Kaken Pharmaceutical Co (4521) AI Stock Analysis

• Market Cap: $137.81B
• Dividend Yield: 3.92%
• Average Volume (3M): 155.43K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.29
• Revenue Growth: 30.52%
• EPS Growth: 73.96%
• Country: JP
• Employees: 1,135
• Sector: Healthcare
• Sector Strength: 44
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -140.89
• Shares Outstanding: 44,139,730
• 10 Day Avg. Volume: 170,690
• 30 Day Avg. Volume: 155,430
• PEG Ratio: -0.60
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.70
• 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: $5,600.29
• Price Target Upside: 46.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ¥4,216.00 ▲(10.37%Upside)

Kaken Pharmaceutical Co's overall stock score reflects its strong financial performance and attractive valuation. However, the bearish technical indicators suggest caution. The positive financial metrics provide a strong foundation, but market sentiment and technical trends indicate potential risks.

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. generates revenue through the sale of its pharmaceutical products, which include a variety of prescription medications focused on dermatology and orthopedics. The company's revenue streams are strengthened by its commitment to innovation in medical treatments, maintaining a strong pipeline of new drugs and therapies. Additionally, Kaken may engage in strategic partnerships and collaborations with other pharmaceutical firms to enhance its product offerings and market reach. The company also benefits from its sales in the agrochemical sector, which supplements its primary pharmaceutical business.

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. It demonstrates efficient cash management, though some historical volatility in revenue and cash flow suggests a need for cautious 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	93.35B	94.03B	72.04B	72.98B	76.03B	74.98B
Gross Profit	57.87B	58.26B	38.54B	39.56B	41.58B	40.91B
EBITDA	28.71B	22.02B	12.57B	10.57B	16.38B	20.11B
Net Income	20.52B	13.95B	8.03B	5.44B	9.55B	13.40B
Balance Sheet
Total Assets	193.42B	190.42B	171.62B	166.33B	165.18B	163.33B
Cash, Cash Equivalents and Short-Term Investments	79.75B	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	38.16B	37.78B	27.87B	29.49B	26.86B	27.08B
Stockholders Equity	155.26B	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: Negative
• Last Price: 3820.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4521, the sentiment is Negative. The current price of 3820 is below the 20-day moving average (MA) of 3828.40, below the 50-day MA of 3871.28, and below the 200-day MA of 4098.17, indicating a bearish trend. The MACD of -13.72 indicates Negative momentum. The RSI at 46.57 is Neutral, neither overbought nor oversold. The STOCH value of 30.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4521.

Kaken Pharmaceutical Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4521	74 Outperform	$137.81B	10.47	9.44%	3.92%	30.52%	73.96%
Sector *	65 Neutral	¥345.58B	10.59	-2.88%	2.65%	11.80%	-6.84%
KSPHF		$1.14B	15.08	5.47%	0.02%	―	―
TRXPF		$1.23B	28.25	4.56%	2.30%	―	―
TWAPF		$1.02B	10.01	11.38%	0.01%	―	―
MFY		€595.08M	17.66	4.35%	2.70%	―	―
4887	70 Outperform	¥181.27B	18.88		2.96%	-3.69%	-18.73%