Sumitomo Forestry Co., Ltd. (1911) 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

Open House Group Co., Ltd.

HASEKO Corp.

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Daiwa House Industry Co., Ltd.

Iida Group Holdings Co., Ltd.

Token Corp.

Sumitomo Forestry Co., Ltd.

Nishimatsu Construction Co., Ltd.

Obayashi Corp.

Nagawa Co., Ltd.

Pressance Corp.

Why is Sumitomo Forestry Co., Ltd. ?

High Management Efficiency with a high ROCE of 14.82%

High Debt Company with a Debt to Equity ratio (avg) at times

High Debt Company with a Debt to Equity ratio (avg) at times

Healthy long term growth as Operating profit has grown by an annual rate 22.79%

Negative results in Dec 25

ROCE(HY) Lowest at 11.09%
DEBT-EQUITY RATIO (HY) Highest at 58.17 %
INTEREST COVERAGE RATIO(Q) Lowest at 1,306.82

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 -8.20%, 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

Below par performance in long term as well as near term

Along with generating -8.20% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How 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.

-8.2%

-0.94

78.18%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality 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)

1.42

Tax Ratio

23.32%

Dividend Payout Ratio

25.47%

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

14.82%

ROE (avg)

18.32%

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

0.98

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%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

3What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at JPY 6.22

NET SALES(Q)

Highest at JPY 633,697 MM

EPS(Q)

Highest at JPY 61.42

-20What is not working for the Company

ROCE(HY)

Lowest at 11.09%

DEBT-EQUITY RATIO (HY)

Highest at 58.17 %

INTEREST COVERAGE RATIO(Q)

Lowest at 1,306.82

RAW MATERIAL COST(Y)

Grown by 7.46% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.77 times

INTEREST(Q)

Highest at JPY 4,210 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.68 %

Here's what is working for Sumitomo Forestry Co., Ltd.

Net Sales

Highest at JPY 633,697 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

EPS

Highest at JPY 61.42

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Dividend per share

Highest at JPY 6.22

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Here's what is not working for Sumitomo Forestry Co., Ltd.

Interest

At JPY 4,210 MM has Grown at 22.42%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 1,306.82

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 58.17 % and Grown

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

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Interest

Highest at JPY 4,210 MM

in the last five periods and Increased by 22.42% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit Margin

Lowest at 8.68 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 1.77 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 7.46% (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