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.

TS TECH CO., LTD.

JVCKenwood Corp.

Why is Sumitomo Rubber Industries, Ltd. ?

With a growth in Net Profit of 59.99%, the company declared Very Positive results in Jun 26

The company has declared positive results for the last 4 consecutive quarters
NET PROFIT(HY) At JPY 25,865 MM has Grown at 79.94%
RAW MATERIAL COST(Y) Fallen by -9.42% (YoY)
CASH AND EQV(HY) Highest at JPY 198,024 MM

With ROCE of 9.52%, it has a very attractive valuation with a 0.87 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 47.67%, its profits have risen by 685.8% ; the PEG ratio of the company is 0
At the current price, the company has a high dividend yield of 0

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?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Sumitomo Rubber Industries, Ltd.

39.31%

571.04

37.54%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.46%

EBIT Growth (5y)

10.49%

EBIT to Interest (avg)

5.05

Debt to EBITDA (avg)

1.57

Net Debt to Equity (avg)

0.28

Sales to Capital Employed (avg)

1.27

Tax Ratio

33.29%

Dividend Payout Ratio

40.18%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

7.86%

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

Industry P/E

Price to Book Value

0.82

EV to EBIT

9.13

EV to EBITDA

4.86

EV to Capital Employed

0.87

EV to Sales

0.70

PEG Ratio

0.01

Dividend Yield

ROCE (Latest)

9.52%

ROE (Latest)

8.14%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Dow Theory

No Trend

Mildly Bullish

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

10What is working for the Company

NET PROFIT(HY)

At JPY 25,865 MM has Grown at 79.94%

RAW MATERIAL COST(Y)

Fallen by -9.42% (YoY

CASH AND EQV(HY)

Highest at JPY 198,024 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 6.37 times

DIVIDEND PER SHARE(HY)

Highest at JPY 6.37

-1What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.68 times

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

Net Profit

At JPY 25,865 MM has Grown at 79.94%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 198,024 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 6.37 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at JPY 6.37

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by -9.42% (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.

Inventory Turnover Ratio

Lowest at 2.68 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio