Tsumura & Co (4540) AI Stock Analysis

• Market Cap: ¥273.82B
• Dividend Yield: 3.83%
• Average Volume (3M): 369.12K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.55
• Revenue Growth: 14.60%
• EPS Growth: 8.97%
• Country: JP
• Employees: 4,138
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 58.16
• Shares Outstanding: 76,758,360
• 10 Day Avg. Volume: 356,220
• 30 Day Avg. Volume: 369,120
• PEG Ratio: 0.11
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 1.81
• P/FCF Ratio: 52.57
• 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: ¥4,635.50
• Price Target Upside: 28.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 332.46
• Revenue Forecast (FY): ¥190.40B

• Rating: 66 Neutral
• Price Target: ¥3,870.00 ▲(7.53% Upside)

Tsumura & Co's overall stock score is driven by its solid financial performance and attractive valuation. The company's profitability and stable balance sheet are key strengths, although the decline in revenue growth and cash flow challenges need addressing. Technical indicators suggest a neutral to slightly positive outlook, with potential bullish momentum. The low P/E ratio and high dividend yield enhance its appeal to value and income-focused investors.

Tsumura & Co Business Overview & Revenue Model

Company Description

Tsumura & 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. generates revenue primarily through the sale of its Kampo herbal medicines, which are prescribed by healthcare professionals in Japan and increasingly recognized in international markets. The company benefits from a strong distribution network and partnerships with pharmacies and medical institutions. In addition to direct sales, Tsumura earns revenue from licensing agreements and collaborations with other pharmaceutical companies for the development of new drugs based on its proprietary herbal formulations. The growing global interest in natural and alternative medicine has also contributed positively to its revenue streams, alongside ongoing investments in research and development to innovate and expand its product offerings.

Tsumura & Co Financial Statement Overview

Summary

Tsumura & Co is performing robustly across all financial aspects. The company is experiencing significant revenue and profit growth, supported by strong margins. Its balance sheet is solid, with low leverage and a strong equity position. Cash flow metrics indicate effective cash management, with significant improvements in free cash flow. While the company is on a positive growth trajectory, there remains potential for further enhancement in returns on equity and cash flow efficiency.

Income Statement

Tsumura & Co has demonstrated strong revenue growth with a 20.06% increase from the previous year. The Gross Profit Margin for the latest period stands at 50.04%, indicating robust cost management. The Net Profit Margin is also healthy at 17.91%, reflecting effective control over operating expenses. The EBIT Margin and EBITDA Margin are 22.16% and 31.61%, respectively, showcasing operational efficiency. These figures signify a company that is both growing and maintaining profitability.

Balance Sheet

The company exhibits a stable financial structure with a Debt-to-Equity Ratio of 0.23, indicating manageable leverage. The Return on Equity is 10.79%, which is satisfactory but shows room for improvement in generating returns for shareholders. The Equity Ratio of 64.71% suggests a strong capital base, enhancing financial stability and reducing risk. Overall, the balance sheet reflects a well-capitalized company with good financial health.

Cash Flow

Tsumura & Co has shown substantial improvement in Free Cash Flow, achieving a positive turnaround with a Free Cash Flow Growth Rate of 143.14%. The Operating Cash Flow to Net Income Ratio is 1.04, indicating efficient cash generation relative to earnings. The Free Cash Flow to Net Income Ratio is 0.19, suggesting that although cash flow generation is improving, there is still potential for enhancement. The company demonstrates strong cash flow management, supporting its growth trajectory.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	180.50B	181.09B	150.84B	140.04B	129.55B	130.88B
Gross Profit	88.27B	90.58B	68.82B	68.28B	66.47B	74.93B
EBITDA	54.55B	57.25B	34.82B	33.89B	31.57B	28.00B
Net Income	25.61B	32.43B	16.71B	16.48B	18.84B	15.33B
Balance Sheet
Total Assets	465.58B	464.38B	428.25B	396.81B	350.98B	319.06B
Cash, Cash Equivalents and Short-Term Investments	82.34B	73.23B	78.08B	94.75B	67.55B	61.31B
Total Debt	94.11B	70.34B	79.69B	79.69B	49.69B	52.85B
Total Liabilities	146.29B	134.27B	132.89B	124.57B	92.87B	85.89B
Stockholders Equity	289.01B	300.53B	270.80B	252.04B	239.77B	217.78B
Cash Flow
Free Cash Flow	6.90B	6.23B	-14.45B	1.74B	10.73B	6.69B
Operating Cash Flow	34.03B	33.82B	5.61B	16.45B	21.31B	16.10B
Investing Cash Flow	-24.78B	-24.97B	-19.35B	-15.49B	-9.11B	-7.35B
Financing Cash Flow	-1.53B	-19.87B	-4.42B	24.42B	-8.18B	-10.43B

Tsumura & Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3599.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4540, the sentiment is Negative. The current price of 3599 is above the 20-day moving average (MA) of 3575.30, below the 50-day MA of 3608.50, and below the 200-day MA of 3796.00, indicating a bearish trend. The MACD of -8.80 indicates Positive momentum. The RSI at 46.45 is Neutral, neither overbought nor oversold. The STOCH value of 38.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4540.

Tsumura & Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4506	74 Outperform	$828.16B	5.35	79.99%	―	29.92%	―
4530	73 Outperform	¥297.10B	15.05	7.11%	2.58%	3.53%	38.23%
4569	69 Neutral	¥74.54B	7.90	―	3.67%	9.83%	86.18%
4540	66 Neutral	¥273.82B	10.59	9.09%	3.83%	14.60%	8.97%
4551	65 Neutral	―	―	―	―	10.91%	2.93%
4547	63 Neutral	¥163.39B	11.68	6.57%	2.86%	13.11%	41.64%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Tsumura & Co Corporate Events

Tsumura & Co. Enhances Stock Compensation System with Additional Funding

Tsumura & Co. announced an additional monetary contribution to its performance-based stock compensation system for directors and executive officers. This move, involving a trust fund of 659 million yen, aims to secure funds for acquiring company shares, reflecting the company’s commitment to aligning management incentives with shareholder interests.

The most recent analyst rating on (JP:4540) stock is a Buy with a Yen4044.00 price target. To see the full list of analyst forecasts on Tsumura & Co stock, see the JP:4540 Stock Forecast page.

Tsumura & Co. Enhances Employee Stock Delivery System with Additional Funding

Tsumura & Co. has announced an additional monetary contribution to its trust-type stock delivery system for employees, known as the Stock Grant ESOP Trust. This decision aims to secure funds for acquiring shares to be delivered to eligible employees, enhancing employee engagement and aligning their interests with the company’s performance.

The most recent analyst rating on (JP:4540) stock is a Buy with a Yen4044.00 price target. To see the full list of analyst forecasts on Tsumura & Co stock, see the JP:4540 Stock Forecast page.

Tsumura & Co Reports Decline in Q1 Financial Results

Tsumura & Co reported a decrease in its consolidated financial results for the first quarter ending June 30, 2025, with net sales slightly declining by 1.4% and significant drops in operating profit and ordinary profit by 27.0% and 56.2%, respectively. The company’s projections for the fiscal year ending March 31, 2026, indicate a modest increase in net sales by 3.8%, but a continued decline in profits, reflecting challenges in maintaining profitability amidst market conditions.

The most recent analyst rating on (JP:4540) stock is a Buy with a Yen6000.00 price target. To see the full list of analyst forecasts on Tsumura & Co stock, see the JP:4540 Stock Forecast page.