ScoreWhy is Sumitomo Corp. ?
1
Poor Management Efficiency with a low ROCE of 4.88%
- The company has been able to generate a Return on Capital Employed (avg) of 4.88% signifying low profitability per unit of total capital (equity and debt)
2
High Debt Company with a Debt to Equity ratio (avg) at times
- High Debt Company with a Debt to Equity ratio (avg) at times
- The company has been able to generate a Return on Capital Employed (avg) of 4.88% signifying low profitability per unit of total capital (equity and debt)
3
Healthy long term growth as Net Sales has grown by an annual rate of 6.59% and Operating profit at 15.60%
4
Flat results in Dec 25
- INVENTORY TURNOVER RATIO(HY) Lowest at 3.38 times
- DEBT-EQUITY RATIO (HY) Highest at 90.21 %
- DEBTORS TURNOVER RATIO(HY) Lowest at 3.08 times
5
With ROCE of 5.47%, it has a very attractive valuation with a 0.96 Enterprise value to Capital Employed
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 58.61%, its profits have risen by 36.5% ; the PEG ratio of the company is 0.2
- At the current price, the company has a high dividend yield of 0
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Sumitomo Corp. should be less than 10%
- Overall Portfolio exposure to Trading & Distributors should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Trading & Distributors)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Sumitomo Corp. for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
Sumitomo Corp.
58.61%
1126.95
32.66%
Japan Nikkei 225
36.73%
1.30
28.24%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.59%
EBIT Growth (5y)
15.60%
EBIT to Interest (avg)
5.47
Debt to EBITDA (avg)
5.71
Net Debt to Equity (avg)
0.59
Sales to Capital Employed (avg)
0.89
Tax Ratio
20.69%
Dividend Payout Ratio
28.02%
Pledged Shares
0
Institutional Holding
0.05%
ROCE (avg)
4.88%
ROE (avg)
10.96%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
7
Industry P/E
Price to Book Value
0.94
EV to EBIT
17.60
EV to EBITDA
11.41
EV to Capital Employed
0.96
EV to Sales
0.98
PEG Ratio
0.19
Dividend Yield
0.01%
ROCE (Latest)
5.47%
ROE (Latest)
13.15%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
Bullish
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Bullish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend3What is working for the Company
OPERATING CASH FLOW(Y)
Highest at JPY 601,513 MM
RAW MATERIAL COST(Y)
Fallen by -0.98% (YoY
-6What is not working for the Company
INVENTORY TURNOVER RATIO(HY)
Lowest at 3.38 times
DEBT-EQUITY RATIO
(HY)
Highest at 90.21 %
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.08 times
NET PROFIT(Q)
Lowest at JPY 110,431.14 MM
EPS(Q)
Lowest at JPY 89.58
Here's what is working for Sumitomo Corp.
Operating Cash Flow
Highest at JPY 601,513 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (JPY MM)
Raw Material Cost
Fallen by -0.98% (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 Corp.
Inventory Turnover Ratio
Lowest at 3.38 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Net Profit
Lowest at JPY 110,431.14 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
EPS
Lowest at JPY 89.58
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
Debt-Equity Ratio
Highest at 90.21 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Debtors Turnover Ratio
Lowest at 3.08 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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