Sumitomo Chemical Company, Limited

DB:SMM Stock Report

Market Cap: €3.8b

Sumitomo Chemical Company Valuation

Is SMM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SMM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SMM (€2.18) is trading below our estimate of fair value (€3.83)

Significantly Below Fair Value: SMM is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SMM?

Key metric: As SMM is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for SMM. This is calculated by dividing SMM's market cap by their current revenue.
What is SMM's PS Ratio?
PS Ratio0.2x
SalesJP¥2.50t
Market CapJP¥611.47b

Price to Sales Ratio vs Peers

How does SMM's PS Ratio compare to its peers?

The above table shows the PS ratio for SMM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.8x
LXS LANXESS
0.3x2.8%€2.0b
BAS BASF
0.6x4.5%€38.0b
WCH Wacker Chemie
0.6x5.2%€3.5b
FPE3 Fuchs
1.6x3.6%€5.1b
SMM Sumitomo Chemical Company
0.2x4.5%€611.5b

Price-To-Sales vs Peers: SMM is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (0.8x).

Price to Sales Ratio vs Industry

How does SMM's PS Ratio compare vs other companies in the DE Chemicals Industry?

3 CompaniesPrice / SalesEstimated GrowthMarket Cap
2HRA H&R GmbH KGaA
0.1x3.0%US$132.56m
NSAK OTI Greentech
0.03xn/aUS$594.62k
B7Y Byotrol
0.04xn/aUS$246.97k
No more companies available in this PS range
SMM 0.2xIndustry Avg. 1.0xNo. of Companies4PS00.40.81.21.62+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: SMM is good value based on its Price-To-Sales Ratio (0.2x) compared to the European Chemicals industry average (1x).

Price to Sales Ratio vs Fair Ratio

What is SMM's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SMM PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.2x
Fair PS Ratio0.5x

Price-To-Sales vs Fair Ratio: SMM is good value based on its Price-To-Sales Ratio (0.2x) compared to the estimated Fair Price-To-Sales Ratio (0.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst SMM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€2.18
€2.76
+26.6%
14.0%€3.35€2.19n/a10
Nov ’25€2.24
€2.74
+22.3%
13.9%€3.30€2.16n/a10
Oct ’25€2.56
€2.78
+8.4%
17.9%€3.45€2.04n/a10
Sep ’25€2.54
€2.56
+0.9%
19.1%€3.40€1.98n/a10
Aug ’25€2.38
€2.19
-7.9%
14.2%€2.64€1.71n/a10
Jul ’25€1.97
€2.10
+6.6%
14.2%€2.56€1.66n/a10
Jun ’25€1.85
€2.18
+17.8%
15.4%€2.71€1.65n/a10
May ’25€1.97
€2.16
+9.6%
15.3%€2.67€1.63n/a10
Apr ’25€1.97
€2.21
+12.4%
15.7%€2.75€1.68n/a9
Mar ’25€1.82
€2.35
+29.0%
12.4%€2.77€1.69n/a10
Feb ’25€2.02
€2.48
+22.8%
10.6%€2.99€2.05n/a10
Jan ’25€2.24
€2.61
+16.5%
11.1%€3.10€2.13n/a10
Dec ’24€2.28
€2.54
+11.4%
10.6%€2.96€2.04n/a11
Nov ’24€2.48
€2.69
+8.4%
8.1%€3.04€2.28€2.2411
Oct ’24€2.52
€2.77
+9.9%
9.7%€3.29€2.28€2.5610
Sep ’24€2.64
€2.82
+6.7%
11.4%€3.34€2.27€2.5410
Aug ’24€2.74
€3.04
+11.1%
13.2%€3.87€2.60€2.3810
Jul ’24€2.72
€3.07
+12.9%
13.0%€3.92€2.63€1.9710
Jun ’24€2.74
€3.23
+17.8%
13.3%€4.06€2.73€1.8510
May ’24€3.04
€3.16
+4.0%
10.6%€3.86€2.73€1.979
Apr ’24€3.04
€3.51
+15.4%
12.5%€4.26€2.91€1.979
Mar ’24€3.28
€3.57
+8.8%
14.0%€4.25€2.85€1.8210
Feb ’24€3.34
€3.88
+16.2%
15.1%€5.06€3.11€2.0210
Jan ’24€3.34
€3.72
+11.3%
19.2%€4.78€2.67€2.2410
Dec ’23€3.46
€3.87
+11.7%
17.6%€4.88€2.72€2.2810
Nov ’23€3.34
€3.94
+18.0%
16.8%€5.12€2.66€2.4810

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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