Sumitomo Chemical Company, Limited

$ 542.80 -4.45 %

Sumitomo Chemical Company, Limited is a global enterprise active across diverse sectors, including petrochemicals and plastics, advanced energy and functional materials, specialized IT-related chemicals, health and agricultural sciences, pharmaceuticals, and various other industrial services. Within its Petrochemicals & Plastics division, the company manufactures synthetic resins such as polyethylene, polypropylene, and polymethyl methacrylate, alongside raw components for synthetic fibers and a broad array of industrial chemical products. The Energy & Functional Materials unit supplies alumina and aluminum goods for energy applications, polymer and rubber additives, synthetic rubber for diverse uses including tires, footwear, and construction, as well as high-performance engineering plastics and lithium-ion battery components crucial for electronics and advanced automotive technologies. Sumitomo Chemical's IT-Related Chemicals segment develops polarizing films, touch screen sensors, and color resists essential for liquid crystal and OLED displays. This segment also produces photoresists and ultra-pure chemicals vital for semiconductor fabrication, in addition to compound semiconductor materials used in communication device components such as antenna switches. In the Health & Crop Sciences sector, the firm provides agricultural chemicals for crop protection, fertilizers, animal feed additives, and domestic insecticides. This segment also supplies active pharmaceutical ingredients and their intermediates, alongside solutions for managing infectious diseases. The Pharmaceuticals segment focuses on delivering both prescription medications and diagnostic agents. Finally, the "Others" segment encompasses a range of services, including the provision of electrical power and steam, the design, construction, and oversight of chemical facilities, comprehensive transportation and warehousing solutions, and detailed physical property and environmental analysis. Sumitomo Chemical has partnered with Ginkgo Bioworks to advance the development of bio-based chemicals. Established in 1913, the company maintains its corporate headquarters in Tokyo, Japan.

CEO: Nobuaki Mito - https://www.sumitomo-chem.co.jp

Price objectif

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Recommandation

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DCF

$ 324.93

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4005.T vs S&P500

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Quick ratio

0.91

indicates that the company may have difficulty covering its short-term debts with its readily available assets.

P/E ratio

14.62

is considered reasonable, suggesting that the company has a valuation in line with its current profits.

EPS

37.13

is the net profit of a company divided by the number of outstanding shares, indicating the profit earned per share.

ROE

6.28 %

indicates low profitability, suggesting that the company is not using equity efficiently to generate profits.

ROIC

3.86 %

does not generate enough return to cover its financing costs, which indicates value destruction and may pose long-term profitability issues.

WACC

4.45

is a company's average cost of capital, weighted by the proportion of debt and equity in its financing. It represents the minimum return the company must generate to satisfy its investors.

Debt-to-Equity Ratio

1.14

means it relies more on debt, which can increase financial risk.

Free cash flow per share

69.51

is a measure of a company's financial flexibility that is determined by dividing free cash flow by the total number of shares outstanding.

Dividend payout ratio

32.29 %

indicates that the company is retaining a large portion of its profits to reinvest in growth

Earnings per share

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Financials

Piotroski score
6 indicates moderate financial health
Altman score
1.56 indicates a high risk of bankruptcy
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Cash / Debt

Cash Ratio
0.21 indicates liquidity risk, as the company may not have enough cash to meet its immediate obligations
Debt Ratio
0.34 indicates that the company uses little debt to finance its assets, suggesting good financial stability
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Free Cash Flow

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Earnings Per Share (annual)

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Sales

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