Terumo Corporation
Terumo Corporation Fundamental Analysis
Terumo Corporation (TRUMY) shows moderate financial fundamentals with a PE ratio of 23.59, profit margin of 11.68%, and ROE of 9.06%. The company generates $1105.6B in annual revenue with strong year-over-year growth of 12.40%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 70.1/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze TRUMY's fundamental strength across five key dimensions:
Efficiency Score
WeakTRUMY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTRUMY trades at attractive valuation levels.
Growth Score
ExcellentTRUMY delivers strong and consistent growth momentum.
Financial Health Score
ExcellentTRUMY maintains a strong and stable balance sheet.
Profitability Score
WeakTRUMY struggles to sustain strong margins.
Key Financial Metrics
Is TRUMY Expensive or Cheap?
P/E Ratio
TRUMY trades at 23.59 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, TRUMY's PEG of -0.07 indicates potential undervaluation.
Price to Book
The market values Terumo Corporation at 2.00 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.09 times EBITDA. This signals the market has high growth expectations.
How Well Does TRUMY Make Money?
Net Profit Margin
For every $100 in sales, Terumo Corporation keeps $11.68 as profit after all expenses.
Operating Margin
Core operations generate 16.17 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.06 in profit for every $100 of shareholder equity.
ROA
Terumo Corporation generates $5.72 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 $211.25B, showing steady but balanced cash generation.
Free Cash Flow
Terumo Corporation generates strong free cash flow of $134.72B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $91.33 in free cash annually.
FCF Yield
TRUMY converts 4.42% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.59
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.07
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.00
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.75
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.26
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.51
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
0.10
vs 25 benchmark
How TRUMY Stacks Against Its Sector Peers
| Metric | TRUMY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.59 | 28.25 | Better (Cheaper) |
| ROE | 9.06% | 780.00% | Weak |
| Net Margin | 11.68% | -20122.00% (disorted) | Strong |
| Debt/Equity | 0.26 | 0.30 | Neutral |
| Current Ratio | 1.51 | 4.66 | Neutral |
| ROA | 5.72% | -14687.00% (disorted) | Weak |
TRUMY outperforms its industry in 2 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
66.42%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
38.66%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
81.25%
Industry Style: Defensive, Growth, Innovation
High Growth