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Teijin
(3401)
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Rating:50Neutral
Price Target:
¥1,639.00
▼(-2.50% Downside)
Action:Reiterated
Date:08/05/26
The score is held back primarily by deteriorating profitability and recent revenue decline, with technical indicators also reflecting weak momentum (negative MACD and sub-50 RSI). The main support comes from resilient operating and free cash flow plus a moderate dividend yield, which partially offsets earnings pressure.
Positive Factors
Strong cash generation
Sustained positive operating cash flow (~99B) and large free cash flow (~55B) provide durable internal funding to support operations, capex and dividends even while earnings are negative. This cash resilience lowers short-term refinancing risk and buys time to restore margins.
Negative Factors
Deteriorated profitability
Sharp swing to sizable losses (≈-10% net margin and negative operating profits) is a lasting earnings quality concern. Persistent negative margins will erode equity, constrain reinvestment, and require sustained cash generation or corrective actions to avoid structural deterioration of competitive capabilities.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Sustained positive operating cash flow (~99B) and large free cash flow (~55B) provide durable internal funding to support operations, capex and dividends even while earnings are negative. This cash resilience lowers short-term refinancing risk and buys time to restore margins.
Read all positive factors
Teijin (3401) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥314.45B
Dividend Yield3.05%
Average Volume (3M)1.23M
Price to Earnings (P/E)―
Beta (1Y)0.88
Revenue Growth-13.16%
EPS Growth-410.41%
CountryJP
Employees15,689
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)-218.72
Shares Outstanding197,953,700
10 Day Avg. Volume898,600
30 Day Avg. Volume1,234,116
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.86
Price to Sales (P/S)0.36
P/FCF Ratio6.97
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥1,634.00Price Target Upside-2.80% Downside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)230.2
Revenue Forecast (FY)¥872.60B
Teijin Business Overview & Revenue Model
Company Description
Teijin Limited, a Japanese conglomerate established in Tokyo in 1918, operates on a global scale across diverse sectors. Its core businesses encompass advanced materials, including fibers, films and sheets, and composites, as well as significant o...
How the Company Makes Money
Teijin primarily makes money by selling manufactured products and related solutions across its materials and healthcare businesses. Key revenue streams include: (1) High-performance materials: revenue from supplying advanced fibers and textiles (e...
Teijin Earnings Call Summary
Earnings Call Date:Feb 06, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:Nov 09, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted a positive turnaround in net income and an improved operating income forecast. However, significant challenges remain in the Materials and Healthcare segments, with operational issues in the Composites and Aramid businesses. The company faces external pressures from strikes and generic competition but is taking steps to improve profitability.Positive Updates
Positive Net Income Turnaround
Net income was JPY 3.5 billion, turning black from the previous year's loss.
Negative Updates
Materials Business Loss
The materials business remains at an operating income level of negative JPY 5.8 billion.
Read all updates
Q3-2024 Updates
Positive
Negative
Positive Net Income Turnaround
Net income was JPY 3.5 billion, turning black from the previous year's loss.
Read all positive updates
Company Guidance
In the earnings call for the third quarter of 2024, company executives Eiji Ogawa and Akimoto Uchikawa provided a detailed analysis of financial performance and strategic initiatives. For the first nine months of the fiscal year, net sales remained steady at JPY 759.6 billion, while operating income fell by JPY 10 billion to JPY 4.9 billion, mainly due to a one-off contract fee. The company's net income turned positive at JPY 3.5 billion, reversing last year's loss. The full-year forecast predicts net sales of JPY 1,030 billion and operating income of JPY 18 billion, which is a 40% increase from the previous year but JPY 17 billion below the earlier forecast. Uchikawa discussed the profitability improvement measures, with a focus on underperforming sectors like Composites and Healthcare, aiming for JPY 19 billion in profit improvements. Despite challenges like the UAW strike and equipment failures in North America, some segments, such as Fibers & Products, showed robust performance with a JPY 1.4 billion increase in operating income to JPY 9.3 billion. The Healthcare business, however, saw a JPY 19.2 billion drop in operating profit, influenced by the entry of a generic competitor to their main drug. The executives also highlighted ongoing efforts to stabilize gas prices and improve productivity, with a strategic focus on addressing low ROE and enhancing shareholder value.Teijin Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
48
Neutral
Cash Flow
67
Positive
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 852.02B | 873.19B | 1.01T | 960.46B | 1.02T | 926.05B |
| Gross Profit | 164.69B | 161.96B | 191.45B | 210.64B | 218.76B | 241.27B |
| EBITDA | -16.53B | -8.34B | 4.06B | 85.38B | 84.36B | 116.13B |
| Net Income | -42.16B | -88.00B | 28.35B | -11.71B | -17.70B | 23.16B |
Balance Sheet | ||||||
| Total Assets | 950.18B | 920.12B | 1.06T | 1.23T | 1.27T | 1.24T |
| Cash, Cash Equivalents and Short-Term Investments | 141.03B | 104.47B | 107.54B | 123.21B | 142.78B | 134.48B |
| Total Debt | 325.24B | 336.41B | 387.13B | 516.94B | 536.23B | 485.17B |
| Total Liabilities | 530.32B | 551.48B | 622.73B | 789.86B | 821.37B | 774.20B |
| Stockholders Equity | 415.14B | 364.46B | 431.38B | 409.51B | 425.66B | 440.38B |
Cash Flow | ||||||
| Free Cash Flow | 54.57B | 45.14B | 12.45B | 22.48B | 3.57B | 29.06B |
| Operating Cash Flow | 99.29B | 98.65B | 69.84B | 80.59B | 55.09B | 89.66B |
| Investing Cash Flow | 15.94B | -38.96B | 52.52B | -56.56B | -52.43B | -198.38B |
| Financing Cash Flow | -188.83B | -73.25B | -134.46B | -43.79B | 7.18B | 71.11B |
Teijin Technical Analysis
Negative
1681.00
Price Trends
1653.22
Negative
1632.97
Negative
1512.32
Positive
Market Momentum
-5.82
Positive
43.21
Neutral
36.04
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 1681 is below the 20-day moving average (MA) of 1682.12, above the 50-day MA of 1653.22, and above the 200-day MA of 1512.32, indicating a neutral trend. The MACD of -5.82 indicates Positive momentum. The RSI at 43.21 is Neutral, neither overbought nor oversold. The STOCH value of 36.04 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥189.71B | 13.34 | 9.01% | 2.58% | 3.42% | 13.41% | |
73 Outperform | ¥158.68B | 12.68 | ― | 2.66% | -4.58% | 51.26% | |
71 Outperform | ¥240.76B | 12.44 | ― | 3.90% | 1.23% | 11.14% | |
66 Neutral | ¥1.01T | 14.58 | 9.12% | 2.93% | 2.53% | 7.19% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | ¥342.80B | 29.30 | 4.11% | 2.73% | -3.16% | -32.06% | |
50 Neutral | ¥314.45B | -3.59 | -22.50% | 2.97% | -13.16% | -410.41% |
* Industrials Sector Average
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Teijin Corporate Events
Teijin Lifts Q1 Earnings, Affirms FY2026 Guidance Amid Portfolio Shift
Aug 4, 2026
Teijin reported a sharp improvement in first-quarter fiscal 2026 results, with adjusted operating income rising to ¥12.3 billion, supported by customer inventory build-up related to Middle East tensions and early price increases in some appli...
Teijin Swings to Strong Profit and Lifts FY2026 Outlook Despite Revenue Decline
Aug 4, 2026
Teijin reported first-quarter fiscal 2026 revenue of ¥221.9 billion, down 8.7% year on year, but adjusted operating income surged 56.8% to ¥12.3 billion as profitability improved. Operating income jumped to ¥60.0 billion from ¥...
Teijin Finalizes Merger Deal to Create Joint Venture With Asahi Kasei
Jul 30, 2026
Teijin Frontier Co., Ltd., a core fibers and materials subsidiary of Teijin Limited, produces polyester yarns, staple fibers, textiles, apparel and a wide range of industrial and consumer materials, serving automotive, construction, interior and g...
Teijin Corrects Details of Treasury Share Disposal for Executive Stock Incentive Plans
Jun 30, 2026
Teijin has issued a correction to its June 19 notice on the disposal of treasury shares under its restricted stock and performance share unit schemes for management. The revision centers on the performance share units, adjusting both the number of...
Teijin Books ¥10.7 Billion Dividend From Subsidiary in Q1 FY2026
Jun 26, 2026
Teijin Limited said it will receive a 10.7 billion yen dividend from its consolidated subsidiary Teijin Frontier Co., Ltd., with payment scheduled for June 2026. The move highlights internal capital allocation within the group and underscores the ...
Teijin to Dispose of Treasury Shares for Expanded Global Executive Stock Compensation
Jun 19, 2026
Teijin will dispose of 154,254 treasury shares on July 15, 2026, allocating restricted stock and performance share units to directors, corporate officers, mission executives, and overseas executives at a price of ¥1,650 per share. The move, t...
Teijin Sees Profit Dip in FY2025, Targets Recovery and Stable Dividend in FY2026
May 11, 2026
Teijin reported adjusted operating income of ¥25.8 billion for FY2025, a year-on-year decline of ¥1.8 billion, as solid performance in its healthcare and fiber and products converting businesses was offset by weaker results in materials....
Teijin Swings to Deep Loss as Revenue Falls and Balance Sheet Shrinks in FY2025
May 11, 2026
Teijin reported a sharp decline in revenue to ¥873.2 billion for the year ended March 31, 2026, down 13.2% year on year, with adjusted operating income slipping 6.6% to ¥25.8 billion. Despite improved adjusted margins, the group booked a...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.