Sumitomo Shares Owned By Institutions vs. Return On Asset

SUMA Stock  EUR 20.38  0.26  1.26%   
Considering Sumitomo's profitability and operating efficiency indicators, Sumitomo may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Sumitomo's ability to earn profits and add value for shareholders.
For Sumitomo profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Sumitomo to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Sumitomo utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Sumitomo's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Sumitomo over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Sumitomo's value and its price as these two are different measures arrived at by different means. Investors typically determine if Sumitomo is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Sumitomo's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Sumitomo Return On Asset vs. Shares Owned By Institutions Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Sumitomo's current stock value. Our valuation model uses many indicators to compare Sumitomo value to that of its competitors to determine the firm's financial worth.
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Sumitomo is currently regarded as top stock in shares owned by institutions category among its peers. It also is currently regarded as top stock in return on asset category among its peers . The ratio of Shares Owned By Institutions to Return On Asset for Sumitomo is about  1,508 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Sumitomo's earnings, one of the primary drivers of an investment's value.

Sumitomo Return On Asset vs. Shares Owned By Institutions

Shares Owned by Institutions show the percentage of the outstanding shares of stock issued by a company that is currently owned by other institutions such as asset management firms, hedge funds, or investment banks. Many investors like investing in companies with a large percentage of the firm owned by institutions because they believe that larger firms such as banks, pension funds, and mutual funds, will invest when they think that good things are going to happen.

Sumitomo

Shares Held by Institutions

 = 

Funds and Banks

+

Firms

 = 
40.41 %
Since Institution investors conduct a lot of independent research they tend to be more involved and usually more knowledgeable about entities they invest as compared to amateur investors.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Sumitomo

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0268
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Sumitomo Return On Asset Comparison

0.02680.08790.0502
Sumitomo is currently under evaluation in return on asset category among its peers.

Sumitomo Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Sumitomo, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Sumitomo will eventually generate negative long term returns. The profitability progress is the general direction of Sumitomo's change in net profit over the period of time. It can combine multiple indicators of Sumitomo, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Sumitomo Corporation, together with its subsidiaries, imports, exports, and trades in various goods and commodities worldwide. Sumitomo Corporation was founded in 1919 and is headquartered in Tokyo, Japan. Sumitomo is traded on Frankfurt Stock Exchange in Germany.

Sumitomo Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Sumitomo. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Sumitomo position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Sumitomo's important profitability drivers and their relationship over time.

Use Sumitomo in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Sumitomo position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Sumitomo will appreciate offsetting losses from the drop in the long position's value.

Sumitomo Pair Trading

Sumitomo Pair Trading Analysis

The ability to find closely correlated positions to Sumitomo could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Sumitomo when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Sumitomo - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Sumitomo to buy it.
The correlation of Sumitomo is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Sumitomo moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Sumitomo moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Sumitomo can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Sumitomo position

In addition to having Sumitomo in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Large Value Funds Thematic Idea Now

Large Value Funds
Large Value Funds Theme
Funds or Etfs that invest in the undervalued stocks of large-sized companies. The Large Value Funds theme has 37 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Large Value Funds Theme or any other thematic opportunities.
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Other Information on Investing in Sumitomo Stock

To fully project Sumitomo's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Sumitomo at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Sumitomo's income statement, its balance sheet, and the statement of cash flows.
Potential Sumitomo investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Sumitomo investors may work on each financial statement separately, they are all related. The changes in Sumitomo's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Sumitomo's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.