Hisamitsu Pharmaceutical Co (4530) AI Stock Analysis

• Market Cap: ¥469.95B
• Dividend Yield: 2.43%
• Average Volume (3M): 139.59K
• Price to Earnings (P/E): 23.3
• Beta (1Y): 0.39
• Revenue Growth: 3.53%
• EPS Growth: 38.23%
• Country: JP
• Employees: 2,759
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 97.00
• Shares Outstanding: 75,164,894
• 10 Day Avg. Volume: 146,500
• 30 Day Avg. Volume: 139,593
• PEG Ratio: 0.23
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 1.99
• P/FCF Ratio: 62.30
• 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: 73 Outperform
• Price Target: ¥6,913.00 ▲(71.97% Upside)

The score is primarily driven by strong financial performance (profitability, conservative leverage, and healthy cash generation). Technicals are supportive due to strong trend strength, but extremely overbought RSI/Stoch signals temper the score. Valuation is reasonable but not cheap, with a moderate dividend yield.

Positive Factors

High gross and EBITDA margins

Sustained high gross and healthy EBITDA margins indicate durable product-level economics and pricing power, likely driven by proprietary transdermal technology and product mix. Strong margins support R&D investment, margin resilience in pricing pressure, and long-term profitability stability.

Conservative balance sheet with high equity ratio

An extremely high equity ratio and low leverage give the company financial flexibility to fund R&D, pursue partnerships, and weather sector cyclicality without heavy interest burdens. This conservative funding mix reduces solvency risk and preserves optionality for strategic investments.

Consistent operating cash flow and positive FCF

Reliable operating cash generation and persistent positive free cash flow underpin the firm's ability to self-fund product development, pay dividends or royalties, and sustain partnerships. Strong cash conversion supports long-term capital allocation without dependence on external financing.

Negative Factors

Moderate revenue growth rate

Mid-single-digit revenue growth suggests slower top-line expansion relative to high-growth pharma peers. In a competitive specialty/generic market, modest organic growth means the company must rely on incremental product launches, geographic expansion, or partnerships to materially accelerate long-term revenue.

Growth in total liabilities needs monitoring

Although leverage is low today, a trend of rising liabilities could erode the strong equity base and reduce financial flexibility over time. If liabilities accelerate faster than assets, the company may face tighter funding conditions or higher financing costs that could constrain strategic initiatives.

Net profit margin has room for improvement

Despite high gross margins, a mid-teens net margin implies operating or SG&A pressures relative to best-in-class peers. Without improvements in operating efficiency or higher-margin product mix, net margin compression could limit free cash flow expansion and shareholder returns over the medium term.

Hisamitsu Pharmaceutical Co Business Overview & Revenue Model

Company Description

Hisamitsu Pharmaceutical Co., Inc. is a Japan-based company primarily engaged in the research, development, manufacturing, and marketing of pharmaceutical products, with a strong focus on transdermal drug delivery systems. The company operates in various sectors, including prescription pharmaceuticals, over-the-counter (OTC) products, and medical devices. Core products include analgesics, anti-inflammatory medications, and treatments for various medical conditions, leveraging their expertise in patch technology and innovative drug formulations.

How the Company Makes Money

Hisamitsu Pharmaceutical generates revenue primarily through the sale of its pharmaceutical products, which include prescription medications and OTC products. A significant portion of their earnings comes from the transdermal patch segment, where they hold a strong market position. The company also engages in licensing agreements and partnerships with other pharmaceutical companies, which provide additional revenue streams through royalties and product collaborations. By focusing on R&D, Hisamitsu continually innovates and expands its product offerings, contributing to sustained revenue growth. Key factors influencing their earnings include market demand for pain relief products, effective marketing strategies, and the successful launch of new products in both domestic and international markets.

Hisamitsu Pharmaceutical Co Financial Statement Overview

Summary

Hisamitsu Pharmaceutical Co exhibits robust financial health characterized by solid revenue and profit growth, a strong equity position, and a healthy cash flow profile. The company's prudent financial management is evident in its low leverage and efficient cash conversion, positioning it well for future expansion.

Income Statement

Hisamitsu Pharmaceutical Co demonstrates solid revenue growth over the past few years, with a noticeable increase from ¥114.51 billion in 2021 to ¥156.01 billion in 2025. The company maintains strong gross and net profit margins, with the latest figures for 2025 being 58.45% and 13.94%, respectively. EBIT and EBITDA margins also show substantial strength at 12.11% and 22.47% for 2025. These figures indicate a robust profitability profile, although the net profit margin could be improved slightly.

Balance Sheet

The balance sheet shows a strong equity base with stockholders' equity growing from ¥252.30 billion in 2021 to ¥276.83 billion in 2025. The debt-to-equity ratio remains low, indicating conservative leverage practices, which is favorable for financial stability. The equity ratio stands at an impressive 80.70% for 2025, showcasing the company's strong reliance on equity financing. However, the growth in total liabilities warrants close monitoring to ensure it does not outpace asset growth.

Cash Flow

Hisamitsu Pharmaceutical Co demonstrates a healthy cash flow position, with consistent operating cash flow generation, reaching ¥18.77 billion in 2025. The free cash flow remains positive, although there was a slight decrease from the peak in 2020. The company maintains a strong operating cash flow to net income ratio, indicating efficient cash conversion. The positive free cash flow trend supports the company's ability to fund operations and sustain future growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	154.86B	156.01B	141.71B	128.33B	120.19B	114.51B
Gross Profit	91.68B	91.20B	78.97B	72.70B	70.07B	69.17B
EBITDA	24.65B	35.05B	24.38B	21.08B	17.30B	16.29B
Net Income	19.53B	21.76B	13.97B	11.74B	9.66B	9.25B
Balance Sheet
Total Assets	334.93B	343.07B	328.78B	313.92B	302.86B	299.86B
Cash, Cash Equivalents and Short-Term Investments	118.13B	129.12B	125.32B	136.87B	142.43B	136.00B
Total Debt	2.65B	3.86B	2.10B	2.29B	2.46B	1.60B
Total Liabilities	62.00B	63.66B	61.70B	55.51B	47.98B	46.06B
Stockholders Equity	270.38B	276.82B	264.87B	256.36B	253.16B	252.29B
Cash Flow
Free Cash Flow	0.00	4.99B	5.15B	4.82B	15.01B	1.90B
Operating Cash Flow	0.00	18.77B	18.19B	12.73B	19.20B	5.29B
Investing Cash Flow	0.00	17.56B	-2.51B	-23.87B	-13.06B	7.82B
Financing Cash Flow	0.00	-15.85B	-16.69B	-14.69B	-15.19B	-7.19B

Hisamitsu Pharmaceutical Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4020.00
• 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:4530, the sentiment is Positive. The current price of 4020 is below the 20-day moving average (MA) of 4672.50, below the 50-day MA of 4359.00, and below the 200-day MA of 4184.51, indicating a bullish trend. The MACD of 456.49 indicates Negative momentum. The RSI at 93.35 is Negative, neither overbought nor oversold. The STOCH value of 92.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4530.

Hisamitsu Pharmaceutical Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4540	76 Outperform	¥320.34B	11.51	9.05%	3.30%	10.51%	9.62%
4516	74 Outperform	¥382.23B	11.97	―	2.12%	4.07%	22.59%
4530	73 Outperform	¥469.95B	23.27	7.11%	2.43%	3.53%	38.23%
4887	63 Neutral	¥238.73B	-238.59	―	2.28%	12.78%	-105.43%
4506	63 Neutral	¥1.16T	7.47	79.99%	―	29.92%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Hisamitsu Pharmaceutical Co Corporate Events

Hisamitsu President’s Vehicle TAIYO KOSAN Launches Tender Offer to Boost Stake

TAIYO KOSAN CO., INC. has launched a tender offer to acquire common shares, share acquisition rights, and depository receipts of Hisamitsu Pharmaceutical Co., Inc., signaling an attempt by the president-controlled entity to significantly increase its ownership in the listed drug maker. The move, made under Japan’s Financial Instruments and Exchange Act, could tighten control of Hisamitsu by its current leadership, potentially altering the company’s governance structure and ownership balance while reinforcing founder-related influence over the publicly traded business.

The most recent analyst rating on (JP:4530) stock is a Buy with a Yen4677.00 price target. To see the full list of analyst forecasts on Hisamitsu Pharmaceutical Co stock, see the JP:4530 Stock Forecast page.

Hisamitsu Board Backs CEO-Led MBO and Recommends Shareholders Tender Stock

Hisamitsu Pharmaceutical’s board of directors has endorsed a management buyout led by TAIYO KOSAN CO., INC., a company 100% owned by Hisamitsu President and CEO Kazuhide Nakatomi, and expressed support for a proposed tender offer for the company’s common stock, share acquisition rights and ADRs. The board is recommending that shareholders tender their shares into the offer and that ADR holders first convert their receipts into underlying shares before participating, while leaving it to individual holders to decide whether to tender share acquisition rights; the decision is made on the premise that Hisamitsu’s stock will be delisted following the transaction, marking a shift from public to private ownership that could significantly reshape its capital structure and governance and concentrate control with existing management.

The most recent analyst rating on (JP:4530) stock is a Buy with a Yen4677.00 price target. To see the full list of analyst forecasts on Hisamitsu Pharmaceutical Co stock, see the JP:4530 Stock Forecast page.

Hisamitsu Posts Modest Sales Growth, Withdraws Forecast as MBO and Delisting Loom

Hisamitsu Pharmaceutical reported consolidated net sales of ¥114.5 billion for the first nine months of the fiscal year ending February 28, 2026, up 2.9% year on year, while operating profit fell 4.6% to ¥12.6 billion and profit attributable to owners of parent declined 13.0% to ¥11.9 billion, reflecting profit margin pressure despite modest revenue growth. The company’s shareholders’ equity ratio remained high at 78.5%, but net assets declined compared with the end of the previous fiscal year, and it increased the interim dividend to ¥60 per share for FY2026, including a commemorative element tied to the 90th anniversary of SALONPAS®; at the same time, Hisamitsu withdrew its full-year earnings forecast and revised its dividend plan to eliminate the year-end payout in connection with a management buyout and tender offer that is expected to lead to the delisting of its shares, marking a major shift for existing shareholders and public-market stakeholders.

The most recent analyst rating on (JP:4530) stock is a Buy with a Yen4677.00 price target. To see the full list of analyst forecasts on Hisamitsu Pharmaceutical Co stock, see the JP:4530 Stock Forecast page.

Hisamitsu Pharmaceutical Scraps Year-End Dividend as Board Backs Privatization Tender Offer

Hisamitsu Pharmaceutical has revised its dividend forecast for the fiscal year ending February 28, 2026, deciding that no year-end dividend will be paid, conditional on the successful completion of a tender offer by Taiyo Kosan to acquire its common stock, share acquisition rights and American Depositary Receipts. The board has expressed support for the tender offer, recommended that shareholders participate, and acknowledged that the offer price was set on the basis that no year-end dividend would be paid, paving the way for a planned privatization and eventual delisting of the company’s shares, which will materially affect shareholder returns and the company’s status as a public company.

The most recent analyst rating on (JP:4530) stock is a Buy with a Yen4677.00 price target. To see the full list of analyst forecasts on Hisamitsu Pharmaceutical Co stock, see the JP:4530 Stock Forecast page.

Hisamitsu Withdraws Earnings Forecast Amid MBO-Linked Tender Offer and Planned Delisting

Hisamitsu Pharmaceutical has withdrawn its consolidated earnings forecast for the fiscal year ending February 28, 2026, which had previously projected net sales of ¥165 billion and profit attributable to owners of parent of ¥22 billion. The company’s decision follows a board resolution to support a management buyout via a tender offer by Taiyo Kosan Co., Inc., recommend that shareholders tender their shares, and proceed on the assumption that its shares will be delisted. Because the former forecast incorporated gains from planned sales of cross-shareholdings and that sale policy has become undecided in light of the tender offer and expected delisting, management now considers it impossible to reasonably estimate current-year performance and has therefore withdrawn its guidance.

The most recent analyst rating on (JP:4530) stock is a Buy with a Yen4677.00 price target. To see the full list of analyst forecasts on Hisamitsu Pharmaceutical Co stock, see the JP:4530 Stock Forecast page.

Hisamitsu Pharmaceutical Completes Share Buyback Initiative

Hisamitsu Pharmaceutical Co., Inc. has completed the acquisition of 254,600 of its own shares, amounting to a total cost of 1,051,793,000 yen, as part of a broader initiative approved by the board of directors in July 2025. This strategic move, executed through open market purchases on the Tokyo Stock Exchange, is part of a larger plan to acquire up to 3 million shares, enhancing the company’s control over its stock and potentially impacting its market positioning and shareholder value.

The most recent analyst rating on (JP:4530) stock is a Buy with a Yen4677.00 price target. To see the full list of analyst forecasts on Hisamitsu Pharmaceutical Co stock, see the JP:4530 Stock Forecast page.

Hisamitsu Pharmaceutical Advances Share Buyback Strategy

Hisamitsu Pharmaceutical Co. has announced the acquisition of 431,200 of its own shares at a total cost of 1,761,453,600 yen, conducted through open market discretionary trading on the Tokyo Stock Exchange. This move is part of a broader strategy approved by the board to acquire up to 3 million shares by the end of 2025, reflecting the company’s ongoing efforts to manage its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (JP:4530) stock is a Buy with a Yen4677.00 price target. To see the full list of analyst forecasts on Hisamitsu Pharmaceutical Co stock, see the JP:4530 Stock Forecast page.

Hisamitsu Pharmaceutical Reports Q2 Financial Results and Increased Dividend Forecast

Hisamitsu Pharmaceutical Co. reported a slight decline in its consolidated financial results for the second quarter of the fiscal year ending February 28, 2026, with net sales decreasing by 0.7% and a notable drop in profit attributable to owners of the parent by 22.8%. Despite the decline, the company announced an increase in its annual dividend forecast, including a commemorative dividend for the anniversary of its MOHRUS Tapes, indicating a commitment to shareholder returns.

The most recent analyst rating on (JP:4530) stock is a Buy with a Yen4677.00 price target. To see the full list of analyst forecasts on Hisamitsu Pharmaceutical Co stock, see the JP:4530 Stock Forecast page.