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 Money

Tsumura & Co Financial Statement Overview

Summary

Tsumura & Co is in a strong financial position with consistent revenue growth, robust profit margins, and improving cash flows. The balance sheet is solid with a conservative debt-to-equity ratio and substantial ROE. While liabilities could pose a risk if not monitored, the overall financial health is robust.

Income Statement

Very Positive

Tsumura & Co has demonstrated a strong performance with consistent revenue growth, notably increasing from previous years. The TTM (Trailing-Twelve-Months) data shows a revenue growth rate of approximately 13.9% compared to the previous year. Gross profit margins are robust at 48.7%, and net profit margins are healthy at 15.8%. EBIT and EBITDA margins are also strong at 19.4% and 25.8%, respectively, indicating efficient operations and strong profitability.

Balance Sheet

Positive

The balance sheet is solid with a debt-to-equity ratio of 0.28, reflecting a conservative level of leverage. The return on equity (ROE) is substantial at 9.3%, indicating effective use of shareholders' equity to generate profits. The equity ratio stands at 62.9%, showcasing a strong capital structure with a significant portion of assets financed by equity. However, the relatively high level of total liabilities, though manageable, could pose a risk if not carefully monitored.

Cash Flow

Positive

Cash flow from operations remains strong, with a significant increase in free cash flow in the TTM period, growing from a negative figure in the previous year to 7.27 billion. The operating cash flow to net income ratio is robust at 1.06, indicating efficient cash generation relative to net income. The free cash flow to net income ratio has improved significantly, reflecting better capital expenditure management.

TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
Income Statement		Total Revenue
171.79B	150.84B	140.04B	129.55B	130.88B	123.25B
	Gross Profit
83.56B	68.82B	68.28B	66.47B	74.93B	72.50B
	EBIT
33.25B	20.02B	20.92B	22.38B	19.38B	18.88B
	EBITDA
44.38B	34.82B	31.53B	31.57B	28.00B	25.28B
	Net Income Common Stockholders
27.12B	16.71B	16.48B	18.84B	15.33B	13.77B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
83.05B	78.08B	94.75B	67.55B	61.31B	61.96B
	Total Assets
463.81B	428.25B	396.81B	350.98B	319.06B	311.04B
	Total Debt
80.36B	79.69B	79.69B	49.69B	52.85B	65.27B
	Net Debt
-132.00M	1.61B	-15.06B	-17.86B	-8.46B	3.31B
	Total Liabilities
145.49B	132.89B	124.57B	92.87B	85.89B	97.99B
	Stockholders Equity
291.89B	270.80B	252.04B	239.77B	217.78B	205.38B
Cash Flow		Free Cash Flow
7.27B	-14.45B	1.74B	10.73B	6.69B	7.64B
	Operating Cash Flow
28.88B	5.61B	16.45B	21.31B	16.10B	18.19B
	Investing Cash Flow
-18.65B	-19.35B	-15.49B	-9.11B	-7.35B	-23.49B
	Financing Cash Flow
-8.54B	-4.42B	24.42B	-8.18B	-10.43B	7.11B

Tsumura & Co Peers Comparison

Overall Rating

UnderperformOutperform

Sector (54)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSMRF		$1.76B	10.69	11.16%	3.01%	―	―
Sector *	54 Neutral	$5.31B	3.29	-45.39%	2.79%	16.77%	-0.07%
DNPUF		$2.20B	15.17	13.50%	―	―	―
HTSUF		$2.24B	16.67	7.90%	1.81%	―	―
KSPHF		$1.22B	15.08	5.47%	2.44%	―	―
TRXPF		$1.23B	28.25	4.56%	2.13%	―	―
4569	73 Outperform	¥78.43B	9.42		3.49%	8.83%	70.61%

* Healthcare Sector Average

Performance Comparison

TSMRF

Tsumura & Co

29.95

4.97

19.90%

DNPUF

Sumitomo Dainippon Pharma Co

5.58

3.32

146.90%

HTSUF

Hisamitsu Pharmaceutical Co

32.30

8.48

35.60%

KSPHF

Kissei Pharmaceutical Co

27.13

6.99

34.71%

TRXPF

Torii Pharmaceutical Co

36.62

13.56

58.80%

JP:4569

KYORIN Pharmaceutical Co.,Ltd.

1,490.00

-144.70

-8.85%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

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