Sumitomo Warehouse Faces Stagnant Growth Amid Rising Costs and Profit Decline

Sumitomo Warehouse Co., Ltd., a midcap player in the transport services industry, has recently undergone an adjustment in evaluation. This revision reflects a combination of underlying trends and financial metrics that have shaped its current market position. The company has reported a modest annual growth rate in net sales of 0.17% over the past five years, indicating a relatively stagnant performance in this area. Additionally, the financial results for the quarter ending June 2025 showed a lack of significant movement, with interest at JPY 254 million growing at 22.12%, yet the interest coverage ratio reached its lowest point at 4,315.08. Furthermore, raw material costs have seen an increase of 6.46% year-over-year, which may impact overall profitability. Despite a return of 37.77% over the past year, Sumitomo Warehouse has experienced a decline in profits by 5.1%. The company's return on capital employed (ROCE) stands at 4.45%, and it is trading at a premium compared to the average historical valuations of its peers. The current dividend yield remains at 0, reflecting the company's focus on reinvestment rather than shareholder payouts. For more insights into Sumitomo Warehouse Co., Ltd. and its financial trend performance, you can Discover the Latest Mojo Score and Financial Trend Performance - SignUp in less than 2 Minutes and get FREE Premium Access.