Sumitomo Densetsu Co.,Ltd.

TSE:1949 Stock Report

Market Cap: JP¥176.2b

Sumitomo DensetsuLtd Valuation

Is 1949 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 1949 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1949 (¥5010) is trading below our estimate of fair value (¥6695.64)

Significantly Below Fair Value: 1949 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1949?

Key metric: As 1949 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1949. This is calculated by dividing 1949's market cap by their current earnings.
What is 1949's PE Ratio?
PE Ratio14.7x
EarningsJP¥12.02b
Market CapJP¥176.24b

Price to Earnings Ratio vs Peers

How does 1949's PE Ratio compare to its peers?

The above table shows the PE ratio for 1949 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average13.2x
1941 Chudenko
13.8xn/aJP¥184.4b
1719 Hazama Ando
11.3x-0.6%JP¥189.7b
1417 MIRAIT ONE
14.5x14.8%JP¥199.4b
1961 Sanki Engineering
13x7.3%JP¥156.0b
1949 Sumitomo DensetsuLtd
14.7x-2.5%JP¥176.2b

Price-To-Earnings vs Peers: 1949 is expensive based on its Price-To-Earnings Ratio (14.7x) compared to the peer average (13.2x).


Price to Earnings Ratio vs Industry

How does 1949's PE Ratio compare vs other companies in the JP Construction Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
1949 14.7xIndustry Avg. 11.3xNo. of Companies25PE0612182430+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1949 is expensive based on its Price-To-Earnings Ratio (14.7x) compared to the JP Construction industry average (11.3x).


Price to Earnings Ratio vs Fair Ratio

What is 1949's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1949 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.7x
Fair PE Ratio10.8x

Price-To-Earnings vs Fair Ratio: 1949 is expensive based on its Price-To-Earnings Ratio (14.7x) compared to the estimated Fair Price-To-Earnings Ratio (10.8x).


Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.


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