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Santen Pharmaceutical Co (JP:4536)
:4536
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Santen Pharmaceutical Co (4536) AI Stock Analysis

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JP:4536

Santen Pharmaceutical Co

(OTC:4536)

Rating:76Outperform
Price Target:
Santen Pharmaceutical Co is performing well with strong financial metrics, including consistent revenue growth, improving profitability, and robust cash flows. The technical analysis suggests positive momentum, though caution is advised due to potential overbought indicators. Valuation metrics are reasonable with a fair P/E ratio and an attractive dividend yield. The absence of recent earnings call insights or impactful corporate events keeps the focus on these core elements.

Santen Pharmaceutical Co (4536) vs. iShares MSCI Japan ETF (EWJ)

Santen Pharmaceutical Co Business Overview & Revenue Model

Company DescriptionSanten Pharmaceutical Co., Ltd. researches and develops, manufactures, and markets pharmaceuticals and medical devices in Japan and internationally. It offers various pharmaceutical products to treat glaucoma and ocular hypertension, such as DE-111, which is in Phase III clinical trial; DE-117 in Japan; DE-126 that is in Phase IIb clinical trial; DE-128 in Europe, as well as is in Phase II/III clinical trial in the United States; and DE-130A that is in Phase III clinical trial. In addition, the company provides DE-114A to treat allergic conjunctivitis; DE-076C for the treatment of vernal keratoconjunctivitis; and DE-109, which is in Phase III clinical trial to treat uveitis. Further, it offers DE-127 to treat myopia, which is in Phase II/III clinical trial in Japan, as well as is in Phase III in Asia; DE-089C, which has completed Phase III clinical trials for the treatment of dry eye; and STN1013400, which is in Phase I clinical trials for the treatment of myopia. Additionally, the company offers over-the-counter pharmaceutical products. The company was formerly known as Santendo Pharmaceutical Co., Ltd. and changed its name to Santen Pharmaceutical Co., Ltd. in 1958. Santen Pharmaceutical Co., Ltd. was founded in 1890 and is headquartered in Osaka, Japan.
How the Company Makes MoneySanten Pharmaceutical Co. generates revenue through the sale of its ophthalmic products, which are its core revenue stream. This includes prescription medications for conditions such as glaucoma, dry eye, and retinal disorders, as well as OTC eye care products. The company also earns income from its surgical device segment, which encompasses products used in ophthalmic surgeries. Santen's earnings are bolstered by its strong R&D capabilities, allowing it to develop new and effective treatments. Additionally, the company benefits from strategic partnerships and collaborations with other pharmaceutical companies and research institutions, enhancing its product offerings and market reach. Factors such as an aging global population and the increasing prevalence of eye diseases contribute to sustained demand for Santen's products.

Santen Pharmaceutical Co Financial Statement Overview

Summary
Santen Pharmaceutical Co exhibits strong financial health with consistent revenue growth, improving profitability, and a sound balance sheet with no debt in TTM. The company has demonstrated efficient cash flow management, enhancing its financial flexibility. While there are areas to watch, such as equity changes, the financial statements indicate a well-managed company in a competitive industry.
Income Statement
85
Very Positive
Santen Pharmaceutical Co has shown consistent revenue growth with a strong gross profit margin of 55.6% in TTM (Trailing-Twelve-Months). The net profit margin improved to 9.1% from a loss in 2023, indicating recovery and efficiency in operations. EBIT margin is robust at 15.9%, and EBITDA margin is 18.8%, showcasing strong operational performance. Overall, the income statement reflects a positive growth trajectory, with improved profitability.
Balance Sheet
75
Positive
The balance sheet of Santen Pharmaceutical Co is strong with zero total debt in TTM, reducing financial risk. The equity ratio is healthy at 71.3%, indicating a strong equity base. Return on equity stands at 9.7%, showing moderate profitability relative to shareholders' equity. The company's leverage has significantly decreased, enhancing its financial stability. However, the recent decline in stockholders' equity needs to be monitored.
Cash Flow
80
Positive
Santen Pharmaceutical Co demonstrates strong cash flow generation with a free cash flow to net income ratio of 1.66 in TTM, indicating efficient cash conversion. Operating cash flow to net income ratio is robust at 2.01, showing solid cash flow generation from operations. Despite a decline in free cash flow growth, the company's cash flow metrics are strong, supporting financial flexibility and potential for reinvestment.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue300.00B301.96B279.04B266.26B249.60B
Gross Profit162.22B163.88B166.09B156.59B151.38B
EBITDA68.83B56.46B14.30B54.52B30.01B
Net Income36.25B26.64B-14.95B27.22B6.83B
Balance Sheet
Total Assets409.28B435.70B421.18B459.98B402.35B
Cash, Cash Equivalents and Short-Term Investments93.00B94.96B58.68B84.31B63.41B
Total Debt0.0035.16B36.21B32.93B10.15B
Total Liabilities124.10B130.33B127.88B123.13B95.30B
Stockholders Equity286.24B306.06B293.98B337.49B307.58B
Cash Flow
Free Cash Flow54.27B61.96B12.56B10.20B15.00B
Operating Cash Flow60.93B72.65B37.15B46.04B38.81B
Investing Cash Flow-8.22B-6.14B-26.78B-35.17B-53.35B
Financing Cash Flow-53.31B-34.03B-37.22B5.56B-16.68B

Santen Pharmaceutical Co Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1648.50
Price Trends
50DMA
1655.62
Negative
100DMA
1545.78
Positive
200DMA
1566.81
Positive
Market Momentum
MACD
4.00
Positive
RSI
46.18
Neutral
STOCH
32.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4536, the sentiment is Neutral. The current price of 1648.5 is below the 20-day moving average (MA) of 1662.15, below the 50-day MA of 1655.62, and above the 200-day MA of 1566.81, indicating a neutral trend. The MACD of 4.00 indicates Positive momentum. The RSI at 46.18 is Neutral, neither overbought nor oversold. The STOCH value of 32.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4536.

Santen Pharmaceutical Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥563.19B15.8512.06%2.15%-0.06%2.75%
51
Neutral
$7.39B0.42-62.86%2.37%15.61%-1.93%
$19.30B32.505.46%4.91%
$45.07B24.0818.32%1.67%
$8.25B24.515.96%3.75%
$9.11B34.814.61%2.23%
$5.37B17.535.58%5.04%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4536
Santen Pharmaceutical Co
1,648.50
-84.53
-4.88%
ALPMF
Astellas Pharma
10.25
-0.06
-0.58%
DSKYF
Daiichi Sankyo Company
25.44
-11.12
-30.42%
ESALF
Eisai Co
29.25
-4.61
-13.61%
KYKOF
Kyowa Kirin Co
17.13
-3.09
-15.28%
OPHLF
ONO Pharmaceutical Co
10.84
-3.38
-23.77%

Santen Pharmaceutical Co Corporate Events

Santen Pharmaceutical Co. Revises Year-End Dividend Forecast
Feb 6, 2025

Santen Pharmaceutical Co., Ltd. announced a revision of its year-end dividend forecast following a Board of Directors meeting. The company increased its fiscal year-end dividend forecast from 17 yen to 19 yen per share, resulting in a total annual dividend of 36 yen per share for the year ending March 31, 2025. This change reflects Santen’s commitment to returning profits to shareholders, aligned with its progressive dividend policy and medium to long-term earnings prospects.

Santen Pharmaceutical to Cancel 5 Million Treasury Shares
Feb 6, 2025

Santen Pharmaceutical Co., Ltd. announced the cancellation of 5 million treasury shares, representing 1.4% of its outstanding shares, as part of a decision made by its Board of Directors. This move, scheduled for February 28, 2025, is likely to impact the company’s share structure and could reflect a strategic effort to optimize its capital allocation, potentially benefiting shareholders by improving return on equity.

Santen Pharmaceutical Reports Financial Results and Strategic Initiatives
Feb 6, 2025

Santen Pharmaceutical reported its consolidated financial results for the nine months ending December 31, 2024, showing slight revenue stability but a decrease in core operating and net profits. Despite this, the company forecasts a significant improvement in operating and net profits for the year ending March 31, 2025, indicating strategic adjustments, including share repurchases and cancellations, to enhance shareholder value.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 03, 2025