Tsumura & Co (4540) AI Stock Analysis

• Market Cap: $266.55B
• Dividend Yield: 3.9%
• Average Volume (3M): 623.87K
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.57
• Revenue Growth: 20.05%
• EPS Growth: 94.28%
• Country: JP
• Employees: 4,138
• Sector: Healthcare
• Sector Strength: 40
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 77.27
• Shares Outstanding: 76,758,360
• 10 Day Avg. Volume: 609,760
• 30 Day Avg. Volume: 623,873
• PEG Ratio: -0.98
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 115.27
• 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: $4,297.09
• Price Target Upside: 22.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 69 Neutral
• Price Target: ¥3,756.00 ▲(7.22%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 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: Negative
• Last Price: 3503.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 3503 is above the 20-day moving average (MA) of 3395.95, below the 50-day MA of 3634.24, and below the 200-day MA of 4274.49, indicating a neutral trend. The MACD of -26.72 indicates Negative momentum. The RSI at 58.09 is Neutral, neither overbought nor oversold. The STOCH value of 88.25 is Negative, 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	$266.55B	8.16	11.16%	3.90%	20.05%	94.28%
Sector *	51 Neutral	$7.50B	0.32	-61.87%	2.27%	17.10%	1.59%
DNPUF		$2.48B	17.67	13.50%	―	―	―
HTSUF		$2.02B	14.41	7.90%	0.01%	―	―
KSPHF		$1.13B	15.08	5.47%	0.02%	―	―
TRXPF		$1.23B	28.25	4.56%	2.27%	―	―
4569	71 Outperform	¥77.96B	9.36		0.68%	8.83%	70.61%

Tsumura & Co Corporate Events

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.

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.