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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sumitomo Chemical Co., Ltd.

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Why is Sumitomo Chemical Co., Ltd. ?

Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at JPY 269,283 MM
ROCE(HY) Highest at 1.01%
RAW MATERIAL COST(Y) Fallen by -11.23% (YoY)

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 25.42%, 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 buy?

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.

25.42%

1.33

30.05%

Japan Nikkei 225

28.54%

1.11

25.75%

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

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 269,283 MM

ROCE(HY)

Highest at 1.01%

RAW MATERIAL COST(Y)

Fallen by -11.23% (YoY

NET PROFIT(9M)

Higher at JPY 40,595 MM

OPERATING PROFIT MARGIN(Q)

Highest at 11.37 %

PRE-TAX PROFIT(Q)

At JPY 15,643 MM has Grown at 67.06%

-25What is not working for the Company

NET PROFIT(Q)

At JPY -4,523 MM has Fallen at -146.88%

INTEREST(Q)

At JPY 26,316 MM has Grown at 111.03%

CASH AND EQV(HY)

Lowest at JPY 352,399 MM

NET SALES(Q)

Lowest at JPY 526,140 MM

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

Operating Cash Flow

Highest at JPY 269,283 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Operating Profit Margin

Highest at 11.37 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

At JPY 15,643 MM has Grown at 67.06%

over average net sales of the previous four periods of JPY 9,363.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Raw Material Cost

Fallen by -11.23% (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.

Net Sales

At JPY 526,140 MM has Fallen at -19.25%

over average net sales of the previous four periods of JPY 651,570.25 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Net Profit

At JPY -4,523 MM has Fallen at -146.88%

over average net sales of the previous four periods of JPY 9,647.75 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 26,316 MM has Grown at 111.03%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

Lowest at JPY 526,140 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Cash and Eqv

Lowest at JPY 352,399 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents