ScoreWhy is Sumitomo Heavy Industries, Ltd. ?
1
High Management Efficiency with a high ROCE of 9.25%
2
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 35.27
3
With a growth in Net Profit of 47.16%, the company declared Very Positive results in Dec 25
- OPERATING CASH FLOW(Y) Highest at JPY 63,666 MM
- INTEREST COVERAGE RATIO(Q) Highest at 2,542.95
- RAW MATERIAL COST(Y) Fallen by -4.92% (YoY)
4
With ROCE of 6.27%, it has a very attractive valuation with a 0.66 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 53.86%, its profits have fallen by -47.7%
- At the current price, the company has a high dividend yield of 0
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to Sumitomo Heavy Industries, Ltd. should be less than 10%
- Overall Portfolio exposure to Industrial Manufacturing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Sumitomo Heavy Industries, Ltd. for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
Sumitomo Heavy Industries, Ltd.
53.86%
392.81
37.52%
Japan Nikkei 225
45.96%
1.66
27.70%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
3.18%
EBIT Growth (5y)
-7.73%
EBIT to Interest (avg)
35.27
Debt to EBITDA (avg)
0.81
Net Debt to Equity (avg)
0.22
Sales to Capital Employed (avg)
1.27
Tax Ratio
91.89%
Dividend Payout Ratio
195.75%
Pledged Shares
0
Institutional Holding
0.01%
ROCE (avg)
9.25%
ROE (avg)
6.48%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
13
Industry P/E
Price to Book Value
0.59
EV to EBIT
10.58
EV to EBITDA
5.94
EV to Capital Employed
0.66
EV to Sales
0.48
PEG Ratio
NA
Dividend Yield
0.03%
ROCE (Latest)
6.27%
ROE (Latest)
4.53%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
Bullish
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend15What is working for the Company
OPERATING CASH FLOW(Y)
Highest at JPY 63,666 MM
INTEREST COVERAGE RATIO(Q)
Highest at 2,542.95
RAW MATERIAL COST(Y)
Fallen by -4.92% (YoY
NET SALES(Q)
Highest at JPY 313,670 MM
OPERATING PROFIT(Q)
Highest at JPY 27,057 MM
PRE-TAX PROFIT(Q)
Highest at JPY 15,776 MM
NET PROFIT(Q)
Highest at JPY 12,093.79 MM
EPS(Q)
Highest at JPY 91.84
-6What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.46 times
INTEREST(Q)
Highest at JPY 1,064 MM
Here's what is working for Sumitomo Heavy Industries, Ltd.
Operating Cash Flow
Highest at JPY 63,666 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (JPY MM)
Interest Coverage Ratio
Highest at 2,542.95
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Sales
Highest at JPY 313,670 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Net Sales
At JPY 313,670 MM has Grown at 19.24%
over average net sales of the previous four periods of JPY 263,066.25 MMMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 27,057 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Pre-Tax Profit
Highest at JPY 15,776 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 12,093.79 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Net Profit
At JPY 12,093.79 MM has Grown at 57.62%
over average net sales of the previous four periods of JPY 7,672.85 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 91.84
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Raw Material Cost
Fallen by -4.92% (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 10,323 MM
in the last five periodsMOJO 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 Heavy Industries, Ltd.
Interest
At JPY 1,064 MM has Grown at 12.83%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest
Highest at JPY 1,064 MM
in the last five periods and Increased by 12.83% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Debtors Turnover Ratio
Lowest at 3.46 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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