Sumitomo Chemical Company, Limited

TSE:4005 Stock Report

Market Cap: JP¥611.5b

Sumitomo Chemical Company Valuation

Is 4005 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 4005 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 4005 (¥373.6) is trading below our estimate of fair value (¥672.81)

Significantly Below Fair Value: 4005 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 4005?

Key metric: As 4005 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 4005. This is calculated by dividing 4005's market cap by their current revenue.
What is 4005's PS Ratio?
PS Ratio0.2x
SalesJP¥2.50t
Market CapJP¥611.47b

Price to Sales Ratio vs Peers

How does 4005's PS Ratio compare to its peers?

The above table shows the PS ratio for 4005 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.7x
4004 Resonac Holdings
0.5x5.7%JP¥718.8b
4021 Nissan Chemical
3.1x4.5%JP¥751.5b
4182 Mitsubishi Gas Chemical Company
0.7x3.3%JP¥582.9b
4403 NOF
2.4x5.9%JP¥551.1b
4005 Sumitomo Chemical Company
0.2x4.5%JP¥611.5b

Price-To-Sales vs Peers: 4005 is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (1.7x).

Price to Sales Ratio vs Industry

How does 4005's PS Ratio compare vs other companies in the JP Chemicals Industry?

1 CompanyPrice / SalesEstimated GrowthMarket Cap
7886 Yamato Mobility & Mfg.Ltd
0.08xn/aUS$8.16m
No more companies available in this PS range
4005 0.2xIndustry Avg. 0.5xNo. of Companies24PS00.40.81.21.62+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 4005 is good value based on its Price-To-Sales Ratio (0.2x) compared to the JP Chemicals industry average (0.5x).

Price to Sales Ratio vs Fair Ratio

What is 4005'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.

4005 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.2x
Fair PS Ratio0.8x

Price-To-Sales vs Fair Ratio: 4005 is good value based on its Price-To-Sales Ratio (0.2x) compared to the estimated Fair Price-To-Sales Ratio (0.8x).

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 4005 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥373.60
JP¥453.00
+21.3%
14.0%JP¥550.00JP¥360.00n/a10
Nov ’25JP¥393.20
JP¥456.00
+16.0%
13.9%JP¥550.00JP¥360.00n/a10
Oct ’25JP¥416.20
JP¥442.00
+6.2%
17.9%JP¥550.00JP¥325.00n/a10
Sep ’25JP¥417.90
JP¥414.00
-0.9%
19.1%JP¥550.00JP¥320.00n/a10
Aug ’25JP¥393.80
JP¥366.00
-7.1%
14.2%JP¥440.00JP¥285.00n/a10
Jul ’25JP¥347.60
JP¥361.50
+4.0%
14.2%JP¥440.00JP¥285.00n/a10
Jun ’25JP¥322.30
JP¥362.50
+12.5%
15.4%JP¥450.00JP¥275.00n/a10
May ’25JP¥345.60
JP¥363.50
+5.2%
15.3%JP¥450.00JP¥275.00n/a10
Apr ’25JP¥335.40
JP¥362.78
+8.2%
15.7%JP¥450.00JP¥275.00n/a9
Mar ’25JP¥302.30
JP¥382.00
+26.4%
12.4%JP¥450.00JP¥275.00n/a10
Feb ’25JP¥328.30
JP¥398.50
+21.4%
10.6%JP¥480.00JP¥330.00n/a10
Jan ’25JP¥344.00
JP¥404.50
+17.6%
11.1%JP¥480.00JP¥330.00n/a10
Dec ’24JP¥373.60
JP¥411.36
+10.1%
10.6%JP¥480.00JP¥330.00n/a11
Nov ’24JP¥388.20
JP¥425.00
+9.5%
8.1%JP¥480.00JP¥360.00JP¥393.2011
Oct ’24JP¥407.00
JP¥437.50
+7.5%
9.7%JP¥520.00JP¥360.00JP¥416.2010
Sep ’24JP¥407.80
JP¥446.50
+9.5%
11.4%JP¥530.00JP¥360.00JP¥417.9010
Aug ’24JP¥435.80
JP¥479.50
+10.0%
13.2%JP¥610.00JP¥410.00JP¥393.8010
Jul ’24JP¥436.50
JP¥478.50
+9.6%
13.0%JP¥610.00JP¥410.00JP¥347.6010
Jun ’24JP¥417.00
JP¥485.50
+16.4%
13.3%JP¥610.00JP¥410.00JP¥322.3010
May ’24JP¥460.00
JP¥474.44
+3.1%
10.6%JP¥580.00JP¥410.00JP¥345.609
Apr ’24JP¥445.00
JP¥494.44
+11.1%
12.5%JP¥600.00JP¥410.00JP¥335.409
Mar ’24JP¥480.00
JP¥513.00
+6.9%
14.0%JP¥610.00JP¥410.00JP¥302.3010
Feb ’24JP¥496.00
JP¥537.00
+8.3%
15.1%JP¥700.00JP¥430.00JP¥328.3010
Jan ’24JP¥474.00
JP¥544.00
+14.8%
19.2%JP¥700.00JP¥390.00JP¥344.0010
Dec ’23JP¥496.00
JP¥555.00
+11.9%
17.6%JP¥700.00JP¥390.00JP¥373.6010
Nov ’23JP¥494.00
JP¥577.00
+16.8%
16.8%JP¥750.00JP¥390.00JP¥388.2010

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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