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Sumitomo Chemical Company (SOMMY) Fair Value & Analysis

Basic Materials · US · Market cap $5.8B

SC Sumitomo Chemical Company logo Sumitomo Chemical Company SOMMY · US
Price$15.96
Fair Value$17.07
Upside+7.0%
Quality49/100
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Weak Growth
Thin margins · 2.6% net margin
Moderate debt · generates free cash flow
2.45% dividend yield
Mixed vs. peers (6/11)
Narrow moat 24/100
Evidence: Medium Range $13.33 – $25.78 Share as image

Fair value as of: Jul 19, 2026

From 23 valuation models · updated 22 days ago

Share price −4.7% over the past month.

Below-average quality, currently priced close to our fair value.

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • A fairly wide model range ($13.33 to $25.78) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

$22.73 $9.33 Fair Value $17.07 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 19, 2026.

How to read this chart

60‑month range $9.33 – $22.73 · fair‑value band $13.33 – $25.78 · the $15.96 price screens below the $17.07 fair value. Dashed = 300-day average. As of Jul 19, 2026.

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Analysis

Sumitomo Chemical Company (SOMMY) currently trades at $15.96, while our model-based Fair Value estimate is $17.07, implying the stock looks roughly 7.0% fairly valued today. The Quality Score stands at 49/100 (below-average quality), in the Basic Materials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, Sumitomo Chemical Company generated revenue of $2.3T at a net margin of 2.6%. Revenue declined 11.3% year over year. It earns a return on equity of 10.0%. Net debt stands at $947B. Fundamentals as of Jul 19, 2026

Our scenario range runs from $13.33 (bear case) to $25.78 (bull case); at $15.96, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 20% below its 52-week high and 40% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -46% fair-value upside, at 7%, SOMMY screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF $11.36 $20.79 $32.99 80
Rev-Margin DCF $7.01 $17.44 $28.52 74
ROIC Compounder $4.05 $7.03 $9.60 72
All 23 models by family
DCF Models
FCF DCF $10.66 $20.77 $34.40 38
Owner Earnings $4.17 $11.45 31
5Y Revenue Exit $7.01 $17.07 $29.28 39
5Y EBITDA Exit $15.25 $31.57 $49.64 41
5Y P/E Exit $4.28 $12.25 $20.02 38
10Y Revenue Exit $7.63 $16.69 $27.55 36
10Y EBITDA Exit $13.22 $26.22 $41.94 37
10Y P/E Exit $6.54 $13.52 $21.02 35
Earnings-Based
Graham-Dodd $9.31 $20.57 $26.24 54
PEG = 1.0 $3.29 $4.70 $6.11 46
EPV $4.05 $7.03 $9.60 59
Multiples
P/E Multiple $17.46 $23.28 $29.10 63
P/S Multiple $17.46 $23.28 $29.10 58
P/B Multiple $17.46 $23.28 $29.10 55
EV/EBIT $9.40 $17.48 $25.56 53
EV/EBITDA $22.87 $35.45 $48.02 54
EV/Revenue $6.17 $15.17 $24.18 43
Asset-Based
NCAV (Graham) $10.73 $14.38 $21.47 50
Growth DCF
Growth DCF $11.36 $20.79 $32.99 80
Rev-Margin DCF $7.01 $17.44 $28.52 74
Economic Profit
Residual Income $16.84 $17.39 $17.67 61
ROIC Compounder $4.05 $7.03 $9.60 72
Growth Earnings
Growth-Adj P/E $13.18 $18.82 $24.47 68

Widest divergence: Multiples ($23.28) versus Earnings-Based ($7.03). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) $2.3T
Revenue growth (YoY) -11.3%
Net margin 2.6%
Return on equity 10.0%
Free cash flow $120B FY2026
P/E ratio 15.2
More key figures
Operating margin -4.6%
EPS (TTM) $1.16
Dividend yield 2.5%
EPS growth (YoY) +35.7%
Net debt $947B FY2026

Figures from reported company fundamentals · as of Jul 19, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 49/100

Of which business quality 48 · Market factors (momentum, volatility) 65

Profitability 34
Margins and returns on capital today
Quality Growth 33
Are margins and returns improving?
Cashflow 50
Earnings quality: real cash, not paper profit
Fin. Strength 24
Balance sheet, leverage, solvency risk
Investment 94
Disciplined investing over empire-building
Low Volatility 72
Calm price path (market factor)
Momentum 61
Price trend over the last 3–12 months (market factor)
52W Momentum 66
Distance to the 52-week high (market factor)
Net Issuance 80
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Sumitomo Chemical Company, Limited engages in Agro & Life Solutions, ICT & Mobility Solutions, Advanced Medical Solutions, Essential & Green Materials, and Sumitomo Pharma.

Full company description

Sumitomo Chemical Company, Limited engages in Agro & Life Solutions, ICT & Mobility Solutions, Advanced Medical Solutions, Essential & Green Materials, and Sumitomo Pharma. The Agro & Life Solutions segment offers crop protection chemicals, fertilizers, agricultural materials, household insecticides, products for control of infectious diseases, and feed additives, etc. The ICT & Mobility Solutions segment provides optical products, semiconductor processing materials, compound semiconductor materials, touch screen sensor panels, high-purity aluminum and alumina, specialty chemicals, additives, engineering plastics, and battery materials, etc. The Advanced Medical Solutions segment offers contract development and manufacturing organization business for small-molecule active ingredients and intermediates, oligonucleic acid drug substances, and regenerative medicine, and cell therapy products, etc. The Essential & Green Materials segment offers synthetic resins, raw materials for synthetic fibers, various industrial chemicals, methyl methacrylate products, synthetic resin processed products, industrial aluminum and alumina, and synthetic rubber, etc. The Sumitomo Pharma segment offers small molecule pharmaceuticals. Additionally, the company engages in the manufacture and sale of positive electrode materials for rechargeable batteries. Sumitomo Chemical Company, Limited was founded in 1913 and is headquartered in Tokyo, Japan.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Sumitomo Chemical Company reported revenue of $2.5T in FY2026 versus $2.8T in FY2022, a compound −2.8%/yr. Reported net income was $64.6B in FY2026, compounding −20.5%/yr from FY2022.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2026)
$2.5T
Latest YoY
−5.3%
Avg. growth/yr (3Y)
−5.2%
Avg. growth/yr (5Y)
+1.5%
Avg. growth/yr (30Y)
+3.2%
Revenue −2.8%/yr
FY22 $2.8T
FY23 $2.9T
FY24 $2.4T
FY25 $2.6T
FY26 $2.5T
Net income −20.5%/yr
FY22 $162B
FY23 $7.0B
FY24 −$312B
FY25 $38.6B
FY26 $64.6B

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Cite: Fair Value Calculator (2026). "Sumitomo Chemical Company Fair Value". https://www.fairvalue-calculator.com/stock/SOMMY

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Chemicals · 334 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 49 · Below median
Fair Value upside +7% · Above median
Return on equity (TTM) 10% · Above median
Return on assets 4% · Above median
Net margin (TTM) 3% · Below median
Operating margin (TTM) -5% · Bottom 25%
Revenue growth -11% · Bottom 25%
Dividend yield (TTM) 2.5% · Above median
Debt / equity 0.90× · Higher than 75% of peers

Valuation Multiples vs Chemicals median · lower = cheaper

P/E (TTM) 15.2× · Cheaper than median
P/FCF 0.0× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 43 · sector 0
FUTURE 0 · sector 20
PAST 40 · sector 19
HEALTH 55 · sector 94
DIVIDEND 49 · sector 27

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Chemicals stocks, each showing price versus our Fair Value estimate (as of Jul 19, 2026).

Stock Price Fair Value vs Fair Value
BASF SE BASN 1,034 MXN 532.13 MXN -49%
Ningxia Baofeng Energy Group 600989 ¥20.32 ¥20.17 -1%
Zhejiang Juhua Co 600160 ¥42.85 ¥23.35 -46%
PT Barito Pacific Tbk, BRPT 1,690 IDR 1,628 IDR -4%
LG Chem, Ltd 051910 260,500 KRW 587,755 KRW +126%
Formosa Chemicals & Fibre Corporation 1326 66.10 TWD 6.79 TWD -90%
PTT Global Chemical Public Company PTTGC 35.50 THB 18.21 THB -49%
542812 542812 ₹4,369 ₹791.05 -82%
Indorama Ventures Public Company IVL 24.50 THB 17.95 THB -27%
Navin Fluorine International Limited NAVINFLUOR ₹8,650 ₹2,146 -75%

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Frequently asked questions

Is Sumitomo Chemical Company (SOMMY) overvalued or undervalued?
As of Jul 19, 2026, our model estimates a fair value of $17.07 versus a price of $15.96, about +7% (fairly valued).
What is the fair value of SOMMY?
Our model-based fair value for Sumitomo Chemical Company is $17.07 (as of Jul 19, 2026), built from audited fundamentals. The current price is $15.96.
What is the quality score of SOMMY?
Sumitomo Chemical Company has a Quality Score of 49/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Sumitomo Chemical Company (SOMMY)?
Sumitomo Chemical Company reported trailing-twelve-month revenue of about $2.3T (latest available figure, as of Jul 19, 2026).
What is the net profit margin of SOMMY?
The net profit margin of Sumitomo Chemical Company is about 2.6%, meaning it keeps roughly 2.6% of revenue as net income. Based on the latest reported figures.
Does Sumitomo Chemical Company pay a dividend?
Sumitomo Chemical Company currently shows a dividend yield of about 2.45% relative to its recent price (as of Jul 19, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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