Sumitomo Seika Chemicals Co., Ltd. (4008) 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

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Sumitomo Seika Chemicals Co., Ltd.

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Teijin Ltd.

Why is Sumitomo Seika Chemicals Co., Ltd. ?

Weak Long Term Fundamental Strength with a 5.56% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Operating profit has grown by an annual rate 5.56% of over the last 5 years

Flat results in Jun 26

INTEREST(HY) At JPY 204 MM has Grown at 52.24%
CASH AND EQV(HY) Lowest at JPY 33,372 MM
DEBT-EQUITY RATIO (HY) Highest at 8.62 %

With ROE of 8.60%, it has a very attractive valuation with a 0.85 Price to Book Value

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 67.61%, its profits have fallen by -11.3%
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sumitomo Seika Chemicals Co., Ltd. should be less than 10%
Overall Portfolio exposure to Garments & Apparels should be less than 30%

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

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

Is Sumitomo Seika Chemicals Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sumitomo Seika Chemicals Co., Ltd.

68.84%

-0.77

90.56%

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)

7.90%

EBIT Growth (5y)

5.56%

EBIT to Interest (avg)

35.12

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

1.29

Tax Ratio

34.26%

Dividend Payout Ratio

37.45%

Pledged Shares

Institutional Holding

ROCE (avg)

12.59%

ROE (avg)

9.06%

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

0.85

EV to EBIT

6.81

EV to EBITDA

4.73

EV to Capital Employed

0.85

EV to Sales

0.57

PEG Ratio

Dividend Yield

ROCE (Latest)

12.53%

ROE (Latest)

8.60%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

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

9What is working for the Company

NET PROFIT(HY)

At JPY 6,692.35 MM has Grown at 140.35%

ROCE(HY)

Highest at 9.91%

RAW MATERIAL COST(Y)

Fallen by -8.7% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 4.83 times

NET SALES(Q)

Highest at JPY 40,397 MM

EPS(Q)

Highest at JPY 50.52

-10What is not working for the Company

INTEREST(HY)

At JPY 204 MM has Grown at 52.24%

CASH AND EQV(HY)

Lowest at JPY 33,372 MM

DEBT-EQUITY RATIO (HY)

Highest at 8.62 %

Here's what is working for Sumitomo Seika Chemicals Co., Ltd.

Net Profit

At JPY 6,692.35 MM has Grown at 140.35%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

Highest at JPY 40,397 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

EPS

Highest at JPY 50.52

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Debtors Turnover Ratio

Highest at 4.83 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -8.7% (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

Depreciation

Highest at JPY 2,056 MM

in the last five periods

MOJO Watch

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

Depreciation (JPY MM)

Depreciation

At JPY 2,056 MM has Grown at 36.07%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

Here's what is not working for Sumitomo Seika Chemicals Co., Ltd.

Interest

At JPY 204 MM has Grown at 52.24%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 33,372 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 8.62 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio