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Tsumura & Co. (JP:4540)
:4540
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Tsumura & Co (4540) AI Stock Analysis

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JP:4540

Tsumura & Co

(OTC:4540)

Rating:69Neutral
Price Target:
¥3,756.00
▲(2.45%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 (4540) vs. iShares MSCI Japan ETF (EWJ)

Tsumura & Co Business Overview & Revenue Model

Company DescriptionTsumura & Co (4540) is a leading Japanese pharmaceutical company specializing in the research, development, production, and distribution of Kampo medicine, a traditional form of Japanese herbal medicine. The company focuses on providing high-quality Kampo products, which are derived from natural ingredients and are used for various therapeutic applications. With a strong emphasis on traditional and holistic approaches, Tsumura & Co aims to integrate Kampo medicine into modern healthcare practices, serving both domestic and international markets.
How the Company Makes MoneyTsumura & 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
85
Very Positive
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
77
Positive
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
80
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue181.09B150.84B140.04B129.55B130.88B
Gross Profit90.58B68.82B68.28B66.47B74.93B
EBITDA57.25B34.82B31.53B31.57B28.00B
Net Income32.43B16.71B16.48B18.84B15.33B
Balance Sheet
Total Assets464.38B428.25B396.81B350.98B319.06B
Cash, Cash Equivalents and Short-Term Investments73.23B78.08B94.75B67.55B61.31B
Total Debt70.34B79.69B79.69B49.69B52.85B
Total Liabilities134.27B132.89B124.57B92.87B85.89B
Stockholders Equity300.53B270.80B252.04B239.77B217.78B
Cash Flow
Free Cash Flow6.23B-14.45B1.74B10.73B6.69B
Operating Cash Flow33.82B5.61B16.45B21.31B16.10B
Investing Cash Flow-24.97B-19.35B-15.49B-9.11B-7.35B
Financing Cash Flow-19.87B-4.42B24.42B-8.18B-10.43B

Tsumura & Co Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3666.00
Price Trends
50DMA
3469.58
Positive
100DMA
3851.75
Negative
200DMA
4250.48
Negative
Market Momentum
MACD
43.99
Negative
RSI
68.30
Neutral
STOCH
86.49
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4540, the sentiment is Neutral. The current price of 3666 is above the 20-day moving average (MA) of 3547.15, above the 50-day MA of 3469.58, and below the 200-day MA of 4250.48, indicating a neutral trend. The MACD of 43.99 indicates Negative momentum. The RSI at 68.30 is Neutral, neither overbought nor oversold. The STOCH value of 86.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4540.

Tsumura & Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥79.59B9.50
1.65%8.83%70.61%
73
Outperform
$290.61B14.797.24%2.28%6.49%38.42%
69
Neutral
$280.48B8.5511.16%3.71%20.05%94.28%
67
Neutral
$450.93B19.0813.50%26.79%
66
Neutral
¥172.78B15.215.47%2.13%16.87%11.24%
65
Neutral
$177.54B31.984.56%1.90%9.56%5.09%
65
Neutral
¥355.44B11.10-2.99%2.49%11.76%-10.16%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4540
Tsumura & Co
3,666.00
-97.63
-2.59%
JP:4569
KYORIN Pharmaceutical Co.,Ltd.
1,512.00
-128.04
-7.81%
JP:4506
Sumitomo Dainippon Pharma Co
1,135.00
724.00
176.16%
JP:4547
Kissei Pharmaceutical Co
4,230.00
1,057.16
33.32%
JP:4530
Hisamitsu Pharmaceutical Co
3,983.00
59.82
1.52%
JP:4551
Torii Pharmaceutical Co
6,320.00
2,709.52
75.05%

Tsumura & Co Corporate Events

Tsumura Expands in China with Strategic Acquisition
Jun 18, 2025

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
Jun 11, 2025

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
May 12, 2025

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
May 12, 2025

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
May 12, 2025

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
May 12, 2025

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
May 12, 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.

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.Date of analysis: May 27, 2025