Today I will talk about SUMITOMO CORPORATION, a major general trading company of the Sumitomo Group, which is one of the three major zaibatsu (great financial conglomerate) in Japan.
※The above images are from SUMITOMO CORPORATION’s website
A general trading company that handles a wide range of products and services peculiar to Japan and is defined as a company that engages in commerce focusing on import/export trade and sales of goods.
However, recently, the traditional sales brokerage business has changed to a business investment business.
To briefly summarize SUMITOMO CORPORATION's business, they have transactions with approximately 100,000 companies at 136 offices in 66 countries in the following six business fields.
・ Metal Products
・ Transportation & Construction Systems
・ Infrastructure
・ Media and digital
・ Life Related & Real Estate
・ Mineral Resources, Energy, and Chemical ＆Electronics
￥1,236 （10/14 last closing price) The latest stock price← click here Trading unit: 100
The final month of the settlement: March
Dividend yield 5.66 % PER - PBR 0.62
Equity ratio 33.3%
General trading companies' share prices are so-called conglomerate discounts, which tend to be chronically low priced because their business is diverse, complicated, and difficult to understand, which is difficult to calculate the corporate value.
Recently, Warren Buffett, a well-known US investor, invested in five Japanese general trading companies.
However, it seems to be an inflation hedging measure associated with monetary easing,
since trading company stocks are linked to agricultural products or resource prices
Still, Buffett says that he will hold them for a long time since trading companies are engaged in various businesses, are resilient to the economic crisis, and those remarks are encouraging many Japanese stocks investors.
Transition of business results
|
|
Net sales |
Operating profit |
Net profit |
Net profit per share |
dividend |
Dividend payout ratio |
|
2018.3 |
4,827,323 |
229,909 |
308,521 |
247.1 |
62 |
25% |
|
2019.3 |
5,339,238 |
274,156 |
320,523 |
256.7 |
75 |
29% |
|
2020.3 |
5,299,814 |
111,111 |
189,517 |
137.2 |
80 |
58% |
|
2021.3 |
4,900,000 |
72,000 |
▲150,000 |
▲120.0 |
70 |
- % |
※Unit of sales, operating profit, net income is one-million yen
※The figure for March 2021 is the predicted value
|
Cash flow statement |
2020.3 |
2019.3 |
|
CF operating activities |
3,266 |
2,688 |
|
CF investing activities |
▲2,034 |
▲513 |
|
CF financing activities |
▲577 |
▲2,331 |
※One unit is one hundred million yen
Note: You should be responsible for your own investment. Please make your own final judgment.