Sumitomo Chemical Company, Limited

OTCPK:SOMM.Y Stock Report

Market Cap: US$3.5b

Sumitomo Chemical Company Valuation

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

Discounted Cash Flow
Simply Wall St
US$20.84
Fair Value
49.6% undervalued intrinsic discount
10
Number of Analysts

Below Fair Value: SOMM.Y ($10.51) is trading below our estimate of fair value ($20.84)

Significantly Below Fair Value: SOMM.Y 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.Y?

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

The above table shows the Price to Sales ratio for SOMM.Y. This is calculated by dividing SOMM.Y's market cap by their current revenue.
What is SOMM.Y's PS Ratio?
PS Ratio0.2x
SalesJP¥2.50t
Market CapJP¥540.93b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for SOMM.Y vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.9x
CC Chemours
0.5x4.2%US$2.8b
HUN Huntsman
0.5x4.6%US$2.9b
LXU LSB Industries
1.3x6.8%US$657.5m
AVNT Avient
1.2x4.1%US$3.7b
SOMM.Y Sumitomo Chemical Company
0.2x4.0%US$540.9b

Price-To-Sales vs Peers: SOMM.Y is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (0.9x).

Price to Sales Ratio vs Industry

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

15 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.1.3x4.1%
SOMM.Y Sumitomo Chemical Company
 0.2x4.0%US$3.46b
MATV Mativ Holdings
0.3x1.6%US$536.29m
TSE Trinseo
0.05x4.1%US$156.48m
SOMM.Y 0.2xIndustry Avg. 1.3xNo. of Companies15PS01.22.43.64.86+
15 CompaniesEstimated GrowthMarket Cap
Industry Avg.1.3x15.8%
SOMM.Y Sumitomo Chemical Company
 0.2x72.1%US$3.46b
No more companies

Price-To-Sales vs Industry: SOMM.Y is good value based on its Price-To-Sales Ratio (0.2x) compared to the US Chemicals industry average (1.3x).

Price to Sales Ratio vs Fair Ratio

What is SOMM.Y'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.Y PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.2x
Fair PS Ratio1.1x

Price-To-Sales vs Fair Ratio: SOMM.Y is good value based on its Price-To-Sales Ratio (0.2x) compared to the estimated Fair Price-To-Sales Ratio (1.1x).

Analyst Price Targets

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

Analyst Price Target
Consensus Narrative from 10 Analysts
US$14.15
Fair Value
25.7% undervalued intrinsic discount
10
Number of Analysts

Analyst Forecast: Insufficient data to show price forecast.

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/15 15:34
End of Day Share Price 2025/01/15 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.