Sumitomo Riko Co. Ltd. (5191) 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

Sumitomo Riko Co. Ltd.

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Teikoku Sen-I Co., Ltd.

Why is Sumitomo Riko Co. Ltd. ?

Healthy long term growth as Operating profit has grown by an annual rate 29.84%

Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at JPY 67,526 MM
DEBT-EQUITY RATIO (HY) Lowest at 10 %
INVENTORY TURNOVER RATIO(HY) Highest at 6.3%

With ROCE of 18.17%, it has a very attractive valuation with a 0.84 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 65.84%, its profits have risen by 35.6% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 0

Consistent Returns over the last 3 years

Along with generating 65.84% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Sumitomo Riko Co. Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is Sumitomo Riko Co. Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Sumitomo Riko Co. Ltd.

64.78%

2.30

40.83%

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)

7.31%

EBIT Growth (5y)

29.84%

EBIT to Interest (avg)

8.34

Debt to EBITDA (avg)

1.30

Net Debt to Equity (avg)

0.09

Sales to Capital Employed (avg)

2.11

Tax Ratio

22.38%

Dividend Payout Ratio

24.99%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

9.33%

ROE (avg)

6.11%

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

0.82

EV to EBIT

4.61

EV to EBITDA

2.67

EV to Capital Employed

0.84

EV to Sales

0.31

PEG Ratio

0.16

Dividend Yield

0.03%

ROCE (Latest)

18.17%

ROE (Latest)

14.04%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 67,526 MM

DEBT-EQUITY RATIO (HY)

Lowest at 10 %

INVENTORY TURNOVER RATIO(HY)

Highest at 6.3%

RAW MATERIAL COST(Y)

Fallen by -7% (YoY

NET PROFIT(9M)

Higher at JPY 23,152 MM

CASH AND EQV(HY)

Highest at JPY 118,065 MM

-4What is not working for the Company

INTEREST(HY)

At JPY 1,661 MM has Grown at 20.89%

Here's what is working for Sumitomo Riko Co. Ltd.

Operating Cash Flow

Highest at JPY 67,526 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)

Debt-Equity Ratio

Lowest at 10 % and Grown

In each half year 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 6.3% and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Cash and Eqv

Highest at JPY 118,065 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Net Profit

Higher at JPY 23,152 MM

than preceding 12 month period ended Jun 2025

MOJO 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 -7% (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 Riko Co. Ltd.

Interest

At JPY 1,661 MM has Grown at 20.89%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)