Sumitomo Pharma Co., Ltd. (4506) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sumitomo Pharma Co., Ltd.

Why is Sumitomo Pharma Co., Ltd. ?

With a growth in Net Sales of 1.26%, the company declared Outstanding results in Dec 25

The company has declared positive results for the last 2 consecutive quarters
OPERATING CASH FLOW(Y) Highest at JPY 53,277 MM
NET PROFIT(HY) Higher at JPY 96,471 MM
ROCE(HY) Highest at 48.39%

With ROE of 13.95%, it has a attractive valuation with a 1.92 Price to Book Value

Over the past year, while the stock has generated a return of 174.07%, its profits have risen by 117.8% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0.1

Market Beating Performance

The stock has generated a return of 174.07% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 38.94%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Sumitomo Pharma Co., Ltd. should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

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

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

Is Sumitomo Pharma Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Sumitomo Pharma Co., Ltd.

174.07%

133.60

87.24%

Japan Nikkei 225

38.94%

1.38

28.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-3.75%

EBIT Growth (5y)

-15.63%

EBIT to Interest (avg)

-8.65

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

1.67

Sales to Capital Employed (avg)

0.66

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

3.30%

ROE (avg)

4.62%

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

1.92

EV to EBIT

40.70

EV to EBITDA

15.00

EV to Capital Employed

1.34

EV to Sales

1.52

PEG Ratio

0.12

Dividend Yield

0.12%

ROCE (Latest)

3.30%

ROE (Latest)

13.95%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Bullish

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

24What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 53,277 MM

NET PROFIT(HY)

Higher at JPY 96,471 MM

ROCE(HY)

Highest at 48.39%

DEBT-EQUITY RATIO (HY)

Lowest at 69.78 %

INVENTORY TURNOVER RATIO(HY)

Highest at 1.95 times

NET SALES(Q)

Highest at JPY 120,624 MM

-10What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY 8,737 MM has Fallen at -75.53%

NET PROFIT(Q)

At JPY 8,817 MM has Fallen at -77.21%

INTEREST(Q)

At JPY 5,138 MM has Grown at inf%

RAW MATERIAL COST(Y)

Grown by 14.64% (YoY

CASH AND EQV(HY)

Lowest at JPY 95,813 MM

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

Operating Cash Flow

Highest at JPY 53,277 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Net Sales

Highest at JPY 120,624 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Debt-Equity Ratio

Lowest at 69.78 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 1.95 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Sumitomo Pharma Co., Ltd.

Pre-Tax Profit

At JPY 8,737 MM has Fallen at -75.53%

over average net sales of the previous four periods of JPY 35,704.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 8,817 MM has Fallen at -77.21%

over average net sales of the previous four periods of JPY 38,680.75 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 5,138 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 95,813 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 14.64% (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