Yuki Gosei Kogyo Co., Ltd. (4531) AI Stock Analysis

• Market Cap: ¥6.15B
• Dividend Yield: 3.21%
• Average Volume (3M): 39.67K
• Price to Earnings (P/E): 8.7
• Beta (1Y): 0.75
• Revenue Growth: 9.92%
• EPS Growth: -27.64%
• Country: JP
• Employees: 290
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 3.19
• Shares Outstanding: 21,974,000
• 10 Day Avg. Volume: 32,460
• 30 Day Avg. Volume: 39,673
• PEG Ratio: 0.39
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.38
• P/FCF Ratio: -4.79
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥310.00 ▲(5.44% Upside)

The overall stock score of 74 reflects strong financial performance with consistent revenue growth and profitability, supported by a robust balance sheet. The valuation is attractive with a low P/E ratio and a solid dividend yield. However, technical indicators suggest potential short-term weakness, which slightly tempers the overall outlook.

Positive Factors

Revenue Growth

Consistent revenue growth reflects strong demand for the company's products and effective market penetration strategies, supporting long-term business stability.

Profitability Margins

Improved profitability margins indicate effective cost management and pricing strategies, enhancing the company's ability to generate sustainable profits.

Balance Sheet Health

A strong balance sheet with manageable leverage levels provides financial stability and flexibility for future growth and investment opportunities.

Negative Factors

Negative Free Cash Flow

Negative free cash flow, while potentially indicating strategic investments, may strain liquidity and limit the company's ability to fund operations or return capital to shareholders.

Earnings Per Share Decline

A decline in EPS growth suggests challenges in maintaining profitability per share, which could impact investor confidence and valuation if not addressed.

Increasing Debt Levels

Rising debt levels may increase financial risk and interest obligations, potentially affecting the company's ability to invest in growth or weather economic downturns.

Yuki Gosei Kogyo Co., Ltd. Business Overview & Revenue Model

Company Description

Yuki Gosei Kogyo Co., Ltd. (4531) is a Japanese company primarily engaged in the development and manufacturing of pharmaceuticals and healthcare products. The company specializes in the production of generic drugs, active pharmaceutical ingredients (APIs), and various health supplements, serving both domestic and international markets. Yuki Gosei Kogyo is recognized for its commitment to quality and innovation in the pharmaceutical sector.

How the Company Makes Money

Yuki Gosei Kogyo Co., Ltd. generates revenue primarily through the sale of its pharmaceutical products, including generic medications and APIs. The company capitalizes on the growing demand for affordable healthcare solutions, focusing on high-quality generics that cater to a wide range of medical needs. Additionally, Yuki Gosei Kogyo may engage in partnerships or collaborations with other pharmaceutical companies for research and development projects, which can lead to licensing agreements or joint ventures that further enhance their income streams. The company may also benefit from government contracts and subsidies, particularly in markets that support the use of generics in public healthcare systems.

Yuki Gosei Kogyo Co., Ltd. Financial Statement Overview

Summary

Yuki Gosei Kogyo Co., Ltd. shows solid financial health with steady revenue growth and improved profitability margins. The balance sheet remains robust with a stable equity base and manageable debt levels. While cash flow from operations is healthy, the company faces challenges with negative free cash flow due to high capital expenditures.

Income Statement

The company has demonstrated consistent revenue growth over the past five years, with a revenue increase from ¥10,717 million in 2020 to ¥15,128 million in 2025. Gross profit margins have been stable, averaging around 20% over recent years, indicating efficient production and pricing strategies. Net profit margins have improved, particularly in the last two years, showing enhanced profitability and cost control. EBITDA margins have also strengthened, reflecting robust operating performance.

Balance Sheet

The balance sheet is strong with an improving equity position, as stockholders' equity has grown from ¥10,535 million in 2020 to ¥13,106 million in 2025. The debt-to-equity ratio has been stable, indicating manageable leverage levels. Return on equity has shown positive trends, suggesting efficient use of equity capital. However, the increasing total debt to ¥8,418 million warrants monitoring for potential leverage risks.

Cash Flow

Operating cash flow has been positive and growing, supporting the company's operational needs. However, free cash flow has been negative in recent years due to significant capital expenditures, which might indicate strategic investments or expansion. The operating cash flow to net income ratio is strong, showcasing good cash conversion efficiency, although consistent negative free cash flow could pose a challenge if not managed well.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.86B	15.13B	12.93B	12.84B	12.36B	11.09B
Gross Profit	3.19B	3.23B	3.26B	3.05B	2.36B	1.82B
EBITDA	1.93B	2.23B	1.93B	1.56B	1.18B	1.27B
Net Income	708.00M	896.00M	776.00M	556.00M	248.00M	288.00M
Balance Sheet
Total Assets	27.35B	26.87B	24.37B	22.12B	21.17B	21.00B
Cash, Cash Equivalents and Short-Term Investments	1.05B	973.00M	588.00M	1.14B	1.86B	1.26B
Total Debt	9.06B	8.51B	6.87B	5.64B	5.54B	6.14B
Total Liabilities	14.31B	13.76B	11.94B	10.64B	10.17B	10.05B
Stockholders Equity	13.03B	13.11B	12.43B	11.48B	11.00B	10.95B
Cash Flow
Free Cash Flow	0.00	-1.20B	-1.37B	-490.00M	1.40B	-208.00M
Operating Cash Flow	0.00	2.14B	388.00M	668.00M	1.79B	352.00M
Investing Cash Flow	0.00	-3.25B	-1.89B	-1.24B	-442.00M	-648.00M
Financing Cash Flow	0.00	1.50B	948.00M	-158.00M	-772.00M	106.00M

Yuki Gosei Kogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 294.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4531, the sentiment is Positive. The current price of 294 is above the 20-day moving average (MA) of 284.40, above the 50-day MA of 283.36, and above the 200-day MA of 266.89, indicating a bullish trend. The MACD of 2.88 indicates Negative momentum. The RSI at 61.78 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4531.

Yuki Gosei Kogyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4040	77 Outperform	¥6.30B	6.12	―	1.97%	8.43%	2.99%
4531	74 Outperform	¥6.15B	8.74	―	3.21%	9.92%	-27.64%
4366	74 Outperform	¥8.81B	10.55	―	1.68%	9.07%	―
4885	70 Outperform	¥2.74B	12.94	―	4.76%	7.90%	-39.51%
4960	67 Neutral	¥5.72B	39.89	―	0.96%	-9.63%	-1.71%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4360	46 Neutral	¥4.91B	-6.15	―	2.08%	13.64%	-151.98%

Yuki Gosei Kogyo Co., Ltd. Corporate Events

Yuki Gosei Kogyo Reports Increased Sales but Declining Profits in Q1 2025

Yuki Gosei Kogyo Co., Ltd. announced its non-consolidated financial results for the three months ended June 30, 2025, showing a significant increase in net sales by 22.4% compared to the previous year. However, the company experienced a decline in operating income, ordinary income, and net income by 55.8%, 61.2%, and 65.2% respectively, indicating challenges in maintaining profitability despite increased sales. The company maintains its dividend forecast for the fiscal year ending March 31, 2026, with no revisions, reflecting a cautious approach in its financial strategy.