Sumitomo Chemical Co (FRA:SMM) Moat Score: 6/10 (As of Jul. 01, 2026)


FRA:SMM Sumitomo Chemical Co Ltd FRA:SMM
58 GF Score
Price €2.79
GF Value €1.85
Valuation Significantly Overvalued
! 6 Warning Signs
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What is Sumitomo Chemical Co Moat Score?

Sumitomo Chemical Co FRA:SMM +0.47% 58 Moat Score is 6 as of Jul. 01, 2026. GuruFocus rates FRA:SMM with a GF Score™ of 58/100 and a GF Value™ of €1.85 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,623 Chemicals companies, Sumitomo Chemical Co ranks better than 98.71% on this metric.

Sumitomo Chemical Co has the Moat Score of 6, which implies that the company might have Narrow Moat - Strong narrow moat, clearly distinguishable but not wide.

Sumitomo Chemical Co has Narrow Moat: Sumitomo Chemical has a strong narrow moat with its proprietary technologies and economies of scale. However, it faces competition from other global chemical companies and lacks the regulatory barriers for a wide moat.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Sumitomo Chemical Co might have Narrow Moat - Strong narrow moat, clearly distinguishable but not wide.

Sumitomo Chemical Co  (FRA:SMM) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Sumitomo Chemical Co Moat Score Related Terms

FRA:SMM vs DOW: Moat Score Comparison

For the Chemicals subindustry, Sumitomo Chemical Co's Moat Score, along with its competitors' market caps and Moat Score 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 Chemical Co Moat Score vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, Sumitomo Chemical Co's Moat Score distribution charts can be found below:

* The bar in red indicates where Sumitomo Chemical Co's Moat Score falls into.


FRA:SMM
58GF Score
Sumitomo Chemical Co Ltd FRA:SMM
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 6 mean?
Sumitomo Chemical Co (FRA:SMM) has a Moat Score of 6 as of Jul. 01, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Sumitomo Chemical Co ranks #21 out of 1623 companies in the Chemicals industry, placing it in the top 1.3%.
Is Sumitomo Chemical Co's Moat Score too high?
Sumitomo Chemical Co's current Moat Score is 6. Based on the distribution chart, Sumitomo Chemical Co ranks #21 out of 1623 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Sumitomo Chemical Co has a GF Score™ of 58/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sumitomo Chemical Co's Moat Score compare to DOW?
According to the Chemicals industry distribution chart, Sumitomo Chemical Co ranks #21 out of 1623 companies for Moat Score. This places Sumitomo Chemical Co in the top 1% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Chemicals company?
A good Moat Score depends on the Chemicals industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Sumitomo Chemical Co's current Moat Score is 6. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sumitomo Chemical Co stock overvalued right now?
Based on GuruFocus' analysis, Sumitomo Chemical Co (FRA:SMM) is currently considered Significantly Overvalued. The stock's GF Value™ is €1.85, compared to a current price of €2.79 — trading 50.7% above its estimated fair value. The current Moat Score is 6. Sumitomo Chemical Co's overall GF Score™ is 58/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Sumitomo Chemical Co (FRA:SMM), the current Moat Score is 6 as of Jul. 01, 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 Chemical Co (FRA:SMM) Overvalued in 2026?

Based on GuruFocus' analysis, Sumitomo Chemical Co stock appears to be overvalued. The current stock price of €2.79 is trading 50.7% above its estimated GF Value™ of €1.85. GuruFocus considers Sumitomo Chemical Co to be Significantly Overvalued.

Key valuation signals for FRA:SMM:

  • Moat Score: 6
  • GF Value™: €1.85 vs. price of €2.79 (50.7% above fair value)
  • GF Score™: 58/100 with 6 warning signs

No single metric tells the full story. See the FRA:SMM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Sumitomo Chemical Co Business Description

Address 2-7-1 Nihonbashi, Tokyo Nihonbashi Tower, Chuo-ku, Tokyo, JPN, 103-6020
Sumitomo Chemical Co Ltd is a Japanese chemical manufacturer. The company operates through six segments. Advanced Medical Solutions covers small molecule drugs, medical oligonucleotides, and regenerative medicine contract manufacturing. Agro & Life Solutions provides pesticides, fertilizers, agricultural materials, insecticides, and feed additives. Essential & Green Materials include synthetic resins, industrial chemicals, methacrylics, aluminum, alumina, and synthetic rubber. ICT & Mobility Solutions handles optical products, semiconductor materials, touch panels, engineering plastics, and battery materials. Sumitomo Pharma focuses on small-molecule drugs, while Others include reagents, energy, plant engineering, transport, and warehousing.
58GF Score

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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€2.79
Price
€1.85
GF Value