Sumitomo Bakelite Company Limited
Sumitomo Bakelite Company Limited Fundamental Analysis
Sumitomo Bakelite Company Limited (4203.T) shows weak financial fundamentals with a PE ratio of 18.48, profit margin of 8.11%, and ROE of 8.30%. The company generates $312.3B in annual revenue with moderate year-over-year growth of 6.09%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 64.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze 4203.T's fundamental strength across five key dimensions:
Efficiency Score
Weak4203.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent4203.T trades at attractive valuation levels.
Growth Score
Moderate4203.T shows steady but slowing expansion.
Financial Health Score
Excellent4203.T maintains a strong and stable balance sheet.
Profitability Score
Weak4203.T struggles to sustain strong margins.
Key Financial Metrics
Is 4203.T Expensive or Cheap?
P/E Ratio
4203.T trades at 18.48 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 4203.T's PEG of 0.55 indicates potential undervaluation.
Price to Book
The market values Sumitomo Bakelite Company Limited at 1.43 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.31 times EBITDA. This signals the market has high growth expectations.
How Well Does 4203.T Make Money?
Net Profit Margin
For every $100 in sales, Sumitomo Bakelite Company Limited keeps $8.11 as profit after all expenses.
Operating Margin
Core operations generate 11.95 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.30 in profit for every $100 of shareholder equity.
ROA
Sumitomo Bakelite Company Limited generates $5.38 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sumitomo Bakelite Company Limited produces operating cash flow of $34.51B, showing steady but balanced cash generation.
Free Cash Flow
Sumitomo Bakelite Company Limited produces free cash flow of $19.61B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $223.47 in free cash annually.
FCF Yield
4203.T converts 4.18% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.48
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.55
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.43
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.50
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.11
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.72
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How 4203.T Stacks Against Its Sector Peers
| Metric | 4203.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.48 | 24.91 | Better (Cheaper) |
| ROE | 8.30% | 840.00% | Weak |
| Net Margin | 8.11% | -105381.00% (disorted) | Weak |
| Debt/Equity | 0.11 | 0.55 | Strong (Low Leverage) |
| Current Ratio | 2.72 | 4.94 | Strong Liquidity |
| ROA | 5.38% | -4176.00% (disorted) | Weak |
4203.T outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sumitomo Bakelite Company Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
50.42%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
118.80%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
100.74%
Industry Style: Cyclical, Commodity, Value
High Growth