Fact based stock research
Sumitomo Dainippon Pharma (TSE:4506)
JP3495000006
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
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Sumitomo Dainippon Pharma stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 22 (worse than 78% 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 30 (worse than 70% of alternatives), and are riskily financed (Safety Rank of 1, which means above-average debt burdens) but show above-average growth (Growth Rank of 88). ...read more
RECOMMENDATION: A Combined Rank of 22, 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 30 (70% 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 88% of comparable companies (Obermatt Growth Rank is 88). 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 1 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
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360° Viewnew| Country | Japan |
| Industry | Pharmaceuticals |
| Index | Nikkei 225 |
| Size class | Large |
27-Feb-2025. Stock data may be delayed. Log in or sign up to get the most recent research.
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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 |
|
30 |
|
| GROWTH | ||||||||
| GROWTH | 7 |
|
21 |
|
88 |
|
88 |
|
| SAFETY | ||||||||
| SAFETY | 49 |
|
1 |
|
1 |
|
1 |
|
| SENTIMENT | ||||||||
| SENTIMENT | 1 |
|
1 |
|
14 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | 19 |
|
4 |
|
10 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 22 (worse than 78% 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 30 (worse than 70% of alternatives), and are riskily financed (Safety Rank of 1, which means above-average debt burdens) but show above-average growth (Growth Rank of 88). ...read more
RECOMMENDATION: A Combined Rank of 22, 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 30 (70% 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 88% of comparable companies (Obermatt Growth Rank is 88). 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 1 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
| RESEARCH HISTORY | 2022 | 2023 | 2024 | 2025 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 97 |
|
66 |
|
30 |
|
30 |
|
| GROWTH | ||||||||
| GROWTH | 7 |
|
21 |
|
88 |
|
88 |
|
| SAFETY | ||||||||
| SAFETY | 49 |
|
1 |
|
1 |
|
1 |
|
| COMBINED | ||||||||
| COMBINED | 47 |
|
10 |
|
18 |
|
22 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 30 (worse than 70% 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 the majority of metrics are below, and only one is above average for Sumitomo Dainippon Pharma. Price-to-Sales (P/S) is 91, which means that the stock price compared with what market professionals expect for future sales is lower than 91% of comparable companies, indicating a good value concerning to Sumitomo Dainippon Pharma's revenue size. But all other performance indicators point in a different direction. Dividend yields have a Dividend Yield rank of 1, meaning that dividends are expected to be lower than for 99% of comparable investments. Furthermore, Price-to-Book Capital (also referred to as market-to-book ratio) is less favorable than 69% of alternatives (only 31% of peers have an even higher ratio). The same is valid for Price-to-Profit (or Price / Earnings, P/E), which is higher than for 64% of comparable companies, making the stock more expensive compared with the company's expected profit levels. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 30, is a hold recommendation based on Sumitomo Dainippon Pharma's stock price compared with the company's operational size and dividend yields. Since Price-to-Sales is a stable value indicator even in challenging times, investing in Sumitomo Dainippon Pharma could be seen as a value investment. However, there must be a good reason for the low market-to-book rank. If the company has a typical capital investment practice, the stock may be overvalued because the profit and dividend-related performance indicators are also low. The stock is only good value if investors can expect profits and dividends to pick up in the future. Else, Sumitomo Dainippon Pharma looks like an expensive investment today. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2022 | 2023 | 2024 | 2025 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 95 |
|
100 |
|
91 |
|
91 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 93 |
|
97 |
|
33 |
|
36 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 89 |
|
97 |
|
31 |
|
31 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 68 |
|
1 |
|
1 |
|
1 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 97 |
|
66 |
|
30 |
|
30 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 88 (better than 88% compared with alternatives) for 2025, Sumitomo Dainippon Pharma shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Sumitomo Dainippon Pharma. Profit Growth has a rank of 86 which means that currently professionals expect the company to grow its profits more than 86% of its competitors. The same is valid for capital growth and stock returns. Capital Growth has a rank of 70, and Stock Returns has a rank of 98 which means that the stock returns have recently been above 98% of alternative investments. Only revenue growth is low with a Sales Growth has a rank of 22 (78% of its competitors are better). ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 88, is a buy recommendation for growth and momentum investors. The many positive growth indicators indicate a positive growth momentum with only low revenue growth. That can also be attributed to divestments or the sale of unprofitable businesses. If that is the reason, overall growth is well on track to making this stock attractive for growth investors. 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. ...read more
| GROWTH METRICS | 2022 | 2023 | 2024 | 2025 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 9 |
|
76 |
|
22 |
|
22 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 30 |
|
21 |
|
86 |
|
86 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | 8 |
|
51 |
|
76 |
|
70 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 57 |
|
1 |
|
98 |
|
98 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 7 |
|
21 |
|
88 |
|
88 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 1 (better than 1% 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 8, meaning that the company generates less profit to service its debt than 92% 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 1 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 99% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 1 (worse than 99% 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 |
|
1 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 51 |
|
10 |
|
7 |
|
8 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 49 |
|
1 |
|
1 |
|
1 |
|
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 |
|
Free stock analysis by the purely fact based Obermatt Method for Sumitomo Dainippon Pharma from February 27, 2025.
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