Sumitomo Pharma Co (TSE:4506) ROCE %: -0.52% (As of Mar. 2026)

What is Sumitomo Pharma Co ROCE %?

Sumitomo Pharma Co TSE:4506 -3.31% 56 ROCE % is -0.52% as of Mar. 2026. GuruFocus rates TSE:4506 with a GF Score™ of 56/100 and a GF Value™ of 円827.78 (Significantly Overvalued). The stock has 6 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Sumitomo Pharma Co's annualized ROCE % for the quarter that ended in Mar. 2026 was -0.52%.

Sumitomo Pharma Co (TSE:4506) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Sumitomo Pharma Co ROCE % Related Terms

Sumitomo Pharma Co ROCE % Historical Data

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The historical data trend for Sumitomo Pharma Co's ROCE % 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.

Sumitomo Pharma Co ROCE % Chart

Sumitomo Pharma Co Annual Data

Trend

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Mar25

Mar26

ROCE %

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8.35

-5.00

-55.25

6.96

21.36

Sumitomo Pharma Co Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
ROCE %	Get a 7-Day Free Trial															0.97	16.73	56.55	9.38	-0.52

56GF Score

Sumitomo Pharma Co Ltd TSE:4506

ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.

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Sumitomo Pharma Co ROCE % Calculation

Sumitomo Pharma Co's annualized ROCE % for the fiscal year that ended in Mar. 2026 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2026 )		(A: Mar. 2025 )		(A: Mar. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2026 )		(A: Mar. 2025 )		(A: Mar. 2026 )
	=	110536	/	( ( (742604 - 240603)	+	(804571 - 271500) )	/ 2 )
	=	110536	/	( (502001	+	533071)	/ 2 )
	=	110536	/	517536
	=	21.36 %

Sumitomo Pharma Co's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	-2940	/	( ( (815521 - 211781)	+	(804571 - 271500) )	/ 2 )
	=	-2940	/	( ( 603740	+	533071 )	/ 2 )
	=	-2940	/	568405.5
	=	-0.52 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of -0.52% mean?

Sumitomo Pharma Co (TSE:4506) has a ROCE % of -0.52% as of Mar. 2026.

Is Sumitomo Pharma Co's ROCE % too high?

Sumitomo Pharma Co's current ROCE % is -0.52%. Overall, Sumitomo Pharma Co has a GF Score™ of 56/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.

How does Sumitomo Pharma Co's ROCE % compare to ZTS and UTHR?

Sumitomo Pharma Co's ROCE % of -0.52% can be compared against companies in the Drug Manufacturers industry. The industry median ROCE % is 7.01. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROCE % for a Drug Manufacturers company?

The median ROCE % among Drug Manufacturers companies is 7.01, based on 955 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % 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 ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Drug Manufacturers industry, the median ROCE % is 7.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sumitomo Pharma Co's current ROCE % is -0.52%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Sumitomo Pharma Co stock overvalued right now?

Based on GuruFocus' analysis, Sumitomo Pharma Co (TSE:4506) is currently considered Significantly Overvalued. The stock's GF Value™ is 円827.78, compared to a current price of 円1,444.00 — trading 74.4% above its estimated fair value. The current ROCE % is -0.52%. Sumitomo Pharma Co's overall GF Score™ is 56/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is ROCE % calculated?

ROCE % is calculated from a company's financial statements. For Sumitomo Pharma Co (TSE:4506), the current ROCE % is -0.52% 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 Pharma Co (TSE:4506) Overvalued in 2026?

Based on GuruFocus' analysis, Sumitomo Pharma Co stock appears to be overvalued. The current stock price of 円1,444.00 is trading 74.4% above its estimated GF Value™ of 円827.78. GuruFocus considers Sumitomo Pharma Co to be Significantly Overvalued.

Key valuation signals for TSE:4506:

ROCE %: -0.52%
GF Value™: 円827.78 vs. price of 円1,444.00 (74.4% above fair value)
GF Score™: 56/100 with 6 warning signs

No single metric tells the full story. See the TSE:4506 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Sumitomo Pharma Co Business Description

Industry Healthcare Drug Manufacturers

Comparable Companies TSE:4540 TSE:4516 TSE:4887 TSE:4553 TSE:4523 TSE:4547 TSE:4521 TSE:4534 TSE:4559 TSE:4569 XTER:MRK XSWX:GALD TSE:4502 SHSE:600276 NSE:SUNPHARMA LSE:HLN XTAE:TEVA XSWX:SDZ ZTS UTHR

Other Exchanges SMDPY:USA DNPUF:USA DPM:Germany

Address 6-8, Doshomachi 2-chome, Chuo-ku, Osaka, JPN, 541-0045

Website https://www.sumitomo-pharma.com

Sumitomo Pharma Co Ltd is a specialty and generic drug manufacturing company. Sumitomo's vast majority of sales are generated in North America, followed by Japan. The company's core business is its pharmaceutical products business. The pharmaceutical business maintains a focus on a variety of areas, including cardiovascular/diabetes, psychiatry & neurology, and specialty areas. Sumitomo considers merger and acquisition investment as a potential component of its operational growth strategy for expanding its research, development, manufacturing, and marketing capabilities.

56GF Score

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円1,444.00

Price

円827.78

GF Value

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