Sumitomo Forestry Co (1911) AI Stock Analysis

• Market Cap: $965.65B
• Dividend Yield: 3.24%
• Average Volume (3M): 2.76M
• Price to Earnings (P/E): 9.6
• Beta (1Y): 1.19
• Revenue Growth: 10.17%
• EPS Growth: -19.40%
• Country: JP
• Employees: 26,741
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Residential Construction
• EPS (TTM): 33.55
• Shares Outstanding: 618,555,800
• 10 Day Avg. Volume: 2,392,440
• 30 Day Avg. Volume: 2,756,773
• PEG Ratio: 0.25
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.18
• P/FCF Ratio: -8.53
• Enterprise Value/Market Cap: 1.54
• Enterprise Value/Revenue: 0.73
• Enterprise Value/Gross Profit: 2.97
• Enterprise Value/Ebitda: 6.46
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥1,846.00 ▲(15.74% Upside)

Sumitomo Forestry Co's strong financial performance, particularly in revenue growth and profitability, is a key strength. The stock's valuation is attractive with a low P/E ratio and a solid dividend yield. However, technical indicators suggest short-term bearish momentum, which slightly offsets the positive fundamentals.

Positive Factors

Revenue Growth

Consistent revenue growth over several years indicates strong market demand and effective business strategies, enhancing long-term stability.

Sustainable Practices

Commitment to sustainability aligns with global trends, attracting environmentally conscious consumers and partners, boosting competitive advantage.

Profitability

Sustained profitability through stable margins reflects efficient cost management and pricing power, supporting long-term financial health.

Negative Factors

Increasing Leverage

Rising leverage can increase financial risk, potentially impacting the company's ability to invest in growth and weather economic downturns.

Declining Free Cash Flow

Decreasing free cash flow limits financial flexibility and could constrain future investments, affecting long-term growth prospects.

EPS Growth Decline

Negative EPS growth suggests challenges in profitability and earnings generation, potentially affecting investor confidence and stock performance.

Sumitomo Forestry Co Business Overview & Revenue Model

Company Description

Sumitomo Forestry Co., Ltd. is a Japan-based company primarily engaged in the forestry and timber industry. Established in 1691 and incorporated in 1911, the company operates across several sectors, including housing, timber and building materials, and real estate. Sumitomo Forestry is recognized for its sustainable forestry practices and produces a wide range of products such as housing, wooden building materials, and environmentally friendly construction solutions.

How the Company Makes Money

Sumitomo Forestry generates revenue through multiple channels, primarily from its housing and construction businesses. These include the design, construction, and sale of residential properties, as well as the provision of housing-related services. The company also earns income from the sale of timber and building materials sourced from its own forests as well as from external suppliers. Additionally, Sumitomo Forestry has significant investments in real estate development, which contribute to its earnings. Its partnerships with various stakeholders in the forestry and construction sectors further enhance its revenue streams. The focus on sustainability and eco-friendly building practices has also positioned the company favorably in the market, attracting environmentally conscious consumers and businesses.

Sumitomo Forestry Co Financial Statement Overview

Summary

Sumitomo Forestry Co demonstrates robust revenue growth and profitability, supported by effective operational management. The balance sheet is strong with a solid equity ratio, but increasing leverage poses potential risks. Cash flow management requires attention due to declining free cash flow.

Income Statement

Sumitomo Forestry Co has exhibited strong revenue growth over the years, with revenue increasing from 1,141,234 million yen in 2020 to 2,053,650 million yen in 2024. The gross profit margin has been stable, and the net profit margin shows a positive trend, culminating in a net profit margin of 5.67% in 2024. EBIT and EBITDA margins are solid, indicating efficient operational management.

Balance Sheet

The company's balance sheet shows a healthy equity ratio of 40.71% in 2024, indicating a solid capital structure. The debt-to-equity ratio has increased over the years, reflecting a higher reliance on debt, with a 2024 value of 0.67. Return on equity improved to 12.66% in 2024, showcasing the company's ability to generate returns on shareholders' investments.

Cash Flow

Sumitomo Forestry Co's cash flow situation is mixed, with a significant decline in free cash flow from 92,408 million yen in 2023 to -42,353 million yen in 2024. This decline is primarily due to increased capital expenditures and negative investing cash flow. However, the company maintains a positive operating cash flow to net income ratio of 0.23, indicating operational cash generation capability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.05T	1.73T	1.67T	1.39T	1.14T
Gross Profit	502.95B	408.83B	392.97B	321.99B	258.61B
EBITDA	236.12B	172.44B	211.80B	158.57B	77.32B
Net Income	116.53B	102.48B	108.67B	87.17B	35.64B
Balance Sheet
Total Assets	2.26T	1.81T	1.54T	1.31T	1.09T
Cash, Cash Equivalents and Short-Term Investments	186.10B	182.23B	131.93B	143.26B	89.05B
Total Debt	613.41B	423.87B	348.32B	302.76B	302.93B
Total Liabilities	1.24T	989.42B	855.04B	774.14B	691.70B
Stockholders Equity	920.42B	754.49B	627.61B	495.73B	367.58B
Cash Flow
Free Cash Flow	-42.35B	92.41B	18.61B	67.30B	28.60B
Operating Cash Flow	27.08B	125.30B	55.28B	91.58B	62.45B
Investing Cash Flow	-135.10B	-109.09B	-52.38B	-40.25B	-59.51B
Financing Cash Flow	133.22B	6.83B	-33.00B	-7.03B	-9.04B

Sumitomo Forestry Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1595.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1911, the sentiment is Negative. The current price of 1595 is below the 20-day moving average (MA) of 1607.72, below the 50-day MA of 1661.35, and above the 200-day MA of 1539.96, indicating a neutral trend. The MACD of -8.74 indicates Negative momentum. The RSI at 44.99 is Neutral, neither overbought nor oversold. The STOCH value of 31.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:1911.

Sumitomo Forestry Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3291	74 Outperform	$659.89B	12.87	5.12%	4.13%	0.20%	44.96%
1928	74 Outperform	¥2.23T	11.05	11.12%	4.17%	9.27%	-11.27%
1808	73 Outperform	€674.25B	18.86	7.50%	3.00%	7.42%	-16.64%
1911	68 Neutral	$965.65B	9.59	11.28%	3.24%	10.17%	-19.40%
8892	66 Neutral	¥95.20B	8.25	―	4.72%	27.02%	45.62%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1419	56 Neutral	¥107.84B	90.25	―	5.52%	-16.48%	-77.63%

Sumitomo Forestry Co Corporate Events

Sumitomo Forestry Reports Increased Sales Amid Income Decline

Sumitomo Forestry Co., Ltd. reported its financial results for the nine months ending September 2025, showing a 9.5% increase in net sales compared to the previous year, though operating and recurring income declined by 12.1% and 9.2% respectively. The company also conducted a stock split and included six new companies in its consolidation scope, which may impact its financial positioning and stakeholder interests.