Terumo (JP:4543)
:4543
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Terumo
(4543)
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Rating:73Outperform
Price Target:
¥2,335.00
▼(-8.59% Downside)
Action:ReiteratedDate:03/26/26
The score is driven primarily by strong financial quality (healthy margins and a low-leverage balance sheet), partially offset by weaker recent cash conversion. Technicals are improving but still mixed versus longer-term averages, while valuation is only moderate given the ~25.6 P/E and ~1.34% yield. The latest earnings call was constructive (beat vs guidance and cost-savings plan) but acknowledged meaningful near-term headwinds from tariffs, FX, and one-time items.
Positive Factors
Very low leverage / strong balance sheet
Terumo’s very low leverage and growing equity provide durable financial flexibility to fund R&D, capex, M&A and absorb cyclical shocks. Low debt reduces refinancing risk and strengthens credit profile, supporting multi-year strategic investments and stable operations.
Negative Factors
Weaker cash conversion
Free cash flow lagging net income and recent decline signal conversion risks from working capital or higher investments. Persistently subpar cash conversion can constrain discretionary spending, limit buybacks/dividends, and reduce buffer against margin shocks over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage / strong balance sheet
Terumo’s very low leverage and growing equity provide durable financial flexibility to fund R&D, capex, M&A and absorb cyclical shocks. Low debt reduces refinancing risk and strengthens credit profile, supporting multi-year strategic investments and stable operations.
Read all positive factors
Terumo (4543) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥3.15T
Dividend Yield1.22%
Average Volume (3M)4.45M
Price to Earnings (P/E)25.6
Beta (1Y)0.55
Revenue Growth7.68%
EPS Growth10.08%
CountryJP
Employees30,207
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)22.14
Shares Outstanding1,480,559,700
10 Day Avg. Volume4,137,290
30 Day Avg. Volume4,454,930
Financial Highlights & Ratios
PEG Ratio3.37
Price to Book (P/B)3.03
Price to Sales (P/S)4.00
P/FCF Ratio29.12
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥2,615.71Price Target Upside2.40% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)105.73
Revenue Forecast (FY)¥1.21T
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....
How the Company Makes Money
Terumo makes money primarily by selling medical devices and, importantly, recurring-use consumables that are required to perform procedures and operate its systems. A major part of its revenue model is a “razor-and-blades” dynamic: it sells capita...
Terumo Earnings Call Summary
Earnings Call Date:Feb 13, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:May 19, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive operational and financial picture: record revenue and record (adjusted) operating profit YTD, strong North American demand, rapid OrganOx margin expansion, and concrete cost-saving initiatives that support the company’s GS26 targets. Offsetting these positives are tangible near-term headwinds — tariff and FX pressure, Q3 one-time expenses that compressed the quarterly margin, a JPY 1.6 billion loss at the Leverkusen plant during start-up, and execution/volume variability in the Rika plasma business and a temporary donor slowdown at OrganOx. Management emphasized that pricing actions and disciplined cost control have largely mitigated tariff impacts and that strategic one-time investments are intended to improve future profitability.Positive Updates
Record Quarterly and YTD Revenue
Consolidated revenue reached a record JPY 831.6 billion on a Q3 year-to-date basis, the highest ever for both the quarter and Q3 YTD. Growth was driven by sustained global demand, particularly in North America.
Negative Updates
Tariff and Foreign Exchange Pressure
Tariffs reduced gross margin by JPY 4.2 billion in Q3 and foreign exchange had a negative impact on both flow and stock bases versus the prior year; gross profit margin on a standalone Q3 basis declined (FX estimated to have reduced gross profit rate by ~1 percentage point).
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Q3-2026 Updates
Positive
Negative
Record Quarterly and YTD Revenue
Consolidated revenue reached a record JPY 831.6 billion on a Q3 year-to-date basis, the highest ever for both the quarter and Q3 YTD. Growth was driven by sustained global demand, particularly in North America.
Read all positive updates
Company Guidance
Terumo said its results have exceeded guidance and reiterated progress toward GS26, reporting Q3 year‑to‑date revenue of JPY 831.6 billion, operating profit JPY 144.9 billion and adjusted operating profit JPY 173.5 billion; North America sales grew ~9% excl. FX while Cardiac & Vascular revenue rose ~8% in local currency. Management quantified headwinds and offsets: tariffs reduced gross profit by JPY 4.2 billion while pricing measures contributed +JPY 3.5 billion, FX weakened margins by about one percentage point, the Leverkusen plant reduced profit by JPY 1.6 billion, and OrganOx (consolidated from Nov. 29) added JPY 2.9 billion of Q3 revenue and JPY 0.5 billion of adjusted OP (OrganOx Y/Y revenue +50%, margin up from 13% to 21%). They disclosed purchase-accounting amortization of roughly JPY 4 billion in this fiscal year and JPY 7 billion next year, one‑time overseas restructuring/severance of about JPY 1 billion in FY26 and expected annualized workforce cost savings of ~JPY 3 billion from the following year, while reiterating GS26 targets of late double‑digit revenue growth, a ~20% operating profit margin and ~10% ROIC.Terumo Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
72
Positive
| 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
Negative
2554.50
Price Trends
2055.04
Positive
2170.34
Negative
2351.38
Negative
Market Momentum
31.96
Negative
52.77
Neutral
27.99
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 2122.74, above the 50-day MA of 2055.04, and above the 200-day MA of 2351.38, indicating a neutral trend. The MACD of 31.96 indicates Negative momentum. The RSI at 52.77 is Neutral, neither overbought nor oversold. The STOCH value of 27.99 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥3.15T | 25.64 | 8.98% | 1.22% | 7.68% | 10.08% | |
71 Outperform | ¥864.01B | 16.38 | 9.38% | 1.88% | 1.51% | -12.59% | |
71 Outperform | ¥153.49B | 18.72 | ― | 2.73% | 5.10% | -26.13% | |
68 Neutral | ¥933.94B | 24.33 | 11.64% | 0.82% | 13.53% | -7.39% | |
62 Neutral | ¥269.19B | 5.59 | 4.38% | 2.03% | 6.04% | 733.13% | |
59 Neutral | ¥1.69T | 38.56 | 11.34% | 1.01% | 0.42% | 34.76% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
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Terumo Corporate Events
Terumo Delivers Higher Nine-Month Profits and Confirms Full-Year Guidance
Feb 13, 2026
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%...
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.