Sumitomo Rubber Industries, Ltd. (5110) 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

Bridgestone Corp.

Sumitomo Rubber Industries, Ltd.

The Yokohama Rubber Co., Ltd.

Toyo Tire Corp.

JVCKenwood Corp.

TS TECH CO., LTD.

Why is Sumitomo Rubber Industries, Ltd. ?

With a growth in Net Profit of 319.02%, the company declared Outstanding results in Dec 25

The company has declared positive results in Jan 70 after 3 consecutive negative quarters
RAW MATERIAL COST(Y) Fallen by -15.42% (YoY)
CASH AND EQV(HY) Highest at JPY 200,725 MM
NET SALES(Q) Highest at JPY 345,452 MM

With ROCE of 9.79%, it has a risky valuation with a 0.76 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 7.40%, its profits have fallen by -116.8%
At the current price, the company has a high dividend yield of 0.1

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Sumitomo Rubber Industries, Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

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

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

Is Sumitomo Rubber Industries, Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Sumitomo Rubber Industries, Ltd.

7.4%

454.12

39.76%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.72%

EBIT Growth (5y)

9.21%

EBIT to Interest (avg)

5.60

Debt to EBITDA (avg)

1.51

Net Debt to Equity (avg)

0.28

Sales to Capital Employed (avg)

1.30

Tax Ratio

77.64%

Dividend Payout Ratio

154.64%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

7.79%

ROE (avg)

4.73%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.69

EV to EBIT

7.74

EV to EBITDA

3.81

EV to Capital Employed

0.76

EV to Sales

0.51

PEG Ratio

Dividend Yield

0.06%

ROCE (Latest)

9.79%

ROE (Latest)

-1.60%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

No Trend

Mildly Bearish

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

RAW MATERIAL COST(Y)

Fallen by -15.42% (YoY

CASH AND EQV(HY)

Highest at JPY 200,725 MM

NET SALES(Q)

Highest at JPY 345,452 MM

OPERATING PROFIT(Q)

Highest at JPY 62,467 MM

OPERATING PROFIT MARGIN(Q)

Highest at 18.08 %

PRE-TAX PROFIT(Q)

Highest at JPY 37,315 MM

NET PROFIT(Q)

Highest at JPY 24,366 MM

EPS(Q)

Highest at JPY 92.69

-4What is not working for the Company

INTEREST(9M)

At JPY 11,906 MM has Grown at 18.61%

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.85 times

Here's what is working for Sumitomo Rubber Industries, Ltd.

Pre-Tax Profit

At JPY 37,315 MM has Grown at 335.92%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 24,366 MM has Grown at 319.02%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

Highest at JPY 345,452 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 62,467 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 18.08 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 37,315 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 24,366 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 92.69

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 200,725 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -15.42% (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 Rubber Industries, Ltd.

Interest

At JPY 11,906 MM has Grown at 18.61%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 2.85 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio