Teijin (3401) AI Stock Analysis

0 Followers

Top Page

Teijin

(OTC:3401)

52Neutral

Teijin's overall stock score of 52 reflects mixed financial performance with operational challenges, particularly in the Materials and Healthcare segments. While technical indicators suggest bearish momentum, the company is attractively valued with a low P/E ratio and a high dividend yield. The company's strategic adjustments and positive earnings outlook offer potential for improvement, but risks remain.

Teijin (3401) vs. S&P 500 (SPY)

Market Cap

¥218.22B

Dividend Yield4.32%

Average Volume (3M)749.37K

Price to Earnings (P/E)7.7

Beta (1Y)0.67

Revenue Growth1.58%

EPS GrowthN/A

CountryJP

Employees21,834

SectorIndustrials

Sector Strength88

IndustryConglomerates

Share Statistics

EPS (TTM)-117.51

Shares Outstanding197,953,700

10 Day Avg. Volume747,510

30 Day Avg. Volume749,373

Financial Highlights & Ratios

PEG Ratio<0.01

Price to Book (P/B)0.35

Price to Sales (P/S)0.00

P/FCF Ratio-271.04

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

¥1,280.31

Price Target Upside11.67% Upside

Rating ConsensusHold

Number of Analyst Covering0

Teijin Business Overview & Revenue Model

Company DescriptionTeijin Limited is a Japanese chemical, pharmaceutical, and information technology company. Founded in 1918, it operates through several segments including Advanced Fibers and Composites, Healthcare, IT, and Products Converting. The company is known for its innovative high-performance fibers, such as aramid and carbon fibers, as well as its resin and plastic processing solutions. Teijin also provides healthcare solutions, including pharmaceuticals and home healthcare equipment, and IT services ranging from data management to software development.

How the Company Makes MoneyTeijin makes money through its diversified business operations across several key segments. The Advanced Fibers and Composites segment is a major revenue driver, selling high-performance materials to industries such as automotive, aerospace, and electronics. In the Healthcare sector, Teijin generates income by providing pharmaceuticals and home healthcare services, which include medical devices and nursing care solutions. The IT segment contributes by offering IT services and solutions, leveraging partnerships with other tech companies and institutions. Furthermore, Teijin's Products Converting segment enhances its revenue by processing and selling plastic and resin products. The company's strategic collaborations and continuous innovation in materials and technology play a significant role in its earnings.

Teijin Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
Income Statement		Total Revenue
1.03T	1.03T	1.02T	926.05B	836.51B	853.75B
	Gross Profit
212.87B	275.77B	248.14B	271.02B	255.00B	263.43B
	EBIT
-35.04B	13.54B	12.86B	44.21B	54.93B	56.20B
	EBITDA
49.28B	118.08B	84.36B	113.02B	106.77B	107.16B
	Net Income Common Stockholders
58.13B	10.60B	-17.70B	23.16B	-6.66B	25.25B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
221.98B	125.92B	142.78B	134.48B	170.19B	149.50B
	Total Assets
1.22T	1.25T	1.24T	1.21T	1.04T	1.00T
	Total Debt
516.43B	495.72B	526.16B	483.64B	378.59B	369.68B
	Net Debt
306.80B	369.80B	383.38B	349.16B	208.41B	256.18B
	Total Liabilities
752.60B	769.09B	791.35B	742.77B	608.17B	592.81B
	Stockholders Equity
459.87B	454.58B	425.66B	440.38B	407.05B	394.94B
Cash Flow		Free Cash Flow
-980.00M	4.41B	-2.65B	-110.82B	46.80B	23.89B
	Operating Cash Flow
40.83B	69.45B	55.09B	89.66B	107.73B	94.21B
	Investing Cash Flow
59.18B	-46.05B	-52.43B	-198.38B	-79.59B	-67.92B
	Financing Cash Flow
-13.30B	-43.16B	7.18B	71.11B	-20.88B	-8.06B

Teijin Technical Analysis

Technical Analysis Sentiment

Negative

Last Price1146.50

Price Trends

50DMA

1250.15

Negative

100DMA

1267.52

Negative

200DMA

1300.68

Negative

Market Momentum

MACD

-17.25

Negative

RSI

38.62

Neutral

STOCH

28.97

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3401, the sentiment is Negative. The current price of 1146.5 is below the 20-day moving average (MA) of 1169.15, below the 50-day MA of 1250.15, and below the 200-day MA of 1300.68, indicating a bearish trend. The MACD of -17.25 indicates Negative momentum. The RSI at 38.62 is Neutral, neither overbought nor oversold. The STOCH value of 28.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3401.

Teijin Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4004	69 Neutral	¥529.11B	7.19	6.01%	2.15%	5.93%	82.41%
3402	65 Neutral	$1.50T	19.15	4.47%	2.15%	5.88%	17.27%
3407	65 Neutral	$1.34T	10.10	7.25%	3.40%	8.35%	―
Sector *	64 Neutral	$4.39B	12.06	5.17%	249.63%	4.03%	-11.04%
3101	57 Neutral	¥80.45B	39.83		4.42%	3.10%	―
3401	52 Neutral	¥218.22B	7.72	-17.62%	4.32%	1.58%	―
4005	51 Neutral	$596.60B	15.45	3.96%	2.16%	4.08%	-6.32%

* Industrials Sector Average

Performance Comparison

JP:3401

Teijin

1,125.00

-236.67

-17.38%

JP:4005

Sumitomo Chemical Co

348.30

34.08

10.84%

JP:4004

Showa Denko KK

2,930.50

-618.32

-17.42%

JP:3402

Toray Industries

967.10

195.22

25.29%

JP:3101

Toyobo Co

887.00

-136.53

-13.34%

JP:3407

Asahi Kasei

982.80

-21.86

-2.18%

Teijin Earnings Call Summary

Earnings Call Date:May 12, 2025

(Q3-2024)

% Change Since: -4.82%|

Next Earnings Date:Aug 11, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted a positive turnaround in net income and an improved operating income forecast. However, significant challenges remain in the Materials and Healthcare segments, with operational issues in the Composites and Aramid businesses. The company faces external pressures from strikes and generic competition but is taking steps to improve profitability.

Q3-2024 Updates

Positive Updates

Positive Net Income Turnaround

Net income was JPY 3.5 billion, turning black from the previous year's loss.

Improved Operating Income Forecast

Operating income is expected to be JPY 18 billion for the full year, up slightly less than 40% from the previous year.

Fibers & Products Segment Growth

Operating income increased by JPY 1.4 billion from the previous year to JPY 9.3 billion in the Fibers & Products segment.

Insurance Income

The company recorded insurance income from the Aramid business fire of more than JPY 5 billion.

Strong Performance in IT Segment

The IT segment saw a JPY 0.9 billion increase in profit over the previous year, with strong sales in the Internet business field.

Negative Updates

Materials Business Loss

The materials business remains at an operating income level of negative JPY 5.8 billion.

Healthcare Business Decline

The Healthcare business saw a JPY 19.2 billion decrease in operating profit over the previous year, with a subdued level of JPY 1.8 billion.

Impact of UAW Strike and Equipment Failures

The Composites business was affected by the UAW strike and recurring equipment breakdowns, leading to operational challenges.

Aramid Business Sales Decline

Sales volume in the Aramid business decreased due to inventory adjustments by customers and a slowdown in demand since November.

Negative Impact from Generic Alternatives

The entry of a generic version of FEBURIC affected the Healthcare segment, resulting in a significantly lower forecast over the previous year.

Company Guidance

In the earnings call for the third quarter of 2024, company executives Eiji Ogawa and Akimoto Uchikawa provided a detailed analysis of financial performance and strategic initiatives. For the first nine months of the fiscal year, net sales remained steady at JPY 759.6 billion, while operating income fell by JPY 10 billion to JPY 4.9 billion, mainly due to a one-off contract fee. The company's net income turned positive at JPY 3.5 billion, reversing last year's loss. The full-year forecast predicts net sales of JPY 1,030 billion and operating income of JPY 18 billion, which is a 40% increase from the previous year but JPY 17 billion below the earlier forecast. Uchikawa discussed the profitability improvement measures, with a focus on underperforming sectors like Composites and Healthcare, aiming for JPY 19 billion in profit improvements. Despite challenges like the UAW strike and equipment failures in North America, some segments, such as Fibers & Products, showed robust performance with a JPY 1.4 billion increase in operating income to JPY 9.3 billion. The Healthcare business, however, saw a JPY 19.2 billion drop in operating profit, influenced by the entry of a generic competitor to their main drug. The executives also highlighted ongoing efforts to stabilize gas prices and improve productivity, with a strategic focus on addressing low ROE and enhancing shareholder value.

Teijin Corporate Events

Teijin Limited Transfers North American Subsidiary to Focus on European Market

Mar 31, 2025

Teijin Limited has decided to transfer its shares in Teijin Automotive Technologies NA Holdings Corp., its North American subsidiary, to Stork BidCo Inc., a company under AURELIUS Private Equity. This decision comes as part of Teijin’s Medium-Term Management Plan 2024-2025, following challenges in achieving expected profitability due to external factors like the COVID-19 pandemic and labor shortages. The move signifies Teijin’s withdrawal from the North American automotive composites market, while it continues to focus on its profitable European operations, aiming to expand in the environmentally conscious mobility sector.

Teijin Reports Robust Financial Growth Amid Strategic Investments

Feb 6, 2025

Teijin Limited reported significant financial growth for the nine months ending December 31, 2024, with a 6.7% increase in revenue to 756,112 million yen and a dramatic rise in profit attributable to owners of the parent by 320.2%. Despite a negative operating income, the company’s comprehensive income also rose significantly, indicating effective cost management and strategic investments. The company plans to maintain its dividend outlook and has shown improvements in its equity position, highlighting its commitment to delivering value to shareholders.

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

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.