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Sumitomo Electric Industries has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Sumitomo Electric Industries's Interest Coverage for the quarter that ended in Mar. 2026 was 24.18.
Sumitomo Electric Industries's debt to revenue ratio for the quarter that ended in Mar. 2026 was 0.12.
As of today, Sumitomo Electric Industries's Altman Z-Score is 4.24.
Sumitomo Electric Industries (OTCPK:SMTOF) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Sumitomo Electric Industries has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
Sumitomo Electric Industries Financial Strength Related Terms
SMTOF vs ORLY, AZO, GPC: Financial Strength Comparison
For the Auto Parts subindustry, Sumitomo Electric Industries's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Sumitomo Electric Industries's Financial Strength distribution charts can be found below:
* The bar in red indicates where Sumitomo Electric Industries's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Sumitomo Electric Industries has a Z-score of 4.24, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 4.24 is strong.
* 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 (SMTOF) has a Financial Strength of 8 as of Mar. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Sumitomo Electric Industries and its competitors. This is 14% above median its historical median of 7.00. Over the past decade, Sumitomo Electric Industries' Financial Strength has ranged from 4.00 to 8.00.
Is Sumitomo Electric Industries' Financial Strength too high?
Sumitomo Electric Industries' current Financial Strength of 8 is 14% above median its 10-year median of 7.00. Over the past 10 years, this metric has ranged from a low of 4.00 to a high of 8.00. Overall, Sumitomo Electric Industries has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sumitomo Electric Industries' Financial Strength compare to ORLY and AZO?
Sumitomo Electric Industries' Financial Strength of 8 can be compared against companies in the Vehicles & Parts industry. Historically, Sumitomo Electric Industries' own Financial Strength has ranged from 4.00 to 8.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Vehicles & Parts company?
A good Financial Strength depends on the Vehicles & Parts industry context. However, Financial Strength 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 Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Sumitomo Electric Industries and its competitors. Sumitomo Electric Industries's current Financial Strength is 8, which is 14% above median its own 10-year median of 7.00. 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 (SMTOF) is currently considered Significantly Overvalued. The stock's GF Value™ is $5.25, compared to a current price of $13.35 — trading 154.3% above its estimated fair value. The current Financial Strength is 8, which is 14% above median its 10-year median of 7.00. Sumitomo Electric Industries' overall GF Score™ is 74/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Sumitomo Electric Industries (SMTOF), the current Financial Strength is 8 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 (SMTOF) Overvalued in 2026?
Based on GuruFocus' analysis, Sumitomo Electric Industries stock appears to be overvalued.
The current stock price of $13.35 is trading 154.3% above its estimated GF Value™ of $5.25.
GuruFocus considers Sumitomo Electric Industries to be Significantly Overvalued.
Key valuation signals for SMTOF:
Financial Strength: 8 (14% above median its 10-year median of 7.00)
GF Value™: $5.25 vs. price of $13.35 (154.3% above fair value)
No single metric tells the full story. See the SMTOF 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.
74GF Score
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