Terumo (4543) AI Stock Analysis

• Market Cap: $3.83T
• Dividend Yield: 1%
• Average Volume (3M): 3.95M
• Price to Earnings (P/E): 32.9
• Beta (1Y): 0.77
• Revenue Growth: 12.40%
• EPS Growth: 10.46%
• Country: JP
• Employees: 30,207
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 12.48
• Shares Outstanding: 1,480,559,700
• 10 Day Avg. Volume: 3,925,750
• 30 Day Avg. Volume: 3,951,380
• PEG Ratio: -4.83
• Price to Book (P/B): 2.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 25.33
• 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: $3,086.22
• Price Target Upside: 19.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• Price Target: ¥2,894.00 ▲(11.82%Upside)

Terumo's overall score is driven by its strong financial performance and positive earnings call guidance. While technical analysis suggests neutral momentum, the high valuation presents a potential risk. The strategic growth plans and robust profitability outlook are notable strengths.

Positive Factors

Innovation Recognition

Terumo has been recognized for its innovative needle technology, making it a top choice for pharmaceutical packaging of popular GLP-1 weight loss drugs.

Market Expansion

The joint venture with Weigao Blood Purification allows Terumo to tap into China's large market, potentially increasing its market presence.

Product Advancement

Terumo is following the market movement from predominantly glass-focused syringes to polymeric materials, bringing along multiple benefits including higher break resistance and less risk of reaction with drugs.

Negative Factors

Growth Opportunities

The delay in the IPO of Weigao Blood Purification on the HKEX could be detrimental to Terumo, as the listing could boost growth.

Market Expansion

The delay in the IPO of Weigao Blood Purification could be detrimental to Terumo, as the listing could boost growth.

Pricing Pressure

There is a risk of price cuts for hemodialysis systems in China due to the country's Volume Based Procurement scheme.

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 Corporation generates revenue primarily through the sale of its medical devices and systems across various healthcare sectors. Its key revenue streams include the Cardiac and Vascular Company, which provides interventional and cardiovascular products; the General Hospital Company, offering infusion systems, nutritional management, and diabetes care products; and the Blood and Cell Technologies Company, which focuses on blood management systems and therapeutic apheresis. Terumo's earnings are bolstered by its global presence, with significant sales in Japan, the Americas, Europe, and Asia. Strategic partnerships and investments in research and development also play a crucial role in driving innovation and expanding its market share.

Terumo Financial Statement Overview

Summary

Terumo demonstrates strong financial health with notable revenue growth, improved profitability, and robust cash flow generation. The balance sheet shows reduced leverage and strong equity position, enhancing liquidity and operational flexibility.

Income Statement

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

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

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.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.04T	921.86B	820.21B	703.30B	613.84B
Gross Profit	560.67B	454.17B	417.37B	369.34B	326.62B
EBITDA	246.74B	197.69B	188.44B	175.55B	151.38B
Net Income	116.98B	106.37B	89.33B	88.81B	77.27B
Balance Sheet
Total Assets	1.83T	1.83T	1.60T	1.47T	1.35T
Cash, Cash Equivalents and Short-Term Investments	221.87B	206.35B	187.43B	205.31B	201.89B
Total Debt	174.84B	231.85B	231.94B	226.00B	260.57B
Total Liabilities	459.85B	504.31B	491.16B	461.38B	494.53B
Stockholders Equity	1.37T	1.33T	1.11T	1.01T	856.66B
Cash Flow
Free Cash Flow	142.19B	67.56B	45.36B	67.36B	38.36B
Operating Cash Flow	210.80B	146.33B	117.54B	141.47B	121.48B
Investing Cash Flow	-82.48B	-81.47B	-59.12B	-78.45B	-85.32B
Financing Cash Flow	-108.77B	-62.08B	-86.56B	-70.88B	-7.44B

Terumo Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2588.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 2588 is above the 20-day moving average (MA) of 2496.50, below the 50-day MA of 2593.65, and below the 200-day MA of 2803.08, indicating a neutral trend. The MACD of -28.73 indicates Negative momentum. The RSI at 56.67 is Neutral, neither overbought nor oversold. The STOCH value of 88.11 is Negative, 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
4543	73 Outperform	$3.83T	32.85	8.56%	1.00%	12.40%	10.46%
Sector *	52 Neutral	$7.60B	0.11	-62.95%	2.07%	16.16%	0.31%
AHICF	―	$4.36B	62.55	7.09%	0.06%	―	―
HOCPF	―	$45.06B	35.66	20.56%	<0.01%	―	―
5FA	―	€1.29B	40.47	2.07%	2.48%	―	―
OCPNF	―	$13.85B	16.95	15.47%	0.08%	―	―
SSMXF	―	$10.78B	27.10	11.84%	0.07%	―	―

Terumo Corporate Events

Terumo Corporation Issues Stock Options to Enhance Executive Alignment

Terumo Corporation announced the issuance of stock options in the form of share warrants to its executive officers and fellows residing outside Japan. This initiative aims to align the interests of these key personnel with shareholders, enhancing their motivation to contribute to the company’s stock price appreciation and corporate value. The issuance of these share warrants is part of Terumo’s strategy to strengthen its leadership’s commitment to the company’s growth and operational success.

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 Corporation Announces Disposal of Treasury Shares as Restricted Stock Remuneration

Terumo Corporation announced its decision to dispose of 101,606 treasury shares as restricted stock remuneration to its directors, executive officers, Terumo Fellows, and employees. This move aims to align the interests of its leadership with shareholders by tying compensation to stock performance, potentially enhancing enterprise value and stock price.

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 Corporation Reports Strong Financial Growth in FY2024

Terumo Corporation reported a significant increase in its non-consolidated financial results for FY2024 compared to FY2023, with notable growth in revenue, operating profit, ordinary profit, and net profit. The rise in ordinary and net profit was primarily driven by increased dividends received from its consolidated subsidiaries, indicating a strong financial performance and positive impact on stakeholders.

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 Corporation Reports Strong Revenue Growth Despite Decline in Comprehensive Income

Terumo Corporation reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a significant increase in revenue and operating profit compared to the previous year. The company achieved a 12.4% rise in revenue to 1,036,171 million yen and a 12.5% increase in operating profit to 157,668 million yen. Despite these positive results, total comprehensive income saw a substantial decline of 58.7%. The company also announced a two-for-one share split effective April 1, 2024, impacting earnings per share calculations. Looking ahead, Terumo projects continued growth with a modest increase in revenue and a significant rise in profit for the fiscal year ending March 31, 2026.

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.