Teijin (3401) AI Stock Analysis

• Market Cap: $216.01B
• Dividend Yield: 0.03%
• Average Volume (3M): 707.05K
• Price to Earnings (P/E): 7.5
• Beta (1Y): 0.69
• Revenue Growth: -2.64%
• EPS Growth: 166.88%
• Country: JP
• Employees: 21,834
• Sector: Industrials
• Sector Strength: 87
• Industry: Conglomerates
• EPS (TTM): -117.51
• Shares Outstanding: 197,953,700
• 10 Day Avg. Volume: 745,410
• 30 Day Avg. Volume: 707,050
• PEG Ratio: 0.09
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -101.27
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $1,280.31
• Price Target Upside: 16.45% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: ¥1,187.00 ▲(7.96%Upside)

The stock's overall score is driven by its mixed financial performance and bearish technical indicators. Despite valuation attractiveness, market momentum remains a concern. The strong cash flow management and dividend yield offer some positive offset to leverage risks and price weakness.

Teijin Business Overview & Revenue Model

Company Description

Teijin Limited is a Japanese chemical, pharmaceutical, and information technology company. Founded in 1918, it operates through several segments including Advanced Fibers and Composites, Healthcare, IT, and Products Converting. The company is known for its innovative high-performance fibers, such as aramid and carbon fibers, as well as its resin and plastic processing solutions. Teijin also provides healthcare solutions, including pharmaceuticals and home healthcare equipment, and IT services ranging from data management to software development.

How the Company Makes Money

Teijin makes money through its diversified business operations across several key segments. The Advanced Fibers and Composites segment is a major revenue driver, selling high-performance materials to industries such as automotive, aerospace, and electronics. In the Healthcare sector, Teijin generates income by providing pharmaceuticals and home healthcare services, which include medical devices and nursing care solutions. The IT segment contributes by offering IT services and solutions, leveraging partnerships with other tech companies and institutions. Furthermore, Teijin's Products Converting segment enhances its revenue by processing and selling plastic and resin products. The company's strategic collaborations and continuous innovation in materials and technology play a significant role in its earnings.

Teijin Financial Statement Overview

Summary

Teijin's financial performance is mixed, with a stable balance sheet and improved cash flow. However, inconsistent revenue and high leverage present risks.

Income Statement

The company has shown fluctuating revenue patterns with a decline in the most recent year. Gross profit margin has decreased significantly, indicating cost challenges. Additionally, the negative EBIT and EBITDA margins highlight operational inefficiencies. Net profit margin improved over the last year but remains volatile, signaling instability in profit generation.

Balance Sheet

The balance sheet reflects a stable equity base with an acceptable equity ratio. However, the debt-to-equity ratio is relatively high, suggesting potential leverage risk. Return on equity has shown improvement, yet the overall leverage position could pose financial risks if not managed carefully.

Cash Flow

The company has demonstrated positive free cash flow growth, recovering from previous years' negative figures. Operating cash flow remains strong relative to net income, indicating effective cash management. However, the high capital expenditures in previous years have impacted cash flow stability.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
1.01T	1.03T	1.02T	926.05B	836.51B
	Gross Profit
191.45B	275.77B	248.14B	271.02B	255.00B
	EBIT
-78.88B	13.54B	12.86B	44.21B	54.93B
	EBITDA
-67.71B	118.08B	84.36B	113.02B	106.77B
	Net Income Common Stockholders
28.35B	10.60B	-17.70B	23.16B	-6.66B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
107.54B	125.92B	142.78B	134.48B	170.19B
	Total Assets
1.06T	1.25T	1.24T	1.21T	1.04T
	Total Debt
387.13B	495.72B	526.16B	483.64B	378.59B
	Net Debt
279.59B	369.80B	383.38B	349.16B	208.41B
	Total Liabilities
622.73B	769.09B	791.35B	742.77B	608.17B
	Stockholders Equity
431.38B	454.59B	425.66B	440.38B	407.05B
Cash Flow		Free Cash Flow
12.45B	4.41B	-2.65B	-110.82B	46.80B
	Operating Cash Flow
69.84B	69.45B	55.09B	89.66B	107.73B
	Investing Cash Flow
52.52B	-46.05B	-52.43B	-198.38B	-79.59B
	Financing Cash Flow
-134.46B	-43.16B	7.18B	71.11B	-20.88B

Teijin Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1099.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3401, the sentiment is Negative. The current price of 1099.5 is below the 20-day moving average (MA) of 1132.58, below the 50-day MA of 1155.64, and below the 200-day MA of 1279.65, indicating a bearish trend. The MACD of -14.21 indicates Positive momentum. The RSI at 34.13 is Neutral, neither overbought nor oversold. The STOCH value of 25.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3401.

Teijin Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5706	81 Outperform	$276.12B	4.16	20.86%	3.11%	10.15%	148.74%
5393	81 Outperform	$339.03B	10.32	15.22%	2.19%	2.86%	20.84%
4206	78 Outperform	¥240.04B	13.61		3.59%	5.10%	12.58%
5331	72 Outperform	¥104.48B	7.97	8.66%	3.89%	0.20%	13.56%
3106	71 Outperform	¥127.03B	14.45		2.41%	-0.43%	42.04%
Sector *	66 Neutral	$4.47B	12.22	5.40%	3.65%	4.14%	-12.00%
3401	61 Neutral	$216.01B	7.47	-17.62%	0.03%	-2.64%	166.88%

Teijin Corporate Events

Teijin Limited Proposes Amendments to Strengthen Corporate Governance

Teijin Limited has announced a proposal to amend its Articles of Incorporation to transition from a company with a Board of Statutory Auditors to one with an Audit and Supervisory Committee. This move aims to strengthen corporate governance by establishing new provisions related to the Audit and Supervisory Committee and allowing greater delegation of decision-making to directors. The changes are expected to enhance operational efficiency and align with modern governance practices, potentially impacting stakeholders by improving oversight and accountability.

Teijin Revises Stock Compensation Plans Amid Governance Transition

Teijin Limited announced a revision of its stock compensation plans for directors in line with its transition to a company with an Audit & Supervisory Committee. This change aims to align with global corporate governance standards and enhance the company’s executive compensation system, impacting directors with overseas roles and potentially increasing the company’s stock value.

Teijin Announces Impairment Losses and Extraordinary Income

Teijin Limited announced significant financial adjustments in its fourth-quarter results for the fiscal year ended March 2025, primarily due to impairment losses and extraordinary income and loss. The company recorded an impairment loss of 28 billion yen related to its diabetes treatments in Japan, which underperformed due to competitive pressures and anticipated drug price revisions. Additionally, Teijin resolved to transfer shares of its affiliate, Teijin Automotive Technologies NA Holdings, resulting in a loss on valuation of shares and provisions for doubtful accounts and guarantees. Despite these adjustments, the company’s annual financial forecast remains unchanged, with no impact on consolidated profit/loss for the fiscal year.

Teijin Limited Reports Revenue Growth and Increased Dividends for FY2024

Teijin Limited reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a revenue increase of 4.7% year-on-year to 1,005,471 million yen. Despite a significant operating loss, the company achieved a profit attributable to owners of the parent of 28,347 million yen, marking a turnaround from the previous year’s loss. The company also announced an increase in annual dividends, reflecting confidence in its financial health and commitment to shareholder returns.

Teijin Limited Transfers North American Subsidiary to Focus on European Market

Teijin Limited has decided to transfer its shares in Teijin Automotive Technologies NA Holdings Corp., its North American subsidiary, to Stork BidCo Inc., a company under AURELIUS Private Equity. This decision comes as part of Teijin’s Medium-Term Management Plan 2024-2025, following challenges in achieving expected profitability due to external factors like the COVID-19 pandemic and labor shortages. The move signifies Teijin’s withdrawal from the North American automotive composites market, while it continues to focus on its profitable European operations, aiming to expand in the environmentally conscious mobility sector.