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Sumitomo Chemical Co (JP:4005)
:4005
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Sumitomo Chemical Co
(OTC:4005)
51Neutral
Sumitomo Chemical Co (4005) vs. S&P 500 (SPY)
Market Cap
¥584.97B
Dividend Yield2.16%
Average Volume (3M)12.09M
Price to Earnings (P/E)―
Beta (1Y)0.62
Revenue Growth4.08%
EPS Growth-6.32%
CountryJP
Employees32,161
SectorBasic Materials
Sector Strength59
IndustryChemicals
Share Statistics
EPS (TTM)-106.04
Shares Outstanding1,657,217,700
10 Day Avg. Volume12,020,410
30 Day Avg. Volume12,087,003
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥360.12Price Target Upside0.76% Upside
Rating ConsensusHold
Number of Analyst Covering0
Sumitomo Chemical Co Business Overview & Revenue Model
Company DescriptionSumitomo Chemical Co., Ltd. is a leading global chemical company headquartered in Tokyo, Japan. It operates in various sectors including petrochemicals, energy, health and crop sciences, IT-related chemicals, and specialty chemicals. The company provides a diverse range of products and solutions that cater to industries such as agriculture, pharmaceuticals, automotive, electronics, and consumer goods, among others. Sumitomo Chemical is committed to sustainable development and innovation, leveraging its extensive research and development capabilities to address global challenges and create value for society.
How the Company Makes MoneySumitomo Chemical Co. generates revenue through its diversified portfolio of chemical products and solutions. The company operates in five major business segments: Petrochemicals & Plastics, Energy & Functional Materials, IT-related Chemicals, Health & Crop Sciences, and Pharmaceuticals. Each segment contributes to the company's earnings through the sale of products such as petrochemical raw materials, agricultural chemicals, electronic materials, and active pharmaceutical ingredients. Sumitomo Chemical also benefits from strategic partnerships and joint ventures, enhancing its market reach and technological capabilities. The company's focus on research and development, along with its commitment to innovation and sustainability, plays a crucial role in driving its profitability and competitive advantage in the global market.
Sumitomo Chemical Co Financial Statement Overview
Summary
Income Statement
Balance Sheet
Cash Flow
| Breakdown | ||||
| Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.45T | 2.90T | 2.77T | 2.29T | 2.23T | Gross Profit |
| 499.69B | 820.93B | 873.86B | 771.20B | 706.76B | EBIT |
| -387.43B | -30.98B | 215.00B | 137.12B | 137.52B | EBITDA |
| -258.31B | 199.08B | 388.68B | 306.28B | 268.52B | Net Income Common Stockholders |
| -311.84B | 6.99B | 162.13B | 46.04B | 30.93B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 217.45B | 337.08B | 389.42B | 373.73B | 189.59B | Total Assets |
| 3.93T | 4.17T | 4.31T | 3.99T | 3.65T | Total Debt |
| 1.56T | 1.46T | 1.35T | 1.35T | 1.30T | Net Debt |
| 1.35T | 1.16T | 985.04B | 990.15B | 1.12T | Total Liabilities |
| 2.77T | 2.68T | 2.61T | 2.51T | 2.26T | Stockholders Equity |
| 965.75B | 1.17T | 1.22T | 1.02T | 922.34B |
| Cash Flow | Free Cash Flow | |||
| -204.19B | -31.96B | 64.25B | 253.65B | -14.44B | Operating Cash Flow |
| -51.32B | 111.62B | 171.72B | 374.46B | 106.01B | Investing Cash Flow |
| -112.24B | -19.41B | -115.42B | -177.39B | -499.67B | Financing Cash Flow |
| 49.25B | -178.50B | -81.39B | -39.97B | 373.54B |
Sumitomo Chemical Co Technical Analysis
Positive
357.40
Price Trends
341.85
Positive
339.68
Positive
365.25
Negative
Market Momentum
1.07
Negative
62.76
Neutral
92.73
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4005, the sentiment is Positive. The current price of 357.4 is above the 20-day moving average (MA) of 320.44, above the 50-day MA of 341.85, and below the 200-day MA of 365.25, indicating a neutral trend. The MACD of 1.07 indicates Negative momentum. The RSI at 62.76 is Neutral, neither overbought nor oversold. The STOCH value of 92.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4005.
Sumitomo Chemical Co Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $204.34B | 8.74 | 9.01% | 3.38% | 0.32% | 31.76% | |
67 Neutral | ¥1.00T | 13.35 | 4.16% | 5.04% | <0.01% | -58.95% | |
64 Neutral | $575.54B | 11.38 | 5.83% | 4.51% | 5.15% | -8.48% | |
63 Neutral | $222.73B | 8.16 | 6.01% | 3.52% | 6.27% | 59.86% | |
59 Neutral | €168.15B | 15.36 | 3.51% | 5.23% | 1.62% | 45.83% | |
51 Neutral | ¥584.97B | ― | -16.55% | 2.16% | 4.08% | -6.32% | |
49 Neutral | $1.95B | -1.37 | -21.20% | 3.73% | 0.84% | -29.84% |
* Basic Materials Sector Average
Performance Comparison
JP:4005
Sumitomo Chemical Co
357.40
32.04
9.85%
JP:4061
Denka Co
1,950.00
-263.19
-11.89%
JP:4043
Tokuyama
2,840.00
-209.84
-6.88%
JP:4183
Mitsui Chemicals
3,171.00
-1,087.28
-25.53%
JP:4188
Mitsubishi Chemical Holdings
704.50
-164.56
-18.94%
JP:4118
Kaneka
3,522.00
-411.28
-10.46%
Sumitomo Chemical Co Earnings Call Summary
Earnings Call Date:Feb 03, 2025
(Q3-2024)
| % Change Since: 8.02%|
Next Earnings Date:May 14, 2025
Earnings Call Sentiment Negative
The earnings call highlighted significant financial challenges with large losses projected and dividend cuts, amid some positive cash generation efforts and business line recoveries excluding key loss-makers.Q3-2024 Updates
Positive Updates
Cash Generation Progress
Secured JPY 350 billion of cash in the past 3 months towards a goal of JPY 500 billion by the end of fiscal year 2024.
Positive Trajectory Excluding Key Loss-Makers
Quarterly recovery of core operating income excluding Petro Rabigh and Sumitomo Pharma, with IT-related Chemicals and Health & Crop Sciences contributing to the steady recovery.
Progress in Inventory Reduction
Inventory level reduction target of JPY 110 billion by March 2024, with efforts on track.
Negative Updates
Significant Downward Revision of Earnings
Full-year forecast for fiscal 2023 revised downward with a projected net loss of JPY 245 billion.
Dividends Reduced
Year-end dividend forecast reduced from JPY 6 to JPY 3 per share due to financial performance deterioration.
Major Challenges at Petro Rabigh and Sumitomo Pharma
Substantial losses at Petro Rabigh and Sumitomo Pharma, with core operating income reduced by JPY 75 billion, significantly impacting overall performance.
Nonrecurring Expenses and Impairment Challenges
JPY 140 billion in nonrecurring items projected, largely due to valuation losses and impairment charges.
Company Guidance
During the earnings call for Sumitomo Chemical's fiscal 2023 third quarter, President Keiichi Iwata provided guidance reflecting a challenging financial landscape. The company revised its full-year forecast downward, projecting a net loss of JPY 245 billion, marking a significant crisis since its inception. Core operating income was forecasted at negative JPY 145 billion, with nonrecurring items projected at negative JPY 140 billion, primarily due to valuation losses. Despite these difficulties, the company has secured JPY 350 billion in cash over the past three months, aiming for JPY 500 billion by the end of fiscal 2024 through inventory reduction and more selective investments. The management also revised the year-end dividend forecast from JPY 6 to JPY 3 per share, a reduction from the previously planned JPY 12 annual dividend. Efforts to address these challenges include structural reforms and cash generation strategies, with a focus on immediate-term measures to achieve a V-shaped recovery in fiscal 2024.Sumitomo Chemical Co Corporate Events
Sumitomo Chemical Revises Financial Forecast Upwards for FY 2025
Apr 30, 2025
Sumitomo Chemical has revised its financial forecast for the fiscal year ending March 31, 2025, reflecting improved performance across several segments. The company anticipates higher core operating income and net income due to increased sales in North America for its prostate cancer therapeutic agent and higher shipments of display-related materials. These adjustments indicate a positive outlook for the company’s financial health and strategic positioning in its industry.
Sumitomo Chemical’s Strategic Move in Asian Market
Apr 1, 2025
Sumitomo Chemical Co., Ltd. announced a strategic move involving its subsidiary, Sumitomo Pharma Co., Ltd., which plans to establish a new wholly-owned subsidiary to manage its Asian business. This business will undergo a simplified absorption-type company split, with 60% of the new company’s shares to be transferred to Marubeni Global Pharma Inc. The agreements are expected to strengthen Sumitomo’s financial foundation and leverage Marubeni’s global network for further growth, although the immediate financial impact is deemed immaterial.
Sumitomo Chemical to Enhance Governance with New Corporate Structure
Mar 3, 2025
Sumitomo Chemical has announced its decision to transition to a company with an Audit and Supervisory Committee, aiming to enhance its corporate governance structure. This move is intended to strengthen the Board’s supervisory capabilities and improve the effectiveness of audits, thereby enabling quicker and more agile management decisions while maintaining robust oversight. The transition is expected to be approved at the upcoming Ordinary General Meeting of Shareholders in June 2025.
Sumitomo Chemical to Tender Shares in Shinto Paint to Dai Nippon Toryo
Feb 6, 2025
Sumitomo Chemical has agreed to tender its 45.16% stake in Shinto Paint Co., Ltd. to Dai Nippon Toryo Co., Ltd. This decision comes as part of Sumitomo’s strategic review to optimize its business portfolio amid a maturing Japanese paint market. By transferring ownership to Dai Nippon Toryo, Shinto Paint is expected to benefit from increased sales opportunities, cost reductions, and enhanced productivity, aligning with Sumitomo’s broader restructuring efforts to improve profitability and competitiveness.
Sumitomo Chemical Reports Extraordinary Income from Share Transfer
Feb 4, 2025
Sumitomo Chemical Co., Ltd. has announced the transfer of a portion of its shares in Sumitomo Bakelite Co., Ltd., as part of its strategy to improve financial performance and resource efficiency. This transaction is expected to yield an extraordinary income gain of approximately 17.7 billion yen in its non-consolidated financial statements for the fourth quarter, although it will not affect the consolidated financial results.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.