Tsumura & Co (4540) AI Stock Analysis

• Market Cap: $285.45B
• Dividend Yield: 3.59%
• Average Volume (3M): 384.43K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.53
• Revenue Growth: 14.60%
• EPS Growth: 8.97%
• Country: JP
• Employees: 4,138
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 58.16
• Shares Outstanding: 76,758,360
• 10 Day Avg. Volume: 314,130
• 30 Day Avg. Volume: 384,430
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 1.67
• Enterprise Value/Gross Profit: 3.35
• Enterprise Value/Ebitda: 5.98
• 1Y Price Target: $4,587.56
• Price Target Upside: 22.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 75 Outperform
• Price Target: ¥4,119.00 ▲(10.40% Upside)

Tsumura & Co demonstrates strong financial performance with robust revenue and profit growth, supported by solid margins and a healthy balance sheet. The technical analysis shows short-term bullish momentum, although there is some resistance in the longer term. Valuation metrics suggest the stock is potentially undervalued with an attractive dividend yield. These factors contribute to a favorable overall stock score.

Tsumura & Co Business Overview & Revenue Model

Company Description

Tsumura & Co. engages in the manufacture and sale of pharmaceutical products worldwide. The company offers Kampo extract intermediates and granular Kampo formulations. It is involved in the procurement, selection and processing, and storage of raw material crude drugs and crude drug pieces for decoction; manufacture of Kampo powdered extracts and traditional Chinese medicines; and sale of pharmaceuticals and food products. The company was founded in 1893 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Tsumura & Co primarily generates revenue through the sale of its Kampo medicine products. The company operates a robust production and distribution network to supply its products to hospitals, clinics, and pharmacies across Japan and other countries. A significant portion of its revenue comes from the healthcare sector, where Kampo medicine is prescribed and used as a complementary treatment alongside conventional medicine. Furthermore, Tsumura collaborates with research institutions and healthcare providers to promote the benefits of Kampo medicine, which helps expand its market reach and customer base. Additionally, the company invests in research and development to innovate and improve its product offerings, ensuring sustained growth and profitability.

Tsumura & Co Financial Statement Overview

Summary

Tsumura & Co demonstrates strong financial performance with significant revenue and profit growth, robust margins, low leverage, and a solid capital base. Cash flow metrics indicate effective management, although there is room for improvement in returns on equity and cash flow efficiency.

Income Statement

Tsumura & Co has demonstrated strong revenue growth with a 20.06% increase from the previous year. The Gross Profit Margin for the latest period stands at 50.04%, indicating robust cost management. The Net Profit Margin is also healthy at 17.91%, reflecting effective control over operating expenses. The EBIT Margin and EBITDA Margin are 22.16% and 31.61%, respectively, showcasing operational efficiency. These figures signify a company that is both growing and maintaining profitability.

Balance Sheet

The company exhibits a stable financial structure with a Debt-to-Equity Ratio of 0.23, indicating manageable leverage. The Return on Equity is 10.79%, which is satisfactory but shows room for improvement in generating returns for shareholders. The Equity Ratio of 64.71% suggests a strong capital base, enhancing financial stability and reducing risk. Overall, the balance sheet reflects a well-capitalized company with good financial health.

Cash Flow

Tsumura & Co has shown substantial improvement in Free Cash Flow, achieving a positive turnaround with a Free Cash Flow Growth Rate of 143.14%. The Operating Cash Flow to Net Income Ratio is 1.04, indicating efficient cash generation relative to earnings. The Free Cash Flow to Net Income Ratio is 0.19, suggesting that although cash flow generation is improving, there is still potential for enhancement. The company demonstrates strong cash flow management, supporting its growth trajectory.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	181.09B	150.84B	140.04B	129.55B	130.88B
Gross Profit	90.58B	68.82B	68.28B	66.47B	74.93B
EBITDA	57.25B	34.82B	31.53B	31.57B	28.00B
Net Income	32.43B	16.71B	16.48B	18.84B	15.33B
Balance Sheet
Total Assets	464.38B	428.25B	396.81B	350.98B	319.06B
Cash, Cash Equivalents and Short-Term Investments	73.23B	78.08B	94.75B	67.55B	61.31B
Total Debt	70.34B	79.69B	79.69B	49.69B	52.85B
Total Liabilities	134.27B	132.89B	124.57B	92.87B	85.89B
Stockholders Equity	300.53B	270.80B	252.04B	239.77B	217.78B
Cash Flow
Free Cash Flow	6.23B	-14.45B	1.74B	10.73B	6.69B
Operating Cash Flow	33.82B	5.61B	16.45B	21.31B	16.10B
Investing Cash Flow	-24.97B	-19.35B	-15.49B	-9.11B	-7.35B
Financing Cash Flow	-19.87B	-4.42B	24.42B	-8.18B	-10.43B

Tsumura & Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3731.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4540, the sentiment is Positive. The current price of 3731 is above the 20-day moving average (MA) of 3711.75, above the 50-day MA of 3652.46, and below the 200-day MA of 4027.18, indicating a neutral trend. The MACD of 38.22 indicates Positive momentum. The RSI at 53.26 is Neutral, neither overbought nor oversold. The STOCH value of 24.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4540.

Tsumura & Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4530	76 Outperform	307.98B	15.78	7.86%	2.49%	6.49%	38.42%
4540	75 Outperform	$285.45B	11.21	9.09%	3.59%	14.60%	8.97%
4547	71 Outperform	181.56B	15.37	5.72%	2.02%	15.40%	7.73%
4569	69 Neutral	79.49B	8.42	6.67%	3.44%	9.83%	86.18%
4506	63 Neutral	649.97B	34.38	10.73%	―	26.28%	0.00%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Tsumura & Co Corporate Events

Tsumura & Co Reports Decline in Q1 Financial Results

Tsumura & Co reported a decrease in its consolidated financial results for the first quarter ending June 30, 2025, with net sales slightly declining by 1.4% and significant drops in operating profit and ordinary profit by 27.0% and 56.2%, respectively. The company’s projections for the fiscal year ending March 31, 2026, indicate a modest increase in net sales by 3.8%, but a continued decline in profits, reflecting challenges in maintaining profitability amidst market conditions.

The most recent analyst rating on (JP:4540) stock is a Buy with a Yen6000.00 price target. To see the full list of analyst forecasts on Tsumura & Co stock, see the JP:4540 Stock Forecast page.

Tsumura Expands in China with Strategic Acquisition

Tsumura & Co. has announced that its subsidiary, Tsumura China Inc., will acquire a 51% stake in Shanghai Hongqiao Traditional Chinese Drug Pieces Co., Ltd. This strategic acquisition aims to expand Tsumura’s crude drug platform in China, leveraging Hongqiao’s sales capabilities and Tsumura’s expertise in personalized medicine and quality assurance. The move is expected to enhance product quality and increase convenience for patients, aligning with Tsumura’s vision to contribute to the health of the Chinese population.

The most recent analyst rating on (JP:4540) stock is a Buy with a Yen6000.00 price target. To see the full list of analyst forecasts on Tsumura & Co stock, see the JP:4540 Stock Forecast page.

Tsumura & Co. Completes Share Repurchase Program

Tsumura & Co. has concluded its share repurchase program, acquiring 530,400 shares at a total cost of 1,971,140,100 yen. This move, completed on the Tokyo Stock Exchange, marks the end of a strategic initiative resolved by the Board of Directors to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:4540) stock is a Buy with a Yen6000.00 price target. To see the full list of analyst forecasts on Tsumura & Co stock, see the JP:4540 Stock Forecast page.