Teijin Limited (JP:3401)
:3401
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Teijin
(3401)
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Rating:46Neutral
Price Target:
¥1,538.00
▲(14.18% Upside)
Action:Reiterated
Date:05/12/26
The score is held back primarily by weak financial performance, led by recurring operating losses and a sharp net loss in 2026, despite positive operating cash flow and improved leverage. Technical signals also point to soft near-term momentum. Valuation is mixed: the dividend yield helps, but a negative P/E reflects loss-making fundamentals.
Positive Factors
Diversified business model across materials and healthcare
Teijin’s combined advanced materials and healthcare businesses diversify revenue across cyclical industrial markets and defensive medical end-markets. This structural mix reduces aggregate demand volatility, preserves cash-generation pathways, and supports resilience over the medium term.
Negative Factors
Negative EBIT and large net loss in 2026
Persistent operating losses and a substantial 2026 net loss materially erode retained earnings and impair capital cushions. This undermines the company’s ability to fund growth or sustain payouts, forces potential cost restructuring, and weakens investor confidence over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified business model across materials and healthcare
Teijin’s combined advanced materials and healthcare businesses diversify revenue across cyclical industrial markets and defensive medical end-markets. This structural mix reduces aggregate demand volatility, preserves cash-generation pathways, and supports resilience over the medium term.
Read all positive factors
Teijin (3401) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥307.83B
Dividend Yield3.72%
Average Volume (3M)1.23M
Price to Earnings (P/E)―
Beta (1Y)0.83
Revenue Growth-13.16%
EPS Growth-410.43%
CountryJP
Employees21,834
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)-456.37
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
¥1,403.33Price Target Upside4.18% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering3
EPS Forecast (FY)99.86
Revenue Forecast (FY)¥880.58B
Teijin Business Overview & Revenue Model
Company Description
Teijin Limited engages in the fibers, films and sheets, composites, healthcare, and IT businesses worldwide. It offers aramid fibers and polyethylene materials; carbon fibers, composite materials, and oxidized PAN fibers; polycarbonate sheets and ...
How the Company Makes Money
Teijin makes money primarily through (1) selling high-performance materials and (2) generating revenue from healthcare products and services. In its materials businesses, revenue comes from manufacturing and selling specialty fibers (including ara...
Teijin Earnings Call Summary
Earnings Call Date:Feb 06, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:Aug 10, 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
34
Negative
Balance Sheet
55
Neutral
Cash Flow
68
Positive
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 873.19B | 1.01T | 960.46B | 1.02T | 926.05B |
| Gross Profit | 161.96B | 191.45B | 210.64B | 218.76B | 241.27B |
| EBITDA | -69.36B | -7.85B | 64.01B | 91.63B | 113.02B |
| Net Income | -88.00B | 28.35B | -11.71B | -17.70B | 23.16B |
Balance Sheet | |||||
| Total Assets | 920.12B | 1.06T | 1.23T | 1.27T | 1.24T |
| Cash, Cash Equivalents and Short-Term Investments | 104.47B | 107.54B | 123.21B | 142.78B | 134.48B |
| Total Debt | 336.41B | 387.13B | 516.94B | 536.23B | 485.17B |
| Total Liabilities | 551.48B | 622.73B | 789.86B | 821.37B | 774.20B |
| Stockholders Equity | 364.46B | 431.38B | 409.51B | 425.66B | 440.38B |
Cash Flow | |||||
| Free Cash Flow | 45.14B | 12.45B | 22.48B | 3.57B | 29.06B |
| Operating Cash Flow | 98.65B | 69.84B | 80.59B | 55.09B | 89.66B |
| Investing Cash Flow | -38.96B | 52.52B | -56.56B | -52.43B | -198.38B |
| Financing Cash Flow | -73.25B | -134.46B | -43.79B | 7.18B | 71.11B |
Teijin Technical Analysis
Negative
1347.00
Price Trends
1610.86
Negative
1544.28
Positive
1403.44
Positive
Market Momentum
8.62
Negative
47.19
Neutral
32.23
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 1347 is below the 20-day moving average (MA) of 1612.40, below the 50-day MA of 1610.86, and below the 200-day MA of 1403.44, indicating a neutral trend. The MACD of 8.62 indicates Negative momentum. The RSI at 47.19 is Neutral, neither overbought nor oversold. The STOCH value of 32.23 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 | ¥177.28B | 10.76 | ― | 2.66% | -4.58% | 51.25% | |
71 Outperform | ¥224.76B | 18.16 | ― | 3.90% | 1.23% | 11.14% | |
69 Neutral | ¥184.13B | 7.84 | 8.27% | 2.68% | 3.42% | 13.11% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | ¥915.68B | 9.71 | 7.53% | 3.13% | 0.89% | -6.71% | |
58 Neutral | ¥360.50B | 4.33 | 8.35% | 2.73% | -3.16% | -32.06% | |
46 Neutral | ¥307.83B | -3.58 | -20.43% | 3.72% | -13.16% | -410.43% |
* Industrials Sector Average
JP:3401
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Teijin Corporate Events
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...
Teijin Slashes FY2026 Profit Outlook on Pharma Impairment and Tax Asset Write-Down
Mar 31, 2026
Teijin has sharply revised its full-year earnings forecast for the fiscal year ending March 31, 2026, maintaining its revenue and adjusted operating income outlook but projecting a much deeper operating loss and net loss than previously expected. ...
Teijin to Book ¥12.9 Billion Dividend Income From Chinese Subsidiary
Mar 17, 2026
Teijin Limited said it will receive a dividend of 557 million Chinese yuan, or about ¥12.9 billion, from its consolidated subsidiary Teijin Polycarbonate China Ltd. The dividend is scheduled to be received in March 2026, reflecting cash repat...
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.