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Kyowa Kirin Co Ltd (JP:4151)
:4151
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Kyowa Kirin Co
(OTC:4151)
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Rating:60Neutral
Price Target:
¥2,571.00
▲(8.89% Upside)
Kyowa Kirin Co's overall stock score is driven by strong financial stability and profitability, despite a decline in revenue growth and moderate ROE. The technical analysis indicates bearish momentum, while the valuation suggests potential overvaluation. The earnings call highlighted growth in strategic markets but was offset by restructuring challenges and profit declines.
Kyowa Kirin Co (4151) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
$1.25T
Dividend Yield2.51%
Average Volume (3M)1.12M
Price to Earnings (P/E)32.8
Beta (1Y)0.33
Revenue Growth3.62%
EPS Growth-59.69%
CountryJP
Employees5,669
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)19.40
Shares Outstanding525,634,500
10 Day Avg. Volume1,311,250
30 Day Avg. Volume1,119,753
Financial Highlights & Ratios
PEG Ratio-0.84
Price to Book (P/B)1.48
Price to Sales (P/S)2.54
P/FCF Ratio30.06
Enterprise Value/Market Cap0.86
Enterprise Value/Revenue2.19
Enterprise Value/Gross Profit3.01
Enterprise Value/Ebitda11.82
Forecast
1Y Price Target
$2,593.44Price Target Upside9.84% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Kyowa Kirin Co Business Overview & Revenue Model
Company DescriptionKyowa Kirin Co., Ltd. manufactures and markets pharmaceuticals that focuses on the therapeutic areas of oncology, nephrology, central nervous system, and immunology worldwide. Its products include ABSTRAL, a sublingual formulation of fentanyl used for the management of episodes of breakthrough pain experienced by cancer patients; ALLELOCK, an antihistamine agent for patients with various types of allergies; CONIEL, a calcium channel blocker for hypertension and angina pectoris; Crysvita, a recombinant human monoclonal IgG1 antibody against the phosphaturic hormone fibroblast growth factor 23; ESPO, a glycoprotein and human erythropoietin; NESP, an erythropoiesis stimulating agent; and GRAN, a human colony-stimulating factor. The company also develops G-LASTA/Peglasta/Neulasta for chemotherapy-induced febrile neutropenia; LEUNASE for acute lymphoblastic leukemia; LUMICEF, a biological treatment for moderate to severe plaque psoriasis; Moventig, a mu-opioid receptor antagonist for the treatment of opioid induced constipation; Nouriast/ Nourianz, an adenosine receptor antagonist for Parkinson's disease; and ORKEDIA, an oral calcimimetics agent. In addition, it offers PecFent, a nasally administrated spray; POTELIGEO, a humanized monoclonal antibody for CC chemokine receptor 4; REGPARA for the treatment of secondary hyperparathyroidism; Romiplate/Nplate, a genetically recombinant protein for platelet production of thrombopoietin receptors; and SANCUSO for the treatment of nausea and vomiting. Kyowa Kirin Co., Ltd. has an agreement with Amgen Inc. to jointly develop and commercialize KHK4083, a Phase 3-ready anti-OX40 fully human monoclonal antibody for the treatment of atopic dermatitis. The company was formerly known as Kyowa Hakko Kirin Co., Ltd. and changed its name to Kyowa Kirin Co., Ltd. in June 2019. The company was incorporated in 1949 and is headquartered in Tokyo, Japan. Kyowa Kirin Co., Ltd. is a subsidiary of Kirin Holdings Company, Limited.
How the Company Makes MoneyKyowa Kirin Co. generates revenue primarily through the sale of its pharmaceutical products, which are developed in-house and distributed globally. The company invests heavily in research and development to create innovative drugs and treatments, particularly in key therapeutic areas such as oncology and immunology. Revenue streams include direct sales to healthcare providers, partnerships with other pharmaceutical companies for co-development and co-marketing opportunities, and licensing agreements. Additionally, the company's strategic collaborations and alliances with other firms and research institutions enhance its ability to bring new products to market and expand its global reach, thereby contributing significantly to its earnings.
Kyowa Kirin Co Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant growth in North American and EMEA markets, particularly in strategic products like Crysvita and Poteligeo. However, this was offset by declines in overall revenue and interim profit due to restructuring costs and challenges in the Japanese market. While there were strong performances in certain segments and promising R&D developments, the financial declines and restructuring challenges resulted in a mixed sentiment.Q2-2025 Updates
Positive Updates
Growth in North America and EMEA
Sales in North America increased by JPY9.6 billion, or 12%, in real terms excluding forex impact. Crysvita and Poteligeo grew 11% and 15% respectively in local currency terms.
Strong Performance of Strategic Products
Crysvita continues to grow throughout North America, EMEA, and Japan, with revenues up 10%, or JPY8.9 billion YoY. Poteligeo also continued to grow, increasing its sales by JPY2.6 billion or 14% over the previous year.
Significant Increase in Libmeldy/Lenmeldy Sales
Sales of Libmeldy/Lenmeldy began to be booked in the US and increased significantly, showing a JPY3 billion or 206% increase.
Progress in Ziftomenib Development
Ziftomenib, an oral small molecule menin inhibitor for AML, showed promising results in the KOMET-001 and KOMET-007 trials, with a favorable safety profile and high efficacy rates, leading to a submission for FDA approval.
Negative Updates
Overall Revenue and Profit Decline
Revenue was JPY230.7 billion, a decrease of JPY.3 billion, or 1%. Core operating profit was JPY35 billion, a decrease of JPY9.1 billion, or 21%, and interim profit was JPY16.3 billion, a decrease of JPY21.5 billion, or 57%.
Impact of Special Voluntary Retirement Program
Interim profit decreased by 57% due to JPY9.4 billion in extra retirement payments related to a special voluntary retirement program in Japan.
Challenges in Japan Region
Sales for the Japan region declined by 9% due to the termination of a marketing agreement, NHI price revisions, and a decrease in Dobovet sales.
Negative Forex Impact
The total forex impact on revenue was negative JPY1.6 billion, and the forex impact on core operating profit was negative JPY1.3 billion.
Company Guidance
During the call, Kyowa Kirin Co., Ltd. provided financial guidance for Q2 of the fiscal year ending December 31, 2025. The company reported a revenue of JPY230.7 billion, marking a 1% decrease compared to the previous year, largely due to business restructuring in the APAC region and NHI price reductions in Japan. Core operating profit fell by 21% to JPY35 billion, attributed to a decrease in gross profit and a 7% rise in R&D expenses. Interim profit saw a significant drop of 57% to JPY16.3 billion, impacted by JPY9.4 billion in special voluntary retirement payments. Despite these declines, the company remains optimistic about achieving its full-year plan, with revenue and gross profit at 48% of the forecast and core operating profit at 44%. Sales in North America grew by 12%, driven by Crysvita and Poteligeo, which saw increases of 11% and 15%, respectively. The company is also advancing its R&D pipeline, with promising developments in products like Ziftomenib and rocatinlimab, which are undergoing crucial trials and FDA submissions.Kyowa Kirin Co Financial Statement Overview
Summary
Kyowa Kirin Co demonstrates strong profitability and financial stability, with efficient cost management and low leverage. However, the significant decline in revenue growth and moderate return on equity suggest areas for improvement. The substantial increase in free cash flow is a positive sign, but the company should focus on enhancing cash conversion efficiency.Income Statement
Kyowa Kirin Co's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate by 29.8%, which is a concern. However, the company maintains a strong gross profit margin of 72.8% and a net profit margin of 10.4%, reflecting efficient cost management. The EBIT and EBITDA margins are also healthy at 16.4% and 21.3% respectively, though they have decreased compared to previous periods.65
Positive
Balance Sheet
The balance sheet is robust with a low debt-to-equity ratio of 0.027, indicating low leverage and financial stability. The return on equity (ROE) is moderate at 6.1%, suggesting room for improvement in generating returns for shareholders. The equity ratio stands at 78.9%, highlighting a strong equity base relative to total assets.78
Positive
Cash Flow
Cash flow analysis reveals significant growth in free cash flow by 500.6% in the TTM period, which is a positive indicator of cash generation capabilities. However, the operating cash flow to net income ratio is relatively low at 0.40, suggesting potential inefficiencies in converting income to cash. The free cash flow to net income ratio is also low at 0.08, indicating limited free cash flow relative to net income.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 493.24B | 495.56B | 442.23B | 398.37B | 352.25B | 318.35B |
| Gross Profit | 358.23B | 362.95B | 331.03B | 311.46B | 264.40B | 237.91B |
| EBITDA | 91.27B | 105.40B | 118.53B | 82.81B | 75.22B | 73.03B |
| Net Income | 38.41B | 59.87B | 81.19B | 53.57B | 52.35B | 47.03B |
Balance Sheet | ||||||
| Total Assets | 1.07T | 1.07T | 1.03T | 939.88B | 921.87B | 801.29B |
| Cash, Cash Equivalents and Short-Term Investments | 234.60B | 244.68B | 405.01B | 339.72B | 336.52B | 287.65B |
| Total Debt | 23.00B | 21.68B | 24.25B | 23.28B | 22.54B | 779.00M |
| Total Liabilities | 224.53B | 216.55B | 189.52B | 177.06B | 184.71B | 102.89B |
| Stockholders Equity | 841.98B | 850.81B | 836.42B | 762.83B | 737.16B | 698.40B |
Cash Flow | ||||||
| Free Cash Flow | 26.98B | 41.85B | 82.70B | 20.01B | 66.78B | 4.27B |
| Operating Cash Flow | 60.87B | 67.88B | 115.55B | 48.67B | 86.55B | 39.50B |
| Investing Cash Flow | -96.63B | -142.39B | -20.38B | -17.18B | -11.36B | 252.56B |
| Financing Cash Flow | -38.69B | -84.70B | -32.53B | -29.03B | -28.45B | -26.00B |
Kyowa Kirin Co Technical Analysis
Negative
2361.00
Price Trends
2518.40
Negative
2464.07
Negative
2325.93
Positive
Market Momentum
-45.14
Negative
39.37
Neutral
74.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4151, the sentiment is Negative. The current price of 2361 is below the 20-day moving average (MA) of 2382.58, below the 50-day MA of 2518.40, and above the 200-day MA of 2325.93, indicating a neutral trend. The MACD of -45.14 indicates Negative momentum. The RSI at 39.37 is Neutral, neither overbought nor oversold. The STOCH value of 74.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4151.
Kyowa Kirin Co Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.28T | 12.33 | 13.71% | 2.44% | 4.04% | 21.20% | |
77 Outperform | ¥11.84T | 29.97 | 21.48% | 1.49% | 10.29% | 11.37% | |
74 Outperform | ¥2.99T | 36.48 | 5.46% | 4.45% | 14.29% | 368.64% | |
71 Outperform | ¥7.46T | 25.36 | 18.32% | 1.50% | 14.09% | 31.96% | |
67 Neutral | ¥1.35T | 26.83 | 5.96% | 3.39% | 9.43% | 56.53% | |
60 Neutral | $1.25T | 32.75 | 4.61% | 2.51% | 3.62% | -59.69% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
JP:4151
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.