Sumitomo Mitsui Financial Stock Beneish M Score

SMFG Stock  USD 14.92  0.08  0.53%   
This module uses fundamental data of Sumitomo Mitsui to approximate the value of its Beneish M Score. Sumitomo Mitsui M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Sumitomo Mitsui Piotroski F Score and Sumitomo Mitsui Altman Z Score analysis.
  
At this time, Sumitomo Mitsui's Long Term Debt To Capitalization is most likely to increase slightly in the upcoming years. At this time, Sumitomo Mitsui's PB Ratio is most likely to slightly decrease in the upcoming years. The Sumitomo Mitsui's current Net Income Per Share is estimated to increase to 760.78, while Dividend Yield is projected to decrease to 0.08.
At this time, it appears that Sumitomo Mitsui Financial is an unlikely manipulator. The earnings manipulation may begin if Sumitomo Mitsui's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Sumitomo Mitsui executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Sumitomo Mitsui's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.72
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.15

Focus
Asset Quality

0.69

Focus
Expense Coverage

0.84

Focus
Gross Margin Strengs

1.05

Focus
Accruals Factor

0.84

Focus
Depreciation Resistance

1.89

Focus
Net Sales Growth

0.82

Focus
Financial Leverage Condition

1.85

Focus

Sumitomo Mitsui Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Sumitomo Mitsui's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables197.3 B207.6 B
Notably Down
Slightly volatile
Total Revenue3.7 T4.4 T
Significantly Down
Slightly volatile
Total Assets172.3 T295.2 T
Way Down
Slightly volatile
Total Current Assets104.8 T131.3 T
Significantly Down
Very volatile
Non Current Assets Total172.1 T163.9 T
Sufficiently Up
Slightly volatile
Property Plant Equipment2.9 T2.8 T
Sufficiently Up
Slightly volatile
Depreciation And Amortization154.6 B293.1 B
Way Down
Very volatile
Selling General Administrative1.6 T2.3 T
Way Down
Slightly volatile
Total Current Liabilities199.6 T190.1 T
Sufficiently Up
Slightly volatile
Non Current Liabilities Total94.9 T90.3 T
Sufficiently Up
Slightly volatile
Short Term Debt3.9 T5.6 T
Way Down
Pretty Stable
Long Term Debt30.1 T28.7 T
Sufficiently Up
Slightly volatile
Operating Income1.7 T1.6 T
Significantly Up
Slightly volatile
Gross Profit Margin2.32.19
Sufficiently Up
Slightly volatile

Sumitomo Mitsui Financial Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Sumitomo Mitsui's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Sumitomo Mitsui in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Sumitomo Mitsui's degree of accounting gimmicks and manipulations.

About Sumitomo Mitsui Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Total Assets

172.27 Trillion

At this time, Sumitomo Mitsui's Total Assets are most likely to increase significantly in the upcoming years.

Sumitomo Mitsui Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Sumitomo Mitsui. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Receivables219.7B236.4B228.6B226.3B207.6B197.3B
Total Revenue3.7T3.2T3.4T3.8T4.4T3.7T
Total Assets219.9T242.6T257.7T270.4T295.2T172.3T
Total Current Assets83.5T69.7T72.2T73.2T131.3T104.8T
Net Debt(35.5T)(42.2T)(42.7T)(46.5T)(43.9T)(41.7T)
Short Term Debt1.4T3.1T3.0T4.9T5.6T3.9T
Long Term Debt26.0T28.7T29.1T24.5T28.7T30.1T
Operating Income871.6B973.5B788.9B1.3T1.6T1.7T
Investments(3.0T)(7.4T)(2.4T)5.9T(918.9B)(873.0B)

Sumitomo Mitsui ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Sumitomo Mitsui's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Sumitomo Mitsui's managers, analysts, and investors.
Environmental
Governance
Social

About Sumitomo Mitsui Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Sumitomo Mitsui Financial's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Sumitomo Mitsui using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Sumitomo Mitsui Financial based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

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When determining whether Sumitomo Mitsui Financial is a strong investment it is important to analyze Sumitomo Mitsui's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Sumitomo Mitsui's future performance. For an informed investment choice regarding Sumitomo Stock, refer to the following important reports:
Check out Sumitomo Mitsui Piotroski F Score and Sumitomo Mitsui Altman Z Score analysis.
You can also try the CEOs Directory module to screen CEOs from public companies around the world.
Is Diversified Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Sumitomo Mitsui. If investors know Sumitomo will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Sumitomo Mitsui listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.525
Earnings Share
1.18
Revenue Per Share
567.4788
Quarterly Revenue Growth
0.183
Return On Assets
0.0035
The market value of Sumitomo Mitsui Financial is measured differently than its book value, which is the value of Sumitomo that is recorded on the company's balance sheet. Investors also form their own opinion of Sumitomo Mitsui's value that differs from its market value or its book value, called intrinsic value, which is Sumitomo Mitsui's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Sumitomo Mitsui's market value can be influenced by many factors that don't directly affect Sumitomo Mitsui's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Sumitomo Mitsui's value and its price as these two are different measures arrived at by different means. Investors typically determine if Sumitomo Mitsui is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Sumitomo Mitsui's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.