Terumo Corporation Fundamental Analysis
Terumo Corporation (TRUMF) shows moderate financial fundamentals with a PE ratio of 23.48, profit margin of 12.00%, and ROE of 9.22%. The company generates $1137.9B in annual revenue with moderate year-over-year growth of 9.24%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 68.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze TRUMF's fundamental strength across five key dimensions:
Efficiency Score
WeakTRUMF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTRUMF trades at attractive valuation levels.
Growth Score
ExcellentTRUMF delivers strong and consistent growth momentum.
Financial Health Score
ExcellentTRUMF maintains a strong and stable balance sheet.
Profitability Score
WeakTRUMF struggles to sustain strong margins.
Key Financial Metrics
Is TRUMF Expensive or Cheap?
P/E Ratio
TRUMF trades at 23.48 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, TRUMF's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Terumo Corporation at 2.01 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.06 times EBITDA. This signals the market has high growth expectations.
How Well Does TRUMF Make Money?
Net Profit Margin
For every $100 in sales, Terumo Corporation keeps $12.00 as profit after all expenses.
Operating Margin
Core operations generate 16.53 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.22 in profit for every $100 of shareholder equity.
ROA
Terumo Corporation generates $5.87 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Terumo Corporation produces operating cash flow of $232.44B, showing steady but balanced cash generation.
Free Cash Flow
Terumo Corporation generates strong free cash flow of $146.73B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $99.47 in free cash annually.
FCF Yield
TRUMF converts 4.57% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.48
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.009
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.01
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.82
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.24
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.59
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How TRUMF Stacks Against Its Sector Peers
| Metric | TRUMF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.48 | 28.66 | Better (Cheaper) |
| ROE | 9.22% | 748.00% | Weak |
| Net Margin | 12.00% | -53743.00% (disorted) | Strong |
| Debt/Equity | 0.24 | 0.40 | Strong (Low Leverage) |
| Current Ratio | 1.59 | 4.06 | Neutral |
| ROA | 5.87% | -20800.00% (disorted) | Weak |
TRUMF outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Terumo Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
88.79%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
80.09%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
94.55%
Industry Style: Defensive, Growth, Innovation
High Growth