tiprankstipranks
Trending News
More News >
Teijin Limited (JP:3401)
:3401
Advertisement

Teijin (3401) AI Stock Analysis

Compare
0 Followers

Top Page

JP:3401

Teijin

(OTC:3401)

Select Model
Select Model
Select Model
Neutral 60 (OpenAI - 4o)
Rating:60Neutral
Price Target:
ÂĄ1,327.00
â–˛(1.80% Upside)
Teijin's overall stock score reflects a balance of strengths and challenges. The most significant factor is the attractive valuation, with a low P/E ratio and a high dividend yield, suggesting potential value for investors. However, financial performance indicates areas for improvement, particularly in revenue growth and profitability. Technical analysis shows a neutral to slightly positive trend, but without strong momentum. Overall, while there are positive aspects, the company needs to address financial and operational challenges to enhance its stock performance.

Teijin (3401) vs. iShares MSCI Japan ETF (EWJ)

Teijin Business Overview & Revenue Model

Company DescriptionTeijin Limited is a prominent Japanese multinational corporation headquartered in Tokyo, specializing in advanced materials and chemical products. Established in 1918, the company operates in diverse sectors, including fibers and textiles, films and plastics, healthcare, and information technology. Teijin is known for its innovative and sustainable solutions, offering a wide range of products such as aramid fibers, carbon fibers, composites, polyester films, and pharmaceuticals, catering to various industries like automotive, aerospace, electronics, and healthcare.
How the Company Makes MoneyTeijin generates revenue through its diversified portfolio of products and services across multiple industries. The company’s key revenue streams include sales of advanced materials such as high-performance fibers (aramid and carbon fibers) and engineering plastics, which are widely used in automotive, aerospace, and electronics sectors. In the healthcare segment, Teijin earns income from pharmaceuticals, home healthcare services, and medical devices. The company's films and plastics business contributes to its earnings through the production of polyester films and resin products. Significant partnerships with global manufacturers and a focus on research and development for innovative solutions also enhance Teijin's market presence and financial performance.

Teijin Earnings Call Summary

Earnings Call Date:May 12, 2025
(Q3-2024)
|
% Change Since: |
Next Earnings Date:Aug 11, 2025
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.
Q3-2024 Updates
Positive Updates
Positive Net Income Turnaround
Net income was JPY 3.5 billion, turning black from the previous year's loss.
Improved Operating Income Forecast
Operating income is expected to be JPY 18 billion for the full year, up slightly less than 40% from the previous year.
Fibers & Products Segment Growth
Operating income increased by JPY 1.4 billion from the previous year to JPY 9.3 billion in the Fibers & Products segment.
Insurance Income
The company recorded insurance income from the Aramid business fire of more than JPY 5 billion.
Strong Performance in IT Segment
The IT segment saw a JPY 0.9 billion increase in profit over the previous year, with strong sales in the Internet business field.
Negative Updates
Materials Business Loss
The materials business remains at an operating income level of negative JPY 5.8 billion.
Healthcare Business Decline
The Healthcare business saw a JPY 19.2 billion decrease in operating profit over the previous year, with a subdued level of JPY 1.8 billion.
Impact of UAW Strike and Equipment Failures
The Composites business was affected by the UAW strike and recurring equipment breakdowns, leading to operational challenges.
Aramid Business Sales Decline
Sales volume in the Aramid business decreased due to inventory adjustments by customers and a slowdown in demand since November.
Negative Impact from Generic Alternatives
The entry of a generic version of FEBURIC affected the Healthcare segment, resulting in a significantly lower forecast over the previous year.
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
Teijin's financial statements present a mixed picture. The income statement reveals challenges in revenue growth and profitability, with negative EBIT and EBITDA margins. The balance sheet shows moderate stability but rising debt levels, which could pose future risks. The cash flow statement indicates positive trends in cash generation but highlights the need for better cash conversion efficiency. Overall, Teijin needs to focus on improving operational efficiency, managing leverage, and enhancing cash flow conversion to strengthen its financial position.
Income Statement
45
Neutral
Teijin's income statement shows a mixed performance. The company has experienced a decline in revenue growth, with a negative growth rate in the TTM period. Gross profit margins have decreased over time, indicating potential challenges in cost management or pricing power. The net profit margin remains positive but is relatively low, suggesting limited profitability. EBIT and EBITDA margins are negative, highlighting operational inefficiencies or high fixed costs. Overall, the income statement reflects a need for strategic improvements to enhance revenue growth and profitability.
Balance Sheet
55
Neutral
The balance sheet of Teijin presents a moderate financial position. The debt-to-equity ratio is below 1, indicating a balanced approach to leveraging, but it has increased over time, suggesting rising debt levels. Return on equity is positive but modest, reflecting moderate efficiency in generating returns for shareholders. The equity ratio is stable, showing a reasonable proportion of equity financing. However, the increasing debt levels could pose a risk if not managed carefully. Overall, the balance sheet indicates stability but with potential leverage concerns.
Cash Flow
60
Neutral
Teijin's cash flow statement shows some positive trends. The free cash flow growth rate is positive in the TTM period, indicating improved cash generation capabilities. The operating cash flow to net income ratio is stable, suggesting consistent cash flow relative to earnings. However, the free cash flow to net income ratio is relatively low, indicating limited cash conversion from profits. While there are improvements in cash flow generation, the company needs to enhance its cash conversion efficiency. Overall, the cash flow statement reflects a positive trajectory with room for further optimization.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue993.29B1.01T1.03T1.02T926.05B836.51B
Gross Profit183.89B191.45B275.77B218.76B241.27B241.33B
EBITDA-9.18B4.37B118.08B80.51B116.13B64.02B
Net Income23.19B28.35B10.60B-17.70B23.16B-6.66B
Balance Sheet
Total Assets1.15T1.06T1.25T1.27T1.24T1.07T
Cash, Cash Equivalents and Short-Term Investments205.36B116.04B137.75B142.78B134.48B170.19B
Total Debt492.20B387.13B495.72B529.42B485.17B380.04B
Total Liabilities709.01B622.73B769.09B821.37B774.20B643.95B
Stockholders Equity431.83B431.38B454.59B425.66B440.38B407.05B
Cash Flow
Free Cash Flow14.58B8.42B4.41B-2.65B-110.82B46.80B
Operating Cash Flow77.83B69.84B69.45B55.09B89.66B107.73B
Investing Cash Flow51.02B52.52B-46.05B-52.43B-198.38B-79.59B
Financing Cash Flow-81.05B-134.46B-43.16B7.18B71.11B-20.88B

Teijin Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1303.50
Price Trends
50DMA
1273.75
Positive
100DMA
1214.78
Positive
200DMA
1247.45
Positive
Market Momentum
MACD
9.12
Positive
RSI
56.27
Neutral
STOCH
35.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3401, the sentiment is Positive. The current price of 1303.5 is above the 20-day moving average (MA) of 1291.55, above the 50-day MA of 1273.75, and above the 200-day MA of 1247.45, indicating a bullish trend. The MACD of 9.12 indicates Positive momentum. The RSI at 56.27 is Neutral, neither overbought nor oversold. The STOCH value of 35.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3401.

Teijin Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
396.27B12.7714.89%1.81%0.72%5.21%
80
Outperform
131.27B11.228.63%2.85%-1.76%5.55%
78
Outperform
248.07B14.089.74%3.21%5.29%8.21%
73
Outperform
583.98B16.7319.50%1.62%6.34%-19.70%
65
Neutral
119.88B10.077.52%2.13%-2.16%69.82%
60
Neutral
$248.38B10.84-19.42%3.84%-4.80%75.22%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3401
Teijin
1,303.50
-56.72
-4.17%
NICFF
Nichias
40.78
4.25
11.63%
XZJCF
Mitsui Mining and Smelting Company
45.60
13.32
41.26%
DE:NO4
Noritake Co.,Limited
26.80
4.03
17.70%
JP:3106
KURABO INDUSTRIES LTD.
7,070.00
2,596.04
58.03%
JP:4206
Aica Kogyo Company, Limited
3,799.00
569.36
17.63%

Teijin Corporate Events

Teijin’s FY2025 Q1 Results and Positive Outlook
Aug 5, 2025

Teijin reported a decrease in adjusted operating income for the first quarter of FY2025, primarily due to maintenance in its Materials Business. However, the company maintains a positive outlook for the year, expecting an increase in profits for both its Materials and Healthcare businesses, and has completed a significant share transfer in its North American composites business.

The most recent analyst rating on (JP:3401) stock is a Hold with a Yen1280.00 price target. To see the full list of analyst forecasts on Teijin stock, see the JP:3401 Stock Forecast page.

Teijin Reports Loss on Sale of Subsidiary Shares
Aug 5, 2025

Teijin Limited has announced a financial loss resulting from the sale of its shares in Teijin Automotive Technologies NA Holdings Corporation to Stork BidCo Inc., a move that will be reflected in the company’s second-quarter financial statements for the fiscal year ending March 2026. Despite the recognition of an approximately 11 billion yen loss and the exclusion of TAT from its consolidated subsidiaries, Teijin has stated that this transaction has already been accounted for in its fiscal year outlook, with no changes to its previously announced financial projections.

The most recent analyst rating on (JP:3401) stock is a Hold with a Yen1280.00 price target. To see the full list of analyst forecasts on Teijin stock, see the JP:3401 Stock Forecast page.

Teijin Limited Reports Decline in Q1 FY2025 Financial Performance
Aug 5, 2025

Teijin Limited reported a decline in its financial performance for the first quarter of FY2025, with significant decreases in revenue and profit compared to the previous year. The company’s revenue fell by 4.8%, and profit before tax plummeted by 99.3%, indicating challenging market conditions. Despite these setbacks, Teijin maintains its dividend outlook for FY2025, suggesting confidence in its long-term strategy. The financial results highlight the need for strategic adjustments to improve profitability and shareholder value.

The most recent analyst rating on (JP:3401) stock is a Hold with a Yen1280.00 price target. To see the full list of analyst forecasts on Teijin stock, see the JP:3401 Stock Forecast page.

Teijin Completes Disposal of Treasury Shares to Align Management Interests
Jul 22, 2025

Teijin Limited has completed the disposal of treasury shares as ‘Restricted Stock’ and ‘Performance Share Units,’ following a resolution by its Board of Directors. This move involves the allocation of shares to directors, corporate officers, and executives, both domestically and overseas, and signifies a strategic step in aligning the interests of its management with the company’s performance goals.

The most recent analyst rating on (JP:3401) stock is a Hold with a Yen1280.00 price target. To see the full list of analyst forecasts on Teijin stock, see the JP:3401 Stock Forecast page.

Teijin Limited Announces Disposal of Treasury Shares to Enhance Corporate Value
Jun 25, 2025

Teijin Limited has announced the disposal of treasury shares as part of its Restricted Stock and Performance Share Units plans. This move aims to align with corporate governance and enhance corporate value creation over the medium to long term. The plans are designed to motivate directors and executives by linking compensation with company performance, thereby aligning their interests with stakeholders. The disposal involves a total of 171,088 shares, with a focus on strengthening the company’s executive compensation system globally.

The most recent analyst rating on (JP:3401) stock is a Hold with a Yen1280.00 price target. To see the full list of analyst forecasts on Teijin stock, see the JP:3401 Stock Forecast page.

Teijin Limited Approves Governance Changes at Shareholders Meeting
Jun 25, 2025

Teijin Limited announced the results of its 159th Ordinary General Meeting of Shareholders, where all proposed resolutions were approved. Key changes include the transition to a company with an Audit & Supervisory Committee, amendments to the Articles of Incorporation, and the election of new directors. These changes aim to enhance governance and operational efficiency, potentially impacting the company’s strategic direction and stakeholder engagement.

The most recent analyst rating on (JP:3401) stock is a Hold with a Yen1280.00 price target. To see the full list of analyst forecasts on Teijin stock, see the JP:3401 Stock Forecast page.

Teijin Limited Proposes Amendments to Strengthen Corporate Governance
May 12, 2025

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
May 12, 2025

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
May 12, 2025

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
May 12, 2025

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.

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.Date of analysis: Aug 29, 2025