ScoreWhy is Sumitomo Forestry Co., Ltd. ?
1
The company is Net-Debt Free
- The company is Net-Debt Free
2
High Debt company with Weak Long Term Fundamental Strength
3
The company has declared Negative results for the last 5 consecutive quarters
- INTEREST(HY) At JPY 8,243 MM has Grown at 68.74%
- ROCE(HY) Lowest at 10.77%
- INVENTORY TURNOVER RATIO(HY) Lowest at 1.76 times
4
With ROCE of 9.40%, it has a very attractive valuation with a 0.88 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 -15.60%, its profits have fallen by -9.9%
- At the current price, the company has a high dividend yield of 0
5
Below par performance in long term as well as near term
- Along with generating -15.60% 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 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?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Sumitomo Forestry Co., Ltd.
-12.58%
-2.16
34.80%
Japan Nikkei 225
60.14%
2.04
29.37%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
15.17%
EBIT Growth (5y)
18.37%
EBIT to Interest (avg)
32.84
Debt to EBITDA (avg)
1.93
Net Debt to Equity (avg)
0.52
Sales to Capital Employed (avg)
1.37
Tax Ratio
23.51%
Dividend Payout Ratio
30.44%
Pledged Shares
0
Institutional Holding
0.02%
ROCE (avg)
14.46%
ROE (avg)
18.32%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
6
Industry P/E
Price to Book Value
0.81
EV to EBIT
9.33
EV to EBITDA
7.57
EV to Capital Employed
0.88
EV to Sales
0.63
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
9.40%
ROE (Latest)
12.81%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
CASH AND EQV(HY)
Highest at JPY 373,921 MM
DEBTORS TURNOVER RATIO(HY)
Highest at 6.33 times
-20What is not working for the Company
INTEREST(HY)
At JPY 8,243 MM has Grown at 68.74%
ROCE(HY)
Lowest at 10.77%
INVENTORY TURNOVER RATIO(HY)
Lowest at 1.76 times
INTEREST COVERAGE RATIO(Q)
Lowest at 814.53
RAW MATERIAL COST(Y)
Grown by 8.02% (YoY
OPERATING PROFIT(Q)
Lowest at JPY 32,850 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 6.17 %
PRE-TAX PROFIT(Q)
Lowest at JPY 31,326 MM
NET PROFIT(Q)
Lowest at JPY 16,758 MM
EPS(Q)
Lowest at JPY 27.32
Here's what is working for Sumitomo Forestry Co., Ltd.
Cash and Eqv
Highest at JPY 373,921 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debtors Turnover Ratio
Highest at 6.33 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Sumitomo Forestry Co., Ltd.
Interest
At JPY 8,243 MM has Grown at 68.74%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 814.53
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Inventory Turnover Ratio
Lowest at 1.76 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Operating Profit
Lowest at JPY 32,850 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (JPY MM)
Operating Profit Margin
Lowest at 6.17 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at JPY 31,326 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Net Profit
Lowest at JPY 16,758 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
EPS
Lowest at JPY 27.32
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
Raw Material Cost
Grown by 8.02% (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 0.37 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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