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Sumitomo Forestry CoFRA:5F6 85 Debt-to-EBITDA is 5.48 as of Mar. 2026, which is 113% above its 10-year median of 2.57. GuruFocus rates FRA:5F6 with a GF Score™ of 85/100 and a GF Value™ of €10.04 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 80 Homebuilding & Construction companies, Sumitomo Forestry Co ranks better than 52.5% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Sumitomo Forestry Co's Debt-to-EBITDA or its related term are showing as below:
FRA:5F6'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.64 Med: 2.57 Max: 7.63
Current: 7.63
During the past 13 years, the highest Debt-to-EBITDA Ratio of Sumitomo Forestry Co was 7.63. The lowest was 1.64. And the median was 2.57.
FRA:5F6's Debt-to-EBITDA is ranked better than 52.5% of 80
companies
in the Homebuilding & Construction industry
Industry Median: 3.575
vs FRA:5F6: 7.63
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Sumitomo Forestry Co Debt-to-EBITDA Related Terms
Sumitomo Forestry Co Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Sumitomo Forestry Co's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:5F6 vs DHI, PHM, LEN: Debt-to-EBITDA Comparison
For the Residential Construction subindustry, Sumitomo Forestry Co's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Sumitomo Forestry Co Debt-to-EBITDA vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Sumitomo Forestry Co's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Sumitomo Forestry Co's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
Sumitomo Forestry Co (FRA:5F6) has a Debt-to-EBITDA of 5.48 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Sumitomo Forestry Co. This is 113% above median its historical median of 2.57. Over the past decade, Sumitomo Forestry Co's Debt-to-EBITDA has ranged from 1.64 to 7.63. According to the industry distribution chart, Sumitomo Forestry Co ranks #38 out of 80 companies in the Homebuilding & Construction industry, placing it in the top 47.5%.
Is Sumitomo Forestry Co's Debt-to-EBITDA too high?
Sumitomo Forestry Co's current Debt-to-EBITDA of 5.48 is 113% above median its 10-year median of 2.57. Over the past 10 years, this metric has ranged from a low of 1.64 to a high of 7.63. The Homebuilding & Construction industry median Debt-to-EBITDA is 3.58. Sumitomo Forestry Co's value of 5.48 is 53.3% above this industry median. Based on the distribution chart, Sumitomo Forestry Co ranks #38 out of 80 companies in the Homebuilding & Construction industry, which is above the industry midpoint. Overall, Sumitomo Forestry Co has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sumitomo Forestry Co's Debt-to-EBITDA compare to DHI and PHM?
According to the Homebuilding & Construction industry distribution chart, Sumitomo Forestry Co ranks #38 out of 80 companies for Debt-to-EBITDA. This puts Sumitomo Forestry Co in the upper half of its industry. The industry median Debt-to-EBITDA is 3.58. Sumitomo Forestry Co's value of 5.48 is 53.3% above this benchmark. Historically, Sumitomo Forestry Co's own Debt-to-EBITDA has ranged from 1.64 to 7.63 over the past decade. While the company's 10-year median is 2.57 vs. the industry median of 3.58, Sumitomo Forestry Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Homebuilding & Construction company?
The median Debt-to-EBITDA among Homebuilding & Construction companies is 3.58, based on 80 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sumitomo Forestry Co's current Debt-to-EBITDA of 5.48 is 53.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Sumitomo Forestry Co. For the Homebuilding & Construction industry, the median Debt-to-EBITDA is 3.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sumitomo Forestry Co's current Debt-to-EBITDA is 5.48, which is 113% above median its own 10-year median of 2.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sumitomo Forestry Co stock overvalued right now?
Based on GuruFocus' analysis, Sumitomo Forestry Co (FRA:5F6) is currently considered Modestly Undervalued. The stock's GF Value™ is €10.04, compared to a current price of €7.20 — trading 28.3% below its estimated fair value. The current Debt-to-EBITDA is 5.48, which is 113% above median its 10-year median of 2.57 and 53.3% above the Homebuilding & Construction industry median of 3.58. Sumitomo Forestry Co's overall GF Score™ is 85/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Sumitomo Forestry Co (FRA:5F6), the current Debt-to-EBITDA is 5.48 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Sumitomo Forestry Co (FRA:5F6) Overvalued in 2026?
Based on GuruFocus' analysis, Sumitomo Forestry Co stock appears to be undervalued.
The current stock price of €7.20 is trading 28.3% below its estimated GF Value™ of €10.04.
GuruFocus considers Sumitomo Forestry Co to be Modestly Undervalued.
Key valuation signals for FRA:5F6:
Debt-to-EBITDA: 5.48 (113% above median its 10-year median of 2.57)
GF Value™: €10.04 vs. price of €7.20 (28.3% below fair value)
Industry Position: 53.3% above the Homebuilding & Construction median (#38 of 80)
No single metric tells the full story. See the FRA:5F6 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sumitomo Forestry Co Ltd is a Japan-based company engaged in the timber, housing, and environmental businesses. The company operates through four reportable segments: Timber Building Materials Business, Housing Business, Construction and Real Estate Business, and Resources and Environment Business. The Timber Building Materials Business purchases, manufactures, and sells timber and building materials. The Housing Business handles housing construction, renovation, and real estate brokerage. The Construction and Real Estate Business develops condominiums, apartment buildings, and commercial complexes. The Resources and Environment Business focuses on renewable energy and forestry resource operations. It generates the majority of revenue from the Construction and real estate business segment.
85GF Score
Get the complete analysis for FRA:5F6
Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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