Sumitomo Chemical Co (TSE:4005) GF Value Rank : 4 (As of May. 12, 2024)

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What is Sumitomo Chemical Co GF Value Rank?

Sumitomo Chemical Co has the GF Value Rank of 4.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of Sumitomo Chemical Co's GF Value Rank

For the Chemicals subindustry, Sumitomo Chemical Co's GF Value Rank, along with its competitors' market caps and GF Value Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Sumitomo Chemical Co's GF Value Rank Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Sumitomo Chemical Co's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Sumitomo Chemical Co's GF Value Rank falls into.

Sumitomo Chemical Co GF Value Rank Related Terms

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Sumitomo Chemical Co (TSE:4005) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Sumitomo Chemical Co Ltd (TSE:4005) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

SOMMY:USA SOMMF:USA SMM:Germany

Address

27-1, Shinkawa 2-chome, Chuo-ku, Tokyo, JPN, 104-8260

Website

http://www.sumitomo-chem.co.jp

Sumitomo Chemical Co Ltd manufactures and sells chemicals and chemical-based products. The firm is organized into six segments by product type. The petrochemicals and plastics segment, which generates more revenue than any other segment, sells multiple products including propylene and polypropylene used in automobile seat cushions and interior panels. The pharmaceutical segment sells medicine to treat diabetes, neurology, cancer, and infectious diseases. The IT-related chemicals segment sells compound semiconductors and polarizing films used in LCD displays for TVs and smartphones. The other three segments are health and crop sciences; energy and functional materials; and "others." The majority of revenue comes from Japan and China.

Sumitomo Chemical Co (TSE:4005) Headlines

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