Sumitomo Chemical Company, Limited

OTCPK:SOMM.F Stock Report

Market Cap: US$4.0b

Sumitomo Chemical Company Valuation

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

Below Fair Value: SOMM.F ($2.2) is trading below our estimate of fair value ($3.67)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SOMM.F?

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

The above table shows the Price to Sales ratio for SOMM.F. This is calculated by dividing SOMM.F's market cap by their current revenue.
What is SOMM.F's PS Ratio?
PS Ratio0.2x
SalesJP¥2.50t
Market CapJP¥601.33b

Price to Sales Ratio vs Peers

How does SOMM.F's PS Ratio compare to its peers?

The above table shows the PS ratio for SOMM.F vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1x
CC Chemours
0.6x4.8%US$3.3b
HUN Huntsman
0.6x5.5%US$3.4b
LXU LSB Industries
1.2x5.7%US$625.3m
ASH Ashland
1.7x0.7%US$3.7b
SOMM.F Sumitomo Chemical Company
0.2x4.5%US$601.3b

Price-To-Sales vs Peers: SOMM.F is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (1x).

Price to Sales Ratio vs Industry

How does SOMM.F's PS Ratio compare vs other companies in the US Chemicals Industry?

12 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.1.5x4.6%
SOMM.F Sumitomo Chemical Company
 0.2x4.5%US$3.98b
TSE Trinseo
0.04x4.1%US$157.18m
ALTO Alto Ingredients
0.1x3.1%US$108.07m
SOMM.F 0.2xIndustry Avg. 1.5xNo. of Companies16PS01.22.43.64.86+
12 CompaniesEstimated GrowthMarket Cap
Industry Avg.1.5x17.0%
SOMM.F Sumitomo Chemical Company
 0.2x81.3%US$3.98b
No more companies

Price-To-Sales vs Industry: SOMM.F is good value based on its Price-To-Sales Ratio (0.2x) compared to the US Chemicals industry average (1.5x).

Price to Sales Ratio vs Fair Ratio

What is SOMM.F'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.

SOMM.F PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.2x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate SOMM.F's Price-To-Sales Fair Ratio for valuation analysis.

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 SOMM.F forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
US$2.93
0%
14.0%US$3.56US$2.33n/a10
Nov ’25US$2.37
US$2.97
+25.6%
13.9%US$3.59US$2.35n/a10
Oct ’25US$2.36
US$3.10
+31.3%
17.9%US$3.86US$2.28n/a10
Sep ’25n/a
US$2.83
0%
19.1%US$3.76US$2.19n/a10
Aug ’25n/a
US$2.38
0%
14.2%US$2.86US$1.85n/a10
Jul ’25US$2.16
US$2.25
+4.3%
14.2%US$2.74US$1.77n/a10
Jun ’25US$1.96
US$2.34
+19.8%
15.4%US$2.91US$1.78n/a10
May ’25n/a
US$2.30
0%
15.3%US$2.85US$1.74n/a10
Apr ’25US$2.28
US$2.40
+5.2%
15.7%US$2.97US$1.82n/a9
Mar ’25US$2.02
US$2.54
+26.1%
12.4%US$3.00US$1.83n/a10
Feb ’25n/a
US$2.70
0%
10.6%US$3.25US$2.24n/a10
Jan ’25US$2.53
US$2.84
+12.5%
11.1%US$3.37US$2.32n/a10
Dec ’24US$2.52
US$2.77
+10.2%
10.6%US$3.23US$2.22n/a11
Nov ’24US$2.64
US$2.84
+7.8%
8.1%US$3.21US$2.41US$2.3711
Oct ’24US$2.80
US$2.93
+4.4%
9.7%US$3.48US$2.41US$2.3610
Sep ’24US$2.54
US$3.05
+19.9%
11.4%US$3.62US$2.46n/a10
Aug ’24US$3.05
US$3.34
+9.6%
13.2%US$4.25US$2.86n/a10
Jul ’24US$2.96
US$3.37
+14.0%
13.0%US$4.30US$2.89US$2.1610
Jun ’24US$3.06
US$3.46
+12.9%
13.3%US$4.34US$2.92US$1.9610
May ’24US$3.42
US$3.48
+1.9%
10.6%US$4.26US$3.01n/a9
Apr ’24US$3.36
US$3.76
+12.0%
12.5%US$4.57US$3.12US$2.289
Mar ’24n/a
US$3.80
0%
14.0%US$4.52US$3.04US$2.0210
Feb ’24US$3.52
US$4.19
+19.0%
15.1%US$5.46US$3.35n/a10
Jan ’24n/a
US$3.95
0%
19.2%US$5.08US$2.83US$2.5310
Dec ’23n/a
US$3.99
0%
17.6%US$5.04US$2.81US$2.5210
Nov ’23US$3.24
US$3.89
+20.2%
16.8%US$5.06US$2.63US$2.6410

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

Discover undervalued companies

Huntsman

US$3.4b

Manufactures and sells diversified organic chemical products worldwide.

HUN

US$19.58

7D

0.8%

1Y

-20.4%

CMOC Group

HK$159.6b

Engages in the mining, beneficiation, smelting, and refining of base and rare metals.

CMCL.F

HK$0.70

7D

-9.4%

1Y

19.6%

Chemtrade Logistics Income Fund

CA$1.4b

Offers industrial chemicals and services in Canada, the United States, and South America.

CGIF.F

CA$8.16

7D

-0.5%

1Y

25.0%