# Teijin (3401.JP)

Canonical: https://gigainvestors.com/s/3401.JP

Analysis as of: 2026-10-15T07:09:51.485Z. Financial observations: FY2013–FY2026.

Listing currency: JPY. Reporting currency: JPY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: JPY 1,647.50 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 5 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 4

- Operating margin variation: 2.20×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.08×

- FY2018: 0.08×

- FY2019: 0.07×

- FY2020: 0.07×

- FY2021: 0.07×

- FY2022: 0.05×

- FY2023: 0.01×

- FY2024: -0.01×

- FY2025: -0.07×

- FY2026: -0.08×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 11.2pp below the typical margin (limit 4pp)

- ROIC, median of available years: 4.9%

- ROIC, second-lowest year: -8.1%

- Typical minus recent gross margin: 11.2 pp

- Typical gross margin (annual median): 29.7%

- Recent gross margin (lower of latest and 3-year median): 18.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 6.7%

- ROIC including acquisitions, ten-year median: 0.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 10.0%

- FY2018: 8.1%

- FY2019: 7.6%

- FY2020: 6.1%

- FY2021: 6.1%

- FY2022: 3.8%

- FY2023: 1.3%

- FY2024: -0.5%

- FY2025: -8.1%

- FY2026: -9.5%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: JPY -161B

- Net income, five-year total: JPY -66B

- Return on incremental invested capital: -49.1%

- Working capital / revenue, annual change: 0.3 pp

- Working capital / revenue, change between three-year averages: 3.0 pp

- Working capital / revenue, final three-year average: 30.6%

Chart: Owner earnings · five years; fiscal year observations.

- FY2022: JPY -80B

- FY2023: JPY -513M

- FY2024: JPY -18B

- FY2025: JPY 31B

- FY2026: JPY -94B

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 8.1% vs -8.1%

- Per-share earnings: 231.26 to -60.86 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.2%

- Ordinary dilution, 5-year annual growth: 0.1%

- Market cap gain: JPY -98B

- Cumulative retained earnings: JPY -30B

- Diluted shares, 10-year annual growth: -0.2%

- Diluted shares, 5-year annual growth: 0.1%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value change: JPY -292.12

- Per-share value, starting three-year median: JPY 231.26

- Per-share value, ending three-year median: JPY -60.86

- Buybacks concentrated in cheaper years (correlation): 0.71

- Average buyback yield: 0.8%

- Buyback history: 7 years

- Debt-funded buybacks: No

- Acquisition spending: JPY 86B

- Cumulative net income, 10 years: JPY 93B

- ROIC, first three-year median: 8.1%

- ROIC, last three-year median: -8.1%

Chart: Earnings per share; fiscal year observations.

- FY2017: JPY 254.91

- FY2018: JPY 231.26

- FY2019: JPY 232.39

- FY2020: JPY 131.63

- FY2021: JPY -34.70

- FY2022: JPY 120.58

- FY2023: JPY -92.04

- FY2024: JPY -60.86

- FY2025: JPY 147.15

- FY2026: JPY -456.33

### accounting: pass

- Sloan accruals: -20.3%

- Receivables to sales index (DSRI): 1.16×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.16×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -3.0%

- FY2018: -3.5%

- FY2019: -3.5%

- FY2020: -6.9%

- FY2021: -11.0%

- FY2022: -5.5%

- FY2023: -5.9%

- FY2024: -7.5%

- FY2025: -3.9%

- FY2026: -20.3%

## Holders

## Price story

Up 21% since Oct 2023 · sales -13.2%

Story as of 2026-10-16T10:00:14.019Z; price observation 2026-10-15.

### Sales · FY2025–2026

sales -13.2%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YCMK.pdf; observed 2026-06-18.

- FY2017: JPY 741B 

- FY2018: JPY 835B 

- FY2019: JPY 889B 

- FY2020: JPY 854B 

- FY2021: JPY 837B 

- FY2022: JPY 926B 

- FY2023: JPY 1.02T 

- FY2024: JPY 960B 

- FY2025: JPY 1.01T 

- FY2026: JPY 873B 

### Gross margin · FY2026

gross margin 18.5%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YCMK.pdf; observed 2026-06-18.

- FY2017: 33.5% 

- FY2018: 32.3% 

- FY2019: 30.1% 

- FY2020: 30.9% 

- FY2021: 30.5% 

- FY2022: 29.3% 

- FY2023: 24.4% 

- FY2024: 21.9% 

- FY2025: 19.0% 

- FY2026: 18.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Annual sales are JPY 873.2 billion.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YCMK.pdf (filed 2026-06-18); FY2026: revenue 873190000000; grossProfit 161964000000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 18.5% to 21.9% during 2024–26; it earns 4.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-18); FY2024: grossProfit / revenue = 21.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-18); FY2025: grossProfit / revenue = 19%.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YCMK.pdf (filed 2026-06-18); FY2026: grossProfit / revenue = 18.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-18); 10-year return on capital observations [[2017,0.10049257579799058],[2018,0.08100449613780929],[2019,0.07602950549839041],[2020,0.06075812004190989],[2021,0.06149116084421903],[2022,0.03786811944287403],[2023,0.012936607660040357],[2024,-0.005139102807748491],[2025,-0.08075925838951487],[2026,-0.09492586261389087]]; median 0.049313119742391956. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 8 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-18); FY2017: growth capex 0; upkeep 40602000000; owner earnings 48862000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-18); FY2018: growth capex 381000000; upkeep 45655000000; owner earnings 45556000000. Growth capex / owner earnings = 0.008363333040653263.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-18); FY2019: growth capex 11376000000; upkeep 47551000000; owner earnings 45057000000. Growth capex / owner earnings = 0.2524801917571077.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-18); FY2020: growth capex 0; upkeep 70321000000; owner earnings 5881000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-18); FY2025: growth capex 0; upkeep 61426000000; owner earnings 30917000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-18); Dividend observations: [[2017,8849000000],[2018,11804000000],[2019,11688000000],[2020,13427000000],[2021,10557000000],[2022,10082000000],[2023,10571000000],[2024,5292000000],[2025,0],[2026,0]]. Zero only counted when supported by a complete cash-flow statement.

### What the price says

The price is 0.4 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-18); Closing price 1647.5 JPY; reporting-to-trading FX 1; FY2026 annual sales per share 4527.83192277536; price multiple 0.3638606794817056. FY2026 cash earnings/share -486.6749105144143. Closing-price date 2026-10-15.

## Monthly share-price history (JPY per share)

- 2016-11: JPY 2,118.00 per share

- 2016-12: JPY 2,369.00 per share

- 2017-01: JPY 2,386.00 per share

- 2017-02: JPY 2,149.00 per share

- 2017-03: JPY 2,099.00 per share

- 2017-04: JPY 2,159.00 per share

- 2017-05: JPY 2,069.00 per share

- 2017-06: JPY 2,161.00 per share

- 2017-07: JPY 2,218.00 per share

- 2017-08: JPY 2,232.00 per share

- 2017-09: JPY 2,218.00 per share

- 2017-10: JPY 2,393.00 per share

- 2017-11: JPY 2,420.00 per share

- 2017-12: JPY 2,510.00 per share

- 2018-01: JPY 2,411.00 per share

- 2018-02: JPY 2,117.00 per share

- 2018-03: JPY 2,001.00 per share

- 2018-04: JPY 2,061.00 per share

- 2018-05: JPY 2,112.00 per share

- 2018-06: JPY 2,032.00 per share

- 2018-07: JPY 2,080.00 per share

- 2018-08: JPY 2,201.00 per share

- 2018-09: JPY 2,179.00 per share

- 2018-10: JPY 1,960.00 per share

- 2018-11: JPY 1,960.00 per share

- 2018-12: JPY 1,757.00 per share

- 2019-01: JPY 1,878.00 per share

- 2019-02: JPY 1,867.00 per share

- 2019-03: JPY 1,826.00 per share

- 2019-04: JPY 1,907.00 per share

- 2019-05: JPY 1,773.00 per share

- 2019-06: JPY 1,837.00 per share

- 2019-07: JPY 1,891.00 per share

- 2019-08: JPY 1,910.00 per share

- 2019-09: JPY 2,076.00 per share

- 2019-10: JPY 2,182.00 per share

- 2019-11: JPY 2,059.00 per share

- 2019-12: JPY 2,045.00 per share

- 2020-01: JPY 1,975.00 per share

- 2020-02: JPY 1,775.00 per share

- 2020-03: JPY 1,830.00 per share

- 2020-04: JPY 1,725.00 per share

- 2020-05: JPY 1,764.00 per share

- 2020-06: JPY 1,714.00 per share

- 2020-07: JPY 1,519.00 per share

- 2020-08: JPY 1,664.00 per share

- 2020-09: JPY 1,629.00 per share

- 2020-10: JPY 1,596.00 per share

- 2020-11: JPY 1,784.00 per share

- 2020-12: JPY 1,940.00 per share

- 2021-01: JPY 1,913.00 per share

- 2021-02: JPY 1,830.00 per share

- 2021-03: JPY 1,907.00 per share

- 2021-04: JPY 1,798.00 per share

- 2021-05: JPY 1,767.00 per share

- 2021-06: JPY 1,693.00 per share

- 2021-07: JPY 1,646.00 per share

- 2021-08: JPY 1,583.00 per share

- 2021-09: JPY 1,594.00 per share

- 2021-10: JPY 1,529.00 per share

- 2021-11: JPY 1,301.00 per share

- 2021-12: JPY 1,415.00 per share

- 2022-01: JPY 1,440.00 per share

- 2022-02: JPY 1,383.00 per share

- 2022-03: JPY 1,363.00 per share

- 2022-04: JPY 1,388.00 per share

- 2022-05: JPY 1,325.00 per share

- 2022-06: JPY 1,413.00 per share

- 2022-07: JPY 1,406.00 per share

- 2022-08: JPY 1,475.00 per share

- 2022-09: JPY 1,402.00 per share

- 2022-10: JPY 1,350.00 per share

- 2022-11: JPY 1,328.00 per share

- 2022-12: JPY 1,288.00 per share

- 2023-01: JPY 1,331.00 per share

- 2023-02: JPY 1,415.00 per share

- 2023-03: JPY 1,396.00 per share

- 2023-04: JPY 1,513.00 per share

- 2023-05: JPY 1,290.00 per share

- 2023-06: JPY 1,441.50 per share

- 2023-07: JPY 1,519.00 per share

- 2023-08: JPY 1,480.00 per share

- 2023-09: JPY 1,453.00 per share

- 2023-10: JPY 1,358.00 per share

- 2023-11: JPY 1,345.50 per share

- 2023-12: JPY 1,336.50 per share

- 2024-01: JPY 1,364.00 per share

- 2024-02: JPY 1,270.00 per share

- 2024-03: JPY 1,414.50 per share

- 2024-04: JPY 1,540.00 per share

- 2024-05: JPY 1,528.00 per share

- 2024-06: JPY 1,336.50 per share

- 2024-07: JPY 1,450.00 per share

- 2024-08: JPY 1,362.50 per share

- 2024-09: JPY 1,416.00 per share

- 2024-10: JPY 1,374.00 per share

- 2024-11: JPY 1,316.00 per share

- 2024-12: JPY 1,338.00 per share

- 2025-01: JPY 1,324.50 per share

- 2025-02: JPY 1,320.50 per share

- 2025-03: JPY 1,310.50 per share

- 2025-04: JPY 1,192.50 per share

- 2025-05: JPY 1,159.50 per share

- 2025-06: JPY 1,168.00 per share

- 2025-07: JPY 1,287.50 per share

- 2025-08: JPY 1,261.00 per share

- 2025-09: JPY 1,258.50 per share

- 2025-10: JPY 1,349.50 per share

- 2025-11: JPY 1,313.50 per share

- 2025-12: JPY 1,355.50 per share

- 2026-01: JPY 1,494.50 per share

- 2026-02: JPY 1,733.50 per share

- 2026-03: JPY 1,632.00 per share

- 2026-04: JPY 1,574.50 per share

- 2026-05: JPY 1,651.50 per share

- 2026-06: JPY 1,626.00 per share

- 2026-07: JPY 1,637.00 per share

- 2026-08: JPY 1,758.00 per share

- 2026-09: JPY 1,690.00 per share

- 2026-10: JPY 1,660.50 per share

## Annual estimated value (JPY per share)

- FY2020: low JPY 3,156.78 per share, central JPY 3,496.85 per share, high JPY 3,949.56 per share

- FY2021: low JPY 3,214.13 per share, central JPY 3,547.09 per share, high JPY 3,990.32 per share

- FY2022: low JPY 966.83 per share, central JPY 1,016.88 per share, high JPY 1,083.52 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original EDINET filing](https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YCMK.pdf); period 2026-03-31, filed 2026-06-18.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations