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
Poor long term growth as Operating profit has grown by an annual rate -1.95% of over the last 5 years
4
Flat results in Mar 26
- INTEREST(HY) At JPY 2,150 MM has Grown at 16.59%
- INTEREST COVERAGE RATIO(Q) Lowest at 2,173.66
5
With ROCE of 6.25%, it has a very attractive valuation with a 0.96 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 99.61%, its profits have fallen by -7.8%
- At the current price, the company has a high dividend yield of 0
6
Market Beating Performance
- The stock has generated a return of 99.61% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 85.12%
Real-Time Research ReportHow much should you hold?
- 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?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Sumitomo Heavy Industries, Ltd.
99.61%
401.62
40.63%
Japan Nikkei 225
88.41%
3.12
27.27%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.30%
EBIT Growth (5y)
-1.95%
EBIT to Interest (avg)
35.27
Debt to EBITDA (avg)
0.81
Net Debt to Equity (avg)
0.22
Sales to Capital Employed (avg)
1.23
Tax Ratio
91.89%
Dividend Payout Ratio
48.56%
Pledged Shares
0
Institutional Holding
0.01%
ROCE (avg)
9.25%
ROE (avg)
6.48%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
20
Industry P/E
Price to Book Value
0.96
EV to EBIT
15.41
EV to EBITDA
8.81
EV to Capital Employed
0.96
EV to Sales
0.74
PEG Ratio
NA
Dividend Yield
0.02%
ROCE (Latest)
6.25%
ROE (Latest)
4.83%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
OPERATING CASH FLOW(Y)
Highest at JPY 55,799 MM
RAW MATERIAL COST(Y)
Fallen by -5.09% (YoY
NET PROFIT(9M)
Higher at JPY 27,694.2 MM
OPERATING PROFIT MARGIN(Q)
Highest at 9.24 %
-8What is not working for the Company
INTEREST(HY)
At JPY 2,150 MM has Grown at 16.59%
INTEREST COVERAGE RATIO(Q)
Lowest at 2,173.66
Here's what is working for Sumitomo Heavy Industries, Ltd.
Operating Cash Flow
Highest at JPY 55,799 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)
Net Profit
At JPY 27,694.2 MM has Grown at 55.96%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Operating Profit Margin
Highest at 9.24 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Net Profit
Higher at JPY 27,694.2 MM
than preceding 12 month period ended Mar 2026MOJO Watch
In the nine month period the company has already crossed sales of the previous twelve months
Net Profit (JPY MM)
Raw Material Cost
Fallen by -5.09% (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
Here's what is not working for Sumitomo Heavy Industries, Ltd.
Interest
At JPY 2,150 MM has Grown at 16.59%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 2,173.66
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
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