Fact based stock research
Sumitomo Dainippon Pharma (TSE:4506)

JP3495000006

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Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

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Sumitomo Dainippon Pharma stock research in summary

sumitomo-pharma.co.jp

ANALYSIS: With an Obermatt Combined Rank of 8 (worse than 92% compared with investment alternatives), Sumitomo Dainippon Pharma (Pharmaceuticals, Japan) shares have lower financial characteristics compared with similar stocks. Shares of Sumitomo Dainippon Pharma are low in value (priced high) with a consolidated Value Rank of 38 (worse than 62% of alternatives), and are riskily financed (Safety Rank of 6, which means above-average debt burdens) but show above-average growth (Growth Rank of 60). ...read more

RECOMMENDATION: A Combined Rank of 8, is a sell recommendation based on Sumitomo Dainippon Pharma's financial characteristics. As the company Sumitomo Dainippon Pharma shows low value with an Obermatt Value Rank of 38 (62% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 60% of comparable companies (Obermatt Growth Rank is 60). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 6 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Sumitomo Dainippon Pharma, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	38
Growth Rank	60
Safety Rank	6
Combined Rank	8

Country	Japan
Industry	Pharmaceuticals
Index	Nikkei 225
Size class	Medium

31-Jul-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Sumitomo Dainippon Pharma

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	97	66	30	38
GROWTH
GROWTH	7	21	88	60
SAFETY
SAFETY	49	1	1	6
SENTIMENT
SENTIMENT	1	1	14	^new
360° VIEW
360° VIEW	19	4	10	^new

Most recent update of the stock research: 31-Jul-2025. Financial reporting date used for calculating ranks: 31-Mar-2025. Stock research history is based on the Obermatt Method. The higher the rank, the better Sumitomo Dainippon Pharma is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	97	66	30	38
GROWTH
GROWTH	7	21	88	60
SAFETY
SAFETY	49	1	1	6
COMBINED
COMBINED	47	10	18	8

Last update of combined financial performance: 31-Jul-2025. Stock analysis on combined financial performance: The higher the rank of Sumitomo Dainippon Pharma the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 38 (worse than 62% compared with alternatives), Sumitomo Dainippon Pharma shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half are above average for Sumitomo Dainippon Pharma. Price-to-Sales (P/S) is 72, which means that the stock price compared with what market professionals expect for future sales is lower than for 72% of comparable companies, indicating a good value concerning Sumitomo Dainippon Pharma's revenue size. The same is valid for expected Price-to-Profits (or Price / Earnings, P/E), more favorable than for 84% of alternatives. It is also positive for expected dividend yields with a Dividend Yield rank of 1 (dividends are expected to be higher than for 1% of other stocks). But, compared with other companies in the same industry, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is higher than average, making the stock more expensive. Only 70% of all competitors have an even higher price compared with book capital which puts the Price-to-Capital Rank for Sumitomo Dainippon Pharma to 30. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 38, is a hold recommendation based on Sumitomo Dainippon Pharma's stock price compared with the company's operational size and dividend yields. A low level of book capital means that the company has a business that is leaner on assets than its competitors. For instance, the company could be leasing its production facilities, or be more focussed on intellectual property, such as its brand and software, which is less visible in its book capital. If that is the case, the low Dividend Yield is also explained as such companies tend to invest their income into market development. The other good value ranks for Sales and Profits are encouraging indicators for the stock price value. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2022	2023	2024	2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	95	100	91	72
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	93	97	33	84
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	89	97	31	30
DIVIDEND YIELD
DIVIDEND YIELD	68	1	1	1
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	97	66	30	38

Last update of Value Rank: 31-Jul-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Sumitomo Dainippon Pharma; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 60 (better than 60% compared with alternatives), Sumitomo Dainippon Pharma shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Sumitomo Dainippon Pharma. Profit Growth has a rank of 83, which means that currently professionals expect the company to grow its profits more than 83% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 100 (above 100% of alternative investments). But Sales Growth has a below the median rank of 19, which means that, currently, professionals expect the company to grow less than 81% of its competitors, and Capital Growth also has a lower rank of 13. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 60, is a buy recommendation for growth and momentum investors. Because revenues and invested capital are the more solid growth indicators, the positive development on the profit side is less relevant. It may have been caused by cost-cutting, which may be a negative growth indicator. Finally, the above-average stock returns recently are a thing of the past and not a good indicator of future returns. Investors should be confident that the cost-cutting initiative leading to higher profits is to benefit the company's future. If not, there is little growth momentum, and investment is only advisable if the Value Ranks suggest a good investment timing for Sumitomo Dainippon Pharma. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2022	2023	2024	2025
REVENUE GROWTH
REVENUE GROWTH	9	76	22	19
PROFIT GROWTH
PROFIT GROWTH	30	21	86	83
CAPITAL GROWTH
CAPITAL GROWTH	8	51	76	13
STOCK RETURNS
STOCK RETURNS	57	1	98	100
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	7	21	88	60

Last update of Growth Rank: 31-Jul-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Sumitomo Dainippon Pharma.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 6 (better than 6% compared with alternatives), the company Sumitomo Dainippon Pharma has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Sumitomo Dainippon Pharma is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with all three metrics below average for Sumitomo Dainippon Pharma. Liquidity is at 18, meaning that the company generates less profit to service its debt than 82% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 1, meaning the company has an above-average debt-to-equity ratio. It has more debt than 99% of its competitors. Finally, Refinancing is at a rank of 12 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 88% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 6 (worse than 94% compared with alternatives), Sumitomo Dainippon Pharma has a financing structure that is significantly riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of Sumitomo Dainippon Pharma because it may suffer significantly in case of future difficulties. ...read more

SAFETY METRICS	2022	2023	2024	2025
LEVERAGE
LEVERAGE	22	5	1	1
REFINANCING
REFINANCING	77	1	1	12
LIQUIDITY
LIQUIDITY	51	10	7	18
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	49	1	1	6

Last update of Safety Rank: 31-Jul-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Sumitomo Dainippon Pharma and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2022	2023	2024	2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a	1	1	^new
OPINIONS CHANGE
OPINIONS CHANGE	50	31	82	^new
PRO HOLDINGS
PRO HOLDINGS	47	1	26	^new
MARKET PULSE
MARKET PULSE	10	3	5	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	1	1	14	^new

Last update of Sentiment Rank: 31-Jul-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Sumitomo Dainippon Pharma.
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