⚠ No Published Cost of CapitalLow threat

Sumitomo Corporation (8053) — threat to the moat

Sumitomo publishes its returns but not the hurdle they are measured against.

Sumitomo monitors ROIC and WACC by business unit1, but it does not publish the cost of capital it compares them against. Without the number, shareholders cannot check which businesses clear the hurdle.

Return on equity (%, years to March)9.4202412.4202512.92026about 132027 guideSumitomo results and presentation, May 2026
Back above the 12% target.

The company's return on equity target of 12% or higher2 gives an indication. The group ROIC of 8%3 is a different measure, and whether it clears the company's own cost of capital depends on a figure that is not disclosed.

Publishing it would make Sumitomo's segment table more useful.

Third-party estimates differ from the company's own figures: one data provider puts Sumitomo's return on invested capital at 4.61% and its weighted average cost of capital at 5.43%4, using a different method from the company's 8% ROIC5. A published hurdle would settle which comparison applies.

The measure is the ROE target. Reaching the "around 13%" guided for the current year6 would show returns above any reasonable cost of equity.

References
  1. ReportedSumitomo monitors ROIC and WACC by business unit, but it does not publish the cost of capital it compares them against.
    Sumitomo Corporation, Annual Financial Report for the year to March 2026 - consolidated financial statements and notes, including the SCSK acquisition accounting. — FY to March 2026 · publ. June 2026 · source ↗
  2. ReportedThe company's return on equity target of 12% or higher gives an indication.
    Sumitomo Corporation, results presentation for the year to March 2026 - consolidated results, underlying profit, forecasts, sensitivities and the loss buffer. — FY to March 2026 · publ. May 2026 · source ↗
  3. ReportedThe group ROIC of 8% is a different measure, and whether it clears the company's own cost of capital depends on a figure that is not disclosed.
    Sumitomo Corporation, results presentation for the year to March 2026 - return on invested capital and invested capital by segment, the eight growth areas and the low-growth, low-return capital. — FY to March 2026 · publ. May 2026 · source ↗
  4. ReportedThird-party estimates differ from the company's own figures: one data provider puts Sumitomo's return on invested capital at 4.61% and its weighted average cost of capital at 5.43%, using a different method from the company's 8% ROIC.
    Sumitomo Corporation (TYO: 8053) statistics - price-to-book 1.76, price-to-sales 1.13, 52-week price change +61.14%, analysts' target ¥2,007.05. — September 2026 · publ. September 2026 · source ↗
  5. ReportedThird-party estimates differ from the company's own figures: one data provider puts Sumitomo's return on invested capital at 4.61% and its weighted average cost of capital at 5.43%, using a different method from the company's 8% ROIC.
    Sumitomo Corporation, results presentation for the year to March 2026 - return on invested capital and invested capital by segment, the eight growth areas and the low-growth, low-return capital. — FY to March 2026 · publ. May 2026 · source ↗
  6. ReportedReaching the "around 13%" guided for the current year would show returns above any reasonable cost of equity.
    Sumitomo Corporation, results presentation for the year to March 2026 - consolidated results, underlying profit, forecasts, sensitivities and the loss buffer. — FY to March 2026 · publ. May 2026 · source ↗
Sources
Generated September 24, 2026