Sumitomo Forestry (1911): At P/E 8x, What is the Catch?

A closer look at the forest-rich construction giant and the factors behind its enticing valuation.

Please note: This analysis is for informational purposes only and is not intended as investment advice. Mention of specific stocks is not a recommendation to buy or sell any securities.

You ever look at a stock and wonder if it’s too cheap for its own good?

That’s precisely the vibe I’m getting from Sumitomo Forestry (ticker: 1911.T). At around ¥4,548 per share, its LTM P/E ratio sits at roughly 8× - an unusually low multiple, especially for a company pumping out double-digit growth in net income. With a near-4% dividend yield sweetening the deal, you’d be forgiven for thinking this is a hidden gem among Japan’s homebuilders. Let’s dig in.

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Table of Content

1. Summary

2. Company Overview

3. Investment Thesis

4. Valuation Analysis

5. KonichiValue Score

6. Conclusion

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1. Summary

Incredibly Low Valuation vs. Peers