Sumitomo Mitsui Construction Co., Ltd. (1821) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sanki Engineering Co., Ltd.

Toenec Corp.

RAIZNEXT Corp.

Yurtec Corp.

Shinnihon Corp.

TOA Corp. (1885)

Sumitomo Densetsu Co. Ltd.

Sumitomo Mitsui Construction Co., Ltd.

Taihei Dengyo Kaisha, Ltd.

Daiho Corp.

Chiyoda Corp.

Why is Sumitomo Mitsui Construction Co., Ltd. ?

Poor long term growth as Operating profit has grown by an annual rate -21.07% of over the last 5 years

Flat results in Jun 25

INTEREST(HY) At JPY 1,698 MM has Grown at 36.83%
INVENTORY TURNOVER RATIO(HY) Lowest at 10.14%
NET SALES(Q) Lowest at JPY 94,522 MM

With ROE of 1.73%, it has a very attractive valuation with a 1.38 Price to Book Value

Over the past year, while the stock has generated a return of 46.44%, its profits have fallen by -73.6%
At the current price, the company has a high dividend yield of 0.1

Market Beating Performance

The stock has generated a return of 46.44% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 29.35%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sumitomo Mitsui Construction Co., Ltd. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Sumitomo Mitsui Construction Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Sumitomo Mitsui Construction Co., Ltd.

44.66%

2.16

23.61%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.40%

EBIT Growth (5y)

-21.07%

EBIT to Interest (avg)

0.63

Debt to EBITDA (avg)

0.10

Net Debt to Equity (avg)

0.07

Sales to Capital Employed (avg)

2.78

Tax Ratio

73.96%

Dividend Payout Ratio

256.78%

Pledged Shares

Institutional Holding

ROCE (avg)

8.61%

ROE (avg)

3.52%

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

1.38

EV to EBIT

13.39

EV to EBITDA

8.40

EV to Capital Employed

1.35

EV to Sales

0.22

PEG Ratio

Dividend Yield

0.08%

ROCE (Latest)

10.11%

ROE (Latest)

1.73%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

No Trend

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

13What is working for the Company

NET PROFIT(HY)

Higher at JPY 9,830 MM

RAW MATERIAL COST(Y)

Fallen by -34.8% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 10.03 %

-16What is not working for the Company

INTEREST(HY)

At JPY 1,698 MM has Grown at 36.83%

INVENTORY TURNOVER RATIO(HY)

Lowest at 10.14%

NET SALES(Q)

Lowest at JPY 94,522 MM

PRE-TAX PROFIT(Q)

Fallen at -36.17%

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

Net Profit

At JPY 9,830 MM has Grown at 8,918.35%

Year on Year (YoY)

MOJO Watch

Net Profit trend is very positive

Net Profit (JPY MM)

Net Profit

Higher at JPY 9,830 MM

than preceding 12 month period ended Jun 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (JPY MM)

Debt-Equity Ratio

Lowest at 10.03 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -34.8% (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 Mitsui Construction Co., Ltd.

Interest

At JPY 1,698 MM has Grown at 36.83%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

At JPY 94,522 MM has Fallen at -15.52%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Inventory Turnover Ratio

Lowest at 10.14% and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Sales

Lowest at JPY 94,522 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Pre-Tax Profit

Fallen at -36.17%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)