DB:TUO

Stock Analysis Report

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Executive Summary

Terumo Corporation develops, manufactures, and distributes medical devices and services worldwide.


Snowflake Analysis

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

How has Terumo's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TUO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.3%

TUO

-8.0%

DE Medical Equipment

-1.6%

DE Market


1 Year Return

23.2%

TUO

20.5%

DE Medical Equipment

8.3%

DE Market

Return vs Industry: TUO exceeded the German Medical Equipment industry which returned 21.7% over the past year.

Return vs Market: TUO exceeded the German Market which returned 3.7% over the past year.


Shareholder returns

TUOIndustryMarket
7 Day1.3%-8.0%-1.6%
30 Day-3.6%-0.3%0.2%
90 Day10.3%-2.4%12.8%
1 Year24.2%23.2%22.1%20.5%10.7%8.3%
3 Year99.0%94.1%131.5%126.7%3.8%-4.5%
5 Year157.7%146.1%237.6%224.4%9.6%-5.2%

Price Volatility Vs. Market

How volatile is Terumo's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Terumo undervalued compared to its fair value and its price relative to the market?

35.81x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TUO (€32) is trading above our estimate of fair value (€21.92)

Significantly Below Fair Value: TUO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TUO is good value based on its PE Ratio (35.8x) compared to the DE Medical Equipment industry average (52.3x).

PE vs Market: TUO is poor value based on its PE Ratio (35.8x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: TUO is poor value based on its PEG Ratio (4.2x)


Price to Book Ratio

PB vs Industry: TUO is good value based on its PB Ratio (4.1x) compared to the DE Medical Equipment industry average (5x).


Next Steps

Future Growth

How is Terumo forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

8.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TUO's forecast earnings growth (8.6% per year) is above the savings rate (0.2%).

Earnings vs Market: TUO's earnings (8.6% per year) are forecast to grow slower than the German market (23.3% per year).

High Growth Earnings: TUO's earnings are forecast to grow, but not significantly.

Revenue vs Market: TUO's revenue (5.2% per year) is forecast to grow slower than the German market (5.8% per year).

High Growth Revenue: TUO's revenue (5.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TUO's Return on Equity is forecast to be low in 3 years time (11.3%).


Next Steps

Past Performance

How has Terumo performed over the past 5 years?

17.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TUO has high quality earnings.

Growing Profit Margin: TUO's current net profit margins (13.5%) are higher than last year (13.3%).


Past Earnings Growth Analysis

Earnings Trend: TUO's earnings have grown by 17.9% per year over the past 5 years.

Accelerating Growth: TUO's earnings growth over the past year (7.2%) is below its 5-year average (17.9% per year).

Earnings vs Industry: TUO earnings growth over the past year (7.2%) exceeded the Medical Equipment industry 0.9%.


Return on Equity

High ROE: TUO's Return on Equity (11.3%) is considered low.


Next Steps

Financial Health

How is Terumo's financial position?


Financial Position Analysis

Short Term Liabilities: TUO's short term assets (¥460.6B) exceed its short term liabilities (¥211.8B).

Long Term Liabilities: TUO's short term assets (¥460.6B) exceed its long term liabilities (¥274.6B).


Debt to Equity History and Analysis

Debt Level: TUO's debt to equity ratio (32.6%) is considered satisfactory.

Reducing Debt: TUO's debt to equity ratio has reduced from 40.7% to 32.6% over the past 5 years.

Debt Coverage: TUO's debt is well covered by operating cash flow (47.7%).

Interest Coverage: TUO's interest payments on its debt are well covered by EBIT (135.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Terumo current dividend yield, its reliability and sustainability?

0.69%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: TUO's dividend (0.69%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.25%).

High Dividend: TUO's dividend (0.69%) is low compared to the top 25% of dividend payers in the German market (3.83%).


Stability and Growth of Payments

Stable Dividend: TUO's dividends per share have been stable in the past 10 years.

Growing Dividend: TUO's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24.6%), TUO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Shinjiro Sato

3.33yrs

Tenure

JP¥137,000,000

Compensation

Mr. Shinjiro Sato has been the President and Chief Executive Officer at Terumo Corporation since April 2017 and served as its Managing Executive Officer of Terumo Corporation since April 2015. Mr. Sato ser ...


CEO Compensation Analysis

Compensation vs Market: Shinjiro's total compensation ($USD1.30M) is below average for companies of similar size in the German market ($USD5.26M).

Compensation vs Earnings: Shinjiro's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Shinjiro Sato
President3.33yrsJP¥137.00m0.0051%
¥ 1.3m
Naoki Muto
Chief Accounting & Financial Officer and Executive Officerno datano datano data
Hiroaki Kasukawa
CTO & Executive Officerno datano datano data
Katsuya Takeuchi
Chief Information Officer & Executive Officer4.33yrsno datano data
Miho Mizuguchi
Executive Officer4.33yrsno datano data
Atsuo Omagari
General Manager of Corporate Communication Departmentno datano datano data
Kyo Nishikawa
Senior Executive Officerno datano datano data
Toshiaki Takagi
Senior Managing Executive Officer10.17yrsno datano data
Kazuaki Kitabatake
Managing Executive Officerno datano datano data
Tsuyoshi Tomita
Senior Executive Officerno datano datano data
Takanori Shibazaki
Senior Executive Officerno datano datano data
Hikaru Samejima
Managing Executive Officer4.33yrsno datano data

4.3yrs

Average Tenure

Experienced Management: TUO's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Shinjiro Sato
President3.33yrsJP¥137.00m0.0051%
¥ 1.3m
Kyo Nishikawa
Senior Executive Officerno datano datano data
Toshiaki Takagi
Senior Managing Executive Officer10.17yrsno datano data
Takayoshi Mimura
Chairman of the Board3.33yrsJP¥107.00m0.0068%
¥ 1.7m
Yukiko Kuroda
Independent Outside Director2.17yrsno data0.000040%
¥ 9.8k
Yoshihiro Kimura
Director3.17yrsno data0.0021%
¥ 526.9k
Ryuzo Ueda
Independent Outside Director5.17yrsno data0.00047%
¥ 115.7k

4.3yrs

Average Tenure

Experienced Board: TUO's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Terumo Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Terumo Corporation
  • Ticker: TUO
  • Exchange: DB
  • Founded: 1921
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: JP¥3.078t
  • Listing Market Cap: JP¥24.620b
  • Shares outstanding: 754.18m
  • Website: https://www.terumo.co.jp

Number of Employees


Location

  • Terumo Corporation
  • 2-44-1, Hatagaya
  • Shibuya-ku
  • Tokyo
  • 151-0072
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TRUM.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
4543TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
TUODB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
TRUM.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 2008

Biography

Terumo Corporation develops, manufactures, and distributes medical devices and services worldwide. The company operates through three segments: Cardiac and Vascular Company, General Hospital Company, and B ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/03 20:36
End of Day Share Price2020/08/03 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.