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

• Market Cap: ¥121.65B
• Dividend Yield: 2.34%
• Average Volume (3M): 34.37K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.63
• 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: ¥4,010.00 ▲(10.93% 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 and a robust equity ratio provide durable financial flexibility: supports R&D and in-licensing, cushions reimbursement or pricing pressure, and allows management to fund strategic initiatives or sustain distributions without needing external debt under stress.

Sustained profit margins

Consistently healthy gross and net margins show structural cost discipline and pricing power in key therapeutic areas. Strong margins support reinvestment in development and commercialization, helping sustain earnings even if top-line growth slows.

Solid cash generation relative to earnings

A strong conversion of earnings into cash and improving operating cash flow underpin sustainable internal funding capacity for capex, R&D, and licensing. This reduces dependence on external financing and supports long-term strategic execution.

Negative Factors

Declining revenue growth

A multi-year slowdown and a recent significant revenue drop are structural concerns: they shrink the base for margin expansion, constrain reinvestment capacity, and signal product lifecycle or competitive headwinds that could limit sustainable top-line recovery.

Volatile free cash flow

Volatility in free cash flow creates uncertainty around funding for acquisitions, development, and dividends. Even with strong FCF-to-income conversion recently, inconsistent FCF trends complicate multi-quarter planning and may force conservative capital allocation.

Domestic revenue concentration & limited partnership visibility

Heavy reliance on the domestic Japanese market and limited disclosed partnership details constrain diversification and scalable growth. This concentration increases sensitivity to local reimbursement and distribution dynamics and limits external growth levers.

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 makes money primarily by selling pharmaceutical products, with revenue largely generated from prescription drug sales in the domestic Japanese market. Its core revenue model includes (1) product sales from its own marketed prescription medicines (distributed through healthcare providers and pharmaceutical distribution channels), and (2) income associated with bringing in and commercializing products through licensing arrangements (e.g., in-licensing/partnered products marketed under Mochida’s sales network) where applicable. Earnings are supported by its ability to obtain regulatory approvals, maintain reimbursement positioning in Japan’s healthcare system, and sustain demand through medical representative (MR)-driven promotion to physicians and healthcare institutions. Specific details on the company’s largest product contributions, exact revenue mix by segment, and named major partnerships are null.

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	11.44B	11.07B	8.61B	11.18B	17.08B	14.75B
Net Income	6.03B	5.68B	4.55B	6.65B	10.57B	8.59B
Balance Sheet
Total Assets	161.74B	163.56B	162.30B	161.04B	165.93B	165.88B
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	178.00M	0.00	0.00
Total Liabilities	30.59B	32.87B	34.33B	34.26B	37.28B	38.90B
Stockholders Equity	131.15B	130.69B	127.97B	126.78B	128.65B	126.97B
Cash Flow
Free Cash Flow	0.00	7.19B	-9.78B	5.13B	4.47B	7.26B
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: Neutral
• Last Price: 3615.00
• 50DMA: Negative
• 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:4534, the sentiment is Neutral. The current price of 3615 is below the 20-day moving average (MA) of 3717.00, below the 50-day MA of 3697.80, and above the 200-day MA of 3284.52, indicating a neutral trend. The MACD of -45.72 indicates Positive momentum. The RSI at 41.92 is Neutral, neither overbought nor oversold. The STOCH value of 33.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥152.00B	93.62	-2.58%	4.16%	-5.99%	-96.04%
4534	73 Outperform	¥121.65B	12.60	4.81%	2.34%	4.35%	48.30%
4569	69 Neutral	¥85.96B	8.41	―	3.36%	11.65%	93.46%
4553	67 Neutral	¥195.63B	5.05	12.02%	2.14%	9.32%	30.85%
4547	66 Neutral	¥185.24B	14.92	6.70%	2.48%	13.11%	41.57%
4887	59 Neutral	¥213.76B	13.89	―	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.