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.

NOF Corp.

Shin-Etsu Chemical Co., Ltd.

Tosoh Corp.

Resonac Holdings Corp.

Sumitomo Chemical Co., Ltd.

Nifco, Inc.

Daicel Corp.

UBE Corp.

Mitsubishi Gas Chemical Co., Inc.

Air Water, Inc.

Why is Sumitomo Chemical Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate 0.14% of over the last 5 years
The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate 0.14% of over the last 5 years

With a growth in Operating Profit of 410.22%, the company declared Very Positive results in Jun 26

ROCE(HY) Highest at 10.69%
DEBT-EQUITY RATIO (HY) Lowest at 82.42 %
NET PROFIT(Q) At JPY 40,782 MM has Grown at 167.66%

With ROE of 14.19%, it has a fair valuation with a 0.93 Price to Book Value

Over the past year, while the stock has generated a return of 30.78%, its profits have risen by 696.4% ; the PEG ratio of the company is 0
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 30.78% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%

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, Medium Return

Absolute

Risk Adjusted

Volatility

Sumitomo Chemical Co., Ltd.

29.93%

1.47

39.11%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.66%

EBIT Growth (5y)

0.14%

EBIT to Interest (avg)

1.14

Debt to EBITDA (avg)

14.47

Net Debt to Equity (avg)

1.22

Sales to Capital Employed (avg)

1.06

Tax Ratio

0.42%

Dividend Payout Ratio

36.33%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

3.95%

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

0.93

EV to EBIT

13.53

EV to EBITDA

7.33

EV to Capital Employed

0.96

EV to Sales

0.82

PEG Ratio

0.01

Dividend Yield

ROCE (Latest)

7.12%

ROE (Latest)

14.19%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Mildly Bullish

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

14What is working for the Company

ROCE(HY)

Highest at 10.69%

DEBT-EQUITY RATIO (HY)

Lowest at 82.42 %

NET PROFIT(Q)

At JPY 40,782 MM has Grown at 167.66%

RAW MATERIAL COST(Y)

Fallen by -8.24% (YoY

OPERATING PROFIT(Q)

Highest at JPY 77,762 MM

OPERATING PROFIT MARGIN(Q)

Highest at 13.45 %

-5What is not working for the Company

INTEREST(9M)

At JPY 54,163 MM has Grown at 39.65%

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.02 times

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

Net Profit

At JPY 40,782 MM has Grown at 167.66%

over average net sales of the previous four periods of JPY 15,236.75 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Debt-Equity Ratio

Lowest at 82.42 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Operating Profit

Highest at JPY 77,762 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 13.45 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Raw Material Cost

Fallen by -8.24% (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 54,163 MM has Grown at 39.65%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debtors Turnover Ratio

Lowest at 4.02 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio