Sumitomo Rubber Industries, Ltd.
Sumitomo Rubber Industries, Ltd. Fundamental Analysis
Sumitomo Rubber Industries, Ltd. (5110.T) shows weak financial fundamentals with a PE ratio of 10.55, profit margin of 4.17%, and ROE of 7.60%. The company generates $1206.8B in annual revenue with weak year-over-year growth of 2.93%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.1/100 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 5110.T's fundamental strength across five key dimensions:
Efficiency Score
Weak5110.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent5110.T trades at attractive valuation levels.
Growth Score
Weak5110.T faces weak or negative growth trends.
Financial Health Score
Excellent5110.T maintains a strong and stable balance sheet.
Profitability Score
Weak5110.T struggles to sustain strong margins.
Key Financial Metrics
Is 5110.T Expensive or Cheap?
P/E Ratio
5110.T trades at 10.55 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 5110.T's PEG of 0.18 indicates potential undervaluation.
Price to Book
The market values Sumitomo Rubber Industries, Ltd. at 0.74 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.82 times EBITDA. This is generally considered low.
How Well Does 5110.T Make Money?
Net Profit Margin
For every $100 in sales, Sumitomo Rubber Industries, Ltd. keeps $4.17 as profit after all expenses.
Operating Margin
Core operations generate 7.52 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.60 in profit for every $100 of shareholder equity.
ROA
Sumitomo Rubber Industries, Ltd. generates $3.45 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sumitomo Rubber Industries, Ltd. produces operating cash flow of $150.40B, showing steady but balanced cash generation.
Free Cash Flow
Sumitomo Rubber Industries, Ltd. produces free cash flow of $91.51B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $348.16 in free cash annually.
FCF Yield
5110.T converts 17.23% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.55
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.74
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.44
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.45
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.79
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How 5110.T Stacks Against Its Sector Peers
| Metric | 5110.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.55 | 23.86 | Better (Cheaper) |
| ROE | 7.60% | 1107.00% | Weak |
| Net Margin | 4.17% | -612.00% (disorted) | Weak |
| Debt/Equity | 0.45 | 0.72 | Strong (Low Leverage) |
| Current Ratio | 1.79 | 2.66 | Neutral |
| ROA | 3.45% | -30467.00% (disorted) | Weak |
5110.T outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sumitomo Rubber Industries, Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
35.65%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-25.11%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
14.06%
Industry Style: Cyclical, Growth, Discretionary
High Growth