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Tsumura & Co
(4540)
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Rating:65Neutral
Price Target:
¥4,054.00
▲(6.71% Upside)
Action:Reiterated
Date:08/09/26
The score is primarily driven by solid profitability but a meaningful cash-flow/FCF deterioration and rising debt, which reduce financial flexibility. Valuation is a clear positive (low P/E and strong dividend yield), but weak technical momentum limits the near-term setup.
Positive Factors
Strong Profitability
TTM gross margin ~48% and net margin ~14.6% indicate durable earnings power typical of prescription pharmaceuticals. High margins support funding for manufacturing and clinical adoption, helping the company absorb reimbursement shifts and sustain long-term earnings.
Negative Factors
Negative Free Cash Flow
Negative FCF (-¥8B FY2026; -¥19B TTM) and operating cash (~¥21B) below net income (~¥30B) point to weak cash conversion. Persistent negative FCF limits capacity for debt reduction, capital spending, or dividend support, constraining financial flexibility over coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Profitability
TTM gross margin ~48% and net margin ~14.6% indicate durable earnings power typical of prescription pharmaceuticals. High margins support funding for manufacturing and clinical adoption, helping the company absorb reimbursement shifts and sustain long-term earnings.
Read all positive factors
Tsumura & Co (4540) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥288.51B
Dividend Yield3.9%
Average Volume (3M)448.06K
Price to Earnings (P/E)9.3
Beta (1Y)0.44
Revenue Growth10.38%
EPS Growth19.96%
CountryJP
Employees4,923
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)405.06
Shares Outstanding76,758,360
10 Day Avg. Volume373,220
30 Day Avg. Volume448,060
Financial Highlights & Ratios
PEG Ratio-0.84
Price to Book (P/B)0.87
Price to Sales (P/S)1.45
P/FCF Ratio-34.72
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)351.87
Revenue Forecast (FY)¥216.76B
Tsumura & Co Business Overview & Revenue Model
Company Description
Established in Tokyo, Japan, in 1893, Tsumura & Co. operates worldwide in the pharmaceutical sector. The company's core business involves the creation and international distribution of various medicinal products, with a particular focus on Kampo e...
How the Company Makes Money
Tsumura makes money primarily by selling kampo medicines, with its core revenue stream coming from prescription kampo formulations reimbursed through Japan’s healthcare system. Revenue is generated when these products are prescribed by physicians ...
Tsumura & Co Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
48
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 199.22B | 192.62B | 181.09B | 150.84B | 140.04B | 129.55B |
| Gross Profit | 93.60B | 91.52B | 90.58B | 68.82B | 68.28B | 66.47B |
| EBITDA | 57.47B | 55.15B | 57.25B | 34.82B | 34.03B | 34.92B |
| Net Income | 30.21B | 28.12B | 32.43B | 16.71B | 16.48B | 18.84B |
Balance Sheet | ||||||
| Total Assets | 602.15B | 592.77B | 464.38B | 428.25B | 396.81B | 350.98B |
| Cash, Cash Equivalents and Short-Term Investments | 77.28B | 84.08B | 73.23B | 78.08B | 94.75B | 67.55B |
| Total Debt | 148.07B | 135.16B | 70.80B | 80.10B | 80.05B | 50.00B |
| Total Liabilities | 223.30B | 221.16B | 134.27B | 132.89B | 124.56B | 92.87B |
| Stockholders Equity | 326.86B | 321.73B | 300.53B | 270.80B | 252.05B | 239.77B |
Cash Flow | ||||||
| Free Cash Flow | -18.90B | -8.06B | 6.23B | -11.21B | 4.23B | 11.14B |
| Operating Cash Flow | 21.44B | 24.72B | 33.82B | 5.61B | 16.45B | 21.31B |
| Investing Cash Flow | -60.71B | -50.31B | -24.97B | -19.35B | -15.49B | -9.11B |
| Financing Cash Flow | 24.66B | 32.60B | -19.87B | -4.42B | 24.42B | -8.18B |
Tsumura & Co Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥241.06B | 7.70 | ― | 2.12% | 12.23% | 3.35% | |
66 Neutral | ¥109.23B | 12.38 | 5.81% | 2.34% | 14.72% | 52.55% | |
65 Neutral | ¥288.51B | 9.29 | 9.29% | 3.87% | 10.38% | 19.96% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | ¥16.63B | 38.86 | ― | 4.37% | 8.42% | 49.52% | |
50 Neutral | ¥140.47B | 14.52 | 1.46% | 4.85% | -6.86% | -17.71% |
* Healthcare Sector Average
JP:4540
Tsumura & Co
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Tsumura & Co Corporate Events
Tsumura Delivers Strong Q1 Earnings and Raises Annual Dividend Outlook
Aug 6, 2026
Tsumura Co. reported strong consolidated results for the three months ended June 30, 2026, with net sales rising 15.3% year-on-year to ¥49.7 billion and profit attributable to owners of parent jumping 47.8% to ¥6.46 billion. Ordinary pr...
Tsumura Appoints COO Kei Sugii as Additional Representative Director to Bolster Management
Jun 26, 2026
Tsumura Co., a TSE Prime-listed pharmaceutical maker specializing in prescription drugs and Kampo-based treatments, has built a management structure that integrates logistics planning, supply chain management, and production, including overseas o...
Tsumura Lifts Year-End Dividend on Stronger Earnings and Signals Further Payout Hike
May 13, 2026
Tsumura Co. has announced that its board has approved an increase in the year-end dividend for the fiscal year ended March 31, 2026, raising the payout to ¥79 per share and lifting the full-year dividend to ¥147, up ¥3 from the pre...
Tsumura Updates FY2026 Results and Consolidation of Chinese Herbal Medicine Subsidiary
May 13, 2026
Tsumura Co. released supplementary materials for the fiscal year ended March 31, 2026, detailing consolidated income statements, balance sheets, cash flows, and sales by business and product group, including 129 prescription Kampo formulations. T...
Tsumura Grows Sales, Lifts Dividend Despite Profit Decline in FY2026
May 13, 2026
Tsumura Co. reported fiscal year 2026 consolidated net sales of ¥192.6 billion, up 6.4% year on year, but operating profit fell 12.2% to ¥35.2 billion and profit attributable to owners of parent declined 13.3% to ¥28.1 billion, ref...
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.