Teijin (3401) AI Stock Analysis

• Market Cap: ¥332.99B
• Dividend Yield: 3.72%
• Average Volume (3M): 1.23M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.74
• 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: ¥1,420.00
• Price Target Upside: 5.42% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): -49.23
• Revenue Forecast (FY): ¥859.40B

• Rating: 53 Neutral
• Price Target: ¥1,601.00 ▲(18.86% Upside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is held back primarily by weak financial performance, with TTM losses and negative returns despite some support from positive free cash flow. Technicals provide a meaningful offset given a strong uptrend, but overbought signals temper the technical score. Valuation is mixed: an acceptable dividend yield is outweighed by a negative P/E tied to current losses.

Positive Factors

Diversified Business Model

Teijin's dual focus on advanced materials and healthcare provides structural resilience. Materials address durable industrial end markets (automotive, composites) while healthcare supplies recurring revenue streams and services. This mix reduces dependence on any single cycle and supports long-term cash generation and client relationships.

Positive Free Cash Flow

Sustained positive free cash flow is a durable strength: it funds capex and R&D, services debt, and cushions operating losses. Even with net losses, constructive FCF trends improve liquidity, reduce refinancing risk, and enable strategic investments or restructuring that can restore profitability over months to years.

Stable Gross Margins

Relatively steady gross margins imply enduring pricing power or favorable product mix in specialty materials. This durability suggests the business can recover operating profitability if fixed costs and SG&A are controlled, and that core manufacturing economics remain solid despite top-line softness.

Negative Factors

Operating and Net Losses

Material operating and net losses are a structural concern: they erode retained earnings, limit reinvestment capacity, and can force cost cuts that harm long-term competitiveness. Persistent negative margins also undermine stakeholder confidence and constrain strategic flexibility over the next several quarters.

Revenue Contraction

Sustained revenue decline signals weakening demand in core end markets and risks excess capacity. Falling sales reduce operating leverage, pressure margins, and make it harder to absorb fixed costs, increasing the time required to return to consistent profitability even if margins per unit remain intact.

High Leverage & Negative ROE

Meaningful leverage combined with a sharply negative ROE raises solvency and capital-efficiency risks. Debt servicing limits strategic options and raises refinancing vulnerability during prolonged weakness, while negative ROE indicates capital destruction that can impair future funding and shareholder returns over multiple quarters.

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

Fundamentals are pressured by a sharp profitability downturn (TTM operating and net losses with materially negative margins) and revenue contraction. The balance sheet carries meaningful leverage (debt-to-equity ~1.05 TTM) with sharply negative TTM ROE, though cash flow is a relative support with positive TTM operating cash flow and meaningfully positive free cash flow.

Income Statement

Profitability has deteriorated materially. TTM (Trailing-Twelve-Months) shows a large operating loss (EBIT margin about -8.7%) and a net loss (net margin about -9.0%), following a weaker FY2025 where EBIT was still negative despite positive net income. Revenue has also been soft, with slight contraction in FY2025 and a steeper decline in TTM. Offsetting this, gross margin has held relatively steady around the high-teens in the most recent periods, but the swing from positive operating profit in FY2024 to deep losses in TTM is a key concern.

Balance Sheet

Leverage is meaningful but not extreme for the profile, with debt-to-equity around ~0.9–1.1 in recent years (TTM about 1.05), indicating a fairly debt-reliant capital structure. Equity remains substantial versus assets, but returns have turned unfavorable: TTM return on equity is sharply negative (about -20%) after modestly positive levels in FY2024–FY2025. The balance sheet looks serviceable, but profitability pressure raises risk around deleveraging capacity.

Cash Flow

Cash generation is a relative bright spot. TTM (Trailing-Twelve-Months) operating cash flow is solid and free cash flow is meaningfully positive, with a very strong reported free cash flow growth rate off a low base. However, cash conversion vs earnings is mixed: TTM free cash flow remains negative relative to net income given net losses, and operating cash flow coverage is modest (roughly 0.22–0.35 historically, about 0.31 TTM), implying cash flow may not consistently cover key obligations at a high level. Still, the return to positive free cash flow versus prior negative years is constructive.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	909.28B	1.01T	1.03T	1.02T	926.05B	836.51B
Gross Profit	170.52B	191.45B	275.77B	218.76B	241.27B	241.33B
EBITDA	-15.91B	4.37B	118.08B	80.51B	116.13B	64.02B
Net Income	-81.57B	28.35B	10.60B	-17.70B	23.16B	-6.66B
Balance Sheet
Total Assets	989.64B	1.06T	1.25T	1.27T	1.24T	1.07T
Cash, Cash Equivalents and Short-Term Investments	122.17B	116.04B	137.75B	142.78B	134.48B	170.19B
Total Debt	406.48B	387.13B	495.72B	529.42B	485.17B	380.04B
Total Liabilities	598.45B	622.73B	769.09B	821.37B	774.20B	643.95B
Stockholders Equity	387.05B	431.38B	454.59B	425.66B	440.38B	407.05B
Cash Flow
Free Cash Flow	42.66B	8.42B	4.41B	-2.65B	-110.82B	46.80B
Operating Cash Flow	102.19B	69.84B	69.45B	55.09B	89.66B	107.73B
Investing Cash Flow	-48.73B	52.52B	-46.05B	-52.43B	-198.38B	-79.59B
Financing Cash Flow	-142.77B	-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: Positive
• 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 1646.35, below the 50-day MA of 1495.46, and above the 200-day MA of 1301.36, indicating a bullish trend. The MACD of 62.03 indicates Positive momentum. The RSI at 73.40 is Negative, neither overbought nor oversold. The STOCH value of 78.22 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
5331	78 Outperform	¥193.86B	15.80	8.27%	2.68%	-2.45%	7.31%
3106	75 Outperform	¥161.09B	13.38	―	2.66%	-1.63%	67.13%
4206	73 Outperform	¥259.43B	13.86	―	3.90%	2.65%	7.16%
4204	71 Outperform	¥1.24T	20.63	8.51%	3.13%	1.90%	-6.73%
3105	65 Neutral	¥275.82B	19.69	8.35%	2.73%	3.35%	810.44%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
3401	53 Neutral	¥332.99B	-4.10	-20.43%	3.72%	-8.20%	―

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.