Tsumura & Co (4540) AI Stock Analysis

• Market Cap: $254.92B
• Dividend Yield: 3.01%
• Average Volume (3M): 739.54K
• Price to Earnings (P/E): 7.8
• Beta (1Y): 0.54
• Revenue Growth: 20.05%
• EPS Growth: 94.28%
• Country: JP
• Employees: 4,138
• Sector: Healthcare
• Sector Strength: 42
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 77.27
• Shares Outstanding: 76,758,360
• 10 Day Avg. Volume: 707,630
• 30 Day Avg. Volume: 739,536
• PEG Ratio: 1.60
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 45.40
• 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: $4,619.14
• Price Target Upside: 38.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 69 Neutral
• Price Target: ¥3,756.00 ▲(12.73%Upside)

The overall score of 68.8 reflects strong financial performance and attractive valuation metrics, offset by bearish technical indicators. The stock's low P/E ratio and solid dividend yield are major positives, but current price momentum is a significant risk factor.

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 medicines. The company develops, manufactures, and distributes these herbal products to healthcare professionals, pharmacies, and hospitals. This revenue stream is supported by Tsumura's robust research and development efforts, which ensure the efficacy and safety of their products. Additionally, the company may engage in partnerships with other pharmaceutical companies and research institutions to enhance their product offerings and expand their market reach. Tsumura's focus on quality control and adhering to stringent regulatory standards further solidifies its position in the market, contributing to its revenue generation.

Tsumura & Co Financial Statement Overview

Summary

Tsumura & Co is in a strong financial position with consistent revenue growth, robust profit margins, and improving cash flows. The balance sheet is solid with a conservative debt-to-equity ratio and substantial ROE. While liabilities could pose a risk if not monitored, the overall financial health is robust.

Income Statement

Tsumura & Co has demonstrated a strong performance with consistent revenue growth, notably increasing from previous years. The TTM (Trailing-Twelve-Months) data shows a revenue growth rate of approximately 13.9% compared to the previous year. Gross profit margins are robust at 48.7%, and net profit margins are healthy at 15.8%. EBIT and EBITDA margins are also strong at 19.4% and 25.8%, respectively, indicating efficient operations and strong profitability.

Balance Sheet

The balance sheet is solid with a debt-to-equity ratio of 0.28, reflecting a conservative level of leverage. The return on equity (ROE) is substantial at 9.3%, indicating effective use of shareholders' equity to generate profits. The equity ratio stands at 62.9%, showcasing a strong capital structure with a significant portion of assets financed by equity. However, the relatively high level of total liabilities, though manageable, could pose a risk if not carefully monitored.

Cash Flow

Cash flow from operations remains strong, with a significant increase in free cash flow in the TTM period, growing from a negative figure in the previous year to 7.27 billion. The operating cash flow to net income ratio is robust at 1.06, indicating efficient cash generation relative to net income. The free cash flow to net income ratio has improved significantly, reflecting better capital expenditure management.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
171.79B	150.84B	140.04B	129.55B	130.88B	123.25B
	Gross Profit
83.56B	68.82B	68.28B	66.47B	74.93B	72.50B
	EBIT
33.25B	20.02B	20.92B	22.38B	19.38B	18.88B
	EBITDA
44.38B	34.82B	31.53B	31.57B	28.00B	25.28B
	Net Income Common Stockholders
27.12B	16.71B	16.48B	18.84B	15.33B	13.77B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
83.05B	78.08B	94.75B	67.55B	61.31B	61.96B
	Total Assets
463.81B	428.25B	396.81B	350.98B	319.06B	311.04B
	Total Debt
80.36B	79.69B	79.69B	49.69B	52.85B	65.27B
	Net Debt
-132.00M	1.61B	-15.06B	-17.86B	-8.46B	3.31B
	Total Liabilities
145.49B	132.89B	124.57B	92.87B	85.89B	97.99B
	Stockholders Equity
291.89B	270.80B	252.04B	239.77B	217.78B	205.38B
Cash Flow		Free Cash Flow
7.27B	-14.45B	1.74B	10.73B	6.69B	7.64B
	Operating Cash Flow
28.88B	5.61B	16.45B	21.31B	16.10B	18.19B
	Investing Cash Flow
-18.65B	-19.35B	-15.49B	-9.11B	-7.35B	-23.49B
	Financing Cash Flow
-8.54B	-4.42B	24.42B	-8.18B	-10.43B	7.11B

Tsumura & Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3332.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

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 3332 is below the 20-day moving average (MA) of 3476.70, below the 50-day MA of 3951.47, and below the 200-day MA of 4313.42, indicating a bearish trend. The MACD of -191.73 indicates Negative momentum. The RSI at 20.95 is Positive, neither overbought nor oversold. The STOCH value of 14.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4540.

Tsumura & Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4540	69 Neutral	$254.92B	7.80	11.16%	3.01%	20.05%	94.28%
Sector *	54 Neutral	$5.31B	3.28	-45.10%	2.80%	16.76%	0.02%
DNPUF		$2.21B	15.17	13.50%	―	―	―
HTSUF		$2.24B	16.67	7.90%	1.81%	―	―
KSPHF		$1.22B	15.08	5.47%	2.44%	―	―
TRXPF		$1.23B	28.25	4.56%	2.13%	―	―
4569	73 Outperform	¥78.43B	9.42		3.49%	8.83%	70.61%

Tsumura & Co Corporate Events

Tsumura & Co. Reports Progress on Share Repurchase Program

Tsumura & Co. has announced the intermediate results of its share repurchase program, which was initiated following a board resolution in February 2025. As of April 30, 2025, the company has repurchased 707,300 shares at a total cost of approximately 3.03 billion yen, reflecting its strategic efforts to enhance shareholder value and optimize capital structure.

Tsumura & Co. Unveils Ambitious Growth Plan for 2025-2027

Tsumura & Co. has announced its second Medium-Term Management Plan for fiscal years 2025 to 2027, focusing on growth strategies and investments to achieve ‘Cho-WA’ or harmony. The plan includes expanding the Kampo market, entering the traditional Chinese medicinal products business in China, and enhancing digital transformation to improve customer experience. The company aims for stable growth in domestic markets and expansion in China, with a target of JPY234 billion in sales and JPY43 billion in operating profit by 2027.

Tsumura & Co. Revises Stock Compensation System to Align with Long-term Vision

Tsumura & Co. announced a revision to its performance-based stock compensation system for directors and executive officers, aligning it with their long-term vision ‘Cho-WA’ 2031. The revision aims to strengthen the link between executive compensation and corporate value, promoting sustainable growth and enhancing corporate value over the medium to long term. The changes, which include increasing the maximum contribution and the number of shares granted, are subject to shareholder approval.

Tsumura & Co. Extends Employee Stock Delivery System to Boost Engagement

Tsumura & Co. has announced the continuation of its trust-type stock delivery system for employees, initially introduced in 2023. This system aims to align employee incentives with the company’s long-term visions, including sustainability and management goals, by offering shares or cash equivalents based on performance targets. The initiative is part of the company’s medium-term management plan, running from fiscal years 2025 to 2027, and is designed to enhance employee engagement and contribution to corporate objectives.

Tsumura & Co Reports Strong Financial Growth for FY 2025

Tsumura & Co reported a significant increase in its consolidated financial results for the fiscal year ended March 31, 2025, with net sales rising by 20.1% and operating profit doubling compared to the previous year. The company’s strong performance is reflected in its increased dividends and improved financial condition, indicating a robust market position and positive outlook for stakeholders.

Tsumura & Co. Reports Progress on Share Repurchase Program

Tsumura & Co. announced the intermediate results of its share repurchase program, where it acquired 206,400 shares at a cost of 908,870,200 yen. This move is part of a broader strategy approved by the board to repurchase up to 1,465,000 shares, with a maximum expenditure of 5 billion yen, aimed at enhancing shareholder value and optimizing capital structure.