Teijin (3401) AI Stock Analysis

• Market Cap: ¥304.27B
• Dividend Yield: 3.72%
• Average Volume (3M): 1.23M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.67
• Revenue Growth: -8.20%
• EPS Growth: N/A
• Country: JP
• Employees: 21,834
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): -21.40
• Shares Outstanding: 197,953,700
• 10 Day Avg. Volume: 898,600
• 30 Day Avg. Volume: 1,234,116
• PEG Ratio: 0.05
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.25
• P/FCF Ratio: 29.99
• 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: ¥1,303.33
• Price Target Upside: -3.24% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ¥1,615.00 ▲(19.90% Upside)

Teijin's overall stock score is driven by a strong valuation with an attractive P/E ratio and dividend yield, coupled with positive technical momentum. However, financial performance is a concern due to declining revenues and operational inefficiencies, which weigh down the overall score.

Positive Factors

Free cash flow improvement

A sustained ~55% rise in free cash flow TTM indicates the company is converting operations into durable cash, improving capacity to fund capex, R&D, dividends, or repay debt. Strong cash generation enhances financial flexibility through cycles and supports long-term strategic investments.

Diversified business model

Having both advanced materials and healthcare reduces single-market exposure and provides structural demand diversity. Materials serve industrial and automotive chains while healthcare targets aging demographics, supporting steadier revenue streams and resilience to sector-specific downturns over months to years.

Specialty materials competitive edge

Ownership of high-performance fibers, carbon/aramid and specialty polymers creates technical barriers, long-term supplier relationships and pricing-for-performance opportunities. These structural advantages support differentiated product mix and potential margin recovery when demand normalizes.

Negative Factors

Declining revenues

Persistent negative top-line growth reduces operating leverage and limits the ability to scale fixed-cost recovery. Continued revenue decline strains margins, curtails reinvestment capacity and raises the need for structural commercial fixes or portfolio shifts to restore sustainable growth.

Weak operational profitability

Negative operating margins despite a moderate gross margin indicate structural cost or mix issues that prevent converting sales into durable profits. If unresolved, weak operating profitability undermines reinvestment, weakens returns and makes the business more sensitive to commodity and FX swings.

High financial leverage

A D/E around 1.14 is a structural constraint that raises refinancing and interest-rate risk, limits strategic optionality and increases earnings volatility. High leverage reduces the firm’s ability to invest opportunistically or absorb prolonged revenue weakness without deleveraging actions.

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 several key streams, primarily from the sale of high-performance materials, including aramid and carbon fibers, which are critical in industries such as automotive and aerospace. The company also earns income from its healthcare division, which offers pharmaceutical products and medical devices. Additionally, Teijin benefits from partnerships with major industrial players and investments in research and development, allowing it to create specialized and high-value products tailored to market demands. The company's focus on sustainability and innovation further drives its growth, as it capitalizes on the increasing demand for eco-friendly materials and solutions.

Teijin Financial Statement Overview

Summary

Teijin faces challenges with declining revenues and operational profitability, as evidenced by negative EBIT and EBITDA margins. The balance sheet is leveraged, which could pose risks if not managed carefully. On the positive side, cash flow generation has improved significantly, providing some financial flexibility.

Income Statement

Teijin's income statement shows a declining revenue trend with a negative revenue growth rate of -4.45% in the TTM period. The company has a low net profit margin of 2.33% and negative EBIT and EBITDA margins, indicating operational challenges. The gross profit margin is moderate at 18.51%, but overall profitability is weak due to negative EBIT and EBITDA.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 1.14, indicating significant leverage. Return on equity is modest at 5.54%, suggesting limited profitability relative to equity. The equity ratio is not explicitly calculated, but the high leverage poses potential financial risks.

Cash Flow

Teijin's cash flow statement shows a strong free cash flow growth rate of 54.82% in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is 0.19, suggesting adequate cash flow relative to net income. However, the free cash flow to net income ratio is relatively low at 0.19, indicating limited free cash flow relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	949.05B	1.01T	1.03T	1.02T	926.05B	836.51B
Gross Profit	177.38B	191.45B	275.77B	218.76B	241.27B	241.33B
EBITDA	-10.79B	4.37B	118.08B	80.51B	116.13B	64.02B
Net Income	26.91B	28.35B	10.60B	-17.70B	23.16B	-6.66B
Balance Sheet
Total Assets	967.97B	1.06T	1.25T	1.27T	1.24T	1.07T
Cash, Cash Equivalents and Short-Term Investments	122.04B	116.04B	137.75B	142.78B	134.48B	170.19B
Total Debt	386.74B	387.13B	495.72B	529.42B	485.17B	380.04B
Total Liabilities	582.57B	622.73B	769.09B	821.37B	774.20B	643.95B
Stockholders Equity	381.22B	431.38B	454.59B	425.66B	440.38B	407.05B
Cash Flow
Free Cash Flow	22.57B	8.42B	4.41B	-2.65B	-110.82B	46.80B
Operating Cash Flow	85.54B	69.84B	69.45B	55.09B	89.66B	107.73B
Investing Cash Flow	52.06B	52.52B	-46.05B	-52.43B	-198.38B	-79.59B
Financing Cash Flow	-178.70B	-134.46B	-43.16B	7.18B	71.11B	-20.88B

Teijin Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1347.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 1347 is below the 20-day moving average (MA) of 1444.95, below the 50-day MA of 1370.57, and above the 200-day MA of 1257.46, indicating a bullish trend. The MACD of 44.34 indicates Negative momentum. The RSI at 78.94 is Negative, neither overbought nor oversold. The STOCH value of 77.41 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5393	79 Outperform	¥541.21B	16.86	13.63%	1.95%	-1.33%	9.21%
5331	78 Outperform	¥180.02B	14.54	8.27%	2.68%	-2.45%	7.31%
3106	77 Outperform	¥156.92B	13.41	―	2.66%	-1.63%	67.13%
5706	74 Outperform	¥1.26T	25.50	13.77%	0.97%	6.71%	-14.98%
4206	73 Outperform	¥239.84B	12.29	―	3.90%	2.65%	7.16%
3401	65 Neutral	¥304.27B	-3.74	-20.43%	3.72%	-8.20%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Teijin Corporate Events

Teijin Holds Earnings Outlook Despite 3Q Slump

Third-quarter FY2025 adjusted operating income fell ¥1.8 billion year-on-year to ¥23.8 billion as maintenance downtime, weaker materials mix, and the removal of aramid paper profits outweighed healthcare gains, with impairment charges tied to the temporarily idled U.S. carbon fiber plant. Management kept its full-year outlook for ¥25 billion in adjusted operating income and a ¥50 dividend intact while highlighting the planned December 2025 joint venture between Teijin Frontier and Asahi Kasei Advance to consolidate their textile operations and potentially sharpen competitiveness.

The most recent analyst rating on (JP:3401) stock is a Hold with a Yen1607.00 price target. To see the full list of analyst forecasts on Teijin stock, see the JP:3401 Stock Forecast page.

Teijin Swings to Nine-Month Loss but Keeps Dividend and Full-Year Guidance Intact

Teijin reported a sharp deterioration in results for the nine months to December 31, 2025, with revenue down 12.7% year on year to ¥659.9 billion and adjusted operating income slipping 7.0% to ¥23.8 billion, while operating income and profit before tax plunged into deep losses of ¥53.8 billion and ¥55.9 billion respectively. The company swung from a prior-year profit attributable to owners of the parent of ¥51.0 billion to a loss of ¥59.0 billion, translating into a basic loss per share of ¥305.81 and contributing to a decline in equity attributable to owners of the parent from ¥431.4 billion to ¥387.1 billion and a lower equity ratio of 39.1%. Despite this financial strain, Teijin kept its dividend stance intact, having already paid an interim ¥25 per share and maintaining a full-year dividend forecast of ¥50, while leaving its full-year FY2025 guidance unchanged at ¥860.0 billion in revenue, ¥25.0 billion in adjusted operating income, and a modest ¥5.0 billion in operating income, implying management’s expectation of some recovery in the final quarter even as a full-year net loss of ¥10.0 billion is still projected.

The most recent analyst rating on (JP:3401) stock is a Hold with a Yen1607.00 price target. To see the full list of analyst forecasts on Teijin stock, see the JP:3401 Stock Forecast page.

Teijin Announces Merger with Asahi Kasei Advance to Boost Textile Business

Teijin Limited has announced a definitive agreement for a business integration between its subsidiary, Teijin Frontier, and Asahi Kasei Advance Corporation, a subsidiary of Asahi Kasei. This merger aims to enhance competitiveness by combining strengths in textiles and materials, expanding sales channels, and reducing procurement costs. The integration is expected to create a stronger joint venture, fostering sustainable growth and maximizing corporate value.

The most recent analyst rating on (JP:3401) stock is a Hold with a Yen1241.00 price target. To see the full list of analyst forecasts on Teijin stock, see the JP:3401 Stock Forecast page.

Teijin Limited Reports Decreased Income and Adjusted Outlook for FY2025

Teijin Limited reported a decrease in adjusted operating income for the second quarter of FY2025, primarily due to maintenance in its Materials Business and impairment losses in the aramid sector. The outlook for FY2025 anticipates further income reduction due to delayed recovery in the Materials Business and the transfer of the aramid paper business, though dividends remain unchanged.

The most recent analyst rating on (JP:3401) stock is a Hold with a Yen1356.00 price target. To see the full list of analyst forecasts on Teijin stock, see the JP:3401 Stock Forecast page.

Teijin Revises Earnings Forecasts Amid Aramid Business Challenges

Teijin Limited has revised its full-year earnings forecasts for the fiscal year ending March 31, 2026, due to recent performance challenges. The company has recorded significant impairment losses in its aramid business, driven by intensified competition and unfavorable exchange rate fluctuations. Despite these setbacks, Teijin plans to maintain its dividend forecast, emphasizing its commitment to stable shareholder returns.

The most recent analyst rating on (JP:3401) stock is a Hold with a Yen1356.00 price target. To see the full list of analyst forecasts on Teijin stock, see the JP:3401 Stock Forecast page.

Teijin Reports Decline in Financial Performance for H1 2025

Teijin Limited reported a decline in its financial performance for the six months ending September 30, 2025, with revenue and adjusted operating income both falling compared to the previous year. The company has revised its outlook for the fiscal year ending March 31, 2026, indicating challenges in achieving its financial targets, which may impact its market positioning and stakeholder confidence.

The most recent analyst rating on (JP:3401) stock is a Hold with a Yen1356.00 price target. To see the full list of analyst forecasts on Teijin stock, see the JP:3401 Stock Forecast page.