OTCPK:TRUM.Y

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with questionable 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


Market Performance


7 Day Return

5.0%

TRUM.Y

1.7%

US Medical Equipment

2.3%

US Market


1 Year Return

9.6%

TRUM.Y

10.1%

US Medical Equipment

5.6%

US Market

Return vs Industry: TRUM.Y underperformed the US Medical Equipment industry which returned 10.1% over the past year.

Return vs Market: TRUM.Y exceeded the US Market which returned 5.6% over the past year.


Shareholder returns

TRUM.YIndustryMarket
7 Day5.0%1.7%2.3%
30 Day7.0%-1.7%-1.0%
90 Day9.7%-1.7%-0.7%
1 Year9.6%9.6%11.0%10.1%7.9%5.6%
3 Year68.1%68.1%70.4%65.2%45.6%36.3%
5 Year185.2%185.2%128.5%103.2%65.8%47.6%

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?

30.54x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: TRUM.Y ($32.25) is trading above our estimate of fair value ($22.55)

Significantly Undervalued: TRUM.Y is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TRUM.Y is good value based on its PE Ratio (30.5x) compared to the Medical Equipment industry average (41.1x).

PE vs Market: TRUM.Y is poor value based on its PE Ratio (30.5x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: TRUM.Y is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: TRUM.Y is overvalued based on its PB Ratio (3.7x) compared to the US Medical Equipment industry average (3.7x).


Next Steps

Future Growth

How is Terumo forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

8.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRUM.Y's forecast earnings growth (8.6% per year) is above the savings rate (2.7%).

Earnings vs Market: TRUM.Y's earnings (8.6% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: TRUM.Y's revenue (5.5% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: TRUM.Y's revenue (5.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: TRUM.Y's Return on Equity is forecast to be low in 3 years time (12.3%).


Next Steps

Past Performance

How has Terumo performed over the past 5 years?

21.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TRUM.Y's earnings have grown significantly by 21.6% per year over the past 5 years.

Accelerating Growth: TRUM.Y's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TRUM.Y had negative earnings growth (-9.6%) over the past year, making it difficult to compare to the Medical Equipment industry average (28.2%).


Return on Equity

High ROE: TRUM.Y's Return on Equity (12.1%) is considered low.


Return on Assets

ROA vs Industry: TRUM.Y has a higher Return on Assets than the Medical Equipment industry average last year.


Return on Capital Employed

ROCE Improving: TRUM.Y's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Terumo's financial position?


Financial Position Analysis

Short Term Liabilities: TRUM.Y's short term assets (¥387.1B) exceeds its short term liabilities (¥145.1B)

Long Term Liabilities: TRUM.Y's short term assets (387.1B) exceeds its long term liabilities (290.5B)


Debt to Equity History and Analysis

Debt Level: TRUM.Y's debt to equity ratio (32.1%) is considered satisfactory

Reducing Debt: TRUM.Y's debt to equity ratio has reduced from 35.3% to 32.1% over the past 5 years.

Debt Coverage: TRUM.Y's debt is well covered by operating cash flow (45.2%).

Interest Coverage: TRUM.Y earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: TRUM.Y has a high level of physical assets or inventory.

Debt Coverage by Assets: TRUM.Y's debt is covered by short term assets (assets are 1.742630x debt).


Next Steps

Dividend

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

0.80%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%1.5%markettop25%3.8%industryaverage1.2%forecastin3Years0.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TRUM.Y's dividend (0.8%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: TRUM.Y's dividend (0.8%) is low compared to the top 25% of dividend payers in the US market (3.76%).

Stable Dividend: TRUM.Y is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: TRUM.Y is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: TRUM.Y is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TRUM.Y's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Terumo's salary, the management and board of directors tenure and is there insider trading?

3.5yrs

Average management tenure


CEO

Shinjiro Sato 0

2.5yrs

Tenure

0

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 ...


Management Age and Tenure

3.5yrs

Average Tenure

Experienced Management: TRUM.Y's management team is considered experienced (3.5 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

64.5yo

Average Age

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


Insider Trading

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


Ownership Breakdown


Management Team

  • David Perez (60yo)

    Senior Executive Officer & Director

    • Tenure: 5.3yrs
    • Compensation: JP¥298.00m
  • Kazuaki Kitabatake

    Managing Executive Officer

    • Tenure: 0yrs
  • Shinjiro Sato

    President

    • Tenure: 2.5yrs
  • Kyo Nishikawa

    Senior Executive Officer & Chief Human Resources Officer

    • Tenure: 0yrs
  • Jim Rushworth

    Executive Officer

    • Tenure: 0yrs
  • Hiroaki Kasukawa

    CTO & Executive Officer

    • Tenure: 0yrs
  • Toshiaki Takagi

    Senior Managing Executive Officer

    • Tenure: 9.3yrs
  • Katsuya Takeuchi

    Chief Information Officer & Executive Officer

    • Tenure: 3.5yrs
  • Miho Mizuguchi

    Executive Officer

    • Tenure: 3.5yrs
  • Atsuo Omagari

    General Manager of Corporate Communication Department

    • Tenure: 0yrs

Board Members

  • David Perez (60yo)

    Senior Executive Officer & Director

    • Tenure: 5.3yrs
    • Compensation: JP¥298.00m
  • Takayoshi Mimura

    Chairman of the Board

    • Tenure: 2.5yrs
  • Ikuo Mori (72yo)

    Independent Director

    • Tenure: 5.3yrs
  • Masatake Yone (65yo)

    Independent Director

    • Tenure: 4.3yrs
  • Shoji Hatano

    Managing Executive Officer & Director

    • Tenure: 3.3yrs
  • Shinjiro Sato

    President

    • Tenure: 2.5yrs
  • Toshihiko Matsumiya

    Independent Director

    • Tenure: 4.3yrs
  • Yoshihiro Kimura (64yo)

    Director

    • Tenure: 2.3yrs
  • Ryuzo Ueda

    Independent Director

    • Tenure: 4.3yrs
  • Toshiaki Takagi

    Senior Managing Executive Officer

    • Tenure: 9.3yrs

Company Information

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


Key Information

  • Name: Terumo Corporation
  • Ticker: TRUM.Y
  • Exchange: OTCPK
  • Founded: 1921
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: JP¥2.586t
  • Listing Market Cap: JP¥23.816b
  • Shares outstanding: 743.12m
  • 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 Analysis2019/10/17 23:56
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.