Mochida Pharmaceutical Co., Ltd. (4534) AI Stock Analysis

• Market Cap: ¥133.39B
• Dividend Yield: 2.34%
• Average Volume (3M): 34.37K
• Price to Earnings (P/E): 21.9
• Beta (1Y): 0.59
• Revenue Growth: 4.35%
• EPS Growth: 48.30%
• Country: JP
• Employees: 1,522
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 70.12
• Shares Outstanding: 36,390,000
• 10 Day Avg. Volume: 38,620
• 30 Day Avg. Volume: 34,366
• PEG Ratio: 0.75
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 1.07
• P/FCF Ratio: 15.67
• 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: ¥4,367.00 ▲(20.80% Upside)
• Action: Upgraded Date: 11/15/25
• Date: Action: Upgraded 11/15/25

Mochida Pharmaceutical's strong financial stability and profitability are key strengths, supported by positive technical momentum. However, challenges in revenue growth and cash flow volatility, along with a moderate valuation, limit the overall score. The absence of earnings call insights and corporate events does not impact the evaluation.

Positive Factors

Low leverage / strong balance sheet

Very low leverage provides durable financial flexibility: it supports sustained R&D investment, allows opportunistic M&A or licensing, and reduces refinancing risk in economic downturns. Over months this underpins stability in operations and strategic optionality without pressuring cash flow.

Healthy gross and net profit margins

Sustained gross and net margins show lasting operational efficiency and pricing power, especially valuable in specialty and generic segments. High margins create internal funding for pipeline development and buffer revenue volatility, supporting long-term earnings resilience and reinvestment.

Strong cash generation relative to earnings

A strong free cash flow to net income ratio signals that reported profits translate into cash, enabling consistent funding of clinical programs, dividend policy, and balance sheet strengthening. Over 2-6 months this underpins financial health and supports strategic decisions.

Negative Factors

Declining revenue growth trend

A persistent decline in revenue growth is a structural concern: it limits scale economies, reduces resources for R&D and commercialization, and may indicate increasing competition or product life-cycle issues. If sustained, it can pressure future margins and strategic investments.

Volatile free cash flow growth

Volatility in free cash flow complicates planning for R&D, licensing, and shareholder returns. Even with good FCF-to-income ratios, swings reduce predictability of funding for long-term trials or launches and raise the risk of temporary financing needs during down cycles.

Slightly declining return on equity

A modest decline in ROE suggests the company is becoming marginally less efficient at converting equity into profits. Over several quarters this can signal weakening operational leverage or less effective capital allocation, ultimately reducing shareholder returns if not addressed.

Mochida Pharmaceutical Co., Ltd. Business Overview & Revenue Model

Company Description

Mochida Pharmaceutical Co., Ltd. produces and sells pharmaceuticals, skincare products, and diagnostics solutions in Japan. The company provides cardiovascular, analgesic, gastrointestinal, neurological, anti-infective, antidiabetics, and anticancer products, as well as hormone and biological preparations, and biosimilars; diagnostic reagents, such as reagents for fertility/infertility and other reagents; and face and body care, hair care, and skincare products, as well as dermatology, psychiatry, obstetrics, and gynecology products. It also developing drugs for the treatment of intractable diseases. The company has collaboration agreements with Amarin Corporation plc for the development and commercialization of ethyl icosapentate products; and Gene Techno Science Co., Ltd. to develop new regenerative medicine for the treatment of digestive rare and intractable diseases, such as congenital isolated hypoganglionosis. Mochida Pharmaceutical Co., Ltd. was founded in 1913 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Mochida Pharmaceutical generates revenue primarily through the sale of its pharmaceutical products, which include both proprietary drugs and generic medicines. The company earns money by marketing its innovative drugs in Japan and international markets, often focusing on niche therapeutic areas where there is unmet medical need. Key revenue streams include sales from hospital and retail pharmacies, as well as international licensing agreements and partnerships with other pharmaceutical firms for co-development and distribution of products. Additionally, Mochida may benefit from patent protections on its proprietary medications, allowing it to maintain higher prices before generic competition enters the market. Strategic collaborations with research institutions and other companies further enhance its product pipeline and market reach, contributing to its overall earnings.

Mochida Pharmaceutical Co., Ltd. Financial Statement Overview

Summary

Mochida Pharmaceutical demonstrates strong profitability and financial stability with low leverage. However, declining revenue growth and volatile cash flow trends pose challenges. The company needs to address these areas to sustain long-term growth and improve financial performance.

Income Statement

Mochida Pharmaceutical has shown a decline in revenue growth over the past few years, with a significant drop in the most recent year. Despite this, the company maintains healthy gross and net profit margins, indicating strong cost management and profitability. However, the declining revenue trend is a concern for future growth prospects.

Balance Sheet

The company has a very low debt-to-equity ratio, reflecting minimal leverage and a strong equity base. Return on equity has been stable, though slightly declining, indicating efficient use of equity to generate profits. The equity ratio is robust, suggesting financial stability and low risk.

Cash Flow

Mochida Pharmaceutical's cash flow performance is mixed. While the operating cash flow has improved recently, the free cash flow growth has been volatile. The free cash flow to net income ratio is strong, indicating good cash generation relative to earnings, but past negative free cash flow growth rates highlight potential cash flow management issues.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	106.38B	105.16B	102.89B	103.26B	110.18B	103.00B
Gross Profit	54.46B	53.79B	52.07B	55.12B	59.55B	54.79B
EBITDA	11.20B	11.00B	8.97B	11.71B	17.28B	14.75B
Net Income	6.03B	5.68B	4.55B	6.65B	10.57B	8.59B
Balance Sheet
Total Assets	161.74B	160.12B	158.80B	158.83B	163.14B	161.79B
Cash, Cash Equivalents and Short-Term Investments	54.69B	51.15B	46.79B	60.51B	61.91B	63.49B
Total Debt	830.00M	342.00M	369.00M	190.00M	0.00	0.00
Total Liabilities	30.59B	29.43B	30.83B	32.06B	34.50B	34.82B
Stockholders Equity	131.15B	130.69B	127.97B	126.77B	128.64B	126.97B
Cash Flow
Free Cash Flow	0.00	7.19B	-9.78B	5.13B	4.36B	7.11B
Operating Cash Flow	0.00	9.35B	-7.48B	7.30B	7.46B	9.20B
Investing Cash Flow	0.00	17.36B	74.00M	-2.95B	-2.01B	-880.00M
Financing Cash Flow	0.00	-2.87B	-6.39B	-6.88B	-5.96B	-5.11B

Mochida Pharmaceutical Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3615.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4534, the sentiment is Positive. The current price of 3615 is below the 20-day moving average (MA) of 3784.25, below the 50-day MA of 3664.40, and above the 200-day MA of 3238.66, indicating a bullish trend. The MACD of 76.07 indicates Negative momentum. The RSI at 63.22 is Neutral, neither overbought nor oversold. The STOCH value of 90.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4534.

Mochida Pharmaceutical Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4521	80 Outperform	¥157.94B	-44.16	0.44%	4.16%	-5.99%	-96.04%
4534	73 Outperform	¥133.39B	21.89	5.11%	2.34%	4.35%	48.30%
4569	69 Neutral	¥89.33B	9.20	―	3.36%	11.65%	93.46%
4553	67 Neutral	¥215.81B	10.12	11.81%	2.14%	9.32%	30.85%
4547	66 Neutral	¥198.51B	14.85	6.57%	2.48%	13.11%	41.57%
4887	59 Neutral	¥229.68B	-101.98	―	2.28%	12.78%	-105.43%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Mochida Pharmaceutical Co., Ltd. Corporate Events

Mochida Pharmaceutical Lifts Nine-Month Earnings and Raises Full-Year Profit Forecast

For the nine months ended December 31, 2025, Mochida Pharmaceutical reported an 8.4% year-on-year rise in consolidated net sales to ¥87.5 billion, with operating profit up 3.9% to ¥7.5 billion and profit attributable to owners of parent up 13.2% to ¥6.3 billion, lifting basic earnings per share to ¥178.91. Total assets expanded to ¥182.2 billion and equity rose to ¥137.4 billion, though the equity ratio declined to 75.4% from 81.6%, while the company maintained its dividend policy with ¥40 per share already paid at the second quarter and a full-year forecast of ¥80 unchanged; at the same time, Mochida upgraded its full-year outlook, now projecting 9.8% growth in net sales to ¥115.5 billion and a 47.8% jump in full-year profit attributable to owners of parent to ¥8.4 billion, signaling confidence in earnings momentum despite the note that its forecast revisions have been formally updated.

The most recent analyst rating on (JP:4534) stock is a Hold with a Yen3964.00 price target. To see the full list of analyst forecasts on Mochida Pharmaceutical Co., Ltd. stock, see the JP:4534 Stock Forecast page.

Mochida Pharmaceutical Raises Full-Year Earnings Forecast on Strong Core Business

Mochida Pharmaceutical has raised its full-year consolidated forecast for the fiscal year ending March 31, 2026, reflecting stronger-than-expected performance in its pharmaceutical business and higher income from equity-method investments. The company now expects consolidated net sales of ¥115.5 billion, operating profit of ¥9.5 billion, ordinary profit of ¥11.0 billion, and profit attributable to owners of parent of ¥8.4 billion, representing year-on-year growth and sizable increases of 35.7% to 55.6% versus its previous guidance, signaling improved earnings momentum and potentially stronger returns for shareholders.

The most recent analyst rating on (JP:4534) stock is a Hold with a Yen3964.00 price target. To see the full list of analyst forecasts on Mochida Pharmaceutical Co., Ltd. stock, see the JP:4534 Stock Forecast page.