ONO Pharmaceutical Co (4528) AI Stock Analysis

• Market Cap: $895.85B
• Dividend Yield: 4.38%
• Average Volume (3M): 2.41M
• Price to Earnings (P/E): 18.5
• Beta (1Y): 0.39
• Revenue Growth: 4.00%
• EPS Growth: -48.73%
• Country: JP
• Employees: 3,853
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 47.71
• 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: 0.82
• Enterprise Value/Revenue: 1.48
• Enterprise Value/Gross Profit: 2.16
• Enterprise Value/Ebitda: 9.12
• 1Y Price Target: $1,746.68
• Price Target Upside: -15.92% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥2,204.00 ▲(6.09% Upside)

ONO Pharmaceutical Co's overall stock score is driven by its stable financial performance and strong technical indicators, despite some profitability challenges. The valuation is reasonable with a good dividend yield, but technical analysis suggests caution due to overbought conditions.

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

ONO Pharmaceutical Co demonstrates a stable financial position with strong revenue growth and efficient cost management. The balance sheet is solid with low leverage, but profitability metrics have shown some decline, which could pose challenges. Cash flow generation is improving, but maintaining this trend will be crucial for future financial health.

Income Statement

ONO Pharmaceutical Co shows a stable revenue growth with a TTM increase of 2.03%. The gross profit margin remains strong at approximately 69.6%, indicating efficient cost management. However, the net profit margin has decreased from previous years, reflecting potential challenges in maintaining profitability. The EBIT and EBITDA margins have also seen a decline, suggesting pressure on operational efficiency.

Balance Sheet

The company's balance sheet is robust with a low debt-to-equity ratio of 0.19, indicating low financial leverage and a strong equity base. The return on equity is moderate at 6.27%, showing a decrease from previous years, which could impact investor returns. The equity ratio is healthy, reflecting a solid financial structure.

Cash Flow

Cash flow analysis reveals a positive free cash flow growth rate of 2.41% in the TTM, recovering from previous declines. The operating cash flow to net income ratio is stable, indicating consistent cash generation relative to earnings. However, the free cash flow to net income ratio is slightly below 1, suggesting limited cash available after capital expenditures.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	496.73B	486.87B	502.67B	447.19B	361.36B	309.28B
Gross Profit	341.44B	338.92B	375.55B	337.13B	267.85B	223.71B
EBITDA	80.72B	91.54B	182.10B	161.90B	122.83B	116.85B
Net Income	42.84B	50.05B	127.98B	112.72B	80.52B	75.42B
Balance Sheet
Total Assets	1.02T	1.06T	913.67B	882.44B	739.20B	746.84B
Cash, Cash Equivalents and Short-Term Investments	139.98B	210.38B	204.59B	164.29B	116.97B	104.97B
Total Debt	138.11B	146.68B	8.86B	9.17B	8.80B	9.05B
Total Liabilities	245.25B	275.84B	115.06B	134.62B	77.53B	105.69B
Stockholders Equity	772.64B	782.45B	792.96B	741.87B	655.91B	635.55B
Cash Flow
Free Cash Flow	78.88B	74.47B	89.83B	145.11B	49.55B	53.68B
Operating Cash Flow	85.02B	82.46B	110.66B	159.61B	61.83B	73.98B
Investing Cash Flow	-14.63B	-136.78B	48.08B	-100.26B	6.04B	-57.59B
Financing Cash Flow	-63.31B	94.30B	-89.85B	-32.48B	-60.24B	-24.75B

ONO Pharmaceutical Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2077.50
• 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 2077.5 is above the 20-day moving average (MA) of 1939.80, above the 50-day MA of 1817.23, and above the 200-day MA of 1631.12, indicating a bullish trend. The MACD of 68.99 indicates Negative momentum. The RSI at 74.94 is Negative, neither overbought nor oversold. The STOCH value of 86.73 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	80 Outperform	$11.42T	28.79	20.99%	1.15%	6.25%	2.62%
4578	79 Outperform	¥4.52T	10.17	16.30%	1.52%	6.56%	201.49%
4503	73 Outperform	$3.07T	24.43	7.97%	4.61%	13.24%	127.88%
4523	73 Outperform	$1.28T	25.44	5.75%	3.53%	6.79%	22.14%
4528	70 Outperform	$895.85B	18.48	6.03%	4.38%	4.00%	-48.73%
4568	61 Neutral	$6.28T	22.46	16.66%	1.64%	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 Reports Strong Q2 Financial Performance with Revenue Growth

ONO Pharmaceutical Co., Ltd. reported a 7% increase in revenue for the second quarter of FY 2025, compared to the same period last year, reaching 257,136 million yen. The company’s operating profit also rose by 6.7%, and profit attributable to owners increased by 7.1%. These results reflect a positive adjustment following the finalization of provisional accounting treatment related to a business combination. The company maintained its dividend forecast, indicating stable financial health and commitment to shareholder returns. The financial forecast for the full fiscal year 2025 shows modest growth expectations, with a slight increase in revenue and a significant rise in operating profit, suggesting strong operational efficiency and strategic positioning in the market.

The most recent analyst rating on (JP:4528) stock is a Buy with a Yen2107.00 price target. To see the full list of analyst forecasts on ONO Pharmaceutical Co stock, see the JP:4528 Stock Forecast page.