ScoreWhy is Sumitomo Pharma Co., Ltd. ?
1
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -8.65
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -8.65
- The company has been able to generate a Return on Equity (avg) of 4.62% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of -2.72% and Operating profit at -2.14% over the last 5 years
3
The company has declared negative results in Mar'2026 after 5 consecutive positive quarters
- PRE-TAX PROFIT(Q) At JPY -2,315 MM has Fallen at -109.73%
- INTEREST COVERAGE RATIO(Q) Lowest at 19.35
- RAW MATERIAL COST(Y) Grown by 17.93% (YoY)
4
With ROE of 38.10%, it has a very attractive valuation with a 2.60 Price to Book Value
- Over the past year, while the stock has generated a return of 59.39%, its profits have risen by 1650%
- At the current price, the company has a high dividend yield of 0.1
5
Underperformed the market in the last 1 year
- The stock has generated a return of 59.39% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%
Real-Time Research ReportHow much should you hold?
- 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.
56.62%
109.03
79.90%
Japan Nikkei 225
85.83%
3.09
27.80%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-2.72%
EBIT Growth (5y)
-2.14%
EBIT to Interest (avg)
-8.65
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
1.69
Sales to Capital Employed (avg)
0.68
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.01%
ROCE (avg)
3.30%
ROE (avg)
4.62%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
7
Industry P/E
Price to Book Value
2.60
EV to EBIT
16.27
EV to EBITDA
11.88
EV to Capital Employed
1.94
EV to Sales
2.10
PEG Ratio
NA
Dividend Yield
0.05%
ROCE (Latest)
11.93%
ROE (Latest)
38.10%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend13What is working for the Company
OPERATING CASH FLOW(Y)
Highest at JPY 71,715 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 61.51 %
INVENTORY TURNOVER RATIO(HY)
Highest at 2.19 times
NET PROFIT(9M)
Higher at JPY 95,659 MM
-20What is not working for the Company
PRE-TAX PROFIT(Q)
At JPY -2,315 MM has Fallen at -109.73%
INTEREST COVERAGE RATIO(Q)
Lowest at 19.35
RAW MATERIAL COST(Y)
Grown by 17.93% (YoY
NET SALES(Q)
Lowest at JPY 105,548 MM
OPERATING PROFIT(Q)
Lowest at JPY 89 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 0.08 %
NET PROFIT(Q)
Lowest at JPY -812 MM
EPS(Q)
Lowest at JPY -2.04
Here's what is working for Sumitomo Pharma Co., Ltd.
Operating Cash Flow
Highest at JPY 71,715 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)
Debt-Equity Ratio
Lowest at 61.51 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 2.19 times and Grown
In each half year in the last five Semi-Annual periodsMOJO 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 -2,315 MM has Fallen at -109.73%
over average net sales of the previous four periods of JPY 23,781 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Net Profit
At JPY -812 MM has Fallen at -102.95%
over average net sales of the previous four periods of JPY 27,523 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Interest Coverage Ratio
Lowest at 19.35
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Net Sales
Lowest at JPY 105,548 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (JPY MM)
Net Sales
At JPY 105,548 MM has Fallen at -6.88%
over average net sales of the previous four periods of JPY 113,348.75 MMMOJO Watch
Near term sales trend is negative
Net Sales (JPY MM)
Operating Profit
Lowest at JPY 89 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (JPY MM)
Operating Profit Margin
Lowest at 0.08 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Net Profit
Lowest at JPY -812 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
EPS
Lowest at JPY -2.04
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
Raw Material Cost
Grown by 17.93% (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
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