SMFG Stock Recent News

LI, SMFG and KFY made it to the Zacks Rank #1 (Strong Buy) momentum stocks list on March 12, 2024.

Does Sumitomo Mitsui (SMFG) have what it takes to be a top stock pick for momentum investors? Let's find out.

Sumitomo Mitsui (SMFG) considers further widening its alliance with Jefferies into Asia to compete with its rivals. Also, the bank aims for three successive years of record net profit.

Japan's asset management industry has favorable growth prospects, and this puts a leading financial services player like Sumitomo Mitsui Financial in a good position to increase its future fee income. SMFG's net interest income growth outlook is positive, considering the reasonably high probability of Japan initiating a rate hike in the near term. My investment rating for SMFG is upgraded to a Buy, as I think that the stock doesn't deserve to trade at a significant discount to book value.

Japan's Sumitomo Mitsui Banking Corp (SMBC) said on Tuesday it has hired former Credit Suisse China boss Carsten Stoehr as its deputy head for the Asia Pacific region.

Investors looking for stocks in the Banks - Foreign sector might want to consider either KB Financial (KB) or Sumitomo Mitsui (SMFG). But which of these two stocks presents investors with the better value opportunity right now?

Investors interested in stocks from the Banks - Foreign sector have probably already heard of KB Financial (KB) and Sumitomo Mitsui (SMFG). But which of these two companies is the best option for those looking for undervalued stocks?

Sumitomo Mitsui Financial Group, a Japanese bank with over $2 trillion in assets, offers potential diversification due to its high exposure to Japan, but its lower than average dividend yield and fair valuation make it less attractive for investment. The bank has a conservative lending approach and a low-risk balance sheet, with a sizable equity portfolio of Japanese equities that it plans to reduce to decrease earnings volatility. Despite its stable profile and conservative risk culture, Sumitomo's financial performance has been relatively stable over the past few years due to low growth prospects. Its return on equity ratio is only 6.5%, a relatively low level of profitability.

Sumitomo Mitsui Financial Group has reported a 39.51% YoY increase in Q1 revenues, reaching $13.66bn, despite a 57.25% decline in net income. The bank's strategy focuses on becoming a leaner, streamlined business with a focus on digitalization and geographic expansion across Asia and the US. The bank is currently undervalued, with a net present value of $9.28 compared to its current price of $8.40, according to a discounted cash flow valuation. This undervaluation is also supported by Alpha Spread's intrinsic valuation, which calculates a base case fair value of $17.14. However, SMFG faces potential risks including shifts in domestic monetary policy, global economic slowdown, and recessionary pressures. Despite these challenges, the bank's transformation into a leaner business and geographic expansion strategy are expected to enable long-term margin expansion and scale accretion.

Investors looking for stocks in the Banks - Foreign sector might want to consider either Lloyds (LYG) or Sumitomo Mitsui (SMFG). But which of these two stocks presents investors with the better value opportunity right now?