Today I will talk about Sumitomo Rubber Industries, which is known for its DUNLOP brand and mainly a manufacturer of tires.
※The above images are quoted from the commercial catalog of DUNLOP.
5110 Sumitomo Rubber Industries
Sumitomo Rubber Industries is a group company of Sumitomo, one of Japan's three major Zaibatsu (great financial conglomerate), and ranks second in Japan in the tire industry after Bridgestone.
However, Bridgestone’s market share is greater than 50%, while Sumitomo Rubber Industries has only
about 12% and there are considerable margins.
It is also famous for sports goods such as golf and tennis, but more than 80% of sales are from the tire business.
￥1,277 （10/4 last closing price) The latest stock price← click here Trading unit: 100
The final month of the settlement: December Dividend yield 4.31% PER 9.88 PBR0.75
Equity ratio43.3%
Operating income for the period from January to June 2019 was down significantly by 39.2%
year-on-year.
Recently, the tire business has become less profitable because of falling prices due to the rise of rubber manufacturers in China and South Korea, in addition to rising raw material costs.
It seems to be necessary not only to just make and sell products, but also link them with other services such as management systems using digital technology in anticipation of the autonomous
driving era.
Transition of business results
|
|
Net sales |
Operating profit |
Net profit |
Net profit per share |
dividend |
Dividend payout ratio |
|
2016.12 |
756,696 |
73,284 |
41,364 |
157.7 |
55 |
35% |
|
2017.12 |
877,866 |
67,449 |
46,979 |
180.5 |
55 |
30% |
|
2018.12 |
894,243 |
57,155 |
36,246 |
137.8 |
55 |
40% |
|
2019.12 |
920,000 |
52,500 |
33,000 |
125.5 |
55 |
44% |
※Unit of sales, operating profit, net income is one-million yen
※The figure for December 2019 is the predicted value
|
Cash flow statement |
2018.12 |
2017.12 |
|
CF operating activities |
828 |
761 |
|
CF investing activities |
▲654 |
▲1,007 |
|
CF financing activities |
▲21 |
217 |
※One unit is one hundred million yen
Note: You should be responsible for your own investment. Please make your own final judgment.