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Sumitomo Mitsui Trust Holdings Inc 8309

Morningstar Rating
JPY 3,251.00 −49.00 (1.48%)
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Company Report

Sumitomo Mitsui Trust Stock Split, Fair Value Adjusted

Like State Street and Bank of New York Mellon in the U.S., which compete with custodian businesses inside larger U.S. banks like J.P. Morgan, Sumitomo Mitsui Trust Holdings' main competitors are the trust-bank units of Japanese megabank groups Mitsubishi UFJ and Mizuho. Given its shared connections to the Sumitomo and Mitsui keiretsu corporate networks, SMTH's business portfolio would be a good match for Sumitomo Mitsui Financial Group, but SMTH and SMFG do not have any capital connection despite the common name.

Price vs Fair Value

8309 is trading at a 5% discount.
Price
JPY 3,243.00
Fair Value
JPY 1,347.00
Uncertainty
Medium
1-Star Price
JPY 8,793.00
5-Star Price
JPY 1,646.00
Economic Moat
Dnv
Capital Allocation
Hfjtbpn

Bulls Say, Bears Say

Bulls

SMTH in 2021 became the first major Japanese bank to commit to reducing its equity holdings, which are a drag on capital, to zero in coming years.

Bears

In a scenario in which Japanese interest rates rise, SMTH has less operational gearing given its higher weighting of fees in the revenue mix.

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News

Trading Information

Previous Close Price
JPY 3,300.00
Day Range
JPY 3,240.003,285.00
52-Week Range
JPY 2,379.003,421.00
Bid/Ask
JPY 3,250.00 / JPY 3,253.00
Market Cap
JPY 2.34 Tril
Volume/Avg
2.0 Mil / 2.8 Mil

Key Statistics

Price/Earnings (Normalized)
17.37
Price/Sales
2.03
Dividend Yield (Trailing)
3.33%
Dividend Yield (Forward)
3.33%
Total Yield
4.23%

Company Profile

Sumitomo Mitsui Trust Holdings is the fifth-largest Japanese bank by assets and revenue, with a market share of domestic loans of 3.2% as of March 2023. It is the only remaining stand-alone trust bank after the late 1990s deregulation removed legal barriers between commercial banking and trust functions in Japan; its former rivals in trust banking merged and became units of Mitsubishi UFJ FG and Mizuho. It has no capital ties with Sumitomo Mitsui FG, despite the similar name and common ties to Sumitomo and Mitsui group companies. In fiduciary services, SMTH is the market leader in Japan in total assets under custody. It is the largest manager of corporate pension funds and trails only Nomura in investment trusts.
Sector
Financial Services
Industry
Banks - Regional
Stock Style Box
Large Value
Total Number of Employees
25,490

Competitors

Valuation

Metric
8309
BK
STT
Price/Earnings (Normalized)
17.3711.459.70
Price/Book Value
0.801.201.02
Price/Sales
2.032.581.96
Price/Cash Flow
9.537.49
Price/Earnings
8309
BK
STT

Financial Strength

Metric
8309
BK
STT
Quick Ratio
Current Ratio
Interest Coverage
Quick Ratio
No chart available

Profitability

Metric
8309
BK
STT
Return on Assets (Normalized)
0.19%0.75%0.85%
Return on Equity (Normalized)
4.84%8.57%11.19%
Return on Invested Capital (Normalized)
Return on Assets
8309
BK
STT
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Banks - Regional Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
BNPQY
BNP Paribas ADRNdwqscnMqz$82.2 Bil
ISNPY
Intesa Sanpaolo ADRFsmrzdwzhgBsj$68.7 Bil
USB
U.S. BancorpFjwkwmsfvTdff$64.9 Bil
PNC
PNC Financial Services Group IncFjlqrzzvKxknfn$62.9 Bil
ITUB
Itau Unibanco Holding SA ADRYnqzfjvvZptb$56.9 Bil
TFC
Truist Financial CorpLgpbbxyzrKcgnhq$51.9 Bil
MFG
Mizuho Financial Group Inc ADRLwntfhmnVyvmm$49.9 Bil
LYG
Lloyds Banking Group PLC ADRYcdpdjfvSkftqw$40.1 Bil
DB
Deutsche Bank AGSkxLbdw$32.8 Bil
NWG
NatWest Group PLC ADRDgcyWgzht$31.1 Bil

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