Sumitomo Chemical Company, Limited

TSE:4005 Stock Report

Market Cap: JP¥540.9b

Sumitomo Chemical Company Valuation

Is 4005 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • 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.

Discounted Cash Flow
Simply Wall St
JP¥721.20
Fair Value
54.5% undervalued intrinsic discount
10
Number of Analysts

Below Fair Value: 4005 (¥328.2) is trading below our estimate of fair value (¥721.2)

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¥540.93b

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 Average1.5x
4182 Mitsubishi Gas Chemical Company
0.7x1.8%JP¥547.5b
4004 Resonac Holdings
0.5x5.4%JP¥704.0b
4403 NOF
2.1x5.9%JP¥490.9b
4021 Nissan Chemical
2.7x4.7%JP¥635.0b
4005 Sumitomo Chemical Company
0.2x4.0%JP¥540.9b

Price-To-Sales vs Peers: 4005 is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (1.5x).

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$8.09m
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 Ratio0.7x

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 (0.7x).

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¥328.20
JP¥445.00
+35.6%
15.6%JP¥550.00JP¥360.00n/a10
Jan ’26JP¥349.00
JP¥452.00
+29.5%
14.1%JP¥550.00JP¥360.00n/a10
Dec ’25JP¥362.20
JP¥453.00
+25.1%
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¥330.00JP¥349.0010
Dec ’24JP¥373.60
JP¥411.36
+10.1%
10.6%JP¥480.00JP¥330.00JP¥362.2011
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
Analyst Price Target
Consensus Narrative from 10 Analysts
JP¥445.00
Fair Value
26.2% undervalued intrinsic discount
10
Number of Analysts

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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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/16 07:47
End of Day Share Price 2025/01/16 00:00
Earnings2024/09/30
Annual Earnings2024/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Sumitomo Chemical Company, Limited is covered by 26 analysts. 10 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Mikiya YamadaBarclays
Takashi EnomotoBofA Global Research
Takao KanaiCitigroup Global Markets Japan Inc.