Sumitomo Forestry Co (1911) AI Stock Analysis

• Market Cap: $1.05T
• Dividend Yield: 2.91%
• Average Volume (3M): 2.76M
• Price to Earnings (P/E): 9.3
• Beta (1Y): 1.21
• Revenue Growth: 13.11%
• EPS Growth: -3.51%
• Country: JP
• Employees: 26,741
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Residential Construction
• EPS (TTM): 46.25
• 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: 1.43
• Enterprise Value/Revenue: 0.73
• Enterprise Value/Gross Profit: 2.97
• Enterprise Value/Ebitda: 6.46
• 1Y Price Target: $1,769.56
• Price Target Upside: -0.39% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 68 Neutral
• Price Target: ¥1,846.00 ▲(3.91% Upside)

Sumitomo Forestry Co's overall stock score is driven by strong financial performance and attractive valuation. However, technical indicators suggest short-term bearish momentum, which tempers the overall score. The lack of earnings call data and corporate events means these factors do not influence the score.

Sumitomo Forestry Co Business Overview & Revenue Model

Company Description

Sumitomo Forestry Co., Ltd. engages in the timber and building materials, housing and construction, overseas housing and real estate, environment and resources, and other businesses in Japan, the United States, and internationally. The company's Timber and Building Materials segment procures, manufactures, processes, and sells timber and building materials, such as interior materials, plywood, medium density fiberboard, particle board, laminated veneer lumber, and other timber and building materials; develops and produces building materials, including structural members, and special interior products; and sells housing materials. Its Housing and Construction segment is involved in the construction, maintenance, and renovation of detached houses and apartment buildings; lease, management, purchase, sale, and brokerage of real estate; and house exterior fixtures, urban greening works, CAD, site surveys, etc. The company's Overseas Housing and Real Estate segment sells specs home; constructs detached houses, etc.; and develops multi-family housing and commercial complexes, etc. Its Environment and Resources segment engages in the biomass power generation business and forestation, etc. The company's Other segment is involved in the private-pay elderly care facilities and insurance agency businesses; and contracted civil engineering/construction works, etc. The company also engages in the management of forest and golf courses; secondary processing and sale of aluminum sashes and exterior finishing products; processing industrial waste products; wholesale of electric power; supply and sale of wood chips; development of computer systems, etc.; landscaping for private residences, plant management and rental, equipment leasing, office services, staffing, training, business contracting, and home nursing care services; and production and sale of nursery compost, culture soil for gardening, etc. The company was founded in 1691 and is headquartered in Tokyo, Japan.

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. However, increasing leverage and declining free cash flow due to higher capital expenditures pose 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: 1776.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1776.5 is above the 20-day moving average (MA) of 1728.50, above the 50-day MA of 1734.05, and above the 200-day MA of 1552.31, indicating a bullish trend. The MACD of 3.48 indicates Negative momentum. The RSI at 56.14 is Neutral, neither overbought nor oversold. The STOCH value of 93.25 is Negative, 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
3291	74 Outperform	$645.49B	13.35	5.08%	4.11%	0.58%	40.75%
1928	72 Outperform	$2.23T	11.28	10.34%	4.17%	20.29%	-15.66%
1808	72 Outperform	€670.97B	18.77	7.34%	3.52%	5.67%	-31.15%
1911	68 Neutral	$1.05T	9.30	12.58%	2.91%	13.11%	-3.51%
8892	67 Neutral	¥99.01B	9.54	―	4.59%	27.02%	45.62%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1419	56 Neutral	¥106.81B	89.39	―	5.40%	-16.48%	-77.63%

Sumitomo Forestry Co Corporate Events

Sumitomo Forestry Expands Stake in GEOLIVE Group

Sumitomo Forestry Co., Ltd. has announced its decision to acquire all shares of Veneer Shokai Co., Ltd., thereby indirectly acquiring a significant stake in GEOLIVE Group Corporation. This acquisition will increase Sumitomo Forestry’s total holding to 30.3% of GEOLIVE, making it an equity-method affiliate, which could enhance its market position and influence within the industry.

The most recent analyst rating on (JP:1911) stock is a Sell with a Yen1400.00 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 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.