Astellas Pharma (4503) AI Stock Analysis

• Market Cap: ¥4.68T
• Dividend Yield: 3.61%
• Average Volume (3M): 8.39M
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.58
• Revenue Growth: 13.24%
• EPS Growth: 127.88%
• Country: JP
• Employees: 14,754
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 56.04
• Shares Outstanding: 1,809,663,100
• 10 Day Avg. Volume: 8,158,160
• 30 Day Avg. Volume: 8,386,496
• PEG Ratio: 0.26
• Price to Book (P/B): 1.71
• Price to Sales (P/S): 1.35
• P/FCF Ratio: 15.73
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥2,216.67
• Price Target Upside: 12.84% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): 125.98
• Revenue Forecast (FY): ¥2.09T

• Rating: 75 Outperform
• Price Target: ¥2,724.00 ▲(38.66% Upside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is driven primarily by improved TTM profitability and solid free-cash-flow generation, supported by reasonable valuation and a strong dividend yield. Technicals are constructive (price above major moving averages and positive MACD) but tempered by overbought conditions (high RSI), which adds near-term risk.

Positive Factors

High TTM profitability

TTM margins around 76% gross and ~20% EBIT indicate durable pricing power and operational efficiency for a large pharma. Sustained high margins support internal R&D funding, manufacturing scale, and dividend capacity, strengthening long-term reinvestment ability and resilience.

Robust free cash flow

High absolute FCF and an FCF-to-net-income ratio near 0.9 show strong cash generation and earnings quality. Reliable free cash flow enables self-funding of R&D, selective M&A, and dividends, reducing reliance on external financing and improving strategic flexibility over multiple years.

Diversified global model & partnerships

Astellas' worldwide commercial presence combined with licensing and co-development deals diversifies revenue and shares development risk. This structure broadens market access, accelerates pipeline opportunities, and reduces single-market exposure, supporting steadier long-term growth prospects.

Negative Factors

Rising leverage

Leverage increased materially versus prior years, reducing financial flexibility and raising interest and refinancing risk. Higher debt levels can constrain M&A appetite, increase cost of capital, and pressure investment or dividend plans if cash flow weakens or macro conditions deteriorate.

Pronounced earnings volatility

Significant swings in annual net margins undermine predictability of earnings and cash flow. This volatility complicates multi-year planning, may force defensive capital allocation during weak years, and reduces confidence in sustained funding for R&D or consistent shareholder distributions.

Weak cash conversion in OCF

Low operating cash flow relative to revenue and uneven yearly cash performance imply weaker cash conversion. That can limit the firm's ability to consistently self-fund growth and payouts, increasing dependence on debt or asset sales and elevating execution risk for long-term programs.

Astellas Pharma Business Overview & Revenue Model

Company Description

Astellas Pharma Inc. engages in the manufacture, marketing, import, and export of pharmaceuticals worldwide. It provides XTANDI, an androgen receptor signaling inhibitor for prostate cancer; XOSPATA, a FLT3 inhibitor for adult patients with relapsed or refractory acute myeloid leukemia with a FLT3 mutation-positive; PADCEV, a treatment solution for adult patients with locally advanced or metastatic urothelial cancer; Betanis/Myrbetriq/BETMIGA, a beta-3 adrenergic receptor agonist for the treatment of urgency, urinary frequency, and urge urinary incontinence; Evrenzo, an oral treatment for anemia associated with chronic kidney disease; and Prograf and Advagraf/Graceptor/ASTAGRAF, which are immunosuppressants used to suppress organ rejection following a transplant. The company also offers mirabegron for the treatment of neurogenic detrusor overactivity in pediatric patients; Vesicare for OAB treatment; Eligard to treat prostate cancer; Harnal/Omnic for benign prostatic hyperplasia treatment; and Funguard/MYCAMINE, an antifungal agent. The company has a clinical trial collaboration with Merck & Co., Inc.; CytomX Therapeutics, Inc.; and an agreement with BANDAI NAMCO Entertainment Inc. for the development of smartphone exercise support application. It also has strategic research alliance with Harvard University for the research and development of therapeutics and technologies of mutual interest; research collaboration with Actinium Pharmaceuticals, Inc. to develop targeted radiotherapies using its Antibody Warhead Enabling technology platform, as well as agreement with Zenith Epigenetics Ltd. to evaluate ZEN-3694; and collaboration agreement with Cytokinetics, Incorporated. The company has a strategic collaboration and license agreement with Minovia Therapeutics Ltd. for the research, development, and commercialization of cell therapy programs for diseases caused by mitochondrial dysfunction. Astellas Pharma Inc. was founded in 1923 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Astellas Pharma generates revenue primarily through the sale of prescription medications and biologics. The company has a diverse portfolio of products that contribute to its earnings, with key revenue streams coming from high-demand therapies in oncology and urology. Astellas also engages in research and development collaborations and licensing agreements with other pharmaceutical companies, which can provide additional income through upfront payments, milestone payments, and royalties on sales of partnered products. Moreover, the company invests in strategic partnerships to enhance its pipeline, further solidifying its revenue base. Astellas' commitment to innovation, driven by significant investments in R&D, allows it to capitalize on market opportunities and address unmet medical needs, thereby sustaining its profitability.

Astellas Pharma Financial Statement Overview

Summary

Strong TTM profitability rebound (high ~76% gross margin; ~20% EBIT; ~16% net) and solid free cash flow (~¥412B) with good FCF-to-net-income (~0.89). Offsetting risks include notable year-to-year earnings volatility (very low net margins in FY2024–FY2025 before the TTM rebound) and higher leverage versus earlier years (debt-to-equity stepped up to ~0.55–0.63 recently).

Income Statement

TTM (Trailing-Twelve-Months) results show strong profitability for a large pharma business, with healthy gross margin (~76%) and solid operating and net margins (~20% EBIT; ~16% net). Revenue growth is positive in TTM (~2.7%), and the multi-year top-line trend is generally upward. The main weakness is earnings volatility in the annual history: net margin was very low in FY2024–FY2025 (roughly 1%–3%) before rebounding sharply in TTM, suggesting results can swing meaningfully year to year.

Balance Sheet

Leverage is moderate in TTM with debt-to-equity around 0.41 and equity still substantial versus assets. Return on equity improved materially in TTM (~20%), indicating better profitability on the capital base. However, the balance sheet has shown a notable increase in leverage versus earlier years (debt-to-equity moved from ~0.13–0.20 in FY2021–FY2023 up to ~0.63 in FY2024 and ~0.55 in FY2025), which raises financial risk even if current returns are stronger.

Cash Flow

Cash generation is solid in TTM with free cash flow of ~¥412B and strong free-cash-flow growth (~11.5%), and free cash flow is high relative to net income (~0.89), which supports earnings quality. The weaker point is that operating cash flow is low relative to revenue (coverage ratio ~0.35 in TTM and lower in recent annual periods), and cash flow performance has been uneven across years (including a decline in FY2024 free cash flow).

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	2.06T	1.91T	1.60T	1.52T	1.30T	1.25T
Gross Profit	1.57T	1.43T	1.31T	1.23T	1.04T	1.00T
EBITDA	603.38B	248.30B	195.34B	240.46B	241.03B	219.83B
Net Income	322.85B	50.75B	17.05B	98.71B	124.09B	120.59B
Balance Sheet
Total Assets	3.60T	3.34T	3.57T	2.46T	2.33T	2.27T
Cash, Cash Equivalents and Short-Term Investments	254.30B	188.37B	335.69B	376.84B	315.99B	326.13B
Total Debt	725.27B	831.43B	1.01T	200.01B	212.74B	278.26B
Total Liabilities	1.84T	1.83T	1.97T	948.56B	872.09B	887.51B
Stockholders Equity	1.76T	1.51T	1.60T	1.51T	1.46T	1.39T
Cash Flow
Free Cash Flow	412.13B	164.61B	89.98B	239.23B	181.00B	229.40B
Operating Cash Flow	462.95B	201.61B	172.47B	327.77B	257.44B	306.84B
Investing Cash Flow	-55.07B	-89.42B	-845.80B	-84.50B	-62.41B	-81.89B
Financing Cash Flow	-337.44B	-261.37B	614.06B	-195.62B	-216.30B	-229.48B

Astellas Pharma Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1964.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4503, the sentiment is Positive. The current price of 1964.5 is below the 20-day moving average (MA) of 2452.90, below the 50-day MA of 2285.47, and above the 200-day MA of 1769.30, indicating a bullish trend. The MACD of 81.29 indicates Negative momentum. The RSI at 69.61 is Neutral, neither overbought nor oversold. The STOCH value of 84.26 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4503.

Astellas Pharma Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4519	84 Outperform	¥17.19T	39.64	20.99%	1.17%	6.25%	2.62%
4507	84 Outperform	¥3.22T	16.00	12.22%	2.22%	4.48%	11.08%
4503	75 Outperform	¥4.68T	14.43	7.97%	3.61%	13.24%	127.88%
4151	72 Outperform	¥1.51T	22.53	4.27%	2.33%	-3.36%	-55.41%
4523	68 Neutral	¥1.48T	34.57	5.75%	3.51%	6.79%	22.14%
4568	63 Neutral	¥5.71T	18.68	16.66%	2.07%	12.56%	14.58%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Astellas Pharma Corporate Events

Astellas Lifts FY2025 Outlook on Robust XTANDI and Mirabegron Demand

Astellas raised its FY2025 core and full-basis revenue and profit forecasts on the back of stronger-than-expected global demand for prostate cancer therapy XTANDI and overactive bladder franchise Mirabegron, amplified by favorable foreign exchange. The upgraded outlook underscores a recovery in operating leverage versus FY2024 and signals stronger cash generation for shareholders as key growth products sustain momentum in major markets.

The most recent analyst rating on (JP:4503) stock is a Buy with a Yen2556.00 price target. To see the full list of analyst forecasts on Astellas Pharma stock, see the JP:4503 Stock Forecast page.

Astellas and Pfizer Unveil Breakthrough in Bladder Cancer Treatment

Astellas Pharma and Pfizer announced pivotal Phase 3 trial results for PADCEV combined with Keytruda, marking a significant advancement in muscle-invasive bladder cancer treatment. The trial highlights considerable survival improvement without platinum-based chemotherapy, potentially redefining the standard of care for patients both eligible and ineligible for cisplatin, offering hope for better outcomes and impacting the oncology landscape.

The most recent analyst rating on (JP:4503) stock is a Hold with a Yen2271.00 price target. To see the full list of analyst forecasts on Astellas Pharma stock, see the JP:4503 Stock Forecast page.