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Terumo (JP:4543)
:4543
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Terumo (4543) AI Stock Analysis

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JP:4543

Terumo

(OTC:4543)

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Outperform 70 (OpenAI - 4o)
Rating:70Outperform
Price Target:
¥2,729.00
▲(6.83% Upside)
Terumo's strong financial performance and positive earnings call sentiment are the most significant factors contributing to its score. However, technical analysis indicates a bearish trend, and the valuation suggests the stock may be overvalued. These factors collectively result in a moderate overall stock score.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong demand and effective market strategies, reinforcing Terumo's position in the medical technology sector.
Operating Profit Growth
Strong operating profit growth reflects efficient cost management and successful pricing strategies, enhancing long-term profitability.
Cardiovascular Segment Performance
The cardiovascular segment's robust growth underscores Terumo's competitive advantage and market leadership in high-demand areas.
Negative Factors
Free Cash Flow Decrease
A decrease in free cash flow could constrain Terumo's ability to invest in growth opportunities and manage financial obligations effectively.
Impact of Tariffs
Tariff impacts could pressure margins and profitability, necessitating strategic adjustments to mitigate long-term financial effects.
Revenue Decline in TMCS
Temporary revenue declines in TMCS highlight potential vulnerabilities in product supply and business strategy that need addressing.

Terumo (4543) vs. iShares MSCI Japan ETF (EWJ)

Terumo Business Overview & Revenue Model

Company DescriptionTerumo Corporation (4543) is a global medical technology company based in Japan, specializing in a wide range of healthcare products and services. The company operates primarily in two sectors: Medical Devices and Blood Management. Terumo's core offerings include vascular access devices, transfusion systems, and interventional cardiology products. The company is committed to advancing medical technology and improving patient outcomes through innovative solutions.
How the Company Makes MoneyTerumo 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 Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Positive
The earnings call reflects a predominantly positive outlook with record-high revenue, strong operating profit growth, and effective pricing strategies. However, challenges such as decreased free cash flow, temporary revenue declines in specific segments, and potential future impacts from tariffs were noted.
Q1-2026 Updates
Positive Updates
Record-High Quarterly Revenue
Achieved record-high quarterly revenue of JPY 260 billion for Q1, with total revenue growing by 6% excluding foreign exchange effects.
Strong Operating Profit Growth
Operating profit grew significantly faster than revenue, reaching a record JPY 55.9 billion, supported by improved gross margin from pricing strategies and cost management.
Cardiovascular Company Performance
Revenue grew 7% on a local currency basis, driven by strong performance in the U.S. TIS and Neuro led the growth, and operating margin improved by 5 points to 29%.
TBCT Blood and Cell Technologies Growth
Revenue grew significantly in plasma innovation under Global Blood Solutions, with further revenue growth expected as operations optimize.
Sustainable Price Increases
Company-wide pricing measures are having a greater-than-expected effect, especially in the Cardiovascular segment.
Negative Updates
Free Cash Flow Decrease
Free cash flow was JPY 10.5 billion, a decrease of JPY 4.2 billion year-on-year due to an increase in inventories and impact from tariffs.
Revenue Decline in TMCS Medical Care Solutions
Revenue declined temporarily due to business divestitures in hospital care and supply issues for some products.
Impact of Tariffs
Estimated full-year impact of tariffs is around JPY 10 billion, with most of the impact expected in the second half of the fiscal year.
Company Guidance
In the earnings call for Terumo, CFO Jin Hagimoto provided a detailed overview of the financial results for the first quarter of fiscal year 2025, highlighting several key metrics. The company achieved a record-high quarterly revenue of JPY 260 billion, driven by a 6% growth in total revenue excluding foreign exchange effects, with strong demand particularly in the U.S. Operating profit reached JPY 55.9 billion, supported by improved gross margins from pricing strategies and cost control. Free cash flow was JPY 10.5 billion, a decrease of JPY 4.2 billion year-on-year, primarily due to increased inventories and tariffs. Despite negative currency impacts, the cardiovascular segment saw a 7% revenue growth in local currency, with TIS and Neuro leading the performance. The company maintained its full-year guidance, citing strong fundamentals and effective pricing measures to mitigate tariff impacts.

Terumo Financial Statement Overview

Summary
Terumo demonstrates strong financial health with impressive growth in revenue and profitability. The balance sheet is solid with reduced leverage and strong equity. Cash flow generation is excellent, enhancing liquidity and operational flexibility.
Income Statement
85
Very Positive
Terumo has demonstrated strong revenue growth with a substantial increase of 12.45% in the latest fiscal year. The gross profit margin is robust, indicating effective cost management. Net profit margin improved to 11.29%, reflecting enhanced profitability. Both EBIT and EBITDA margins are solid, showcasing operational efficiency.
Balance Sheet
78
Positive
The balance sheet presents a healthy equity position with an equity ratio of 74.86%, suggesting financial stability. The debt-to-equity ratio has decreased, indicating reduced leverage risk. Return on equity is strong at 8.55%, showing effective use of equity to generate profits.
Cash Flow
72
Positive
Free cash flow has grown significantly by 110.50%, highlighting improved cash generation capabilities. The operating cash flow to net income ratio is 1.80, indicating strong cash generation from operations. The free cash flow to net income ratio is also favorable at 1.22, reinforcing the company's liquidity position.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.04T1.04T921.86B820.21B703.30B613.84B
Gross Profit568.57B560.67B454.17B417.37B369.34B326.62B
EBITDA255.56B246.74B197.69B188.44B175.55B151.38B
Net Income124.93B116.98B106.37B89.33B88.81B77.27B
Balance Sheet
Total Assets1.80T1.83T1.83T1.60T1.47T1.35T
Cash, Cash Equivalents and Short-Term Investments204.29B222.15B206.33B187.38B205.31B200.83B
Total Debt169.85B213.96B268.55B266.67B259.01B293.08B
Total Liabilities430.36B459.85B504.31B491.16B461.37B494.53B
Stockholders Equity1.37T1.37T1.33T1.11T1.01T856.66B
Cash Flow
Free Cash Flow137.39B142.19B85.60B64.84B87.95B59.17B
Operating Cash Flow207.74B210.80B146.33B117.54B141.47B121.48B
Investing Cash Flow-83.66B-82.48B-81.47B-59.12B-78.45B-85.32B
Financing Cash Flow-101.37B-108.77B-62.08B-86.56B-70.88B-7.44B

Terumo Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2554.50
Price Trends
50DMA
2556.57
Negative
100DMA
2558.94
Negative
200DMA
2658.99
Negative
Market Momentum
MACD
3.79
Negative
RSI
45.14
Neutral
STOCH
47.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4543, the sentiment is Negative. The current price of 2554.5 is above the 20-day moving average (MA) of 2512.25, below the 50-day MA of 2556.57, and below the 200-day MA of 2658.99, indicating a bearish trend. The MACD of 3.79 indicates Negative momentum. The RSI at 45.14 is Neutral, neither overbought nor oversold. The STOCH value of 47.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4543.

Terumo Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$7.87T38.4621.19%0.89%9.89%10.30%
$2.07T18.6414.88%1.05%0.59%557.87%
¥3.67T30.279.17%1.13%7.58%6.74%
$1.14T23.8310.48%1.71%5.09%-9.10%
$628.13B49.298.67%1.02%11.60%-19.38%
¥244.24B43.512.49%2.00%8.83%-40.24%
$7.86B-0.30-43.30%2.27%22.53%-2.21%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4543
Terumo
2,475.00
-438.03
-15.04%
JP:7747
Asahi Intecc Co
2,381.00
-60.26
-2.47%
JP:7741
HOYA
24,225.00
3,735.62
18.23%
JP:8086
Nipro
1,497.50
107.20
7.71%
JP:7733
Olympus
1,907.00
-776.64
-28.94%
JP:6869
Sysmex
1,724.50
-1,082.47
-38.56%

Terumo Corporate Events

Terumo Corporation Revises Shareholder Benefit Program to Boost Engagement
Sep 11, 2025

Terumo Corporation announced an amendment to its Shareholder Benefit Program, effective from March 31, 2026. The changes aim to increase shareholder engagement by offering electronic coupons and exclusive benefits to long-term shareholders, thereby enhancing the investment appeal and promoting a deeper understanding of its business activities.

The most recent analyst rating on (JP:4543) stock is a Buy with a Yen2915.00 price target. To see the full list of analyst forecasts on Terumo stock, see the JP:4543 Stock Forecast page.

Terumo Acquires OrganOx to Enter Organ Transplantation Sector
Aug 24, 2025

Terumo Corporation has announced its acquisition of OrganOx Limited for approximately USD 1.5 billion, marking its strategic entry into the organ transplantation sector. This move is expected to enhance Terumo’s business portfolio and address significant unmet medical needs by improving organ preservation and utilization rates, ultimately benefiting transplant patients and healthcare providers globally.

The most recent analyst rating on (JP:4543) stock is a Buy with a Yen3165.00 price target. To see the full list of analyst forecasts on Terumo stock, see the JP:4543 Stock Forecast page.

Terumo Corporation Reports Modest Revenue Growth
Aug 8, 2025

Terumo Corporation is a leading Japanese medical device company listed on the Tokyo Stock Exchange, specializing in cardiac and vascular solutions, medical care solutions, and blood and cell technologies.

Terumo’s Earnings Call: Record Revenue Amid Challenges
Aug 8, 2025

During the recent earnings call, Terumo conveyed a mixed sentiment, marked by robust revenue and profit growth, particularly in the Americas and cardiovascular segments. However, the company also expressed concerns over tariff impacts, temporary revenue declines in certain segments, and a decrease in free cash flow.

Terumo Corporation Reports Increased Profits and Dividend Guidance
Aug 7, 2025

Terumo Corporation reported a modest increase in revenue for the three months ended June 30, 2025, with a 0.7% rise compared to the previous year. However, the company saw significant growth in operating profit and profit before tax, indicating improved operational efficiency. The financial results highlight Terumo’s strong market positioning and its ability to enhance profitability despite a challenging market environment. The company also announced an increase in its annual dividend guidance, reflecting confidence in its financial stability and commitment to shareholder returns.

The most recent analyst rating on (JP:4543) stock is a Buy with a Yen3800.00 price target. To see the full list of analyst forecasts on Terumo stock, see the JP:4543 Stock Forecast page.

Terumo Finalizes Stock Options Issuance Details
Aug 4, 2025

Terumo Corporation has finalized the details regarding the issuance of stock options, specifically Share Warrants No.13, as resolved in their July 17, 2025 Board of Directors meeting. The allocation involves 5,233 warrants distributed among group executive officers, executive officers, and fellows, with a subscription price set at 18,960 yen per warrant. This move is likely aimed at incentivizing leadership and aligning their interests with the company’s long-term goals.

The most recent analyst rating on (JP:4543) stock is a Buy with a Yen3800.00 price target. To see the full list of analyst forecasts on Terumo stock, see the JP:4543 Stock Forecast page.

Terumo Completes Disposal of Treasury Shares for Stock Remuneration
Aug 4, 2025

Terumo Corporation has completed the disposal of 101,606 treasury shares as part of its Restricted Stock remuneration plan. This move, involving directors, executive officers, Terumo Fellows, and employees, signifies a strategic step in aligning the interests of its key stakeholders with the company’s performance, potentially enhancing its market positioning and operational focus.

The most recent analyst rating on (JP:4543) stock is a Buy with a Yen3800.00 price target. To see the full list of analyst forecasts on Terumo stock, see the JP:4543 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: Oct 30, 2025