Sumitomo Electric

5802.TMEDIUM

Wiring / HV Cables · Weight: 4%· Data as of 2026-05-17

¥9,900-2.85%

6-month daily

Investment Thesis

Dominant Japanese wire harness supplier — EV content ~30% higher value than ICE due to HV shielding. FY2026 record OP ¥418.2B (+30.4%). Confirmed Toyota/Honda/Nissan OEM supply. Medium-term target OP ¥600B by FY2029. 4-for-1 stock split July 1 2026.

Risk

CAUTION — elevated valuation. Forward PE 29.7x on declining FY2027 NI (-13.4% due to Sumitomo Densetsu deconsolidation + US tariff headwinds). PB 2.4x above 80th percentile guardrail. OP still growing +1.6% — NI decline is partly one-time, but tariff risk is structural. Peak Earnings trap risk if OP misses in FY2027.

Monitoring Trigger

FY2027 Q1 OP trajectory (Jul 2026 results). Post-split price behavior. EV harness order intake. If FY2027 OP tracking <¥400B, EXIT. 4-for-1 split July 1 2026 — verify price adjustment.

Key Dates

2026-06-30rebalanceSemiannual portfolio rebalance

2026-07-01catalyst4-for-1 stock split effective (pre-split price ~¥11,200 → ~¥2,800 post-split)

2026-08earningsQ1 FY2027 earnings — critical: does OP track toward ¥425B guidance

2027-05monitoringFY2027 full-year results — validate OP ¥425B guidance delivery

Update History

2026-05-17evolveHOLD

View report →

FY2026 record OP ¥418.2B (+30.4%), NI ¥369.51B. 4-for-1 split July 2026. FY2027 NI guided -13.4% (one-time + tariffs). PE down 32→25.5x, PB down 3.1→2.4x. Added peak earnings caution flag.

pe:32.0725.5forward_pe:24.1229.7pb:3.12.4roe:11.0%10.2%op_margin:7.8%8.2%div_yield:1.1%1.37%market_cap:¥8.25T¥8.74Tthesis:...EV content +30%...Added FY2026 record results + split + FY2027 NI decline risk

Key Metrics

25.5

29.7

Fwd PE

2.4

P/B

10.2%

ROE

8.2%

Op Margin

28%

D/E

1.37%

Div Yield

+¥102B (est.)

FCF

¥8.74T

Mkt Cap

Business Segments

Segment	Revenue	Share	Description
Automotive	¥1,972B	40%	Wire harness, HV cables for EV
Infocommunications	¥740B	15%	Fiber optic, telecom
Environment & Energy	¥740B	15%	Power cable, EV charging cable
Electronics	¥740B	15%	PCB, electronic wires
Industrial Materials	¥740B	15%	Metals, alloys

Supply Chain Evidence

Evidence	Customer	Product	Detail
confirmed	Toyota	Primary wire harness supplier	Long-standing OEM relationship[source](2025-01)
confirmed	Honda	Wire harness	Long-standing OEM[source](2025-01)
confirmed	Nissan	HV harness for Leaf/Ariya	EV-specific HV harness supply[source](2025-01)

Primary IR Documentation

Values and insights cited from official company IR releases (earnings, 決算短信, MoUs, presentations).

IR landingSumitomo Electric Industries IR (English)↗

Cites: Primary IR portal — financial reports, fact books, library

https://sumitomoelectric.com/ir

Earnings releaseFY2025 Consolidated Financial Results (FYE Mar 2026)↗

Cites: Full year earnings release

https://sumitomoelectric.com/sites/default/files/2026-05/download_documents/2025_allv.pdf

Press releaseSumitomo Riko tender offer announcement (Oct 30, 2025)↗

Cites: Wholly-owning Sumitomo Riko to accelerate CASE collaboration including integrated harness modules and EV battery products

https://sumitomoelectric.com/press/2025/10/prs065

Sources & References

↗StockAnalysishttps://stockanalysis.com/quote/tyo/5802/statistics/↗Yahoo Finance JPhttps://finance.yahoo.co.jp/quote/5802.T

Peer Comparison

Company	PE	Fwd PE	ROE	Op Margin	FCF
Murata Manufacturing	~49.7x TTM (impairment-distorted; fwd PE ~37x on FY2026 guidance)	~37x (on FY2026 OP +34.8% guidance)	7.25%	15.4%	+¥239B
TDK Corp	26.51	23.71	11.4%	12.4%	+¥169B
Fuji Electric	20.59	17.97	8.2%	8.7%	+¥51B
Sumitomo Metal Mining	28.63	19.76	5.0%	5.0%	+¥87B
AGC Inc	17.89	14.7	4.7%	6.2%	+¥65B
Kureha Corp	N/A	19	-6.7%	-11.1%	~est. negative (capex ongoing)
Asahi Kasei	13.4	12.9	7.7%	7.5%	+¥134B
Mitsubishi Electric	32.85	30.6	10.1%	9.1%	+¥317B
Nidec Corp			6.3%	5.0%	+¥174B
Hirose Electric	23.3	23.5	9.0%	20.3%	~+¥36B
Sumitomo Electric	25.5	29.7	10.2%	8.2%	+¥102B (est.)
Resonac Holdings	83.53	~31.6x	5.72%	4.3%	+¥24B
Rohm Co.	Loss (NI -¥158.4B SiC impairment)	~125x (near-breakeven NI; FY2028 target >20% OP margin)	Loss	+1.6% Q3 FY2026 (recovering from -9.0% year ago)	-¥44B
Shindengen Electric Manufacturing Co., Ltd.	30.8	N/A	N/A	N/A	N/A
GS Yuasa Corporation	11.04	N/A	9.59%	N/A	N/A
Mitsuba Corporation	5.5	N/A	N/A	N/A	N/A
Daido Steel Co., Ltd.	~11x	N/A	N/A	N/A	+est.
Nippon Seiki Co., Ltd.	12.45	12.05	N/A	N/A	+confirmed
Musashi Seimitsu Industry Co., Ltd.	31.6	N/A	N/A	11.1%	N/A
Stanley Electric Co., Ltd.	13.8		4.5%	6.3%	N/A
Honda Motor Co., Ltd.	7.77		5.82%	7.0%	N/A
Mitsui High-tec, Inc.	15.3	13	11.8%	5.8%	-¥12B
MinebeaMitsumi Inc.	18.7	13.75	9.1%	6.2%	-¥21B
Ryobi Limited	~8x	N/A	4.4%	3.2%	N/A
Tokai Rika Co., Ltd.	~8x	N/A	10.9%	5.9%	+est. ¥15-20B
Nippon Chemi-Con Corporation	91	7	3.1%	2.9%	~0 (thin; ¥20B capex planned)
Japan Aviation Electronics Industry, Ltd.	13.7		5.1%	7.1%	thin (¥63B capex over 3yr)
ARCHION Corporation	11	11	~6%	~2.0%	Negative on integration capex through FY2027
Alps Alpine Co., Ltd.	18.3	N/A	N/A	2.4%	N/A
Nichicon Corporation	16.74	N/A	N/A	3.8%	N/A
Mikuni Corporation	4.2	N/A	N/A — confirm vs J-Quants	N/A — thin, est. 1-3%	N/A
T.RAD Co., Ltd.	N/A — confirm vs StockAnalysis	N/A	N/A — confirm vs J-Quants	N/A	N/A
Renesas Electronics Corporation	N/A (EPS negative — IDT amortization ¥370B/yr; operating profit positive)	N/A	~10.5% (pre-impairment FY2025; currently impaired by amortization)	N/A — confirm vs J-Quants	N/A
Shin-Etsu Chemical Co., Ltd.	24.79x TTM	22.32x (pre-PVC recovery)	~10.5-11.5%	~24.7% (FY2026; compressed -14.4% from PVC weakness)	+¥739.4B (FY2025 — outstanding)
Sumitomo Bakelite Co., Ltd.	~17.2x TTM	~12.0x (FY2025 guidance ¥25.5B NI)	6.54%	10.3% (FY2025 guidance)	+¥46B est (EV/FCF 8.73x, EV ~¥400B)
NSK Ltd	32.12	22.70	1.8%	2.96%	+¥44B (est.)
Toray Industries Inc	25.97	16.62	3.19%	5.0%	N/A
SMC Corporation	29.0	27.24	7.9%	N/A	+¥200B (est., high net income + minimal capex)
Mitsui Kinzoku Company, Limited	~29.7x TTM / ~22.3x forward (StockAnalysis/Simply Wall St, May 2026)	~22.3x	~18.4%	~15.6% (implied: OP ¥117B / revenue ¥750B FY2025E)	N/A (verify J-Quants; positive expected given OP margins)
UBE Corporation	~8.4x TTM (cheaply valued)	N/A	~5.1% (WARNING: below TSE 8% target — ROE guardrail triggered. Override: capex-heavy transition period; electrolyte growth pipeline.)	~4.7% (thin — monitor for recovery to 7%+)	N/A (capex-heavy with Louisiana plant — verify against J-Quants when available)
Taiyo Yuden Co., Ltd.	20.79x TTM (StockAnalysis, May 2026)	27.52x (FY2026 guidance: +8% revenue, +50% OP income)	3.92%	~3.3% TTM (trough); guided to ~4.8–5% FY2026 on +50% OP recovery	N/A
F.C.C. Co., Ltd.	9.5x	N/A	N/A	N/A	N/A
Nittoku Co., Ltd.	14.12x	15.45x	N/A	N/A	N/A
NOK Corporation	15.5x	N/A	~3-5%	4.9%	N/A
Yokowo Co., Ltd.	N/A	N/A	N/A	5.1%	N/A
Yamaha Motor Co., Ltd.	7.5	N/A	1.4%	5.0%	+¥52.5B
Hioki E.E. Corporation	27.8x	N/A	N/A	N/A	N/A
Tsubakimoto Chain Co.	~11.2x	N/A	8.75%	~8.1%	est. +¥20-25B
Central Glass Co., Ltd.	17.7x	~14x (26% EPS growth forecast; analyst consensus)	~8.2% (est: NI ¥8.36B / book value ¥101B)	~3.2% (compressed; was ~6-9% pre-Chinese LiPF6 price war)	N/A (J-Quants not available; cross-validate before entry)
CKD Corporation	~36x	~20x (analyst forecast; likely conservative given 35.7% recent earnings growth)	9.19%	12.4%	N/A
Panasonic Holdings Corporation	32.4x	~15x (FY2027 NI expected +2.2x from ¥75B base)	4.77% (FY2026 trough; guided higher FY2027)	~2.9% (FY2026: OP ¥236.4B / Revenue ¥8,049B; compressed by restructuring charges)	N/A (Panasonic Energy capex-heavy; cross-validate before entry)
UACJ Corporation	15.46x	~22x (FY2027 NI guided ¥28B from ¥38.8B; NI decline; caution)	11.21%	~5.4% (Q3 FY2026 9M operating profit margin improving from prior year)	N/A (capital-intensive aluminum rolling; verify before entry)
Kanto Denka Kogyo Co., Ltd.	N/A (loss year FY2026 due to fire). Forward PE ~32x on FY2027 guided EPS ¥118.3	~32x (FY2027 guided NI ¥6.8B / shares 57.46M = ¥118.3 EPS; price ¥3,775)	-4.74% (FY2026 fire loss). FY2027 guided ROE ~10% (¥6.8B NI / ¥68B book)	~8.7% guided FY2027 (¥10B OP / ¥95B revenue). Depressed in FY2026 (fire losses)	Negative FY2026 (fire year). Recovery expected FY2027.