Risk factor
Good trading liquidity
Profitability factor
Greatly undervalued vs peers
About
Sumitomo Pharma Co., Ltd. is a global company involved in the creation, production, and sale of a variety of products, including human pharmaceuticals, food ingredients and additives, and veterinary medicines. Its operations span across Japan, North America, China, and other international territories. The company's pharmaceutical offerings address a broad spectrum of medical needs. These include treatments for conditions such as Parkinson's disease, depression, type 2 diabetes, systemic fungal infections, hypertension, pruritus, chronic obstructive pulmonary disease (COPD), angina pectoris, and arrhythmia. Additionally, they manufacture atypical antipsychotics, antiepileptics, carbapenem antibiotics, gastrointestinal products, and specialized medications for Anderson-Fabry disease. Beyond healthcare, Sumitomo Pharma provides food components and enhancement agents like polysaccharides, along with savory flavorings such as soups and bouillons. The company also supplies chemical raw materials, which encompass pharmaceutical excipients, components for personal care products, substances used in coatings and industrial applications, and electronic materials. Moreover, it produces veterinary therapeutic solutions designed for domestic pets, specifically dogs and cats, as well as for various farm animals, including cattle, swine, poultry, horses, and cultivated fish. To drive innovation, Sumitomo Pharma fosters partnerships with several organizations. These collaborators include Healios K.K., Keio University, RIKEN, the Center for iPS Cell Research and Application, Kyoto University, and Aikomi Co., Ltd. The company also maintains a joint development agreement with SanBio Company Limited, a collaboration and license agreement with Otsuka Pharmaceutical Co., Ltd., and a strategic alliance with Roivant Sciences Ltd. Originally established in 1897, the company, headquartered in Osaka, Japan, was known as Sumitomo Dainippon Pharma Co., Ltd. until it adopted its current name, Sumitomo Pharma Co., Ltd., in April 2022. It functions as a subsidiary of Sumitomo Chemical Company, Limited.
Company Valuation
Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. Specifically, the stock is 'cheap' on P/E, undervalued on EV/EBITD
Target Price
The average target price of 4506.T is 2207 and suggests 42.9% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to in