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

Sumitomo Rubber Industries, Ltd.

Bridgestone Corp.

Toyo Tire Corp.

The Yokohama Rubber Co., Ltd.

TS TECH CO., LTD.

JVCKenwood Corp.

Why is Sumitomo Rubber Industries, Ltd. ?

With a growth in Net Profit of 140.52%, the company declared Outstanding results in Mar 26

The company has declared positive results for the last 3 consecutive quarters
PRE-TAX PROFIT(Q) At JPY 14,640 MM has Grown at 270.54%
NET PROFIT(Q) At JPY 8,565 MM has Grown at 140.52%
RAW MATERIAL COST(Y) Fallen by -6.8% (YoY)

With ROCE of 9.66%, 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 33.34%, its profits have risen by 307.1% ; 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.

33.34%

516.84

36.25%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.83%

EBIT Growth (5y)

16.06%

EBIT to Interest (avg)

5.60

Debt to EBITDA (avg)

1.51

Net Debt to Equity (avg)

0.28

Sales to Capital Employed (avg)

1.27

Tax Ratio

77.64%

Dividend Payout Ratio

40.18%

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

Industry P/E

Price to Book Value

0.78

EV to EBIT

8.65

EV to EBITDA

4.63

EV to Capital Employed

0.84

EV to Sales

0.65

PEG Ratio

0.03

Dividend Yield

ROCE (Latest)

9.66%

ROE (Latest)

7.36%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bullish

RSI

No Signal

Bullish

Bollinger Bands

Sideways

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly 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

18What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 14,640 MM has Grown at 270.54%

NET PROFIT(Q)

At JPY 8,565 MM has Grown at 140.52%

RAW MATERIAL COST(Y)

Fallen by -6.8% (YoY

CASH AND EQV(HY)

Highest at JPY 197,981 MM

-2What is not working for the Company

INTEREST(Q)

At JPY 5,078 MM has Grown at 270.66%

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

Pre-Tax Profit

At JPY 14,640 MM has Grown at 270.54%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 8,565 MM has Grown at 140.52%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 197,981 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -6.8% (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

Depreciation

Highest at JPY 21,696 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Sumitomo Rubber Industries, Ltd.

Interest

At JPY 5,078 MM has Grown at 270.66%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)