DB:108

Stock Analysis Report

Sumitomo Rubber Industries

Executive Summary

Sumitomo Rubber Industries, Ltd., together with its subsidiaries, produces and sells rubber materials and industrial rubber products in Japan, rest of Asia, Europe, North America, and internationally.

Snowflake

Fundamentals

Excellent balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Sumitomo Rubber Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.8%

108

2.3%

DE Auto Components

1.4%

DE Market


1 Year Return

-10.1%

108

-11.1%

DE Auto Components

3.7%

DE Market

Return vs Industry: 108 matched the German Auto Components industry which returned -11.1% over the past year.

Return vs Market: 108 underperformed the German Market which returned 3.7% over the past year.


Shareholder returns

108IndustryMarket
7 Day3.8%2.3%1.4%
30 Day3.2%-2.7%1.3%
90 Day12.2%1.2%3.4%
1 Year-6.5%-10.1%-7.3%-11.1%7.0%3.7%
3 Year-17.4%-25.1%-24.5%-30.8%18.5%8.3%
5 Year24.2%5.1%-17.1%-25.6%42.2%22.9%

Price Volatility Vs. Market

How volatile is Sumitomo Rubber Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Sumitomo Rubber Industries undervalued compared to its fair value and its price relative to the market?

12.6x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: 108 (€11) is trading above our estimate of fair value (€10.34)

Significantly Undervalued: 108 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 108 is good value based on its PE Ratio (12.6x) compared to the Auto Components industry average (13.1x).

PE vs Market: 108 is good value based on its PE Ratio (12.6x) compared to the German market (19.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: 108 is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: 108 is good value based on its PB Ratio (0.8x) compared to the DE Auto Components industry average (1.2x).


Next Steps

Future Growth

How is Sumitomo Rubber Industries forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

7.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 108's forecast earnings growth (7.6% per year) is above the savings rate (0.2%).

Earnings vs Market: 108's earnings (7.6% per year) are forecast to grow slower than the German market (12.7% per year).

High Growth Earnings: 108's earnings are forecast to grow, but not significantly.

Revenue vs Market: 108's revenue (2.2% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: 108's revenue (2.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 108's Return on Equity is forecast to be low in 3 years time (7.4%).


Next Steps

Past Performance

How has Sumitomo Rubber Industries performed over the past 5 years?

-10.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 108's earnings have declined by -10.4% per year over the past 5 years.

Accelerating Growth: 108's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 108 had negative earnings growth (-41.9%) over the past year, making it difficult to compare to the Auto Components industry average (-6.3%).


Return on Equity

High ROE: 108's Return on Equity (6.2%) is considered low.


Return on Assets

ROA vs Industry: 108's Return on Assets is below or equal to the Auto Components industry average last year.


Return on Capital Employed

ROCE Improving: 108's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Sumitomo Rubber Industries's financial position?


Financial Position Analysis

Short Term Liabilities: 108's short term assets (¥451.0B) exceeds its short term liabilities (¥305.7B)

Long Term Liabilities: 108's short term assets (451.0B) exceeds its long term liabilities (253.1B)


Debt to Equity History and Analysis

Debt Level: 108's debt to equity ratio (59.8%) is considered high

Reducing Debt: 108's debt to equity ratio has reduced from 77.6% to 59.8% over the past 5 years.

Debt Coverage: 108's debt is well covered by operating cash flow (31.6%).

Interest Coverage: 108's interest payments on its debt are well covered by EBIT (18.2x coverage).


Balance Sheet

Inventory Level: 108 has a high level of physical assets or inventory.

Debt Coverage by Assets: 108's debt is covered by short term assets (assets are 1.624230x debt).


Next Steps

Dividend

What is Sumitomo Rubber Industries's current dividend yield, its reliability and sustainability?

4.06%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Sumitomo Rubber Industries before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company4.1%marketbottom25%1.5%markettop25%3.8%industryaverage4.1%forecastin3Years4.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 108's dividend (4.06%) is higher than the bottom 25% of dividend payers in the German market (1.47%).

High Dividend: 108's dividend (4.06%) is in the top 25% of dividend payers in the German market (3.83%)

Stable Dividend: 108's dividend payments have been volatile in the past 10 years.

Growing Dividend: 108's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46.5%), 108's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Sumitomo Rubber Industries's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Satoru Yamamoto 0

0.6yrs

Tenure

0

Mr. Satoru Yamamoto has been President and Chief Executive Officer at Sumitomo Rubber Industries Ltd. since March 2019 and was its General Manager of Asia Pacific Regional Headquarters since March 30, 2016 ...


Management Age and Tenure

2.8yrs

Average Tenure

63yo

Average Age

Experienced Management: 108's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

0.6yrs

Average Tenure

Experienced Board: 108's board of directors are not considered experienced ( 0.6 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Kazuo Kinameri (63yo)

    Representative Director & Executive VP

    • Tenure: 1.8yrs
  • Yasutaka Ii

    Managing Executive Officer

    • Tenure: 0yrs
  • Minoru Nishi

    Representative Director & Executive VP

    • Tenure: 0yrs
  • Yutaka Kuroda

    Senior Executive Officer

    • Tenure: 0yrs
  • Satoru Yamamoto

    President

    • Tenure: 0.6yrs
  • Hiroki Ishida

    Senior Executive Officer & Director

    • Tenure: 0yrs
  • Mitsuteru Tanigawa (63yo)

    Senior Executive Officer & Director

    • Tenure: 0.6yrs
  • Naoki Yamada (69yo)

    Senior Executive Officer

    • Tenure: 2.8yrs
  • Naofumi Harada

    Senior Executive Officer & Director

    • Tenure: 1.8yrs
  • Norifumi Fujimoto

    Executive Officer

    • Tenure: 0yrs

Board Members

  • Ikuji Ikeda

    Chairman of the Board

    • Tenure: 0.6yrs
    • Compensation: JP¥103.00m
  • Kazuo Kinameri (63yo)

    Representative Director & Executive VP

    • Tenure: 1.8yrs
  • Yasutaka Ii

    Managing Executive Officer

    • Tenure: 0yrs
  • Minoru Nishi

    Representative Director & Executive VP

    • Tenure: 0yrs
  • Yutaka Kuroda

    Senior Executive Officer

    • Tenure: 0yrs
  • Satoru Yamamoto

    President

    • Tenure: 0.6yrs
  • Hiroki Ishida

    Senior Executive Officer & Director

    • Tenure: 0yrs
  • Mitsuteru Tanigawa (63yo)

    Senior Executive Officer & Director

    • Tenure: 0.6yrs
  • Naofumi Harada

    Senior Executive Officer & Director

    • Tenure: 1.8yrs
  • Takashi Kono

    • Tenure: 0.6yrs

Company Information

Sumitomo Rubber Industries, Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sumitomo Rubber Industries, Ltd.
  • Ticker: 108
  • Exchange: DB
  • Founded: 1909
  • Industry: Tires and Rubber
  • Sector: Automobiles
  • Market Cap: JP¥356.373b
  • Listing Market Cap: JP¥2.948b
  • Shares outstanding: 263.01m
  • Website: https://www.srigroup.co.jp

Number of Employees


Location

  • Sumitomo Rubber Industries, Ltd.
  • 3-6-9, Wakinohama-cho
  • Chuo-ku
  • Kobe
  • Hyogo
  • 651-0072
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SMTU.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
5110TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
108DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992

Biography

Sumitomo Rubber Industries, Ltd., together with its subsidiaries, produces and sells rubber materials and industrial rubber products in Japan, rest of Asia, Europe, North America, and internationally. The  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 21:51
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.