	4,078	3,942	4,119	4,421	4,878	4,944
Shareholders' equity
Preferred stock	–	–	–	–	–	–
Common stock	197	196	219	235	279	287
Additional paid-in capital	154	160	179	192	236	242
Retained earnings (accumulated deficit)	2,838	2,728	3,074	3,154	3,526	3,415
Treasury stock	−71.2	−71.3	−8.3	−8.8	−9.9	−10.0
Other equity	1,234	1,063	931	769	402	385
Total equity	4,352	4,076	4,394	4,342	4,433	4,319
Total liabilities & shareholders' equity	8,430	8,018	8,513	8,763	9,311	9,264

Cash flow statement in millions of USD, fiscal years

Cash flow statement, Sumitomo Heavy Industries Ltd, fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Operating activities
Net income	286	138	365	135	395	490
Depreciation, depletion & amortization	246	238	258	226	269	259
Deferred taxes	–	–	–	–	–	–
Non-cash items	44.6	169	162	239	74.8	−30.5
Changes in working capital	−171	−464	−321	−438	−151	−381
Cash from operations	406	81.2	463	163	587	337
Investing activities
Capital expenditures	−334	−303	−280	−279	−360	−384
Other investing cash flows	−44.8	−11.4	−27.0	−5.6	−35.1	−153
Cash from investing	−379	−315	−307	−284	−395	−537
Financing activities
Financing cash flow items	−38.0	−36.7	−25.3	−81.4	−15.7	−13.1
Cash dividends paid	−95.8	−92.6	−91.2	−117	−48.8	−134
Issuance (retirement) of debt, net	–	–	–	–	–	–
Other financing cash flows	88.2	396	−5.5	363	−7.4	482
Cash from financing	−45.6	267	−122	165	−71.9	334
Foreign exchange effects	18.7	13.5	11.5	22.7	−6.6	−5.8
Net change in cash	0.5	46.5	46.1	66.6	114	129
Free cash flow	72.3	−222	184	−116	228	−47.0

Disclaimer

The financial data presented in this report is delayed and obtained from sources QDD Research believes to be reliable, including stock exchanges, SEDAR, and EDGAR. However, no representation or warranty is made as to the accuracy, completeness, or timeliness of the information. QDD Research accepts no liability for any errors, omissions, or financial losses arising from the use of this data.

This report is generated using a fully systematic and quantitative approach. All factor scores and the overall quant rating (ranging from D to A+) are derived from algorithmic models and are based solely on objective financial metrics. These scores are intended for informational purposes only and should not be interpreted as investment advice or a recommendation to buy, sell, or hold any securities.

QDD Research is not a registered investment advisor or broker-dealer and does not provide personalized financial advice. The content is not tailored to the specific investment goals, financial situation, or risk profile of any individual investor. We strongly encourage readers to consult with a licensed broker or investment advisor before making any investment decisions based on the information contained in this report.

Live quote provided by TradingView. Report data updated Nov 1, 2026 after market close.