Teijin (3401) AI Stock Analysis

• Market Cap: ¥257.40B
• Dividend Yield: 3.72%
• Average Volume (3M): 1.23M
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.64
• Revenue Growth: -8.20%
• EPS Growth: N/A
• Country: JP
• Employees: 21,834
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): -280.57
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ¥1,408.00 ▲(5.23% 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

Cash Flow Generation

Improved cash flow generation provides Teijin with greater financial flexibility to invest in growth opportunities and manage debt.

Sustainability Focus

Teijin's commitment to sustainability aligns with global trends, potentially enhancing its competitive position and market demand.

Product Innovation

Continuous product innovation supports Teijin's market leadership in advanced materials, catering to high-demand industries like automotive and aerospace.

Negative Factors

Revenue Decline

Persistent revenue decline indicates potential market share loss or demand issues, impacting long-term growth prospects.

High Leverage

High leverage can strain financial stability, limiting Teijin's ability to invest in growth or weather economic downturns.

Operational Challenges

Operational inefficiencies reduce profitability, necessitating strategic changes to improve margins and long-term viability.

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's financial statements present a mixed picture. The income statement reveals challenges in revenue growth and profitability, with negative EBIT and EBITDA margins. The balance sheet shows moderate stability but rising debt levels, which could pose future risks. The cash flow statement indicates positive trends in cash generation but highlights the need for better cash conversion efficiency. Overall, Teijin needs to focus on improving operational efficiency, managing leverage, and enhancing cash flow conversion to strengthen its financial position.

Income Statement

Teijin's income statement shows a mixed performance. The company has experienced a decline in revenue growth, with a negative growth rate in the TTM period. Gross profit margins have decreased over time, indicating potential challenges in cost management or pricing power. The net profit margin remains positive but is relatively low, suggesting limited profitability. EBIT and EBITDA margins are negative, highlighting operational inefficiencies or high fixed costs. Overall, the income statement reflects a need for strategic improvements to enhance revenue growth and profitability.

Balance Sheet

The balance sheet of Teijin presents a moderate financial position. The debt-to-equity ratio is below 1, indicating a balanced approach to leveraging, but it has increased over time, suggesting rising debt levels. Return on equity is positive but modest, reflecting moderate efficiency in generating returns for shareholders. The equity ratio is stable, showing a reasonable proportion of equity financing. However, the increasing debt levels could pose a risk if not managed carefully. Overall, the balance sheet indicates stability but with potential leverage concerns.

Cash Flow

Teijin's cash flow statement shows some positive trends. The free cash flow growth rate is positive in the TTM period, indicating improved cash generation capabilities. The operating cash flow to net income ratio is stable, suggesting consistent cash flow relative to earnings. However, the free cash flow to net income ratio is relatively low, indicating limited cash conversion from profits. While there are improvements in cash flow generation, the company needs to enhance its cash conversion efficiency. Overall, the cash flow statement reflects a positive trajectory with room for further optimization.

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: 1338.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 1338 is above the 20-day moving average (MA) of 1309.15, above the 50-day MA of 1304.58, and above the 200-day MA of 1235.50, indicating a bullish trend. The MACD of 11.35 indicates Negative momentum. The RSI at 60.19 is Neutral, neither overbought nor oversold. The STOCH value of 83.85 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	79 Outperform	¥456.84B	14.63	13.63%	1.95%	-1.33%	9.21%
5331	78 Outperform	€153.43B	12.75	8.27%	2.68%	-2.45%	7.31%
3106	77 Outperform	¥137.69B	12.17	―	2.66%	-1.63%	67.13%
4206	73 Outperform	¥228.15B	12.57	―	3.90%	2.65%	7.16%
5706	69 Neutral	¥1.03T	22.11	13.77%	0.97%	6.71%	-14.98%
3401	65 Neutral	¥257.40B	9.60	-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 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.

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.

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.

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.

Teijin Limited Reports Minor Impact from Delfzijl Plant Fire

Teijin Limited reported a fire incident at its Delfzijl plant in the Netherlands, operated by its subsidiary Teijin Aramid B.V. The fire, caused by a problem with drying equipment, was extinguished without any injuries or environmental impact. The plant resumed operations safely by August 20, and the company has implemented measures to prevent future incidents. The financial impact of the incident is expected to be minor, with the production system prepared to meet upcoming sales demands.