Fact based stock research
Sumitomo Realty & Development (TSE:8830)

JP3409000001

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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.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Sumitomo Realty & Development stock research in summary

sumitomo-rd.co.jp

ANALYSIS: With an Obermatt Combined Rank of 32 (worse than 68% compared with investment alternatives), Sumitomo Realty & Development (Real Estate: Diversified Operations, Japan) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Sumitomo Realty & Development are low in value (priced high) with a consolidated Value Rank of 43 (worse than 57% of alternatives), show below-average growth (Growth Rank of 45), and are riskily financed (Safety Rank of 29), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 32, is a hold recommendation based on Sumitomo Realty & Development's financial characteristics. As the company Sumitomo Realty & Development's key financial metrics all exhibit below-average performance, such as low value (Obermatt Value Rank of 43), low growth (Obermatt Growth Rank of 45), and risky financing practices (Obermatt Safety Rank of 29), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. Such poor financial performance sometimes indicates that the company's business is all concentrated in some distant future. This is sometimes the case for high-tech or biotechnology companies. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and risky today. In such cases, the Obermatt Method has limited value as it is based on facts we can observe today. If the facts are all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that should only amount to a small fraction of a safe portfolio. 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	43
Growth Rank	45
Safety Rank	29
Combined Rank	32

Country	Japan
Industry	Real Estate: Diversified Operations
Index	TOPIX 100, Nikkei 225
Size class	X-Large

19-Dec-2024. 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 Realty & Development

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	56	61	44	43
GROWTH
GROWTH	30	15	85	45
SAFETY
SAFETY	15	41	19	29
SENTIMENT
SENTIMENT	n/a	15	28	^new
360° VIEW
360° VIEW	n/a	7	25	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Sumitomo Realty & Development is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	56	61	44	43
GROWTH
GROWTH	30	15	85	45
SAFETY
SAFETY	15	41	19	29
COMBINED
COMBINED	25	30	54	32

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Sumitomo Realty & Development the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 43 (worse than 57% compared with alternatives), Sumitomo Realty & Development shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Sumitomo Realty & Development. Price-to-Sales (P/S) is 54, which means that the stock price compared with what market professionals expect for future sales is lower than for 54% of comparable companies, indicating a good value regarding Sumitomo Realty & Development's revenue size. The same is valid for expected Price to Profits (or Price / Earnings, P/E), more favorable than for 58% of alternatives, and it's also true for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 63. But, compared with other companies in the same industry, dividend yields are expected to be lower than average; only 10% of all competitors have even lower dividend yields than Sumitomo Realty & Development (a Dividend Yield Rank of 10). 90% alternative investments in the same business provide a higher dividend yield. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 43, is a hold recommendation based on Sumitomo Realty & Development's stock price compared with the company's operational size and dividend yields. The below-average dividend yield may be a good sign, as it could mean the company has more attractive investment opportunities for the generated cash than to pay it out as dividends. A low dividend yield can also indicate a growth phase. 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	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	57	67	58	54
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	68	65	60	58
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	48	64	57	63
DIVIDEND YIELD
DIVIDEND YIELD	50	20	8	10
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	56	61	44	43

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Sumitomo Realty & Development; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 45 (better than 45% compared with alternatives), Sumitomo Realty & Development shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with all four metrics below average for Sumitomo Realty & Development. Sales Growth has a rank of 36, which means that currently professionals expect the company to grow less than 64% of its competitors. The same is valid for Profit Growth, with a rank of 49, and Capital Growth with 40. In addition, Stock Returns have a below market rank of 47, which means that the stock returns have recently been below 53% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 45, is a hold recommendation for growth and momentum investors. These are all bad growth momentum indicators. These are negative signals for investors interested in growth companies. Value is likely good for this company, as investors may have left this stock in the cold. If that is the case, investors should look at the company's outlook, especially Sentiment performance, because it may be a turnaround situation that could entail above-average stock returns in the future. But it remains a risky bet, as no growth signals are in the green zone yet. 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 low here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	23	41	34	36
PROFIT GROWTH
PROFIT GROWTH	43	17	45	49
CAPITAL GROWTH
CAPITAL GROWTH	n/a	45	91	40
STOCK RETURNS
STOCK RETURNS	77	39	91	47
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	30	15	85	45

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Sumitomo Realty & Development.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 29 (better than 29% compared with alternatives), the company Sumitomo Realty & Development has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Sumitomo Realty & Development 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 just one indicator above average for Sumitomo Realty & Development. Liquidity is at 80, meaning the company generates more profit to service its debt than 80% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 33, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 67% of its competitors. Leverage is also high at a rank of 23, which means that the company has an above-average debt-to-equity ratio. It has more debt than 77% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 29 (worse than 71% compared with alternatives), Sumitomo Realty & Development has a financing structure that is riskier than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	17	22	15	23
REFINANCING
REFINANCING	64	51	25	33
LIQUIDITY
LIQUIDITY	28	68	74	80
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	15	41	19	29

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Sumitomo Realty & Development and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	17	31	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	75	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	37	58	^new
MARKET PULSE
MARKET PULSE	n/a	28	47	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	15	28	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Sumitomo Realty & Development.
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