Sumitomo Heavy Industries Ltd (SOHVY) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Sumitomo Heavy Industries Ltd stock $7.22, price $7.45, that is 3.1% below the price, quality 59 out of 100. Rating: fairly valued. Calculated from audited financials with 25 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 3, 2026.
How to read this chart
60‑month range $3.49 – $9.93 · fair‑value band $4.20 – $9.61 · the $7.45 price screens above the $7.22 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 3, 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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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 (SOHVY) currently trades at $7.45, while our model-based Fair Value estimate is $7.22, so the stock looks roughly fairly valued today (gap 3.2%).
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Valuation
Bull case: the Multiples group reads highest at a median of $9.61 per share, and 6 of the 25 models we run sit above the $7.45 price.
Bear case: the Asset-Based group reads lowest at $1.97, and 19 of the 25 models stay below the price. Data coverage for this calculation is high.
Scenario range: $4.20 (bear) to $9.61 (bull), the price of $7.45 sits inside 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 59/100 (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 $3.5B Mid · P/E ratio 13.5 · P/S ratio 0.39 · EPS (TTM) $0.5500 · Dividend yield 2.4% · Net margin 2.9% · Return on equity 6.1% · Return on assets (EBIT) 5.2% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 38 out of 100 (medium confidence).
What moves the price
The share trades about 25% below its 52-week high and 29% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −46% fair-value upside, at −3%, SOHVY screens cheaper than that median.
Fair Value models
Bear$4.20Fair Value $7.22Bull$9.61
Price $7.45 · Downside -3.1%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($0.4716 per share) are deliberately not added.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. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = 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.
≈ +1.8%
Earnings growth per share plus dividend.
Earnings per share, growth per year−0.6%
Dividend (yield on the price)2.4%
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.0.2% vs 0.0%, 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%
Pace: the 5-year rate starts in 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).
+28.7%
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.
+4.1%
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 +26.0% a year for the price and +2.0% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (20 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Very negative
AI conclusion: Large industrial machinery operations show a weak moat from persistently low returns and margins in a commoditized sector, while the offshore wind partnership offers the main potential avenue for improvement.
Main risk: Stretching resources across the renewables transition and legacy machinery operations risks slowing earnings growth and further pressuring already modest returns.
Sumitomo Heavy Industries has entered a capital and business partnership with Albatross Technology to advance commercialization of floating axis wind turbines, building on earlier consortium testing toward a domestic supply chain. This move targets cost reduction and wider adoption in offshore wind while the company exits commercial shipbuilding. Will the renewables focus deliver faster earnings growth than legacy industrial machinery or stretch resources across too many transitions at once?
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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 · 813 stocks
Beats the industry median on 9/14 measures
Overall it ranks above its industry peers.
Valuation
Quality Score59 · Above median
Fair Value upside−3.1% · Above median
Profitability
Return on equity (12 months)6.1% · Below median
Return on assets2.5% · Below median
Net margin (12 months)3.6% · Below median
Operating margin (12 months)8.1% · Above median
Growth and dividend
Revenue growth (quarter YoY)18.0% · Above median
Dividend yield (12 months)2.4% · Above median
Balance sheet
Debt / equity0.19× · Above median
Valuation Multiplesvs Specialty Industrial Machinery median · lower = cheaper
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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 Nov 3, 2026, our model estimates a fair value of $7.22 versus a price of $7.45, about 3% lower (fairly valued).
What is the fair value of SOHVY?
Our model-based fair value for Sumitomo Heavy Industries Ltd is $7.22 (as of Nov 3, 2026), built from audited fundamentals. The current price: $7.45.
What is the quality score of SOHVY?
Sumitomo Heavy Industries Ltd has a Quality Score of 59/100. 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 $7.22 (as of Nov 3, 2026) from 25 valuation models. Cautious scenario $4.20, optimistic scenario $9.61. 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 $7.22, about 3% lower versus a price of $7.45 (fairly valued). Cautious scenario $4.20, optimistic scenario $9.61. The calculation is refreshed regularly with new filings.
What is the revenue of Sumitomo Heavy Industries Ltd (SOHVY)?
Sumitomo Heavy Industries Ltd reported trailing-twelve-month revenue of about ¥1.1T (latest available figure, as of Nov 3, 2026).
Does Sumitomo Heavy Industries Ltd ADR pay a dividend?
Sumitomo Heavy Industries Ltd currently shows a dividend yield of 2.44% relative to its recent price (as of Nov 3, 2026).
How much is the dividend of Sumitomo Heavy Industries Ltd (SOHVY) and when is the ex-dividend date?
Sumitomo Heavy Industries Ltd has a dividend yield of 2.4%. The last ex-dividend date was Jun 30, 2026. A dividend has been paid every year since at least 2011. The payout ratio is 42.1% of earnings. Free cash flow covers the dividend 0.87 times. Our assessment: Watch coverage. The dividend isn’t fully covered by free cash flow or earnings, part of it is funded from reserves or debt. Fine for now, but worth watching: if it stays uncovered, the dividend could be cut.
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 would have to grow free cash flow by +28.7 % 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 Nov 3, 2026.
What discount rate (WACC) does the fair value of SOHVY use?
Our models discount Sumitomo Heavy Industries Ltd at 9.2 %: a base by market capitalisation (mid), damped by beta 0.78, 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 that is +28.7 % per year for five years, then slowing evenly to 2 % by year ten, 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 grew +5.7 % a year. The price currently implies free-cash-flow growth of +28.7 % per 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 +7.8 % a year. That is the yardstick for the growth priced into Sumitomo Heavy Industries Ltd (+28.7 % per 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 2.11 %: that much free cash flow Sumitomo Heavy Industries Ltd 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 it is $7.22 per share (as of Nov 3, 2026), against a price of $7.45. It is the blended result of 25 valuation models in 8 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is Sumitomo Heavy Industries Ltd ADR stock overvalued or undervalued in 2026?
As of Nov 3, 2026, SOHVY trades above its calculated fair value: price $7.45, fair value $7.22, a gap of about −3% (fairly valued). 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 ($7.45); the fair value is what the company's own numbers justify ($7.22). For Sumitomo Heavy Industries Ltd the two are $0.2300 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 at about $3.5B (market capitalisation, as of Nov 3, 2026). Per share that is $7.45; our models calculate a fair value of $7.22 per share.
What do the bullish and bearish scenarios say about SOHVY?
Our models span a range for Sumitomo Heavy Industries Ltd: cautious scenario $4.20, base $7.22, optimistic $9.61 per share (as of Nov 3, 2026, price $7.45). 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 trades at a price-to-earnings ratio of 13.5 (as of Nov 3, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $7.22 is built from several models across several years. Other multiples: P/B 0.8, P/S 0.5, EV/EBITDA 5.3.
How solid is the balance sheet of Sumitomo Heavy Industries Ltd (SOHVY)?
Balance-sheet figures for Sumitomo Heavy Industries Ltd (as of Nov 3, 2026): return on equity 6.1%, debt of 0.19 per unit of equity. They feed the Quality Score of 59/100, which measures business quality independently of the share price.
How far is SOHVY from its 52-week high?
Sumitomo Heavy Industries Ltd trades at $7.45, about 25% below its 52-week high of $9.93 and 29% above the low of $5.76 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $7.22 is for.
Which stocks are comparable to Sumitomo Heavy Industries Ltd ADR?
From the same area (Industrials) we also value SIE, GE Vernova Inc, 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 Nov 3, 2026: price $7.45, calculated fair value $7.22 (−3%), Quality Score 59/100, from 25 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 through 25 models from 8 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $7.22 builds on their evidence-weighted average, 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 13.3% above its aggregate fair value. Sumitomo Heavy Industries Ltd 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 Nov 6, 2026 was $7.45. Our model-based fair value is $7.22, about 3% lower (fairly valued). 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?
The price sits close to our fair value, market and models broadly agree here, little valuation tension. A fairly wide model range ($4.20 to $9.61) 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 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
How large is the market capitalisation of Sumitomo Heavy Industries Ltd (SOHVY)?
The market capitalisation of Sumitomo Heavy Industries Ltd is $3.5B. 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 is 0.39 (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 are $0.5500 (price ÷ EPS = P/E 13.5). 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 is 2.4% (payout 33.1%). 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 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 is 6.1% (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 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 is 8.1% (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 is growing +18.0% 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 are growing +142% 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 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
Nov 3, 2026