Sumitomo Heavy Industries, Ltd.

TSE:6302 Stock Report

Market Cap: JP¥387.2b

Sumitomo Heavy Industries Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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 6302 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6302 (¥3293) is trading below our estimate of fair value (¥4979.99)

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

Key Valuation Metric

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

Key metric: As 6302 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 6302. This is calculated by dividing 6302's market cap by their current earnings.
What is 6302's PE Ratio?
PE Ratio17.4x
EarningsJP¥22.72b
Market CapJP¥387.22b

Price to Earnings Ratio vs Peers

How does 6302's PE Ratio compare to its 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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.7x
6481 THK
32.6x22.4%JP¥426.1b
6005 Miura
20.3x10.7%JP¥415.8b
5631 Japan Steel Works
30.7x13.5%JP¥479.0b
6141 DMG Mori
15x17.2%JP¥373.4b
6302 Sumitomo Heavy Industries
17.4x15.2%JP¥387.2b

Price-To-Earnings vs Peers: 6302 is good value based on its Price-To-Earnings Ratio (17.4x) compared to the peer average (24.7x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
6302 17.4xIndustry Avg. 12.2xNo. of Companies39PE0816243240+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 6302 is expensive based on its Price-To-Earnings Ratio (17.4x) compared to the JP Machinery industry average (12.2x).

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 Ratio17.4x
Fair PE Ratio16.9x

Price-To-Earnings vs Fair Ratio: 6302 is expensive based on its Price-To-Earnings Ratio (17.4x) compared to the estimated Fair Price-To-Earnings Ratio (16.9x).

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 6302 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥3,293.00
JP¥3,440.00
+4.5%
8.3%JP¥3,800.00JP¥3,000.00n/a5
Nov ’25JP¥3,275.00
JP¥3,675.00
+12.2%
4.5%JP¥3,800.00JP¥3,400.00n/a4
Oct ’25JP¥3,529.00
JP¥4,050.00
+14.8%
16.9%JP¥5,200.00JP¥3,400.00n/a4
Sep ’25JP¥3,384.00
JP¥4,600.00
+35.9%
17.7%JP¥5,600.00JP¥3,800.00n/a4
Aug ’25JP¥3,871.00
JP¥5,075.00
+31.1%
7.8%JP¥5,600.00JP¥4,500.00n/a4
Jul ’25JP¥4,232.00
JP¥4,800.00
+13.4%
13.6%JP¥5,600.00JP¥3,700.00n/a5
Jun ’25JP¥4,260.00
JP¥4,500.00
+5.6%
12.3%JP¥5,200.00JP¥3,700.00n/a5
May ’25JP¥4,392.00
JP¥4,600.00
+4.7%
12.8%JP¥5,200.00JP¥3,700.00n/a5
Apr ’25JP¥4,606.00
JP¥4,380.00
-4.9%
12.0%JP¥5,000.00JP¥3,700.00n/a5
Mar ’25JP¥4,501.00
JP¥4,000.00
-11.1%
15.5%JP¥5,000.00JP¥3,100.00n/a5
Feb ’25JP¥3,811.00
JP¥3,740.00
-1.9%
9.8%JP¥4,100.00JP¥3,100.00n/a5
Jan ’25JP¥3,555.00
JP¥3,740.00
+5.2%
9.8%JP¥4,100.00JP¥3,100.00n/a5
Dec ’24JP¥3,553.00
JP¥3,740.00
+5.3%
9.8%JP¥4,100.00JP¥3,100.00n/a5
Nov ’24JP¥3,518.00
JP¥3,700.00
+5.2%
10.3%JP¥4,100.00JP¥3,100.00JP¥3,275.005
Oct ’24JP¥3,792.00
JP¥3,700.00
-2.4%
10.3%JP¥4,100.00JP¥3,100.00JP¥3,529.005
Sep ’24JP¥3,701.00
JP¥3,700.00
-0.03%
10.3%JP¥4,100.00JP¥3,100.00JP¥3,384.005
Aug ’24JP¥3,524.00
JP¥3,520.00
-0.1%
9.2%JP¥4,100.00JP¥3,100.00JP¥3,871.005
Jul ’24JP¥3,438.00
JP¥3,520.00
+2.4%
9.2%JP¥4,100.00JP¥3,100.00JP¥4,232.005
Jun ’24JP¥3,115.00
JP¥3,420.00
+9.8%
11.3%JP¥4,100.00JP¥3,000.00JP¥4,260.005
May ’24JP¥3,300.00
JP¥3,400.00
+3.0%
11.5%JP¥4,100.00JP¥3,000.00JP¥4,392.005
Apr ’24JP¥3,240.00
JP¥3,400.00
+4.9%
11.5%JP¥4,100.00JP¥3,000.00JP¥4,606.005
Mar ’24JP¥3,235.00
JP¥3,280.00
+1.4%
9.9%JP¥3,900.00JP¥3,000.00JP¥4,501.005
Feb ’24JP¥2,825.00
JP¥3,300.00
+16.8%
9.4%JP¥3,900.00JP¥3,000.00JP¥3,811.006
Jan ’24JP¥2,644.00
JP¥3,300.00
+24.8%
9.4%JP¥3,900.00JP¥3,000.00JP¥3,555.006
Dec ’23JP¥2,896.00
JP¥3,350.00
+15.7%
8.9%JP¥3,900.00JP¥3,000.00JP¥3,553.006
Nov ’23JP¥2,855.00
JP¥3,350.00
+17.3%
8.9%JP¥3,900.00JP¥3,000.00JP¥3,518.006

Analyst Forecast: Target price is less than 20% higher than the current share price.

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