Sumitomo Electric Industries Ltd. (5802) 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

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NIDEC Corp.

Why is Sumitomo Electric Industries Ltd. ?

The company has declared Positive results for the last 3 consecutive quarters

ROCE(HY) Highest at 15.68%
DEBT-EQUITY RATIO (HY) Lowest at 16.68 %
DEBTORS TURNOVER RATIO(HY) Highest at 5.99 times

With ROCE of 13.09%, it has a attractive valuation with a 3.48 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 116.66%, its profits have risen by 24.5% ; the PEG ratio of the company is 1.3
At the current price, the company has a high dividend yield of 0

Majority shareholders : Non Institution

Consistent Returns over the last 3 years

Along with generating 116.66% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Sumitomo Electric Industries Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Sumitomo Electric Industries Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Sumitomo Electric Industries Ltd.

114.4%

153.76

107.63%

Japan Nikkei 225

59.79%

2.06

29.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.57%

EBIT Growth (5y)

33.61%

EBIT to Interest (avg)

13.83

Debt to EBITDA (avg)

1.22

Net Debt to Equity (avg)

0.18

Sales to Capital Employed (avg)

1.51

Tax Ratio

20.59%

Dividend Payout Ratio

32.50%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

9.17%

ROE (avg)

7.57%

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

3.93

EV to EBIT

26.59

EV to EBITDA

17.25

EV to Capital Employed

3.48

EV to Sales

2.08

PEG Ratio

1.34

Dividend Yield

ROCE (Latest)

13.09%

ROE (Latest)

11.99%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

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

19What is working for the Company

ROCE(HY)

Highest at 15.68%

DEBT-EQUITY RATIO (HY)

Lowest at 16.68 %

DEBTORS TURNOVER RATIO(HY)

Highest at 5.99 times

RAW MATERIAL COST(Y)

Fallen by -8.75% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 4.05 times

PRE-TAX PROFIT(Q)

At JPY 102,381 MM has Grown at 67.29%

NET PROFIT(Q)

At JPY 66,414 MM has Grown at 89.11%

-1What is not working for the Company

CASH AND EQV(HY)

Lowest at JPY 501,711 MM

Here's what is working for Sumitomo Electric Industries Ltd.

Debt-Equity Ratio

Lowest at 16.68 % 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

Debtors Turnover Ratio

Highest at 5.99 times and Grown

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

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Pre-Tax Profit

At JPY 102,381 MM has Grown at 67.29%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 66,414 MM has Grown at 89.11%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Inventory Turnover Ratio

Highest at 4.05 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -8.75% (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

Depreciation

Highest at JPY 55,853 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Sumitomo Electric Industries Ltd.

Cash and Eqv

Lowest at JPY 501,711 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents