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Sumitomo Corp.

  • Market Cap: Large Cap
  • Industry: Trading & Distributors
  • ISIN: JP3404600003
  • TKS: 8053
JPY
1,844.50
58.5 (3.28%)

Sep 17

TKS

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Inaba Denkisangyo Co., Ltd.
Macnica Holdings, Inc.
Nagase & Co., Ltd.
Iwatani Corp.
Hanwa Co., Ltd.
Inabata & Co., Ltd.
MonotaRO Co., Ltd.
Workman Co., Ltd.
Sumitomo Corp.
Daiichikosho Co., Ltd.
Mitsubishi Corp.

Why 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
The company is Net-Debt Free
  • The company is Net-Debt Free
  • 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
High Debt company with Weak Long Term Fundamental Strength
4
Flat results in Jun 26
  • INTEREST(HY) At JPY 58,508 MM has Grown at 13.8%
  • INTEREST COVERAGE RATIO(Q) Lowest at 546.59
  • PRE-TAX PROFIT(Q) Lowest at JPY 75,319 MM
5
With ROCE of 5.07%, it has a fair valuation with a 1.40 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 70.71%, its profits have risen by 8% ; the PEG ratio of the company is 1.5
  • At the current price, the company has a high dividend yield of 0
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Sumitomo Corp. should be less than 10%
  2. 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?

High Risk, High Return

Absolute
Risk Adjusted
Volatility
Sumitomo Corp.
70.71%
135.86
87.14%
Japan Nikkei 225
43.52%
1.48
29.43%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
9.57%
EBIT Growth (5y)
51.12%
EBIT to Interest (avg)
5.95
Debt to EBITDA (avg)
4.61
Net Debt to Equity (avg)
0.59
Sales to Capital Employed (avg)
0.88
Tax Ratio
11.88%
Dividend Payout Ratio
30.03%
Pledged Shares
0
Institutional Holding
0.07%
ROCE (avg)
5.69%
ROE (avg)
10.98%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
12
Industry P/E
Price to Book Value
1.69
EV to EBIT
27.71
EV to EBITDA
17.63
EV to Capital Employed
1.40
EV to Sales
1.50
PEG Ratio
1.48
Dividend Yield
NA
ROCE (Latest)
5.07%
ROE (Latest)
14.35%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
Bullish
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bearish
Mildly Bullish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

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

8What is working for the Company
OPERATING CASH FLOW(Y)

Highest at JPY 748,104 MM

ROCE(HY)

Highest at 13.18%

RAW MATERIAL COST(Y)

Fallen by 0.21% (YoY

CASH AND EQV(HY)

Highest at JPY 1,750,426 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 3.57 times

-10What is not working for the Company
INTEREST(HY)

At JPY 58,508 MM has Grown at 13.8%

INTEREST COVERAGE RATIO(Q)

Lowest at 546.59

PRE-TAX PROFIT(Q)

Lowest at JPY 75,319 MM

Here's what is working for Sumitomo Corp.

Operating Cash Flow
Highest at JPY 748,104 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)

Cash and Eqv
Highest at JPY 1,750,426 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio
Highest at 3.57 times
in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost
Fallen by 0.21% (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.

Interest
At JPY 58,508 MM has Grown at 13.8%
over previous Semi-Annual period
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio
Lowest at 546.59
in the last five periods
MOJO Watch
The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit
Lowest at JPY 75,319 MM
in the last five periods
MOJO Watch
Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Pre-Tax Profit
Fallen at -33.5%
Year on Year (YoY)
MOJO Watch
Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

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