ONO Pharmaceutical Co (4528) AI Stock Analysis

• Market Cap: ¥724.67B
• Dividend Yield: 0.03%
• Average Volume (3M): 2.55M
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.41
• Revenue Growth: -3.14%
• EPS Growth: -59.94%
• Country: JP
• Employees: 3,853
• Sector: Healthcare
• Sector Strength: 44
• Industry: Drug Manufacturers - General
• EPS (TTM): -13.94
• Shares Outstanding: 498,692,800
• 10 Day Avg. Volume: 2,480,290
• 30 Day Avg. Volume: 2,551,860
• PEG Ratio: 0.60
• Price to Book (P/B): 1.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.19
• 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: ¥1,399.77
• Price Target Upside: -11.29% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: ¥1,772.00 ▲(12.29%Upside)

ONO Pharmaceutical's strong financial performance and attractive valuation are the most significant factors contributing to its overall score. The company's solid balance sheet, profitability, and dividend yield offer a stable investment opportunity. Technical indicators suggest potential short-term volatility, but the overall outlook remains positive due to robust financials.

ONO Pharmaceutical Co Business Overview & Revenue Model

Company Description

ONO Pharmaceutical Co., Ltd. is a Japanese pharmaceutical company headquartered in Osaka, Japan. The company specializes in the research, development, manufacturing, and marketing of pharmaceutical products, focusing on areas such as oncology, immunology, and cardiovascular diseases. ONO Pharmaceutical is known for its strong emphasis on innovation, particularly in creating novel therapies that address unmet medical needs.

How the Company Makes Money

ONO Pharmaceutical Co. generates revenue primarily through the sale of its pharmaceutical products. The company's revenue streams are largely driven by the commercialization of its proprietary drugs, which include treatments in areas like oncology and immunology. A significant portion of its income comes from the sales of Opdivo, an immune checkpoint inhibitor used in cancer treatment. Additionally, ONO Pharmaceutical benefits from strategic partnerships and collaborations with other pharmaceutical companies, which help in co-developing and marketing new drugs. These partnerships often involve licensing agreements and milestones that contribute to its financial performance. The company also invests in research and development to sustain its pipeline of innovative drugs, thereby ensuring future revenue growth.

ONO Pharmaceutical Co Financial Statement Overview

Summary

ONO Pharmaceutical demonstrates a solid financial position overall, with a strong balance sheet and healthy profitability metrics. While recent revenue and profit declines pose challenges, the company's low leverage and substantial cash reserves provide a buffer against potential risks.

Income Statement

ONO Pharmaceutical has shown strong revenue growth over the past years, with a notable increase from 2020 to 2024. Despite a recent decline in revenues in 2025, the company maintains robust profitability metrics with a high gross profit margin of approximately 69.6% and a solid net profit margin of 10.28%. The decline in EBIT and EBITDA margins in 2025 indicates potential operational challenges, but the overall profitability remains strong compared to industry standards.

Balance Sheet

The balance sheet reflects a strong equity position with an equity ratio consistently above 70%. The debt-to-equity ratio is low at 0.19, indicating low financial leverage, which reduces financial risk. Return on equity has decreased to 6.39% in 2025, pointing to reduced efficiency in using equity capital. However, the overall financial stability is commendable with substantial cash reserves.

Cash Flow

ONO Pharmaceutical's cash flow statement reveals a mixed performance. The free cash flow has decreased by 14.24% from 2024 to 2025, which may impact future investments. However, the operating cash flow to net income ratio remains strong at 1.65, indicating efficient cash generation from operations. The positive free cash flow to net income ratio of 1.54 further supports cash flow stability.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
486.87B	502.67B	447.19B	361.36B	309.28B
	Gross Profit
338.92B	375.55B	337.13B	267.85B	223.71B
	EBIT
63.38B	163.10B	141.96B	103.19B	98.33B
	EBITDA
91.42B	181.98B	161.11B	128.54B	114.54B
	Net Income Common Stockholders
50.05B	127.98B	112.72B	80.52B	75.42B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
209.05B	166.14B	164.29B	116.97B	104.97B
	Total Assets
1.06T	913.67B	882.44B	739.20B	746.84B
	Total Debt
146.68B	8.86B	9.17B	8.80B	9.05B
	Net Debt
-57.89B	-157.28B	-86.97B	-60.31B	-51.99B
	Total Liabilities
275.84B	115.06B	134.62B	77.53B	105.69B
	Stockholders Equity
782.45B	792.96B	741.87B	655.91B	635.55B
Cash Flow		Free Cash Flow
77.03B	89.83B	145.11B	49.55B	53.68B
	Operating Cash Flow
82.46B	110.66B	159.61B	61.83B	73.98B
	Investing Cash Flow
-136.78B	48.08B	-100.26B	6.04B	-57.59B
	Financing Cash Flow
94.30B	-89.85B	-32.48B	-60.24B	-24.75B

ONO Pharmaceutical Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1578.00
• 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:4528, the sentiment is Neutral. The current price of 1578 is above the 20-day moving average (MA) of 1530.95, below the 50-day MA of 1596.98, and below the 200-day MA of 1708.14, indicating a neutral trend. The MACD of -16.68 indicates Negative momentum. The RSI at 47.51 is Neutral, neither overbought nor oversold. The STOCH value of 28.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	79 Outperform	$12.59T	30.72	22.80%	1.49%	17.96%	25.65%
4578	77 Outperform	$3.85T	11.22	13.46%	1.64%	14.52%	156.70%
4503	75 Outperform	$2.55T	50.01	3.22%	5.04%	19.25%	294.48%
4528	75 Outperform	¥724.67B	14.48	6.25%	0.03%	-3.14%	-59.94%
4523	69 Neutral	¥1.13T	24.54	5.34%	3.98%	6.42%	11.00%
4568	67 Neutral	$6.80T	23.40	17.60%	1.64%	17.77%	48.97%
Sector *	54 Neutral	$5.38B	3.40	-45.06%	3.28%	16.75%	-0.02%

ONO Pharmaceutical Co Corporate Events

ONO Pharmaceutical Reports Decline but Forecasts Recovery

ONO Pharmaceutical Co., Ltd. reported a significant decline in its financial performance for the fiscal year ended March 31, 2025, with a notable decrease in revenue and profit compared to the previous year. Despite the downturn, the company forecasts a moderate recovery in the upcoming fiscal year, with slight revenue growth and improved profitability, indicating strategic adjustments to enhance its market position.

Ono Pharmaceutical Enhances Governance and Diversity Initiatives

Ono Pharmaceutical Co., Ltd. has announced its commitment to strengthening corporate governance by enhancing the functions of its Board of Directors and Audit & Supervisory Board. The company is also systematically reducing its cross-shareholdings to increase corporate value and is promoting diversity, equity, and inclusion within its workforce to improve employee engagement and unity. These initiatives are expected to positively impact the company’s operations and industry positioning.