Sumitomo Forestry Co (1911) AI Stock Analysis

• Market Cap: $1.04T
• Dividend Yield: 2.94%
• Average Volume (3M): 4.70M
• Price to Earnings (P/E): 9.4
• Beta (1Y): 1.21
• Revenue Growth: 13.11%
• EPS Growth: -3.51%
• Country: JP
• Employees: 26,741
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Residential Construction
• EPS (TTM): 46.25
• Shares Outstanding: 618,553,000
• 10 Day Avg. Volume: 5,873,190
• 30 Day Avg. Volume: 4,695,476
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.44
• Enterprise Value/Revenue: 0.73
• Enterprise Value/Gross Profit: 2.97
• Enterprise Value/Ebitda: 6.46
• 1Y Price Target: $1,786.45
• Price Target Upside: 1.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 74 Outperform
• Price Target: ¥1,714.00 ▼(-2.50% Downside)

Sumitomo Forestry Co's strong financial performance, particularly in revenue growth and profitability, is a key strength. The stock's undervaluation and positive technical indicators further enhance its attractiveness. However, increasing leverage and declining free cash flow are notable risks.

Sumitomo Forestry Co Business Overview & Revenue Model

Company Description

Sumitomo Forestry Co., Ltd., established in 1691, is a leading Japanese company operating primarily in the forestry, timber, and housing sectors. The company is part of the Sumitomo Group, one of Japan's largest keiretsu, and engages in a variety of activities including sustainable forest management, timber and building materials distribution, and the development and construction of residential and commercial properties. Sumitomo Forestry is recognized for its commitment to environmental sustainability and innovation in wood-based construction technologies.

How the Company Makes Money

Sumitomo Forestry Co., Ltd. generates revenue through several key streams. Primarily, the company earns income from its housing and construction segment, which involves designing, building, and selling residential homes, as well as offering renovation services. This segment benefits from the company's expertise in timber and sustainable building practices, appealing to eco-conscious consumers. Additionally, the company profits from its timber and building materials division, which supplies wood products and materials to various industries. Sumitomo Forestry also engages in forest management and afforestation projects, which not only support its sustainability goals but also provide financial returns through timber sales and carbon credit initiatives. Strategic partnerships and joint ventures, both domestically and internationally, further augment its revenue by expanding its market reach and product offerings.

Sumitomo Forestry Co Financial Statement Overview

Summary

Sumitomo Forestry Co shows strong revenue growth and profitability, with a solid equity ratio indicating a strong capital structure. However, increasing leverage and negative free cash flow due to higher capital expenditures are potential risks.

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: Positive
• Last Price: 1758.00
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 1758 is above the 20-day moving average (MA) of 1568.70, above the 50-day MA of 1485.12, and above the 200-day MA of 1571.89, indicating a bullish trend. The MACD of 53.71 indicates Negative momentum. The RSI at 68.80 is Neutral, neither overbought nor oversold. The STOCH value of 79.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1911.

Sumitomo Forestry Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1928	76 Outperform	¥2.20T	10.87	10.67%	4.18%	31.47%	-4.48%
1911	74 Outperform	$1.04T	9.44	12.58%	2.94%	13.11%	-3.51%
1808	74 Outperform	€657.87B	18.40	7.34%	3.53%	5.67%	-31.15%
3291	70 Outperform	$626.43B	13.09	5.08%	3.95%	0.58%	40.75%
Sector *	67 Neutral	¥277.48B	14.89	6.81%	2.50%	5.07%	-22.68%
8892	65 Neutral	¥94.82B	9.21		4.83%	18.25%	19.09%
1419	64 Neutral	¥108.57B	72.67		5.27%	-18.94%	-83.11%

Sumitomo Forestry Co Corporate Events

Sumitomo Forestry Revises Interim Dividend for FY2025

Sumitomo Forestry Co., Ltd. announced a revision to its interim dividend for the fiscal year ending December 2025, reducing it from the previously forecasted ¥91.00 per share to ¥75.00 per share. This decision aligns with the company’s policy to maintain a dividend payout ratio of 30% or higher, reflecting a comprehensive review of current earnings and other relevant factors, and underscores its commitment to providing stable dividends to shareholders.

The most recent analyst rating on (JP:1911) stock is a Buy with a Yen7620.00 price target. To see the full list of analyst forecasts on Sumitomo Forestry Co stock, see the JP:1911 Stock Forecast page.

Sumitomo Forestry Revises FY2025 Financial and Dividend Forecasts Amid U.S. Market Challenges

Sumitomo Forestry Co., Ltd. has revised its financial and dividend forecasts for FY2025 due to lower than expected performance in its U.S. construction and real estate business. The company anticipates a decrease in net sales, operating income, and dividends, reflecting challenges in maintaining previous growth projections and impacting shareholder returns.

The most recent analyst rating on (JP:1911) stock is a Buy with a Yen7620.00 price target. To see the full list of analyst forecasts on Sumitomo Forestry Co stock, see the JP:1911 Stock Forecast page.

Sumitomo Forestry Co. Reports Increased Sales Amid Strategic Adjustments

Sumitomo Forestry Co. reported a 9.5% increase in net sales for the first half of 2025, despite a decline in operating and recurring income. The company implemented a stock split and revised its dividend forecast, indicating strategic adjustments to enhance shareholder value. The inclusion of LeTech Corporation in its consolidation scope highlights its expansion efforts.

The most recent analyst rating on (JP:1911) stock is a Buy with a Yen7620.00 price target. To see the full list of analyst forecasts on Sumitomo Forestry Co stock, see the JP:1911 Stock Forecast page.

Sumitomo Forestry Completes Acquisition of Teal Jones Louisiana Holdings

Sumitomo Forestry Co., Ltd. has completed the acquisition of Teal Jones Louisiana Holdings LLC, making it a wholly owned subsidiary. The acquisition price was adjusted from USD $42 million to USD $29 million, and the acquisition date was finalized as July 1, 2025. The company is assessing the impact of this acquisition on its financial results for the fiscal year ending December 31, 2025.

The most recent analyst rating on (JP:1911) stock is a Buy with a Yen7620.00 price target. To see the full list of analyst forecasts on Sumitomo Forestry Co stock, see the JP:1911 Stock Forecast page.

Sumitomo Forestry Completes Second Tender Offer for LeTech Shares

Sumitomo Forestry Co., Ltd. has completed a second tender offer for shares of LeTech Corporation, a company listed on the Growth Market of the Tokyo Stock Exchange. This strategic move could potentially enhance Sumitomo Forestry’s market positioning and influence in the industry, though specific implications for stakeholders were not detailed in the announcement.

The most recent analyst rating on (JP:1911) stock is a Buy with a Yen7620.00 price target. To see the full list of analyst forecasts on Sumitomo Forestry Co stock, see the JP:1911 Stock Forecast page.

Sumitomo Forestry Introduces Employee Stock Compensation Plan

Sumitomo Forestry Co., Ltd. has announced the introduction of an employee stock compensation plan, approved by its Board of Directors on January 31, 2025. The plan involves a Stock Grant Trust for Employees, with Sumitomo Mitsui Trust Bank as the trustee and Custody Bank of Japan as the re-entrustment trustee. The company will allocate 4 billion yen for the acquisition of common shares through stock exchange transactions, with the trust set to begin on June 9, 2025, and end on June 31, 2031. This initiative is expected to align employee interests with company performance, potentially enhancing motivation and retention.

The most recent analyst rating on (JP:1911) stock is a Buy with a Yen7620.00 price target. To see the full list of analyst forecasts on Sumitomo Forestry Co stock, see the JP:1911 Stock Forecast page.

Sumitomo Forestry Announces Stock Split and Dividend Revision

Sumitomo Forestry Co., Ltd. announced a stock split to enhance share liquidity and broaden its investor base, effective July 1, 2025. The company will amend its Articles of Incorporation to increase authorized shares and revise its dividend forecast, reflecting a slight increase per share, impacting shareholder returns positively.

The most recent analyst rating on (JP:1911) stock is a Buy with a Yen7620.00 price target. To see the full list of analyst forecasts on Sumitomo Forestry Co stock, see the JP:1911 Stock Forecast page.

Sumitomo Forestry Initiates Second Tender Offer for LeTech Shares

Sumitomo Forestry Co., Ltd. has announced the commencement of a second tender offer for shares of LeTech Corporation, a company listed on the Growth Market of the Tokyo Stock Exchange. This move is part of Sumitomo Forestry’s strategic efforts to expand its market presence and influence within the industry, potentially impacting stakeholders by altering the competitive landscape.

The most recent analyst rating on (JP:1911) stock is a Buy with a Yen7620.00 price target. To see the full list of analyst forecasts on Sumitomo Forestry Co stock, see the JP:1911 Stock Forecast page.

Sumitomo Forestry Acquires LeTech Corporation as Subsidiary

Sumitomo Forestry Co., Ltd. has successfully completed an initial tender offer for LeTech Corporation, resulting in LeTech becoming a consolidated subsidiary. This acquisition, involving 7,290,465 shares valued at JPY 5,001 million, will integrate LeTech’s real estate services into Sumitomo’s operations, potentially enhancing its market position and operational capabilities in the real estate sector.

The most recent analyst rating on (JP:1911) stock is a Hold with a Yen6250.00 price target. To see the full list of analyst forecasts on Sumitomo Forestry Co stock, see the JP:1911 Stock Forecast page.