ScoreWhy is Sumitomo Forestry Co., Ltd. ?
1
High Management Efficiency with a high ROCE of 14.82%
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
3
Healthy long term growth as Operating profit has grown by an annual rate 22.79%
- ROCE(HY) Lowest at 12.34%
- DEBT-EQUITY RATIO (HY) Highest at 56.25 %
- RAW MATERIAL COST(Y) Grown by 5.31% (YoY)
4
With ROCE of 14.43%, it has a very attractive valuation with a 0.99 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 -19.93%, its profits have risen by 9.4% ; the PEG ratio of the company is 0.6
- At the current price, the company has a high dividend yield of 0
5
Underperformed the market in the last 1 year
- Even though the market (Japan Nikkei 225) has generated returns of 28.54% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -19.93% returns
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Sumitomo Forestry Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Furniture, Home Furnishing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Sumitomo Forestry Co., Ltd. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Sumitomo Forestry Co., Ltd.
-19.93%
-0.91
77.74%
Japan Nikkei 225
28.54%
1.11
25.75%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
9.53%
EBIT Growth (5y)
22.79%
EBIT to Interest (avg)
36.40
Debt to EBITDA (avg)
1.81
Net Debt to Equity (avg)
0.52
Sales to Capital Employed (avg)
1.46
Tax Ratio
23.32%
Dividend Payout Ratio
25.47%
Pledged Shares
0
Institutional Holding
0.02%
ROCE (avg)
14.82%
ROE (avg)
18.32%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
6
Industry P/E
Price to Book Value
0.98
EV to EBIT
6.83
EV to EBITDA
5.71
EV to Capital Employed
0.99
EV to Sales
0.62
PEG Ratio
0.61
Dividend Yield
0.02%
ROCE (Latest)
14.43%
ROE (Latest)
17.09%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
DIVIDEND PAYOUT RATIO(Y)
Highest at 54.06%
CASH AND EQV(HY)
Highest at JPY 337,953 MM
DEBTORS TURNOVER RATIO(HY)
Highest at 6.8%
DIVIDEND PER SHARE(HY)
Highest at JPY 6.8
NET SALES(Q)
Highest at JPY 563,118 MM
-17What is not working for the Company
ROCE(HY)
Lowest at 12.34%
DEBT-EQUITY RATIO
(HY)
Highest at 56.25 %
RAW MATERIAL COST(Y)
Grown by 5.31% (YoY
INVENTORY TURNOVER RATIO(HY)
Lowest at 1.78%
INTEREST(Q)
Highest at JPY 2,905 MM
Here's what is working for Sumitomo Forestry Co., Ltd.
Net Sales
Highest at JPY 563,118 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Cash and Eqv
Highest at JPY 337,953 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debtors Turnover Ratio
Highest at 6.8%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Dividend per share
Highest at JPY 6.8
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (JPY)
Dividend Payout Ratio
Highest at 54.06%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Here's what is not working for Sumitomo Forestry Co., Ltd.
Interest
At JPY 2,905 MM has Grown at 10.29%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Debt-Equity Ratio
Highest at 56.25 % and Grown
In each half year 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
Interest
Highest at JPY 2,905 MM
in the last five periods and Increased by 10.29% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Inventory Turnover Ratio
Lowest at 1.78%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Raw Material Cost
Grown by 5.31% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
Non Operating Income
Highest at JPY 0.17 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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