ScoreWhy is Sumitomo Heavy Industries, Ltd. ?
1
Weak Long Term Fundamental Strength with a 1.31% CAGR growth in Operating Profits over the last 5 years
2
Poor long term growth as Operating profit has grown by an annual rate 1.31% of over the last 5 years
3
With a growth in Net Profit of 78.53%, the company declared Very Positive results in Jun 26
- OPERATING CASH FLOW(Y) Highest at JPY 53,644 MM
- ROCE(HY) Highest at 6.11%
- INTEREST COVERAGE RATIO(Q) Highest at 2,987.01
4
With ROCE of 6.41%, it has a fair valuation with a 0.97 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 75.54%, its profits have risen by 21.1% ; the PEG ratio of the company is 0.9
- At the current price, the company has a high dividend yield of 0
5
Market Beating Performance
- The stock has generated a return of 75.54% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 59.79%
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.
73.73%
401.91
42.81%
Japan Nikkei 225
60.14%
2.04
29.37%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
5.15%
EBIT Growth (5y)
1.31%
EBIT to Interest (avg)
29.72
Debt to EBITDA (avg)
1.01
Net Debt to Equity (avg)
0.22
Sales to Capital Employed (avg)
1.23
Tax Ratio
32.52%
Dividend Payout Ratio
48.56%
Pledged Shares
0
Institutional Holding
0.01%
ROCE (avg)
8.57%
ROE (avg)
6.48%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
19
Industry P/E
Price to Book Value
0.96
EV to EBIT
15.12
EV to EBITDA
8.70
EV to Capital Employed
0.97
EV to Sales
0.75
PEG Ratio
0.92
Dividend Yield
0.02%
ROCE (Latest)
6.41%
ROE (Latest)
4.99%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend21What is working for the Company
OPERATING CASH FLOW(Y)
Highest at JPY 53,644 MM
ROCE(HY)
Highest at 6.11%
INTEREST COVERAGE RATIO(Q)
Highest at 2,987.01
RAW MATERIAL COST(Y)
Fallen by -6.75% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 3.99 times
OPERATING PROFIT(Q)
Highest at JPY 34,500 MM
OPERATING PROFIT MARGIN(Q)
Highest at 11.55 %
PRE-TAX PROFIT(Q)
Highest at JPY 23,076 MM
NET PROFIT(Q)
Highest at JPY 15,984.19 MM
EPS(Q)
Highest at JPY 118.44
-10What is not working for the Company
DIVIDEND PAYOUT RATIO(Y)
Lowest at 59.1%
INTEREST(Q)
Highest at JPY 1,155 MM
Here's what is working for Sumitomo Heavy Industries, Ltd.
Operating Cash Flow
Highest at JPY 53,644 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 2,987.01
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Profit
Highest at JPY 34,500 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 11.55 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at JPY 23,076 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Pre-Tax Profit
At JPY 23,076 MM has Grown at 82.61%
over average net sales of the previous four periods of JPY 12,636.75 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 15,984.19 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Net Profit
At JPY 15,984.19 MM has Grown at 87.57%
over average net sales of the previous four periods of JPY 8,521.71 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 118.44
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Debtors Turnover Ratio
Highest at 3.99 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -6.75% (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 10,428 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
Highest at JPY 1,155 MM
in the last five periods and Increased by 6.35% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Dividend Payout Ratio
Lowest at 59.1%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
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