Terumo (4543) AI Stock Analysis

• Market Cap: ¥3.12T
• Dividend Yield: 1.22%
• Average Volume (3M): 4.45M
• Price to Earnings (P/E): 24.3
• Beta (1Y): 0.56
• Revenue Growth: 7.68%
• EPS Growth: 10.08%
• Country: JP
• Employees: 30,207
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 22.14
• Shares Outstanding: 1,480,559,700
• 10 Day Avg. Volume: 4,137,290
• 30 Day Avg. Volume: 4,454,930
• PEG Ratio: 3.37
• Price to Book (P/B): 3.03
• Price to Sales (P/S): 4.00
• P/FCF Ratio: 29.12
• 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: ¥2,622.00
• Price Target Upside: 2.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 91.91
• Revenue Forecast (FY): ¥1.11T

• Rating: 69 Neutral
• Price Target: ¥2,129.00 ▼(-16.66% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is supported primarily by strong financial quality (notably a low-leverage balance sheet and resilient profitability) and a positive earnings outlook with raised guidance. This is meaningfully offset by weak technical momentum (below key moving averages with negative MACD and very low RSI) and only moderate valuation support given a ~23x P/E and modest yield.

Positive Factors

Strong balance sheet

Terumo's very low leverage and steady equity growth provide durable financial flexibility. Sustained deleveraging reduces refinancing risk, supports bolt-on M&A, R&D and capital spending, and cushions operational shocks — a long‑term enabler of strategic investments and stable operations.

Recurring consumables model

A high share of recurring consumables creates predictable, repeatable revenue tied to procedure volumes. This consumable-driven mix supports steady aftermarket margins, deepens customer relationships at hospitals and blood centers, and underpins long-term cash flows even as capital sales cycle.

Product innovation and M&A expansion

New imaging tech (DSS) differentiates Terumo in interventional imaging, expanding clinical indications and TAM; OrganOx acquisition builds a complementary organ‑preservation business with multi‑year revenue targets. Combined innovation and M&A diversify growth drivers and strengthen competitive positioning.

Negative Factors

Weak cash conversion

Though FCF is positive, declining free cash flow and sub‑100% conversion signal that earnings are not fully translating into cash. Persistent working‑capital needs or capex could constrain discretionary spending, limiting long‑term funding for dividends, buybacks or large investments without using balance sheet buffers.

Margins and returns moderate

Solid but stable margins and middling ROE suggest limited operating leverage or pricing power expansion. Without meaningful margin expansion, profitability gains may be vulnerable to commodity, FX, or competitive pressures, constraining long‑term improvement in capital returns and shareholder distributions.

Consumables demand volatility

Reliance on consumables creates exposure to procedure volumes and demand swings; lower‑than‑expected disposable demand forced production changes. Persistent variability increases forecasting risk, can pressure utilization and margins, and complicates inventory and capacity planning over a multi‑quarter horizon.

Terumo Business Overview & Revenue Model

Company Description

Terumo Corporation engages in the manufacture and sale of medical products and equipment worldwide. The company operates through three segments: Cardiac and Vascular Company, Medical Care Solutions Company, and Blood and Cell Technologies Company. The Cardiac and Vascular Company segment offers angiographic guidewires, angiographic catheters, introducer sheaths, vascular closure devices, PTCA balloon catheters, coronary stents, self-expanding peripheral stents, intravascular ultrasound systems, imaging catheters, and others; coils, stents, and intrasaccular devices for treating cerebral aneurysm; embolization systems, aspiration catheters, and clot retrievers for treating ischemic stroke and others; oxygenators, cardio-pulmonary bypass systems, and others; and artificial vascular and stent grafts. The Medical Care Solutions Company segment provides syringes, infusion pumps, syringe pumps, infusion lines, I.V. solutions, peritoneal dialysis fluids, pain management and nutritious food products, adhesion barriers, and others; blood glucose monitoring systems, disposable needles for pen-injector, insulin patch pumps, blood pressure monitors, digital thermometers, and others; and contract manufacturing of prefilled syringes, devices to pharmaceutical companies for use in drug kits, such as prefillable syringes, needles for pharmaceutical packaging business, and others. The Blood and Cell Technologies Company segment offers blood bags, component collection systems, automated blood processing systems, pathogen reduction systems, centrifugal apheresis systems, cell expansion systems, and others. The company was formerly known as Sekisen Ken-onki Corporation and changed its name to Terumo Corporation in October 1974. Terumo Corporation was incorporated in 1921 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Terumo generates revenue primarily through the sale of its medical devices and related products. Key revenue streams include the sale of vascular access products, blood management systems, and interventional cardiology devices. The company benefits from strong relationships with hospitals, healthcare providers, and distributors worldwide. Additionally, Terumo invests in research and development to create new products and enhance existing offerings, which helps maintain its competitive edge in the medical technology sector. Partnerships with healthcare institutions and participation in global healthcare initiatives also contribute to its revenue growth.

Terumo Financial Statement Overview

Summary

Strong overall fundamentals driven by solid income statement (84) and a very strong balance sheet (88) with low and improving leverage; tempered by weaker cash-flow quality (72) as free-cash-flow conversion and recent FCF trajectory lag earnings.

Income Statement

Terumo shows solid top-line momentum and resilient profitability. Revenue rose from ¥614B (FY2021) to ¥1,036B (FY2025), and TTM (Trailing-Twelve-Months) revenue is ¥1,095B with strong growth (3.1%). Profitability is consistently healthy, with TTM gross margin at ~54% and operating margin at ~16.5%, supporting TTM net margin of ~12.3%. The main watch-out is that net margins have not expanded meaningfully versus prior years (and were higher in FY2022), suggesting some cost/FX/mix pressure despite revenue growth.

Balance Sheet

The balance sheet is a clear strength with low leverage and improving capital base. TTM debt-to-equity is ~0.11 (down from ~0.34 in FY2021), indicating meaningful deleveraging and ample balance-sheet flexibility. Equity has grown steadily (to ¥1.52T in TTM), while returns remain solid with TTM return on equity around ~9.4% (up from ~8–9% range in prior years). The key weakness is that returns are good but not exceptional, implying profitability and/or asset efficiency could improve further.

Cash Flow

Cash generation is solid but somewhat inconsistent versus earnings. TTM operating cash flow is ¥208B and free cash flow is ¥133B, but TTM free cash flow declined (-4.9%) and free cash flow runs at ~66% of net income, signaling conversion is not fully translating into cash. Cash coverage also softened versus FY2025 (annual) levels (TTM operating cash flow relative to net income is ~0.72 vs ~0.87 in FY2025), suggesting working-capital or investment demands are absorbing cash. Strength remains that free cash flow is consistently positive across periods.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.10T	1.04T	921.86B	820.21B	703.30B	613.84B
Gross Profit	584.19B	532.78B	454.17B	393.84B	348.75B	307.17B
EBITDA	266.42B	242.51B	219.66B	188.44B	174.58B	153.92B
Net Income	127.90B	116.98B	106.37B	89.33B	88.81B	77.27B
Balance Sheet
Total Assets	2.26T	1.83T	1.83T	1.60T	1.47T	1.35T
Cash, Cash Equivalents and Short-Term Investments	238.00B	222.15B	206.33B	187.38B	205.31B	200.83B
Total Debt	399.73B	213.96B	268.55B	266.67B	259.01B	293.08B
Total Liabilities	734.61B	459.85B	504.31B	491.16B	461.37B	494.53B
Stockholders Equity	1.52T	1.37T	1.33T	1.11T	1.01T	856.66B
Cash Flow
Free Cash Flow	132.73B	142.19B	85.60B	64.84B	87.95B	59.17B
Operating Cash Flow	208.47B	210.80B	146.33B	117.54B	141.47B	121.48B
Investing Cash Flow	-347.85B	-82.48B	-81.47B	-59.12B	-78.45B	-85.32B
Financing Cash Flow	160.57B	-108.77B	-62.08B	-86.56B	-70.88B	-7.44B

Terumo Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2554.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4543, the sentiment is Neutral. The current price of 2554.5 is above the 20-day moving average (MA) of 2020.27, above the 50-day MA of 2146.22, and above the 200-day MA of 2441.32, indicating a neutral trend. The MACD of -40.83 indicates Negative momentum. The RSI at 49.00 is Neutral, neither overbought nor oversold. The STOCH value of 64.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4543.

Terumo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7730	71 Outperform	¥165.12B	33.41	―	2.73%	5.10%	-26.13%
4543	69 Neutral	¥3.12T	24.33	9.31%	1.22%	7.68%	10.08%
7747	68 Neutral	¥893.08B	50.74	10.09%	0.82%	13.53%	-7.39%
6869	68 Neutral	¥917.95B	20.51	9.80%	1.88%	1.51%	-12.59%
8086	62 Neutral	¥259.41B	17.06	4.38%	2.03%	6.04%	733.13%
7733	60 Neutral	¥1.68T	20.24	13.13%	1.01%	0.42%	34.76%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Terumo Corporate Events

Terumo Delivers Higher Nine-Month Profits and Confirms Full-Year Guidance

Terumo reported solid growth for the nine months ended Dec. 31, 2025, with revenue rising 7.7% year on year to ¥831.6 billion and operating profit up 8.5% to ¥144.9 billion, while profit attributable to owners of the parent climbed 11.1% and basic earnings per share increased to ¥74.27. The company’s balance sheet expanded with total assets reaching ¥2.26 trillion though the equity ratio declined, and it maintained guidance for fiscal 2025, targeting 6.9% revenue growth and a 16.3% rise in full-year profit alongside a planned dividend increase to ¥30 per share.

The most recent analyst rating on (JP:4543) stock is a Hold with a Yen2229.00 price target. To see the full list of analyst forecasts on Terumo stock, see the JP:4543 Stock Forecast page.