Sumitomo Chemical Co., Ltd. (4005) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Nippon Sanso Holdings Corp.

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Sumitomo Chemical Co., Ltd.

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UBE Corp.

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Shin-Etsu Chemical Co., Ltd.

Resonac Holdings Corp.

Air Water, Inc.

Mitsubishi Gas Chemical Co., Inc.

Why is Sumitomo Chemical Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate -1.12% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate -1.12% of over the last 5 years

With a growth in Net Profit of 7.78%, the company declared Very Positive results in Dec 25

ROCE(HY) Highest at 9.85%
RAW MATERIAL COST(Y) Fallen by -5.9% (YoY)
DEBT-EQUITY RATIO (HY) Lowest at 97.75 %

With ROE of 4.74%, it has a very attractive valuation with a 0.62 Price to Book Value

Over the past year, while the stock has generated a return of 29.52%, its profits have risen by 126.4% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sumitomo Chemical Co., Ltd. should be less than 10%
Overall Portfolio exposure to Specialty Chemicals should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Sumitomo Chemical Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Sumitomo Chemical Co., Ltd.

29.52%

1.29

37.42%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.21%

EBIT Growth (5y)

-1.12%

EBIT to Interest (avg)

2.30

Debt to EBITDA (avg)

14.34

Net Debt to Equity (avg)

1.19

Sales to Capital Employed (avg)

1.02

Tax Ratio

41.13%

Dividend Payout Ratio

38.15%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

4.29%

ROE (avg)

5.96%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.62

EV to EBIT

13.13

EV to EBITDA

6.38

EV to Capital Employed

0.83

EV to Sales

0.63

PEG Ratio

0.10

Dividend Yield

0.15%

ROCE (Latest)

6.29%

ROE (Latest)

4.74%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

18What is working for the Company

ROCE(HY)

Highest at 9.85%

RAW MATERIAL COST(Y)

Fallen by -5.9% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 97.75 %

NET PROFIT(Q)

Highest at JPY 47,664 MM

EPS(Q)

Highest at JPY 29.11

-8What is not working for the Company

NET SALES(HY)

At JPY 1,180,187 MM has Grown at -8.7%

INTEREST(Q)

At JPY 25,520 MM has Grown at inf%

CASH AND EQV(HY)

Lowest at JPY 375,977 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.47 times

Here's what is working for Sumitomo Chemical Co., Ltd.

Net Profit

At JPY 47,664 MM has Grown at 124.79%

over average net sales of the previous four periods of JPY 21,204.25 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Profit

Highest at JPY 47,664 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 29.11

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Lowest at 97.75 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -5.9% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Sumitomo Chemical Co., Ltd.

Interest

At JPY 25,520 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

At JPY 1,180,187 MM has Grown at -8.7%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Cash and Eqv

Lowest at JPY 375,977 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 2.47 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Non Operating Income

Highest at JPY 0.81 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income