Hisamitsu Pharmaceutical Co (4530) AI Stock Analysis

• Market Cap: $305.42B
• Dividend Yield: 2.43%
• Average Volume (3M): 140.84K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.19
• Revenue Growth: 6.49%
• EPS Growth: 38.42%
• Country: JP
• Employees: 2,759
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 62.31
• Shares Outstanding: 75,164,894
• 10 Day Avg. Volume: 136,840
• 30 Day Avg. Volume: 140,836
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.65
• Enterprise Value/Revenue: 1.27
• Enterprise Value/Gross Profit: 2.18
• Enterprise Value/Ebitda: 7.22
• 1Y Price Target: $4,702.41
• Price Target Upside: 11.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: ¥4,700.00 ▲(11.72% Upside)

Hisamitsu Pharmaceutical Co's strong financial performance, characterized by solid revenue growth and a healthy cash flow position, is the primary driver of its stock score. The technical analysis supports a positive outlook, although caution is advised due to potential overbought conditions. The valuation is reasonable, with a fair P/E ratio and a modest dividend yield.

Hisamitsu Pharmaceutical Co Business Overview & Revenue Model

Company Description

Hisamitsu Pharmaceutical Co., Ltd. is a Japanese pharmaceutical company primarily engaged in the development, manufacturing, and marketing of pharmaceutical products. Known for its focus on transdermal drug delivery systems, the company is a leader in the production of medicated patches and topical treatments. Its core products include the Salonpas line of pain relief patches, which are widely recognized and distributed globally, as well as a range of prescription medications and over-the-counter products. Hisamitsu operates primarily within the healthcare and pharmaceutical sectors, with a strong emphasis on research and innovation in drug delivery technologies.

How the Company Makes Money

Hisamitsu Pharmaceutical Co., Ltd. generates revenue primarily through the sale of its transdermal pharmaceutical products. The company's key revenue streams include the global sale of its flagship brand, Salonpas, which consists of various pain relief patches and topical analgesics available over the counter. In addition to consumer healthcare products, Hisamitsu also earns revenue through the sale of prescription medications, which utilize their proprietary transdermal delivery technologies. The company benefits from strong distribution networks and strategic partnerships that help expand its market presence internationally. Hisamitsu's earnings are further supported by ongoing investments in research and development, allowing it to innovate and maintain a competitive edge in the pharmaceutical industry.

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	156.01B	156.01B	141.71B	128.33B	120.19B	114.51B
Gross Profit	91.20B	91.20B	78.97B	72.70B	70.07B	69.17B
EBITDA	27.50B	35.05B	24.38B	21.08B	17.30B	16.29B
Net Income	21.76B	21.76B	13.97B	11.74B	9.66B	9.25B
Balance Sheet
Total Assets	343.07B	343.07B	328.78B	313.92B	302.86B	299.86B
Cash, Cash Equivalents and Short-Term Investments	129.12B	129.12B	125.32B	136.87B	142.43B	136.00B
Total Debt	3.86B	3.86B	2.10B	2.29B	2.46B	1.60B
Total Liabilities	63.66B	63.66B	61.70B	55.51B	47.98B	46.06B
Stockholders Equity	276.82B	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: 4207.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 4207 is below the 20-day moving average (MA) of 4265.37, above the 50-day MA of 4134.72, and above the 200-day MA of 4145.91, indicating a neutral trend. The MACD of 27.30 indicates Positive momentum. The RSI at 46.19 is Neutral, neither overbought nor oversold. The STOCH value of 12.10 is Positive, 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
4516	78 Outperform	222.20B	7.28	12.15%	3.75%	6.83%	11.59%
4530	76 Outperform	$305.42B	15.65	7.24%	2.43%	6.49%	38.42%
4540	75 Outperform	284.00B	10.98	10.79%	3.59%	14.60%	8.97%
4551	65 Neutral	178.39B	33.00	4.15%	0.94%	10.91%	2.93%
4506	63 Neutral	642.82B	33.69	10.73%	―	26.28%	0.00%
4887	60 Neutral	201.23B	219.40	12.41%	1.33%	3.52%	-95.28%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Hisamitsu Pharmaceutical Co Corporate Events

Hisamitsu Pharmaceutical Advances Share Buyback Plan

Hisamitsu Pharmaceutical Co., Inc. announced the acquisition of 1,765,400 of its own shares, costing approximately 7.1 billion yen, as part of a previously announced plan. This move is part of a broader strategy to repurchase up to 3 million shares by the end of 2025, which could impact the company’s market positioning and shareholder value.

Hisamitsu Pharmaceutical Finalizes Stock Compensation Details

Hisamitsu Pharmaceutical Co. has finalized the details of stock compensation-type share options, initially resolved by the Board of Directors on July 10, 2025. The allocation involves 141 stock acquisition rights priced at 318,600 yen each, calculated using the Black-Scholes model based on the Tokyo Stock Exchange’s closing price. These rights are designated for six directors of the company, excluding outside directors, and are intended to align their interests with the company’s performance.

Hisamitsu Pharmaceutical Announces Share Buyback to Enhance Shareholder Value

Hisamitsu Pharmaceutical Co., Inc. announced the acquisition of 1,765,400 of its own shares for approximately 7.1 billion yen as part of a strategy to enhance shareholder returns. This move aligns with their Basic Policy on Cash Allocation, aiming to return over 50 billion yen to shareholders through dividends and buybacks by 2031, reflecting the company’s commitment to sustainable value and financial stability.

Hisamitsu Pharmaceutical Announces Strategic Share Buyback Plan

Hisamitsu Pharmaceutical Co. has announced a strategic move to acquire its own shares, aiming to enhance sustainable value for the company and its shareholders. This decision is part of a broader cash allocation policy to return over 50 billion yen to shareholders through dividends and share buybacks over the next five years. The acquisition will be executed through the Tokyo Stock Exchange’s Off-Auction Own Share Repurchase Trading System, with a maximum acquisition of 2 million shares at a cost of 8,054 million yen. This move is expected to strengthen shareholder returns and reflects the company’s positive performance and market conditions.

Hisamitsu Pharmaceutical Reports Q1 Financial Decline but Projects Full-Year Growth

Hisamitsu Pharmaceutical Co. reported a decline in its financial performance for the first quarter of the fiscal year ending February 28, 2026, with net sales decreasing by 3.2% and profit attributable to owners of the parent dropping by 46.4% year-on-year. Despite the downturn, the company forecasts a full-year increase in net sales and operating profit by 5.8%, and plans to increase its annual dividend, including a commemorative dividend for the 30th anniversary of MOHRUS® Tapes.

Hisamitsu Pharmaceutical Announces Share Buyback and Cancellation Plan

Hisamitsu Pharmaceutical Co. has announced a strategic decision to acquire and subsequently cancel its own shares, aiming to enhance sustainable value for the company and its shareholders. This move is part of a broader policy to implement shareholder returns exceeding 50 billion yen over a five-year period, reflecting the company’s commitment to strengthening shareholder value through careful cash allocation and market considerations.

Hisamitsu Pharmaceutical Co. Issues Stock Options to Align Director Interests

Hisamitsu Pharmaceutical Co. announced the issuance of stock compensation-type share options for its directors, excluding outside directors. This initiative is designed to align the interests of the directors with shareholders by sharing stock price fluctuations, thereby motivating directors to enhance corporate value and stock price. The issuance involves 141 stock acquisition rights, with each right corresponding to 100 common shares of the company. This move is expected to strengthen the company’s governance and incentivize its leadership towards long-term growth.

Hisamitsu Pharmaceutical Cancels 10 Million Treasury Shares to Enhance Capital Efficiency

Hisamitsu Pharmaceutical Co., Inc. has announced the cancellation of 10 million treasury shares, representing 13.70% of the total shares issued before cancellation. This move aims to improve capital efficiency, return profits to shareholders, and allow for a more flexible capital policy in response to changing business conditions.

Hisamitsu Pharmaceutical Announces New Executive Appointments

Hisamitsu Pharmaceutical Co., Inc. announced the appointment of 10 directors, including two new appointments, at its 123rd annual general meeting. This strategic move is expected to strengthen the company’s leadership and enhance its operational capabilities, potentially impacting its market position and stakeholder relations positively.