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6302

Sumitomo Heavy Industries TSE:6302 Stock Report

Last Price

JP¥2.94k

Market Cap

JP¥360.0b

7D

3.0%

1Y

-1.5%

Updated

15 Aug, 2022

Data

Company Financials +
6302 fundamental analysis
Snowflake Score
Valuation5/6
Future Growth3/6
Past Performance4/6
Financial Health5/6
Dividends4/6

6302 Stock Overview

Sumitomo Heavy Industries, Ltd. manufactures and sells general machinery, advanced precision machinery, construction machinery, ships, and environmental plant facilities in Japan and internationally.

Sumitomo Heavy Industries Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Sumitomo Heavy Industries
Historical stock prices
Current Share PriceJP¥2,939.00
52 Week HighJP¥3,320.00
52 Week LowJP¥2,474.00
Beta1.21
1 Month Change0.27%
3 Month Change-0.94%
1 Year Change-1.48%
3 Year Change-4.89%
5 Year Change-25.78%
Change since IPO-15.55%

Recent News & Updates

Shareholder Returns

6302JP MachineryJP Market
7D3.0%4.2%2.3%
1Y-1.5%-2.4%2.5%

Return vs Industry: 6302 exceeded the JP Machinery industry which returned -5.9% over the past year.

Return vs Market: 6302 underperformed the JP Market which returned -0.2% over the past year.

Price Volatility

Is 6302's price volatile compared to industry and market?
6302 volatility
6302 Average Weekly Movement3.4%
Machinery Industry Average Movement3.9%
Market Average Movement3.8%
10% most volatile stocks in JP Market7.8%
10% least volatile stocks in JP Market2.0%

Stable Share Price: 6302 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 6302's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
188824,584Shinji Shimomurahttps://www.shi.co.jp

Sumitomo Heavy Industries, Ltd. manufactures and sells general machinery, advanced precision machinery, construction machinery, ships, and environmental plant facilities in Japan and internationally. The company operates through four segments: Mechatronics, Industrial Machinery, Logistics & Construction, and Energy & Lifelines. Its Mechatronics segment offers gear reducers, motors, and boxes; motion control drives, inverters, precision positioning equipment, laser processing systems, control systems and components, motion components, and drive and collaborative robot solutions.

Sumitomo Heavy Industries Fundamentals Summary

How do Sumitomo Heavy Industries's earnings and revenue compare to its market cap?
6302 fundamental statistics
Market CapJP¥360.03b
Earnings (TTM)JP¥45.10b
Revenue (TTM)JP¥1.04t

8.0x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
6302 income statement (TTM)
RevenueJP¥1.04t
Cost of RevenueJP¥809.72b
Gross ProfitJP¥232.21b
Other ExpensesJP¥187.10b
EarningsJP¥45.10b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)368.20
Gross Margin22.29%
Net Profit Margin4.33%
Debt/Equity Ratio22.4%

How did 6302 perform over the long term?

See historical performance and comparison

Dividends

3.1%

Current Dividend Yield

31%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 6302 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6302?

Other financial metrics that can be useful for relative valuation.

6302 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.4x
Enterprise Value/EBITDA4.3x
PEG Ratio0.7x

Price to Earnings Ratio vs Peers

How does 6302's PE Ratio compare to its peers?

6302 PE Ratio vs Peers
The above table shows the PE ratio for 6302 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average20.1x
6481 THK
11.9x9.6%JP¥355.1b
6005 Miura
25x6.6%JP¥364.3b
6113 Amada
12.7x8.2%JP¥373.0b
6471 NSK
30.7x20.3%JP¥401.6b
6302 Sumitomo Heavy Industries
8x11.4%JP¥360.0b

Price-To-Earnings vs Peers: 6302 is good value based on its Price-To-Earnings Ratio (8x) compared to the peer average (20.1x).


Price to Earnings Ratio vs Industry

How does 6302's PE Ratio compare vs other companies in the JP Machinery Industry?

Price-To-Earnings vs Industry: 6302 is good value based on its Price-To-Earnings Ratio (8x) compared to the JP Machinery industry average (10.5x)


Price to Earnings Ratio vs Fair Ratio

What is 6302'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.

6302 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8x
Fair PE Ratio14.6x

Price-To-Earnings vs Fair Ratio: 6302 is good value based on its Price-To-Earnings Ratio (8x) compared to the estimated Fair Price-To-Earnings Ratio (14.6x).


Share Price vs Fair Value

What is the Fair Price of 6302 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6302 (¥2939) is trading below our estimate of fair value (¥5155.65)

Significantly Below Fair Value: 6302 is trading below fair value by more than 20%.


Analyst Price Targets

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

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Sumitomo Heavy Industries forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


11.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6302's forecast earnings growth (11.4% per year) is above the savings rate (0.04%).

Earnings vs Market: 6302's earnings (11.4% per year) are forecast to grow faster than the JP market (8.5% per year).

High Growth Earnings: 6302's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6302's revenue (5.8% per year) is forecast to grow faster than the JP market (4.3% per year).

High Growth Revenue: 6302's revenue (5.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6302's Return on Equity is forecast to be low in 3 years time (7.2%).


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Past Performance

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

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-1.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6302 has high quality earnings.

Growing Profit Margin: 6302's current net profit margins (4.3%) are higher than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: 6302's earnings have declined by 1.2% per year over the past 5 years.

Accelerating Growth: 6302's earnings growth over the past year (35%) exceeds its 5-year average (-1.2% per year).

Earnings vs Industry: 6302 earnings growth over the past year (35%) exceeded the Machinery industry 25.9%.


Return on Equity

High ROE: 6302's Return on Equity (7.6%) is considered low.


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Financial Health

How is Sumitomo Heavy Industries's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 6302's short term assets (¥690.6B) exceed its short term liabilities (¥388.8B).

Long Term Liabilities: 6302's short term assets (¥690.6B) exceed its long term liabilities (¥163.8B).


Debt to Equity History and Analysis

Debt Level: 6302's net debt to equity ratio (6%) is considered satisfactory.

Reducing Debt: 6302's debt to equity ratio has increased from 12.5% to 22.4% over the past 5 years.

Debt Coverage: 6302's debt is well covered by operating cash flow (45.7%).

Interest Coverage: 6302 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.06%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 6302's dividend (3.06%) is higher than the bottom 25% of dividend payers in the JP market (1.63%).

High Dividend: 6302's dividend (3.06%) is low compared to the top 25% of dividend payers in the JP market (3.59%).


Stability and Growth of Payments

Stable Dividend: 6302's dividend payments have been volatile in the past 10 years.

Growing Dividend: 6302's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (31.2%), 6302's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (68.7%), 6302's dividend payments are covered by cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Shinji Shimomura (65 yo)

3.33yrs

Tenure

Mr. Shinji Shimomura has been Director of Sumitomo Heavy Industries, Ltd., since June 2016 and President and Chief Executive Officer since April 1, 2019. He had been the Chief Executive Officer, President...


Leadership Team

Experienced Management: 6302's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: 6302's board of directors are considered experienced (4.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sumitomo Heavy Industries, Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Sumitomo Heavy Industries, Ltd.
  • Ticker: 6302
  • Exchange: TSE
  • Founded: 1888
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Implied Market Cap: JP¥360.027b
  • Shares outstanding: 122.50m
  • Website: https://www.shi.co.jp

Number of Employees


Location

  • Sumitomo Heavy Industries, Ltd.
  • ThinkPark Tower
  • 1-1 Osaki 2-chome
  • Tokyo
  • 141-6025
  • Japan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/15 00:00
End of Day Share Price2022/08/15 00:00
Earnings2022/06/30
Annual Earnings2022/03/31


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.