Sumitomo Heavy Industries Ltd (SOHVY) fair value: what the stock is really worth
As of Sep 23, 2026: fair value of Sumitomo Heavy Industries Ltd $7.15, price $9.64, upside -25.9%, quality 58 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 24, 2026.
How to read this chart
60‑month range $3.50 – $9.77 · fair‑value band $4.17 – $9.53 · the $9.64 price screens above the $7.15 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 2 fiscal years are left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Sep 24, 2026.
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Sumitomo Heavy Industries, Ltd. manufactures and sells general machinery worldwide. It operates through four segments: Mechatronics, Industrial Machinery, Logistics & Construction, and Energy & Lifelines.
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Sumitomo Heavy Industries, Ltd. manufactures and sells general machinery worldwide. It operates through four segments: Mechatronics, Industrial Machinery, Logistics & Construction, and Energy & Lifelines. The Mechatronics segment offers gearmotors, gearboxes, motion control drives, motors and inverters, drive solutions, precision positioning equipment, control systems, motion components, cryocoolers, and cryopumps. Its Industrial Machinery segment provides Plastics machinery, film forming machines, precision forgings, semiconductor manufacturing equipment, accelerators, medical machines and equipment, forging press machines, air-conditioning equipment, and defense equipment. The Logistics & Construction segment offers Hydraulic excavators, mobile cranes, road machinery, material handling systems, logistics systems, and automated parking systems. Its Energy & Lifelines segment provides power generation equipment, air pollution control equipment, water and sewage treatment systems, turbines, pumps, mixing vessels, food processing machinery, ships, and marine structures. The company was founded in 1888 and is headquartered in Tokyo, Japan.
Stock analysis
Sumitomo Heavy Industries Ltd ADR (SOHVY) currently trades at $9.64, while our model-based Fair Value estimate is $7.15, implying the stock looks roughly 34.9% overvalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of $9.08 per share, and 3 of the 23 models we run sit above the $9.64 price.
Bear case: the Growth DCF group reads lowest at $2.51, and 20 of the 23 models stay below the price. Evidence for this calculation is high.
Scenario range: $4.17 (bear) to $9.53 (bull), the price of $9.64 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 58/100 (solid quality), in the Industrials sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Sumitomo Heavy Industries Ltd ADR reported revenue of ¥1.1T in FY2025 versus ¥944B in FY2021, a compound +4.3%/yr. Reported net income was ¥32.4B in FY2025, compounding −7.4%/yr from FY2021.
Key figures
Market cap $4.6B · P/E ratio 24.1 · P/S ratio 0.70 · EPS (TTM) $0.4000 · Dividend yield 2.5% · Net margin 2.9% · Return on equity 4.9% · Return on assets (EBIT) 5.2%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 42 out of 100 (medium confidence).
What moves the price
The share trades about 1% below its 52-week high and 71% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −49% fair-value upside, at −26%, SOHVY screens cheaper than that median.
Fair Value models
Bear $4.17Fair Value $7.15Bull $9.53
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.56/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+4.4%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−0.6%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+5.7%
Start year 2020 (pandemic). Over 10 years: +4.8% a year
Revenue growth 29 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+2.1%
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What shareholders gained per year (last 5 years), in JPY ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: EBIT basis. Measured in JPY: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
≈ +1.9%
Earnings growth per share plus dividend.
Earnings per share, growth per year−0.6%
Dividend (yield on the price)2.5%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.0% vs 0%, steady
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.6% → 5%
Start year 2020 (pandemic)
⚠ Rate on operating basis: 2025 sits 323% above its own trend.
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+33.0%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+2.3%
Yearly sales growth analysts expect, extended to five years.
After inflation (figures in JPY, Japan: IMF forecast 2.1% a year to 2030, 1.3% from 2016 to 2025) that is about +30.3% a year for the price and +0.2% for the forecasts.
Compare Sumitomo Heavy Industries Ltd ADR with another stock
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Specialty Industrial Machinery · 827 stocks
Beats the industry median on 9/14 measures
Overall it ranks above its industry peers.
Valuation
Quality Score58 · Above median
Fair Value upside−26% · Above median
Profitability
Return on equity (TTM)5% · Below median
Return on assets3% · Below median
Net margin (TTM)3% · Below median
Operating margin (TTM)5% · Below median
Growth and dividend
Revenue growth6% · Above median
Dividend yield (TTM)2.5% · Top 25%
Balance sheet
Debt / equity0.19× · Above median
Valuation Multiplesvs Specialty Industrial Machinery median · lower = cheaper
P/E (TTM)24.1× · Cheaper than median
P/B1.08× · Cheapest 25%
P/S (TTM)0.68× · Cheapest 25%
P/FCF0.4× · Cheapest 25%
EV/EBITDA8.1× · Cheapest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 0
FUTURE (revenue growth)29· sector 22
PAST (return on equity)20· sector 28
HEALTH (low debt)90· sector 95
DIVIDEND (yield)51· sector 25
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Sumitomo Heavy Industries Ltd ADR Fair Value". https://www.fairvalue-calculator.com/stock/SOHVY
Frequently asked questions
Is Sumitomo Heavy Industries Ltd (SOHVY) overvalued or undervalued?
As of Sep 24, 2026, our model estimates a fair value of $7.15 versus a price of $9.64, about −26% upside (overvalued).
What is the fair value of SOHVY?
Our model-based fair value for Sumitomo Heavy Industries Ltd ADR is $7.15 (as of Sep 24, 2026), built from audited fundamentals. The current price: $9.64.
What is the quality score of SOHVY?
Sumitomo Heavy Industries Ltd ADR has a Quality Score of 58/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Sumitomo Heavy Industries Ltd (SOHVY)?
Our model-based price target is the fair value of $7.15 (as of Sep 24, 2026) from 23 valuation models. Cautious scenario $4.17, optimistic scenario $9.53. It is a calculation from audited fundamentals, not an analyst target.
What is the Sumitomo Heavy Industries Ltd ADR stock forecast for 2026?
Our models put fair value at $7.15, about −26% upside versus a price of $9.64 (overvalued). Cautious scenario $4.17, optimistic scenario $9.53. The calculation is refreshed regularly with new filings.
What is the revenue of Sumitomo Heavy Industries Ltd (SOHVY)?
Sumitomo Heavy Industries Ltd ADR reported trailing-twelve-month revenue of about ¥1.1T (latest available figure, as of Sep 24, 2026).
Does Sumitomo Heavy Industries Ltd ADR pay a dividend?
Sumitomo Heavy Industries Ltd ADR currently shows a dividend yield of about 2.54% relative to its recent price (as of Sep 24, 2026).
What growth is priced into Sumitomo Heavy Industries Ltd (SOHVY)?
For today's price to be fair in a discounted-cash-flow model, Sumitomo Heavy Industries Ltd ADR would have to grow free cash flow by +33.0 % per year for five years (discount rate 9.2 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +5.7 % per year. As of Sep 24, 2026.
What discount rate (WACC) does the fair value of SOHVY use?
Our models discount Sumitomo Heavy Industries Ltd ADR at 9.2 %: a base by market capitalisation (mid), damped by beta 0.79, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Sumitomo Heavy Industries Ltd ADR that is +33.0 % per year a year over ten years, using the same discount rate (9.2 %) and the same formula as our fair value.
How much growth has Sumitomo Heavy Industries Ltd (SOHVY) delivered so far?
Over the past 5 years revenue at Sumitomo Heavy Industries Ltd ADR grew +5.7 % a year. The price currently implies +33.0 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Sumitomo Heavy Industries Ltd (SOHVY) growing?
The median revenue growth in the sector is +4.7 % a year. That is the yardstick for the growth priced into Sumitomo Heavy Industries Ltd ADR (+33.0 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Sumitomo Heavy Industries Ltd (SOHVY)?
The free-cash-flow yield on the price is 1.62 %: that much free cash flow Sumitomo Heavy Industries Ltd ADR produces per unit of market value. When it exceeds the discount rate of our models (9.2 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Sumitomo Heavy Industries Ltd (SOHVY)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Sumitomo Heavy Industries Ltd ADR it is $7.15 per share (as of Sep 24, 2026), against a price of $9.64. It is the blended result of 23 valuation models (cash flow, earnings, asset, dividend).
Is Sumitomo Heavy Industries Ltd ADR stock overvalued or undervalued in 2026?
As of Sep 24, 2026, SOHVY trades above its calculated fair value: price $9.64, fair value $7.15, a gap of about −26% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of SOHVY?
No. The price is what the market pays today ($9.64); the fair value is what the company's own numbers justify ($7.15). For Sumitomo Heavy Industries Ltd ADR the two are $2.49 per share apart. That gap is exactly why we show both numbers side by side.
How much is Sumitomo Heavy Industries Ltd ADR worth?
The market values Sumitomo Heavy Industries Ltd ADR at about $4.6B (market capitalisation, as of Sep 24, 2026). Per share that is $9.64; our models calculate a fair value of $7.15 per share.
What do the bullish and bearish scenarios say about SOHVY?
Our models span a range for Sumitomo Heavy Industries Ltd ADR: cautious scenario $4.17, base $7.15, optimistic $9.53 per share (as of Sep 24, 2026, price $9.64). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of SOHVY?
Sumitomo Heavy Industries Ltd ADR trades at a price-to-earnings ratio of 24.1 (as of Sep 24, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $7.15 is built from several models across several years. Other multiples: P/B 1.1, P/S 0.7, EV/EBITDA 8.1.
How solid is the balance sheet of Sumitomo Heavy Industries Ltd (SOHVY)?
Balance-sheet figures for Sumitomo Heavy Industries Ltd ADR (as of Sep 24, 2026): return on equity 4.9%, debt of 0.19 per unit of equity. They feed the Quality Score of 58/100, which measures business quality independently of the share price.
How far is SOHVY from its 52-week high?
Sumitomo Heavy Industries Ltd ADR trades at $9.64, about 1% below its 52-week high of $9.77 and 71% above the low of $5.63 (as of Sep 23, 2026). Distance from the high says nothing about value: that is what the fair value of $7.15 is for.
Which stocks are comparable to Sumitomo Heavy Industries Ltd ADR?
From the same area (Industrials) we also value GE Vernova Inc, SIE, Eaton Corporation, Parker-Hannifin Corporation, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Sumitomo Heavy Industries Ltd ADR stock attractive at the current price?
The data as of Sep 24, 2026: price $9.64, calculated fair value $7.15 (−26%), Quality Score 58/100, from 23 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of SOHVY calculated?
We run Sumitomo Heavy Industries Ltd ADR through 23 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $7.15, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.0 % above its aggregate fair value. Sumitomo Heavy Industries Ltd ADR itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Sumitomo Heavy Industries Ltd (SOHVY)?
The closing price on Sep 23, 2026 was $9.64. Our model-based fair value is $7.15, about −26% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Sumitomo Heavy Industries Ltd ADR right now?
Solid but not exceptional quality (58/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range ($4.17 to $9.53) leaves room in how you read the outcome.
Where does the earnings growth of Sumitomo Heavy Industries Ltd (SOHVY) come from?
Earnings per share at Sumitomo Heavy Industries Ltd ADR grew −2.3 % a year from 2014 to 2025. Broken into its drivers: revenue per share +5.5 %, EBIT margin −2.6 %, tax rate −1.1 %, residual (interest, one-offs) −3.9 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Sumitomo Heavy Industries Ltd ADR
How large is the market capitalisation of Sumitomo Heavy Industries Ltd (SOHVY)?
The market capitalisation of Sumitomo Heavy Industries Ltd ADR is $4.6B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Sumitomo Heavy Industries Ltd (SOHVY)?
The price-to-sales ratio of Sumitomo Heavy Industries Ltd ADR is 0.70 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Sumitomo Heavy Industries Ltd (SOHVY)?
Earnings per share at Sumitomo Heavy Industries Ltd ADR are $0.4000 (price ÷ EPS = P/E 24.1). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Sumitomo Heavy Industries Ltd (SOHVY)?
The dividend yield of Sumitomo Heavy Industries Ltd ADR is 2.5% (payout 61.2%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Sumitomo Heavy Industries Ltd (SOHVY)?
The net margin of Sumitomo Heavy Industries Ltd ADR is 2.9% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Sumitomo Heavy Industries Ltd (SOHVY)?
The return on equity (ROE) of Sumitomo Heavy Industries Ltd ADR is 4.9% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Sumitomo Heavy Industries Ltd (SOHVY)?
On an EBIT basis the return on assets of Sumitomo Heavy Industries Ltd ADR is 5.2% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Sumitomo Heavy Industries Ltd (SOHVY)?
The operating margin of Sumitomo Heavy Industries Ltd ADR is 5.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Sumitomo Heavy Industries Ltd (SOHVY)?
Revenue at Sumitomo Heavy Industries Ltd ADR is growing +5.8% versus a year earlier (3y avg −0.6%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Sumitomo Heavy Industries Ltd (SOHVY)?
Earnings per share at Sumitomo Heavy Industries Ltd ADR are growing +22.1% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Sumitomo Heavy Industries Ltd (SOHVY) carry?
The net debt of Sumitomo Heavy Industries Ltd ADR is ¥155B (fiscal year 2025, ≈ 13.1 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Sep 24, 2026