Sumitomo Corp. (8053) 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 Corp.

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Why is Sumitomo Corp. ?

Healthy long term growth as Net Sales has grown by an annual rate of 6.59% and Operating profit at 15.60%

Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at JPY 627,031 MM
RAW MATERIAL COST(Y) Fallen by -3.14% (YoY)
DEBTORS TURNOVER RATIO(HY) Highest at 3.49%

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 57.17%, 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

Market Beating performance in long term as well as near term

Along with generating 57.17% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you buy?

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.

57.49%

1179.51

28.17%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality 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)

0.90

Tax Ratio

20.69%

Dividend Payout Ratio

28.02%

Pledged Shares

Institutional Holding

0.12%

ROCE (avg)

4.88%

ROE (avg)

10.96%

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

0.94

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%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

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

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 627,031 MM

RAW MATERIAL COST(Y)

Fallen by -3.14% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 3.49%

NET PROFIT(Q)

Highest at JPY 170,877.72 MM

EPS(Q)

Highest at JPY 141.08

-9What is not working for the Company

INTEREST(HY)

At JPY 51,415 MM has Grown at 13.75%

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.56%

CASH AND EQV(HY)

Lowest at JPY 1,214,906 MM

Here's what is working for Sumitomo Corp.

Operating Cash Flow

Highest at JPY 627,031 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)

Net Profit

Highest at JPY 170,877.72 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 141.08

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Debtors Turnover Ratio

Highest at 3.49%

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 -3.14% (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 51,415 MM has Grown at 13.75%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 3.56% and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Cash and Eqv

Lowest at JPY 1,214,906 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents