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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:74Outperform
Price Target:
¥4,044.00
▲(10.55% Upside)
Tsumura & Co's overall stock score is driven primarily by its strong financial performance, characterized by robust revenue and profit growth, solid margins, and effective cash flow management. The valuation is attractive, with a low P/E ratio and a high dividend yield, making it appealing for value and income investors. Technical analysis suggests a neutral short-term trend with some bullish momentum, but caution is advised due to the high stochastic indicator.

Tsumura & Co (4540) vs. iShares MSCI Japan ETF (EWJ)

Tsumura & Co Business Overview & Revenue Model

Company DescriptionTsumura & 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 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
Positive
Last Price3658.00
Price Trends
50DMA
3569.08
Positive
100DMA
3680.26
Negative
200DMA
4093.80
Negative
Market Momentum
MACD
6.00
Positive
RSI
55.72
Neutral
STOCH
38.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4540, the sentiment is Positive. The current price of 3658 is above the 20-day moving average (MA) of 3599.90, above the 50-day MA of 3569.08, and below the 200-day MA of 4093.80, indicating a neutral trend. The MACD of 6.00 indicates Positive momentum. The RSI at 55.72 is Neutral, neither overbought nor oversold. The STOCH value of 38.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4540.

Tsumura & Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$270.91B10.479.09%3.84%14.60%8.97%
51
Neutral
$7.86B-0.26-41.41%2.22%22.87%-2.01%
$4.11B32.8410.94%
$2.09B16.137.24%2.47%
$1.20B15.025.93%2.34%
$1.21B28.514.52%
77
Outperform
¥79.96B8.47
3.40%9.83%86.18%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4540
Tsumura & Co
3,658.00
-166.74
-4.36%
DNPUF
Sumitomo Dainippon Pharma Co
10.04
5.88
141.35%
HTSUF
Hisamitsu Pharmaceutical Co
28.44
1.51
5.61%
KSPHF
Kissei Pharmaceutical Co
29.15
5.78
24.73%
TRXPF
Torii Pharmaceutical Co
36.62
11.66
46.71%
JP:4569
KYORIN Pharmaceutical Co.,Ltd.
1,529.00
-27.16
-1.75%

Tsumura & Co Corporate Events

Tsumura & Co Reports Decline in Q1 Financial Results
Aug 5, 2025

Tsumura & Co reported a decrease in its consolidated financial results for the first quarter ending June 30, 2025, with net sales slightly declining by 1.4% and significant drops in operating profit and ordinary profit by 27.0% and 56.2%, respectively. The company’s projections for the fiscal year ending March 31, 2026, indicate a modest increase in net sales by 3.8%, but a continued decline in profits, reflecting challenges in maintaining profitability amidst market conditions.

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 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.

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: Aug 28, 2025