Tsumura & Co. (JP:4540)
:4540
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Tsumura & Co
(4540)
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Rating:69Neutral
Price Target:
¥4,120.00
▲(14.48% Upside)
Action:DowngradedDate:02/08/26
The score is held back primarily by weak TTM cash generation (negative free cash flow) and higher leverage versus FY2025. Offsetting these risks are solid profitability, a constructive technical uptrend with positive momentum, and supportive valuation with a low P/E and a healthy dividend yield.
Positive Factors
Profitability & Revenue Growth
Sustained gross and healthy net margins alongside multi-year revenue expansion indicate durable operational profitability and pricing power in core products. This supports reinvestment in manufacturing and R&D, and cushions earnings through industry cycles, underpinning long-term cash generation potential.
Negative Factors
Weak Cash Generation
Negative trailing free cash flow signals persistent cash conversion issues despite reported profits. This raises reliance on external financing for capex, working capital and dividends, constraining strategic flexibility and increasing execution risk if cash conversion doesn't recover sustainably.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability & Revenue Growth
Sustained gross and healthy net margins alongside multi-year revenue expansion indicate durable operational profitability and pricing power in core products. This supports reinvestment in manufacturing and R&D, and cushions earnings through industry cycles, underpinning long-term cash generation potential.
Read all positive factors
Tsumura & Co (4540) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥289.12B
Dividend Yield3.3%
Average Volume (3M)448.06K
Price to Earnings (P/E)7.1
Beta (1Y)0.52
Revenue Growth10.51%
EPS Growth9.62%
CountryJP
Employees4,138
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)142.95
Shares Outstanding76,758,360
10 Day Avg. Volume373,220
30 Day Avg. Volume448,060
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)1.09
Price to Sales (P/S)1.81
P/FCF Ratio52.57
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)371.99
Revenue Forecast (FY)¥213.09B
Tsumura & Co Business Overview & Revenue Model
Company Description
Tsumura & Co. (4540) is a leading Japanese pharmaceutical company specializing in traditional herbal medicine, also known as Kampo medicine. Established in 1893, the company develops, manufactures, and sells a wide range of Kampo products, which a...
How the Company Makes Money
Tsumura makes money primarily by selling pharmaceutical products, with its core revenue stream coming from prescription Kampo extract granules/formulations reimbursed through Japan’s healthcare system and prescribed by physicians. Revenue is gener...
Tsumura & Co Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
64
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 189.50B | 181.09B | 150.84B | 140.04B | 129.55B | 130.88B |
| Gross Profit | 90.20B | 90.58B | 68.82B | 68.28B | 66.47B | 74.93B |
| EBITDA | 53.75B | 57.25B | 34.82B | 34.03B | 34.92B | 29.36B |
| Net Income | 29.01B | 32.43B | 16.71B | 16.48B | 18.84B | 15.33B |
Balance Sheet | ||||||
| Total Assets | 549.68B | 464.38B | 428.25B | 396.81B | 350.98B | 319.06B |
| Cash, Cash Equivalents and Short-Term Investments | 69.48B | 73.23B | 78.08B | 94.75B | 67.55B | 61.31B |
| Total Debt | 135.41B | 70.80B | 80.10B | 80.05B | 50.00B | 53.09B |
| Total Liabilities | 211.04B | 134.27B | 132.89B | 124.56B | 92.87B | 85.89B |
| Stockholders Equity | 305.33B | 300.53B | 270.80B | 252.05B | 239.77B | 217.79B |
Cash Flow | ||||||
| Free Cash Flow | -21.99B | 6.23B | -11.21B | 4.23B | 11.14B | 7.15B |
| Operating Cash Flow | 15.40B | 33.82B | 5.61B | 16.45B | 21.31B | 16.10B |
| Investing Cash Flow | -46.44B | -24.97B | -19.35B | -15.49B | -9.11B | 215.00M |
| Financing Cash Flow | 20.41B | -19.87B | -4.42B | 24.42B | -8.18B | -17.99B |
Tsumura & Co Technical Analysis
Negative
3599.00
Price Trends
3893.20
Negative
3905.22
Negative
3695.51
Positive
Market Momentum
-17.39
Negative
44.43
Neutral
58.20
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4540, the sentiment is Negative. The current price of 3599 is below the 20-day moving average (MA) of 3775.70, below the 50-day MA of 3893.20, and below the 200-day MA of 3695.51, indicating a neutral trend. The MACD of -17.39 indicates Negative momentum. The RSI at 44.43 is Neutral, neither overbought nor oversold. The STOCH value of 58.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4540.
Tsumura & Co Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥149.30B | 93.62 | -2.58% | 4.16% | -5.99% | -96.04% | |
77 Outperform | ¥347.00B | 9.44 | ― | 2.12% | 4.07% | 22.59% | |
73 Outperform | ¥441.06B | 15.43 | 7.11% | 2.43% | 3.53% | 38.23% | |
73 Outperform | ¥118.25B | 12.60 | 4.81% | 2.34% | 4.35% | 48.30% | |
69 Neutral | ¥289.12B | 7.12 | 9.05% | 3.30% | 10.51% | 9.62% | |
52 Neutral | ¥20.05B | 72.72 | ― | 3.65% | 9.53% | -155.76% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
JP:4540
Tsumura & Co
3,763.00
-270.29
-6.70%
JP:4530
Hisamitsu Pharmaceutical Co
6,045.00
1,707.56
39.37%
JP:4521
Kaken Pharmaceutical Co
4,195.00
401.53
10.58%
JP:4534
Mochida Pharmaceutical Co., Ltd.
3,530.00
642.46
22.25%
JP:2929
Pharma Foods International Co., Ltd.
707.00
-97.73
-12.14%
JP:4516
Nippon Shinyaku Co., Ltd.
5,101.00
1,693.49
49.70%
Tsumura & Co Corporate Events
Tsumura Aligns Yomeishu Share Acquisition With Long-Term Kampo Healthcare Vision
Feb 24, 2026
Tsumura Co. has concluded a contract to acquire shares of Yomeishu Seizo Co., Ltd., aligning the deal with its long-term TSUMURA VISION “Cho-WA” 2031 strategy. The vision emphasizes contributing to a healthier society by developing ev...
Tsumura to Take Yomeishu Private in ¥6.8 Billion Multi-Stage Deal to Expand Healthcare Portfolio
Feb 24, 2026
Tsumura Co. has agreed a four-party master deal with Yomeishu Seizo, Reno and Yuzawa under which Yomeishu will be taken private, restructured, and eventually become wholly owned by Tsumura via a staged tender offer, squeeze-out, asset separation,...
Tsumura Updates Q3 FY2026 Results and Expands Consolidation of Chinese Herbal Subsidiary
Feb 6, 2026
Tsumura Co. released supplementary materials for the third quarter of the fiscal year ending March 31, 2026, detailing consolidated financial statements, sales by business and product group, and quarterly performance data, with a particular focus...
Tsumura Posts Higher Sales but Lower Profits, Keeps Full-Year Forecast and Dividend Plan Intact
Feb 6, 2026
Tsumura Co. reported consolidated net sales of ¥145.2 billion for the first nine months of the fiscal year ending March 31, 2026, a 6.1% year-on-year increase, but saw declines in profitability, with operating profit down 10.9%, ordinary pro...
Tsumura Confirms It Is Weighing Reported Yomeishu Take-Private but Says No Decision Yet
Feb 3, 2026
Tsumura Co. clarified that recent reports in the digital and print editions of The Nikkei about its involvement in a potential take-private transaction for Yomeishu Seizo Co., Ltd. did not originate from the company itself. The company acknowledg...
Tsumura Secures ¥50 Billion Syndicated Loan with Financial Covenants for Growth Investment
Jan 16, 2026
Tsumura Co. has entered into a large unsecured syndicated loan agreement with a bank group led by MUFG Bank to finance active investment in equipment and business initiatives tied to its long-term management vision, including sustaining growth in...
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.