Teijin (3401) AI Stock Analysis

• Market Cap: ¥245.97B
• Dividend Yield: 3.9%
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): 8.7
• Beta (1Y): 0.71
• Revenue Growth: -2.64%
• EPS Growth: 167.02%
• Country: JP
• Employees: 21,834
• Sector: Industrials
• Sector Strength: 93
• Industry: Conglomerates
• EPS (TTM): -117.51
• Shares Outstanding: 197,953,700
• 10 Day Avg. Volume: 837,110
• 30 Day Avg. Volume: 1,042,556
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• 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: ¥1,084.44
• Price Target Upside: -15.31% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: ¥1,434.00 ▲(11.99%Upside)

Teijin scores well due to strong technical indicators and an attractive valuation, despite mixed financial performance. The company’s cash flow management provides a buffer against financial instability. The low P/E ratio and high dividend yield enhance its appeal, while technical analysis suggests positive market momentum.

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 films; high-density polyethylene porous films and materials; and microporous films. The company also provides PC resins, polyphenylene sulfide resins, molded parts, and additives; lightweight glass and carbon fiber reinforced composites for automotive applications; and polytrimethylene telephthalate products, artificial leather materials, polyester nanofibers, and recycled polyester fibers. In addition, it offers pharmaceuticals for bone and joint, respiratory, cardiovascular and metabolic, and other diseases; home oxygen therapy, non-invasive positive pressure ventilation, rehabilitation, and sleep disordered breathing related devices, as well as sonic accelerated fracture healing system and community-based integrated care system; and orthopedic implantable devices, and functional food ingredients. Further, the company provides Recopic, a radio-frequency identification technology for inventory management. Additionally, it develops and implements engineering solutions for various issues, such as environmental pollution, energy supply stability, and aging-related workforce population decline. Teijin Limited was incorporated in 1918 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Teijin 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 Financial Statement Overview

Summary

Teijin's financial statements reveal a mixed performance with inconsistent revenue and profit margins. However, strong cash flow management provides a buffer against high leverage and fluctuating profitability.

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
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Teijin Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1280.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 1280.5 is above the 20-day moving average (MA) of 1227.32, above the 50-day MA of 1175.56, and above the 200-day MA of 1260.08, indicating a bullish trend. The MACD of 27.62 indicates Negative momentum. The RSI at 70.41 is Negative, neither overbought nor oversold. The STOCH value of 90.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3401.

Teijin Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5393	81 Outperform	¥378.43B	11.61	15.22%	1.89%	2.86%	20.93%
5331	80 Outperform	¥121.94B	9.46	8.66%	3.17%	0.20%	13.68%
5706	79 Outperform	$336.34B	5.20	20.86%	2.81%	10.15%	148.74%
4206	78 Outperform	¥240.62B	13.83		3.31%	5.10%	12.42%
3401	74 Outperform	¥245.97B	8.70	-17.62%	3.90%	-2.64%	167.02%
3106	71 Outperform	¥130.44B	14.84		1.90%	-0.43%	42.04%
Sector *	71 Outperform	¥266.83B	14.00	8.47%	2.88%	6.35%	13.13%

Teijin Corporate Events

Teijin Completes Disposal of Treasury Shares to Align Management Interests

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

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

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

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.