ONO Pharmaceutical Co (4528) AI Stock Analysis

• Market Cap: ¥1.26T
• Dividend Yield: 3.63%
• Average Volume (3M): 2.41M
• Price to Earnings (P/E): 20.1
• Beta (1Y): 0.46
• Revenue Growth: 4.00%
• EPS Growth: -48.73%
• Country: JP
• Employees: 3,853
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): N/A
• Shares Outstanding: 498,692,800
• 10 Day Avg. Volume: 2,786,750
• 30 Day Avg. Volume: 2,407,313
• PEG Ratio: -0.25
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 1.55
• P/FCF Ratio: 10.12
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥2,713.00 ▲(19.38% Upside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

The score is driven primarily by solid financial quality (strong free cash flow and low leverage), partially offset by a sharp decline in margins and returns versus FY2024. Technicals show a strong uptrend, but overbought signals temper the near-term setup. Valuation is reasonable with a supportive dividend yield.

Positive Factors

Strong free cash flow and growth

Consistent, large free cash flow and strong FCF growth provide durable funding for R&D, dividends, milestones and shareholder returns. High FCF-to-income conversion (~0.95x) supports strategic flexibility and lowers reliance on external financing for multi-year drug development.

Conservative balance sheet and low leverage

Low leverage and substantial equity create financial resilience through drug cycles and development risks. A conservative balance sheet preserves capacity for opportunistic M&A, partnership investments, or elevated R&D spending without materially increasing refinancing or interest-rate risk.

Research-driven model with partnership monetization

A research-led pipeline focused on oncology/immunology plus out-licensing and co-development reduces commercialization capital needs and accelerates global reach. Reliance on partners for ex-Japan commercialization sustainably leverages third-party scale while retaining upside from milestones and royalties.

Negative Factors

Material margin and ROE compression

A steep decline in margins and ROE signals structural changes to profitability—product mix shifts, pricing pressure or higher costs—that reduce internal funding for R&D and returns to shareholders. Sustained compression would limit reinvestment capacity and strategic optionality.

Operating cash flow under EBITDA (cash conversion headwinds)

OCF below EBITDA reflects weaker cash conversion, likely from working-capital or timing effects. If persistent, this erodes the benefit of strong accounting earnings, constrains available cash for milestones/dividends, and raises the importance of managing receivables and inventory tightly.

Modest revenue growth and negative EPS trajectory

Low top-line growth combined with negative EPS growth suggests demand or portfolio challenges and reduces leverage from scale. Over months, sluggish revenue and falling EPS limit margin recovery, reduce free cash growth potential, and increase reliance on cost control or portfolio actions.

ONO Pharmaceutical Co Business Overview & Revenue Model

Company Description

Ono Pharmaceutical Co., Ltd., together with its subsidiaries, produces, purchases, and sells pharmaceuticals and diagnostic reagents worldwide. It offers OPDIVO intravenous infusions for the treatment of malignant tumors; KYPROLIS for intravenous injection; EMEND capsules/PROEMEND intravenous injections for chemotherapy-induced nausea and vomiting; DEMSER capsules for improvement of the symptoms in patients with pheochromocytoma; and MEKTOVI, VELEXBRU, and ADLUMIZ tablets, as well as BRAFTOVI capsules for malignant tumors. The company also provides GLACTIV and FORXIGA tablets for type 2 diabetes; FORXIGA tablets for the treatment of diabetes; ONOACT injections for tachyarrhythmia; OPALMON tablets to treat peripheral circulatory disorder; CORALAN for treatment of chronic heart failure; ORENCIA injections for rheumatoid arthritis; RIVASTACH patches for Alzheimer's disease; ONGENTYS tablets for the treatment of Parkinson's disease; PARSABIV, an intravenous injection for dialysis patients; STAYBLA tablets for overactive bladder; ONON capsules and dry syrups for bronchial asthma and allergic rhinitis; and JOYCLU intra-articular injection for the improvement of joint function, as well as RECALBON tablets for osteoporosis. In addition, it is developing products for esophageal, urothelial carcinoma, Hodgkin's lymphoma, ovarian, bladder, prostate, hepatocellular carcinoma, pancreatic, biliary tract, virus positive/negative solid carcinoma, gastric, esophageal, urothelial, hepatocellular, thyroid, colorectal, melanoma, acute myeloid leukemia, non-small cell lung cancer, primary central nervous system lymphoma, myelodysplastic syndrome, polymyositis/dermatomyositis, tachyarrhythmia, pemphigus, generalized scleroderma, enthesopathy, diabetic polyneuropathy, neurodegenerative, autoimmune, narcolepsy, and thrombosis. The company was founded in 1717 and is headquartered in Osaka, Japan.

How the Company Makes Money

ONO Pharmaceutical generates revenue primarily through the sale of its pharmaceutical products, which include both patented drugs and generic formulations. The company has established key revenue streams from its flagship products, notably its oncology drug Opdivo (nivolumab), which has gained significant market traction. ONO also engages in strategic partnerships and collaborations with other pharmaceutical companies, research institutions, and healthcare organizations, which can provide additional funding and shared revenues from co-developed products. The company benefits from licensing agreements and royalties from its intellectual property, contributing further to its earnings. Additionally, ONO invests in research and development to innovate and expand its product pipeline, ensuring long-term revenue growth.

ONO Pharmaceutical Co Financial Statement Overview

Summary

Financials are solid overall: strong free cash flow (~¥119B) with robust growth (+24.5%) and good earnings conversion (FCF ~0.95x net income), plus a conservative balance sheet (TTM debt-to-equity ~0.16). The key drag is a notable profitability/return reset versus FY2024 (TTM net margin ~12.3% vs ~25.5% and ROE ~7.8% vs ~16.1%), and operating cash flow running below EBITDA (coverage ~0.88).

Income Statement

TTM (Trailing-Twelve-Months) revenue is modestly higher (about +1.1%), and profitability remains solid with ~69.8% gross margin and ~22.4% EBITDA margin. However, compared with recent annual periods, margins and earnings have compressed materially (net margin ~12.3% TTM vs ~25.5% in FY2024), indicating weaker product mix and/or higher costs. EBIT also declined versus prior annual peaks, reducing the quality of the earnings profile despite still-healthy absolute profitability.

Balance Sheet

The balance sheet is conservatively positioned with low leverage: TTM debt-to-equity is ~0.16 and equity is substantial (~¥840B) versus assets (~¥1.08T). That said, leverage has risen meaningfully from very low levels in FY2022–FY2024 (debt-to-equity ~0.01) to the current level, which is a trend to watch. Returns on equity are positive but have moderated (TTM ~7.8% vs ~16.1% in FY2024), consistent with the earnings step-down.

Cash Flow

Cash generation is strong with TTM operating cash flow of ~¥126B and free cash flow of ~¥119B, and free cash flow growth is robust (+24.5%). Free cash flow tracks net income well (TTM free cash flow is ~0.95x net income), supporting earnings quality. A key offset is that operating cash flow is below EBITDA on a TTM basis (coverage ~0.88), suggesting working-capital or cash conversion headwinds versus the headline operating profitability.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	509.35B	486.87B	502.67B	447.19B	361.36B	309.28B
Gross Profit	355.45B	338.92B	375.55B	337.13B	267.85B	223.71B
EBITDA	114.14B	91.54B	182.10B	161.90B	122.83B	116.85B
Net Income	62.40B	50.05B	127.98B	112.72B	80.52B	75.42B
Balance Sheet
Total Assets	1.08T	1.06T	913.67B	882.44B	739.20B	746.84B
Cash, Cash Equivalents and Short-Term Investments	189.27B	210.38B	204.59B	164.29B	116.97B	104.97B
Total Debt	132.00B	146.68B	8.86B	9.17B	8.80B	9.05B
Total Liabilities	239.04B	275.84B	115.06B	134.62B	77.53B	105.69B
Stockholders Equity	839.67B	782.45B	792.96B	741.87B	655.91B	635.55B
Cash Flow
Free Cash Flow	119.27B	74.47B	89.83B	145.11B	49.55B	53.68B
Operating Cash Flow	125.64B	82.46B	110.66B	159.61B	61.83B	73.98B
Investing Cash Flow	-28.72B	-136.78B	48.08B	-100.26B	6.04B	-57.59B
Financing Cash Flow	-69.13B	94.30B	-89.85B	-32.48B	-60.24B	-24.75B

ONO Pharmaceutical Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2272.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4528, the sentiment is Positive. The current price of 2272.5 is below the 20-day moving average (MA) of 2544.20, below the 50-day MA of 2358.30, and above the 200-day MA of 1883.26, indicating a bullish trend. The MACD of 87.30 indicates Negative momentum. The RSI at 77.22 is Negative, neither overbought nor oversold. The STOCH value of 87.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4528.

ONO Pharmaceutical Co 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%
4528	75 Outperform	¥1.26T	20.14	6.03%	3.63%	4.00%	-48.73%
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%

ONO Pharmaceutical Co Corporate Events

ONO Pharmaceutical Posts Strong Profit Growth in Q3 FY2025 and Maintains Full-Year Outlook

ONO Pharmaceutical reported solid growth for the nine months ended December 31, 2025, with revenue rising 6.0% year-on-year to ¥397.0 billion and operating profit jumping 24.8% to ¥88.3 billion, reflecting improved profitability after a weak prior-year period. Profit attributable to owners of the company increased 21.8% to ¥68.9 billion, while basic earnings per share climbed to ¥146.75, and on a core basis both revenue and earnings also posted high-teen growth. The company’s financial position strengthened, with total assets reaching ¥1.08 trillion and the equity ratio improving to 77.4%, and management kept its full-year FY2025 forecasts unchanged, projecting modest full-year revenue growth of 0.6% and a more than 40% rise in operating profit. ONO plans to maintain its annual dividend forecast at ¥80 per share and has added Ono Global Reinsurance, Inc. to its consolidation scope, underscoring a stable capital structure and a continued commitment to shareholder returns despite a relatively flat top-line outlook for the full year.

The most recent analyst rating on (JP:4528) stock is a Buy with a Yen2130.00 price target. To see the full list of analyst forecasts on ONO Pharmaceutical Co stock, see the JP:4528 Stock Forecast page.