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Sumitomo Electric IndustriesSMTOY 72 Net-Net Working Capital is $-0.64 as of Mar. 2026. GuruFocus rates SMTOY with a GF Score™ of 72/100 and a GF Value™ of $2.22 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 384 Vehicles & Parts companies, Sumitomo Electric Industries ranks worse than 260416.41% on this metric.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
The industry rank for Sumitomo Electric Industries's Net-Net Working Capital or its related term are showing as below:
SMTOY's Price-to-Net-Net-Working-Capital is not ranked *
in the Vehicles & Parts industry.
Industry Median: 7.53 * Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.
Sumitomo Electric Industries (OTCPK:SMTOY) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
Sumitomo Electric Industries Net-Net Working Capital Related Terms
Sumitomo Electric Industries Net-Net Working Capital Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Sumitomo Electric Industries Net-Net Working Capital Chart
SMTOY vs ORLY, AZO, GPC: Net-Net Working Capital Comparison
For the Auto Parts subindustry, Sumitomo Electric Industries's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Sumitomo Electric Industries Price-to-Net-Net-Working-Capital vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Sumitomo Electric Industries's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where Sumitomo Electric Industries's Price-to-Net-Net-Working-Capital falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of $-0.64 mean?
Sumitomo Electric Industries (SMTOY) has a Net-Net Working Capital of $-0.64 as of Mar. 2026. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Sumitomo Electric Industries According to the industry distribution chart, Sumitomo Electric Industries ranks #999999 out of 384 companies in the Vehicles & Parts industry.
Is Sumitomo Electric Industries' Net-Net Working Capital too high?
Sumitomo Electric Industries' current Net-Net Working Capital is $-0.64. Based on the distribution chart, Sumitomo Electric Industries ranks #999999 out of 384 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, Sumitomo Electric Industries has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sumitomo Electric Industries' Net-Net Working Capital compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Sumitomo Electric Industries ranks #999999 out of 384 companies for Net-Net Working Capital. This places Sumitomo Electric Industries in the lower half of its industry. The industry median Net-Net Working Capital is 7.53. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for a Vehicles & Parts company?
The median Net-Net Working Capital among Vehicles & Parts companies is 7.53, based on 384 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Sumitomo Electric Industries For the Vehicles & Parts industry, the median Net-Net Working Capital is 7.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sumitomo Electric Industries's current Net-Net Working Capital is $-0.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sumitomo Electric Industries stock overvalued right now?
Based on GuruFocus' analysis, Sumitomo Electric Industries (SMTOY) is currently considered Significantly Overvalued. The stock's GF Value™ is $2.22, compared to a current price of $7.45 — trading 235.6% above its estimated fair value. The current Net-Net Working Capital is $-0.64. Sumitomo Electric Industries' overall GF Score™ is 72/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For Sumitomo Electric Industries (SMTOY), the current Net-Net Working Capital is $-0.64 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Sumitomo Electric Industries (SMTOY) Overvalued in 2026?
Based on GuruFocus' analysis, Sumitomo Electric Industries stock appears to be overvalued.
The current stock price of $7.45 is trading 235.6% above its estimated GF Value™ of $2.22.
GuruFocus considers Sumitomo Electric Industries to be Significantly Overvalued.
Key valuation signals for SMTOY:
Net-Net Working Capital: $-0.64
GF Value™: $2.22 vs. price of $7.45 (235.6% above fair value)
No single metric tells the full story. See the SMTOY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sumitomo Electric Industries Ltd manufactures and sells electric wires and cables, and other products. The company operates through five segments. The Automotive related business covers wire harnesses, anti-vibration rubber, hoses, electrical parts, and traffic control systems. The Electronics related business provides electronic wires, flexible printed circuits, fluoropolymer products, and metal components. The Environment and Energy related business handles power transmission equipment, substation systems, vacuum and beam equipment, and conductive products. The Industrial Materials business includes steel wire, tools, optical components, and sintered parts. The Information and Communication business offers fiber optic cables, communication equipment, and optical devices.
72GF Score
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