tiprankstipranks
Teijin Limited (JP:3401)
:3401
Want to see JP:3401 full AI Analyst Report?

Teijin (3401) AI Stock Analysis

0 Followers

Top Page

JP:3401

Teijin

(3401)

Select Model
Select Model
Select Model
Neutral 50 (OpenAI - 5.2)
Rating:50Neutral
Price Target:
¥1,639.00
▼(-2.50% Downside)
Action:Reiterated
Date:08/05/26
The score is held back primarily by deteriorating profitability and recent revenue decline, with technical indicators also reflecting weak momentum (negative MACD and sub-50 RSI). The main support comes from resilient operating and free cash flow plus a moderate dividend yield, which partially offsets earnings pressure.
Positive Factors
Strong cash generation
Sustained positive operating cash flow (~99B) and large free cash flow (~55B) provide durable internal funding to support operations, capex and dividends even while earnings are negative. This cash resilience lowers short-term refinancing risk and buys time to restore margins.
Negative Factors
Deteriorated profitability
Sharp swing to sizable losses (≈-10% net margin and negative operating profits) is a lasting earnings quality concern. Persistent negative margins will erode equity, constrain reinvestment, and require sustained cash generation or corrective actions to avoid structural deterioration of competitive capabilities.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Sustained positive operating cash flow (~99B) and large free cash flow (~55B) provide durable internal funding to support operations, capex and dividends even while earnings are negative. This cash resilience lowers short-term refinancing risk and buys time to restore margins.
Read all positive factors

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

Teijin Business Overview & Revenue Model

Company Description
Teijin Limited, a Japanese conglomerate established in Tokyo in 1918, operates on a global scale across diverse sectors. Its core businesses encompass advanced materials, including fibers, films and sheets, and composites, as well as significant o...
How the Company Makes Money
Teijin primarily makes money by selling manufactured products and related solutions across its materials and healthcare businesses. Key revenue streams include: (1) High-performance materials: revenue from supplying advanced fibers and textiles (e...

Teijin Earnings Call Summary

Earnings Call Date:Feb 06, 2025
(Q3-2024)
|
% Change Since: |
Next Earnings Date:Nov 09, 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
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
Earnings quality is weak: revenue is down (-2.4% TTM) and profitability has deteriorated to sizable losses (net margin ~-10% with negative EBIT/EBITDA). Balance sheet leverage is moderate-to-elevated (debt-to-equity ~0.9) and ROE has turned sharply negative, but cash generation is a key offset with solid operating cash flow (~99B) and strong free cash flow (~55B) despite net losses.
Income Statement
24
Negative
Balance Sheet
48
Neutral
Cash Flow
67
Positive
BreakdownTTMMar 2026Mar 2026Mar 2025Mar 2024Mar 2023
Income Statement
Total Revenue852.02B873.19B1.01T960.46B1.02T926.05B
Gross Profit164.69B161.96B191.45B210.64B218.76B241.27B
EBITDA-16.53B-8.34B4.06B85.38B84.36B116.13B
Net Income-42.16B-88.00B28.35B-11.71B-17.70B23.16B
Balance Sheet
Total Assets950.18B920.12B1.06T1.23T1.27T1.24T
Cash, Cash Equivalents and Short-Term Investments141.03B104.47B107.54B123.21B142.78B134.48B
Total Debt325.24B336.41B387.13B516.94B536.23B485.17B
Total Liabilities530.32B551.48B622.73B789.86B821.37B774.20B
Stockholders Equity415.14B364.46B431.38B409.51B425.66B440.38B
Cash Flow
Free Cash Flow54.57B45.14B12.45B22.48B3.57B29.06B
Operating Cash Flow99.29B98.65B69.84B80.59B55.09B89.66B
Investing Cash Flow15.94B-38.96B52.52B-56.56B-52.43B-198.38B
Financing Cash Flow-188.83B-73.25B-134.46B-43.79B7.18B71.11B

Teijin Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1681.00
Price Trends
50DMA
1653.22
Negative
100DMA
1632.97
Negative
200DMA
1512.32
Positive
Market Momentum
MACD
-5.82
Positive
RSI
43.21
Neutral
STOCH
36.04
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 1681 is below the 20-day moving average (MA) of 1682.12, above the 50-day MA of 1653.22, and above the 200-day MA of 1512.32, indicating a neutral trend. The MACD of -5.82 indicates Positive momentum. The RSI at 43.21 is Neutral, neither overbought nor oversold. The STOCH value of 36.04 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
¥189.71B13.349.01%2.58%3.42%13.41%
73
Outperform
¥158.68B12.682.66%-4.58%51.26%
71
Outperform
¥240.76B12.443.90%1.23%11.14%
66
Neutral
¥1.01T14.589.12%2.93%2.53%7.19%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
58
Neutral
¥342.80B29.304.11%2.73%-3.16%-32.06%
50
Neutral
¥314.45B-3.59-22.50%2.97%-13.16%-410.41%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3401
Teijin
1,682.50
433.03
34.66%
JP:3105
Nisshinbo Holdings
2,494.50
1,514.11
154.44%
JP:4204
Sekisui Chemical Co
2,661.00
48.36
1.85%
JP:5331
Noritake Co.,Limited
3,635.00
1,473.86
68.20%
JP:3106
KURABO INDUSTRIES LTD.
10,170.00
2,036.69
25.04%
JP:4206
Aica Kogyo Company, Limited
4,045.00
430.21
11.90%

Teijin Corporate Events

Teijin Lifts Q1 Earnings, Affirms FY2026 Guidance Amid Portfolio Shift
Aug 4, 2026
Teijin reported a sharp improvement in first-quarter fiscal 2026 results, with adjusted operating income rising to ¥12.3 billion, supported by customer inventory build-up related to Middle East tensions and early price increases in some appli...
Teijin Swings to Strong Profit and Lifts FY2026 Outlook Despite Revenue Decline
Aug 4, 2026
Teijin reported first-quarter fiscal 2026 revenue of ¥221.9 billion, down 8.7% year on year, but adjusted operating income surged 56.8% to ¥12.3 billion as profitability improved. Operating income jumped to ¥60.0 billion from ¥...
Teijin Finalizes Merger Deal to Create Joint Venture With Asahi Kasei
Jul 30, 2026
Teijin Frontier Co., Ltd., a core fibers and materials subsidiary of Teijin Limited, produces polyester yarns, staple fibers, textiles, apparel and a wide range of industrial and consumer materials, serving automotive, construction, interior and g...
Teijin Corrects Details of Treasury Share Disposal for Executive Stock Incentive Plans
Jun 30, 2026
Teijin has issued a correction to its June 19 notice on the disposal of treasury shares under its restricted stock and performance share unit schemes for management. The revision centers on the performance share units, adjusting both the number of...
Teijin Books ¥10.7 Billion Dividend From Subsidiary in Q1 FY2026
Jun 26, 2026
Teijin Limited said it will receive a 10.7 billion yen dividend from its consolidated subsidiary Teijin Frontier Co., Ltd., with payment scheduled for June 2026. The move highlights internal capital allocation within the group and underscores the ...
Teijin to Dispose of Treasury Shares for Expanded Global Executive Stock Compensation
Jun 19, 2026
Teijin will dispose of 154,254 treasury shares on July 15, 2026, allocating restricted stock and performance share units to directors, corporate officers, mission executives, and overseas executives at a price of ¥1,650 per share. The move, t...
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...
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 05, 2026