Kaken Pharmaceutical Co (4521) AI Stock Analysis

• Market Cap: ¥138.31B
• Dividend Yield: 4.62%
• Average Volume (3M): 152.93K
• Price to Earnings (P/E): 201.4
• Beta (1Y): 0.28
• Revenue Growth: -5.99%
• EPS Growth: -96.04%
• Country: JP
• Employees: 1,135
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 19.03
• Shares Outstanding: 44,139,730
• 10 Day Avg. Volume: 129,560
• 30 Day Avg. Volume: 152,933
• PEG Ratio: 0.17
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 1.82
• P/FCF Ratio: 6.67
• 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: ¥5,499.61
• Price Target Upside: 48.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 13,911.65
• Revenue Forecast (FY): ¥13.54T

• Rating: 80 Outperform
• Price Target: ¥4,468.00 ▲(20.37% Upside)

Kaken Pharmaceutical Co's strong financial performance and attractive valuation are the most significant factors contributing to its overall score. The company's stable technical indicators further support a positive outlook. However, historical volatility in revenue and cash flow suggests a need for cautious future planning.

Kaken Pharmaceutical Co Business Overview & Revenue Model

Company Description

Kaken Pharmaceutical Co., Ltd. produces, markets, and sells medical products, medical devices, and agrochemicals in Japan and internationally. It offers pharmaceutical products and medical devices, such as Clenafin, a topical treatment for onychomycosis; Artz, an anti-osteoarthritis agent; Seprafilm, a semitransparent film-type absorbable adhesion barrier, which is applied to damaged tissue; Fiblast, a spray-on drug for the treatment of pressure ulcers and other skin ulcers; Regroth, a medicinal product for periodontal regeneration; and Hernicore for the treatment of lumbar disc herniation. The company also provides Adofeed, a pain- and inflammation-relieving plaster; Ebrantil for the treatment of dysuria and hypertension; Procylin, an oral-use prostaglandin I2 analog; Lipidil, an anti-hyperlipidemia agent; Mentax, an anti-trichophyton agent; and Loxoprofen Na Tape, a pain-relieving and anti-inflammatory plaster. In addition, it offers Ropion, a pain relief injection; and agrochemicals and animal health products, including Polyoxins that is used as fungicide; Pentoxazone, a rice herbicide; and Salinomycin, an anti-coccidial feed additive for chicken. Further, the company is developing BBI-4000 that has completed phase III clinical trial for primary axillary hyperhidrosis; KMW-1, which is in phase III clinical trial for the removal of eschar with thermal burns; KAR for treatment of hide lice infestation; and KP-607, which is in phase II clinical trial for the treatment of onychomycosis. Additionally, it is involved in the rental of Bunkyo Green Court, a commercial complex. The company offers its products under the Mentax Lotrimin Ultra, Mentax Butena, Mentax, Kaifen, Fiblast, and Jublia brands. It has license agreements with Corbus Pharmaceuticals Holdings, Inc. and Arbor Pharmaceuticals, LLC. Kaken Pharmaceutical Co., Ltd. was founded in 1917 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Kaken Pharmaceutical Co., Ltd. generates revenue through the sale of its pharmaceutical products and medical devices. Its primary revenue streams include the sale of prescription drugs, particularly those used in dermatology and orthopedics. The company invests in research and development to create innovative therapies that address specific medical conditions, which in turn drives sales. Additionally, Kaken collaborates with other pharmaceutical companies and engages in licensing agreements to broaden its product portfolio and market reach. These partnerships and its strong distribution network contribute significantly to the company's earnings.

Kaken Pharmaceutical Co Financial Statement Overview

Summary

Kaken Pharmaceutical Co exhibits strong financial performance with robust profitability, solid revenue growth, and a stable balance sheet with low leverage. The company demonstrates efficient cash management, though historical volatility in revenue and cash flow suggests a need for cautious future planning.

Income Statement

Kaken Pharmaceutical Co has demonstrated strong revenue growth, with a significant increase from the previous year, and robust profitability metrics. The Gross Profit Margin and Net Profit Margin improved significantly, standing at 61.96% and 14.83% respectively in the latest year. EBIT and EBITDA margins also showed solid performances at 22.37% and 23.42%. However, the revenue growth has been somewhat volatile in the past, indicating potential market fluctuations.

Balance Sheet

The company maintains a very healthy balance sheet with a low Debt-to-Equity Ratio of 0.025, which indicates low leverage and financial stability. Return on Equity is strong at 9.14%, reflecting efficient use of equity. The Equity Ratio stands at a healthy 80.16%, signifying a strong equity base. These metrics indicate a stable financial position with minimal financial risk.

Cash Flow

Kaken Pharmaceutical Co has seen substantial growth in Free Cash Flow, with a remarkable increase in the latest year. The Operating Cash Flow to Net Income Ratio is strong at 2.14, indicating good cash generation relative to net income. Despite these strengths, historical fluctuations in cash flow and a dip in Free Cash Flow in 2024 suggest potential volatility in cash generation.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	94.65B	94.03B	72.04B	72.98B	76.03B	74.98B
Gross Profit	58.08B	58.26B	38.54B	39.56B	41.58B	40.91B
EBITDA	20.34B	22.02B	12.57B	9.40B	16.38B	20.99B
Net Income	12.46B	13.95B	8.03B	5.44B	9.55B	13.40B
Balance Sheet
Total Assets	176.34B	190.42B	171.62B	166.33B	165.18B	163.33B
Cash, Cash Equivalents and Short-Term Investments	55.40B	70.08B	65.32B	74.26B	74.62B	77.31B
Total Debt	3.85B	3.85B	3.85B	3.85B	3.85B	3.85B
Total Liabilities	28.89B	37.78B	27.87B	29.49B	26.86B	27.08B
Stockholders Equity	147.45B	152.63B	143.75B	136.26B	137.75B	136.26B
Cash Flow
Free Cash Flow	0.00	25.64B	410.00M	7.05B	10.08B	12.09B
Operating Cash Flow	0.00	29.78B	2.58B	9.25B	13.34B	14.38B
Investing Cash Flow	0.00	-19.65B	-5.85B	-2.63B	-7.89B	-1.64B
Financing Cash Flow	0.00	-5.37B	-5.66B	-6.99B	-8.13B	-8.75B

Kaken Pharmaceutical Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3712.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4521, the sentiment is Positive. The current price of 3712 is above the 20-day moving average (MA) of 3674.45, above the 50-day MA of 3700.04, and below the 200-day MA of 3890.80, indicating a neutral trend. The MACD of 11.39 indicates Negative momentum. The RSI at 63.66 is Neutral, neither overbought nor oversold. The STOCH value of 96.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4521.

Kaken Pharmaceutical Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4553	81 Outperform	$155.76B	7.55	11.81%	2.87%	9.32%	30.85%
4521	80 Outperform	¥138.31B	201.41	0.44%	4.62%	-5.99%	-96.04%
4534	73 Outperform	€117.91B	18.29	5.11%	2.63%	4.35%	48.30%
4547	66 Neutral	$187.89B	13.44	6.57%	2.86%	13.11%	41.57%
4551	65 Neutral	―	―	―	―	10.91%	2.93%
4887	57 Neutral	¥182.53B	199.01	―	2.93%	12.78%	-105.43%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%