Hisamitsu Pharmaceutical Co (4530) AI Stock Analysis

• Market Cap: ¥305.06B
• Dividend Yield: 2.51%
• Average Volume (3M): 138.16K
• Price to Earnings (P/E): 15.5
• Beta (1Y): 0.19
• 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): 62.31
• Shares Outstanding: 75,164,894
• 10 Day Avg. Volume: 120,070
• 30 Day Avg. Volume: 138,160
• 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: ¥4,277.75
• Price Target Upside: 6.41% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 277
• Revenue Forecast (FY): ¥161.42B

• Rating: 73 Outperform
• Price Target: ¥4,677.00 ▲(16.34% Upside)

Hisamitsu Pharmaceutical Co's overall stock score is driven primarily by its strong financial performance, characterized by solid revenue growth, profitability, and a strong equity position. The technical analysis presents a mixed picture with neutral to slightly bullish trends, while the valuation is fair, offering a balanced risk-reward profile. The absence of earnings call data and corporate events did not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth demonstrates the company's expanding market reach and strong product demand, supporting long-term business sustainability.

Cash Flow Health

Strong cash flow generation ensures the company can fund operations and invest in growth opportunities, enhancing financial stability and resilience.

Equity Position

A strong equity base provides financial flexibility and reduces reliance on debt, supporting sustainable growth and risk management.

Negative Factors

Liabilities Growth

Increasing liabilities could strain financial resources if not matched by asset growth, potentially impacting long-term financial health.

Net Profit Margin

While profitability is strong, enhancing net profit margins could improve overall financial performance and shareholder returns.

Free Cash Flow Decline

A decline in free cash flow, though still positive, may limit the company's ability to invest in future growth without impacting cash reserves.

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: Positive
• RSI: Neutral
• STOCH: Neutral

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 4197.70, below the 50-day MA of 4131.10, and below the 200-day MA of 4127.49, indicating a neutral trend. The MACD of 12.18 indicates Positive momentum. The RSI at 51.51 is Neutral, neither overbought nor oversold. The STOCH value of 31.31 is Neutral, 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	¥290.12B	10.42	9.05%	3.53%	10.51%	9.62%
4516	74 Outperform	¥376.91B	11.80	―	2.22%	4.07%	22.59%
4530	73 Outperform	¥305.06B	15.45	7.11%	2.51%	3.53%	38.23%
4506	66 Neutral	¥890.93B	5.88	79.99%	―	29.92%	―
4551	65 Neutral	―	―	―	―	10.91%	2.93%
4887	63 Neutral	¥223.86B	-227.40	―	2.36%	12.78%	-105.43%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Hisamitsu Pharmaceutical Co Corporate Events

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.

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.

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.

Hisamitsu Pharmaceutical Announces Share Buyback Progress

Hisamitsu Pharmaceutical Co., Inc. announced the acquisition of 392,000 of its own shares, totaling approximately 1.67 billion yen, through open market purchases on the Tokyo Stock Exchange during September 2025. This move is part of a broader strategy approved by the board to acquire up to 3 million shares by the end of 2025, aiming to enhance shareholder value and optimize capital structure.