Sumitomo Heavy Industries, Ltd.
Sumitomo Heavy Industries, Ltd. Fundamental Analysis
Sumitomo Heavy Industries, Ltd. (SOHVY) shows weak financial fundamentals with a PE ratio of 22.12, profit margin of 2.90%, and ROE of 4.86%. The company generates $1076.9B in annual revenue with weak year-over-year growth of -0.96%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SOHVY's fundamental strength across five key dimensions:
Efficiency Score
WeakSOHVY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSOHVY trades at attractive valuation levels.
Growth Score
WeakSOHVY faces weak or negative growth trends.
Financial Health Score
ExcellentSOHVY maintains a strong and stable balance sheet.
Profitability Score
WeakSOHVY struggles to sustain strong margins.
Key Financial Metrics
Is SOHVY Expensive or Cheap?
P/E Ratio
SOHVY trades at 22.12 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SOHVY's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Sumitomo Heavy Industries, Ltd. at 1.01 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.11 times EBITDA. This is generally considered low.
How Well Does SOHVY Make Money?
Net Profit Margin
For every $100 in sales, Sumitomo Heavy Industries, Ltd. keeps $2.90 as profit after all expenses.
Operating Margin
Core operations generate 4.83 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.86 in profit for every $100 of shareholder equity.
ROA
Sumitomo Heavy Industries, Ltd. generates $2.37 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sumitomo Heavy Industries, Ltd. generates limited operating cash flow of $64.71B, signaling weaker underlying cash strength.
Free Cash Flow
Sumitomo Heavy Industries, Ltd. generates weak or negative free cash flow of $11.64B, restricting financial flexibility.
FCF Per Share
Each share generates $24.22 in free cash annually.
FCF Yield
SOHVY converts 1.68% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.12
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.01
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.64
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.37
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.92
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How SOHVY Stacks Against Its Sector Peers
| Metric | SOHVY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.12 | 26.49 | Better (Cheaper) |
| ROE | 4.86% | 1307.00% | Weak |
| Net Margin | 2.90% | -5131.00% (disorted) | Weak |
| Debt/Equity | 0.37 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 1.92 | 10.48 | Neutral |
| ROA | 2.37% | -1549793.00% (disorted) | Weak |
SOHVY 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 Heavy Industries, Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
25.55%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-76.15%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-64.34%
Industry Style: Cyclical, Value, Infrastructure
Declining