Tsumura & Co. (JP:4540)
:4540
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Tsumura & Co
(4540)
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Rating:64Neutral
Price Target:
¥3,992.00
▲(10.92% Upside)
Action:Reiterated
Date:05/15/26
The score is driven primarily by financial fundamentals that are solid on revenue and profitability but held back by negative free cash flow in 2026 and a notable rise in debt. Valuation is a clear positive (low P/E and strong dividend yield), while technical indicators are mixed-to-weak and do not currently signal strong momentum.
Positive Factors
Sustained Revenue Growth
Consistent multi-year revenue expansion, including a large 2026 increase, signals durable demand and expanding market penetration for Kampo products. Sustained top-line growth supports scale advantages, funds R&D and capacity, and provides leeway to absorb pricing or reimbursement pressure.
Negative Factors
Negative Free Cash Flow
FCF turning negative in 2026 shows weaker cash conversion and possible elevated investment or working-capital needs. Persistent negative FCF would constrain self-funded R&D, capital spending and dividend flexibility, forcing reliance on external financing over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Growth
Consistent multi-year revenue expansion, including a large 2026 increase, signals durable demand and expanding market penetration for Kampo products. Sustained top-line growth supports scale advantages, funds R&D and capacity, and provides leeway to absorb pricing or reimbursement pressure.
Read all positive factors
Tsumura & Co (4540) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥285.14B
Dividend Yield3.3%
Average Volume (3M)448.06K
Price to Earnings (P/E)9.9
Beta (1Y)0.51
Revenue Growth6.36%
EPS Growth-11.71%
CountryJP
Employees4,138
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)376.59
Shares Outstanding76,758,360
10 Day Avg. Volume373,220
30 Day Avg. Volume448,060
Financial Highlights & Ratios
PEG Ratio-0.84
Price to Book (P/B)0.87
Price to Sales (P/S)1.45
P/FCF Ratio-34.72
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)349.25
Revenue Forecast (FY)¥214.98B
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 primarily makes money by selling pharmaceuticals, with the main revenue stream coming from prescription Kampo medicines reimbursed through Japan’s national health insurance (NHI) system. Revenue is generated when its Kampo formulations are...
Tsumura & Co Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
68
Positive
Cash Flow
42
Neutral
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 192.62B | 181.09B | 150.84B | 140.04B | 129.55B |
| Gross Profit | 91.52B | 90.58B | 68.82B | 68.28B | 66.47B |
| EBITDA | 48.28B | 57.25B | 34.82B | 34.03B | 34.92B |
| Net Income | 28.12B | 32.43B | 16.71B | 16.48B | 18.84B |
Balance Sheet | |||||
| Total Assets | 592.77B | 464.38B | 428.25B | 396.81B | 350.98B |
| Cash, Cash Equivalents and Short-Term Investments | 84.08B | 73.23B | 78.08B | 94.75B | 67.55B |
| Total Debt | 135.16B | 70.80B | 80.10B | 80.05B | 50.00B |
| Total Liabilities | 221.16B | 134.27B | 132.89B | 124.56B | 92.87B |
| Stockholders Equity | 321.73B | 300.53B | 270.80B | 252.05B | 239.77B |
Cash Flow | |||||
| Free Cash Flow | -8.06B | 6.23B | -11.21B | 4.23B | 11.14B |
| Operating Cash Flow | 24.72B | 33.82B | 5.61B | 16.45B | 21.31B |
| Investing Cash Flow | -50.31B | -24.97B | -19.35B | -15.49B | -9.11B |
| Financing Cash Flow | 32.60B | -19.87B | -4.42B | 24.42B | -8.18B |
Tsumura & Co Technical Analysis
Negative
3599.00
Price Trends
3749.51
Negative
3867.46
Negative
3752.23
Negative
Market Momentum
2.85
Positive
47.30
Neutral
13.78
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 3599 is below the 20-day moving average (MA) of 3749.65, below the 50-day MA of 3749.51, and below the 200-day MA of 3752.23, indicating a bearish trend. The MACD of 2.85 indicates Positive momentum. The RSI at 47.30 is Neutral, neither overbought nor oversold. The STOCH value of 13.78 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | ¥268.67B | 9.11 | ― | 2.12% | 6.58% | -8.74% | |
66 Neutral | ¥107.36B | 14.33 | 4.81% | 2.34% | 11.21% | 39.02% | |
64 Neutral | ¥285.14B | 9.94 | 9.05% | 3.30% | 6.36% | -11.71% | |
52 Neutral | ¥18.77B | -11.17 | ― | 3.65% | 12.41% | -161.06% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | ¥136.33B | 67.59 | -2.58% | 4.16% | -18.25% | -84.71% |
* Healthcare Sector Average
JP:4540
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Tsumura & Co Corporate Events
Tsumura Lifts Year-End Dividend on Stronger Earnings and Signals Further Payout Hike
May 13, 2026
Tsumura Co. has announced that its board has approved an increase in the year-end dividend for the fiscal year ended March 31, 2026, raising the payout to ¥79 per share and lifting the full-year dividend to ¥147, up ¥3 from the pre...
Tsumura Updates FY2026 Results and Consolidation of Chinese Herbal Medicine Subsidiary
May 13, 2026
Tsumura Co. released supplementary materials for the fiscal year ended March 31, 2026, detailing consolidated income statements, balance sheets, cash flows, and sales by business and product group, including 129 prescription Kampo formulations. T...
Tsumura Grows Sales, Lifts Dividend Despite Profit Decline in FY2026
May 13, 2026
Tsumura Co. reported fiscal year 2026 consolidated net sales of ¥192.6 billion, up 6.4% year on year, but operating profit fell 12.2% to ¥35.2 billion and profit attributable to owners of parent declined 13.3% to ¥28.1 billion, ref...
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,...
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.