Return on Invested Capital by BusinessNarrow moat

Sumitomo Corporation (8053) — moat facet

Sumitomo publishes each segment's return on capital, and the group has been stuck at 8% for three years.

Sumitomo publishes return on invested capital by segment. In the latest year it was 10% in Steel, 11% in Automotive, 7% in Transportation & Construction Systems, 6% in Diverse Urban Development, 3% in Communication Services, 10% in Digital AI, 1% in Lifestyle, 10% in Mineral Resources, 8% in Chemical Solutions and 10% in Energy Transformation1. The group total was 8% on ¥9,440 billion2.

ROIC by segment, year to March 2026 (%)Automotive11%Steel10%Digital AI10%Mineral Resources10%Energy Transformation10%Chemical Solutions8%Transport & Construction7%Diverse Urban Development6%Communication Services3%Lifestyle1%Sumitomo results presentation, May 2026
Five segments at 10% or more, two far below.

The disclosure lets shareholders see which businesses earn their keep. Lifestyle, at 1%, and Communication Services, at 3%, are well below the group; the Energy Transformation and Digital AI segments above it.

The company monitors ROIC and the weighted average cost of capital by business unit3. It does not publish its cost of capital as a number.

Invested capital is spread unevenly. Diverse Urban Development had ¥1,530 billion, Transportation & Construction Systems ¥1,470 billion, Energy Transformation ¥1,340 billion, Mineral Resources ¥970 billion, Steel ¥930 billion and Digital AI ¥710 billion in the latest year4. The two largest users of capital are among the lower earners.

The measure is the group ROIC. It has been 8% for three years5; rising above it would show the portfolio changes adding up.

Moat trajectory: Holding steady

The group return has held at 8%.

The number that tests this moat
Reported
Group return on invested capital, latest year
8% on ¥9,440bn

The company's own measure of the whole portfolio; flat for three years.

Source: Sumitomo Corporation results presentation, May 2026 ↗
⚠ Threats to the moat
⚠ THREAT 01
No Published Cost of Capital
Sumitomo publishes its returns but not the hurdle they are measured against.
References
  1. ReportedIn the latest year it was 10% in Steel, 11% in Automotive, 7% in Transportation & Construction Systems, 6% in Diverse Urban Development, 3% in Communication Services, 10% in Digital AI, 1% in Lifestyle, 10% in Mineral Resources, 8% in Chemical Solutions and 10% in Energy Transformation.
    Sumitomo Corporation, results presentation for the year to March 2026 - SCSK, Net One Systems, JCOM, Jupiter Shop Channel and Safaricom Ethiopia. — FY to March 2026 · publ. May 2026 · source ↗
  2. ReportedThe group total was 8% on ¥9,440 billion.
    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 company monitors ROIC and the weighted average cost of capital by business unit.
    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 ↗
  4. ReportedDiverse Urban Development had ¥1,530 billion, Transportation & Construction Systems ¥1,470 billion, Energy Transformation ¥1,340 billion, Mineral Resources ¥970 billion, Steel ¥930 billion and Digital AI ¥710 billion in the latest year.
    Sumitomo Corporation, results presentation for the year to March 2026 - SCSK, Net One Systems, JCOM, Jupiter Shop Channel and Safaricom Ethiopia. — FY to March 2026 · publ. May 2026 · source ↗
  5. ReportedIt has been 8% for three years; rising above it would show the portfolio changes adding up.
    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