Sumitomo Forestry Faces Financial Challenges Amid Rising Costs and High Debt Levels

Sumitomo Forestry Co., Ltd., a prominent player in the Furniture and Home Furnishing industry, has recently undergone an evaluation adjustment that reflects its current market standing. The adjustment in evaluation comes amid a backdrop of notable financial metrics and market performance indicators. The company has reported a negative financial performance for the quarter ending June 2025, with a return on capital employed (ROCE) recorded at 12.34%, which is among the lowest in its recent history. Additionally, the debt-to-equity ratio has reached a high of 56.25%, indicating a significant reliance on debt financing. This financial structure raises concerns about the company's long-term sustainability. Moreover, the cost of raw materials has seen an increase of 5.31% year-over-year, which could further strain profit margins. Over the past year, Sumitomo Forestry has generated a return of only 1.05%, significantly lagging behind the broader market, represented by the Japan Nikkei 225, which has returned 44.30%. These underlying trends and events have contributed to the recent revision in its score, reflecting the company's current challenges and market position. Discover the Latest Mojo Score and Financial Trend Performance - SignUp in less than 2 Minutes and get FREE Premium Access.