Santen Pharmaceutical Co (4536) AI Stock Analysis

• Market Cap: $518.79B
• Dividend Yield: 2.5%
• Average Volume (3M): 1.30M
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.36
• Revenue Growth: -3.66%
• EPS Growth: 25.93%
• Country: JP
• Employees: 3,744
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 24.44
• Shares Outstanding: 342,068,540
• 10 Day Avg. Volume: 1,416,570
• 30 Day Avg. Volume: 1,302,203
• PEG Ratio: 0.32
• Price to Book (P/B): 1.73
• Price to Sales (P/S): 1.65
• P/FCF Ratio: 9.11
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 1.74
• Enterprise Value/Gross Profit: 3.14
• Enterprise Value/Ebitda: 8.31
• 1Y Price Target: $2,200.25
• Price Target Upside: 39.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ¥1,688.00 ▲(7.31% Upside)

Santen Pharmaceutical Co's overall stock score reflects its strong financial health and reasonable valuation, which are offset by bearish technical indicators. The company's efficient cost management and low leverage are significant strengths, but challenges in revenue growth and bearish market momentum are notable risks.

Positive Factors

Strong Financial Health

The company's robust financial health, characterized by low leverage and efficient cost management, ensures stability and resilience in the long term.

Operational Efficiency

Improved EBIT and EBITDA margins reflect enhanced operational efficiency, which can lead to sustained profitability and competitive advantage.

Cash Generation

Positive free cash flow growth demonstrates strong cash generation, supporting reinvestment in growth opportunities and financial flexibility.

Negative Factors

Revenue Growth Challenges

Negative revenue growth indicates potential market challenges, which could impact long-term expansion and market share if not addressed.

Profitability Pressure

Declining net profit margins suggest difficulties in sustaining profitability, which could affect future earnings and shareholder returns.

Cash Flow Sustainability

Pressure on cash flow sustainability may limit the company's ability to fund operations and growth initiatives, impacting financial stability.

Santen Pharmaceutical Co Business Overview & Revenue Model

Company Description

Santen 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 Money

Santen Pharmaceutical generates revenue through several key streams: the sale of prescription drugs, especially those targeting ophthalmic conditions, contributes significantly to its earnings. The company has a robust product portfolio that includes well-established brands and newly launched therapies. Additionally, Santen engages in partnerships and collaborations with other pharmaceutical companies, which can include co-development agreements and licensing deals, enhancing its market presence and generating upfront and milestone payments. The company's ongoing investment in research and development also positions it to innovate and expand its product offerings, ensuring continued revenue growth. International markets play a vital role in Santen's earnings, as the company is strategically expanding its reach beyond Japan, tapping into emerging markets and established healthcare systems alike.

Santen Pharmaceutical Co Financial Statement Overview

Summary

Santen Pharmaceutical Co demonstrates strong financial health with efficient cost management and low leverage. While profitability has faced some challenges, operational efficiencies are improving. The company maintains a solid balance sheet with a strong equity position. Cash flow generation is robust, although there are signs of pressure on cash flow sustainability. Overall, the company is well-positioned financially, but it needs to address revenue growth challenges.

Income Statement

Santen Pharmaceutical Co shows a strong gross profit margin of approximately 54% in the latest year, indicating efficient cost management. However, the net profit margin has declined from the previous year, reflecting challenges in maintaining profitability. The revenue growth rate is negative, suggesting a contraction in sales, which is a concern. Despite these challenges, the EBIT and EBITDA margins have improved, indicating operational efficiency improvements.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of approximately 0.12, indicating low leverage and financial stability. The return on equity has improved significantly to 12.66%, showcasing effective use of equity to generate profits. The equity ratio remains strong, reflecting a solid financial position with a high proportion of assets financed by equity.

Cash Flow

Operating cash flow remains robust, although it has decreased from the previous year. The free cash flow growth rate is positive, indicating improved cash generation capabilities. The operating cash flow to net income ratio suggests strong cash conversion, while the free cash flow to net income ratio is high, reflecting efficient cash management. However, the decline in operating cash flow coverage ratio indicates potential pressure on cash flow sustainability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	293.97B	300.00B	301.96B	279.04B	266.26B	249.60B
Gross Profit	163.21B	162.22B	178.71B	166.09B	156.59B	151.38B
EBITDA	61.61B	68.83B	56.46B	14.30B	54.52B	30.01B
Net Income	31.49B	36.25B	26.64B	-14.95B	27.22B	9.31B
Balance Sheet
Total Assets	408.12B	409.28B	435.70B	421.18B	459.98B	402.35B
Cash, Cash Equivalents and Short-Term Investments	84.58B	93.00B	94.96B	58.68B	84.31B	63.41B
Total Debt	35.20B	34.23B	35.16B	36.21B	32.93B	10.15B
Total Liabilities	127.91B	124.10B	130.33B	127.88B	123.13B	95.30B
Stockholders Equity	281.26B	286.24B	306.06B	293.98B	337.49B	310.18B
Cash Flow
Free Cash Flow	48.57B	54.27B	61.96B	12.56B	10.20B	15.00B
Operating Cash Flow	56.51B	60.93B	72.65B	37.15B	46.04B	38.81B
Investing Cash Flow	-9.40B	-8.22B	-6.14B	-26.78B	-35.17B	-53.35B
Financing Cash Flow	-49.71B	-53.31B	-34.03B	-37.22B	5.56B	-16.68B

Santen Pharmaceutical Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1573.00
• 50DMA: Positive
• 100DMA: Negative
• 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:4536, the sentiment is Neutral. The current price of 1573 is above the 20-day moving average (MA) of 1567.32, above the 50-day MA of 1568.45, and above the 200-day MA of 1527.53, indicating a bullish trend. The MACD of 14.35 indicates Negative momentum. The RSI at 50.12 is Neutral, neither overbought nor oversold. The STOCH value of 30.25 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4523	74 Outperform	$1.28T	25.44	5.75%	3.53%	6.79%	22.14%
4503	73 Outperform	¥3.59T	28.58	7.97%	4.61%	13.24%	127.88%
4568	70 Outperform	$6.28T	22.46	16.66%	1.64%	12.56%	14.58%
4528	70 Outperform	$895.85B	18.48	6.03%	4.38%	4.00%	-48.73%
4536	65 Neutral	$518.79B	16.56	10.89%	2.50%	-3.66%	25.93%
4151	65 Neutral	$1.25T	34.17	4.27%	2.24%	-3.36%	-55.41%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Santen Pharmaceutical Co Corporate Events

Santen Pharmaceutical Announces Disposal of Treasury Shares for Stock Remuneration Plan

Santen Pharmaceutical Co., Ltd. has announced the disposal of treasury shares as part of its Performance Share Unit plan, which is a performance-linked stock remuneration initiative for its directors and corporate officers. This move is intended to provide medium- to long-term incentives and align the interests of its executives with those of shareholders. The disposal involves 57,909 shares at a price of 1,639.5 yen per share, totaling 94,941,804 yen. The plan was approved at the company’s Annual General Meeting, and the performance metrics for the assessment period from FY2022 to FY2024 were evaluated, resulting in a payout ratio based on relative total shareholder return and ESG-related metrics.

The most recent analyst rating on (JP:4536) stock is a Buy with a Yen2600.00 price target. To see the full list of analyst forecasts on Santen Pharmaceutical Co stock, see the JP:4536 Stock Forecast page.

Santen Pharmaceutical Reports Progress on Share Buyback Initiative

Santen Pharmaceutical Co., Ltd. announced the status of its share buyback program, repurchasing 2,772,000 common shares for a total of 4,508,303,950 yen between September 1 and September 30, 2025. This buyback is part of a broader plan approved by the Board of Directors to repurchase up to 19,800,000 shares, reflecting the company’s strategic financial management and potential impact on shareholder value.

The most recent analyst rating on (JP:4536) stock is a Buy with a Yen2600.00 price target. To see the full list of analyst forecasts on Santen Pharmaceutical Co stock, see the JP:4536 Stock Forecast page.

Santen Pharmaceutical Suspends Treasury Share Disposal Plan

Santen Pharmaceutical Co. has announced the suspension of its planned disposal of treasury shares for a performance-linked stock remuneration plan due to the aggregate amount exceeding 100 million yen. The company has withdrawn its previous securities notice and will provide further details once the Board of Directors finalizes their decisions.

The most recent analyst rating on (JP:4536) stock is a Buy with a Yen2600.00 price target. To see the full list of analyst forecasts on Santen Pharmaceutical Co stock, see the JP:4536 Stock Forecast page.

Santen Pharmaceutical Announces Treasury Share Disposal for Performance-linked Remuneration

Santen Pharmaceutical Co., Ltd. has announced the disposal of treasury shares as part of its Performance Share Unit plan, a performance-linked stock remuneration initiative aimed at providing medium- to long-term incentives for its directors and corporate officers. This move, approved at the company’s Annual General Meeting, reflects Santen’s commitment to aligning management interests with shareholder value, as evidenced by the payout ratios based on performance metrics such as total shareholder return and ESG-related criteria.

The most recent analyst rating on (JP:4536) stock is a Buy with a Yen2600.00 price target. To see the full list of analyst forecasts on Santen Pharmaceutical Co stock, see the JP:4536 Stock Forecast page.

Santen Pharmaceutical Updates on Share Buyback Progress

Santen Pharmaceutical Co., Ltd. announced the status of its share buyback program, having repurchased 5,236,000 common shares for a total of 8,248,657,100 yen between August 1 and August 31, 2025. This buyback is part of a larger plan approved by the Board of Directors to repurchase up to 19,800,000 shares, representing 5.8% of the total outstanding shares, with a maximum budget of 35 billion yen, aimed at enhancing shareholder value and optimizing capital structure.

The most recent analyst rating on (JP:4536) stock is a Buy with a Yen2600.00 price target. To see the full list of analyst forecasts on Santen Pharmaceutical Co stock, see the JP:4536 Stock Forecast page.

Santen Pharmaceutical Reports Decline in Q2 2025 Financials; Maintains Dividend Forecasts

Santen Pharmaceutical Co. reported a decline in its financial performance for the three months ended June 30, 2025, with significant decreases in revenue, core operating profit, and net profit compared to the same period in the previous year. Despite these declines, the company maintains its dividend forecasts for the fiscal year ending March 31, 2026, and has resolved to undertake a share repurchase, indicating a strategic move to enhance shareholder value.

The most recent analyst rating on (JP:4536) stock is a Buy with a Yen2200.00 price target. To see the full list of analyst forecasts on Santen Pharmaceutical Co stock, see the JP:4536 Stock Forecast page.

Santen Pharmaceutical Updates on Share Buyback Progress

Santen Pharmaceutical Co., Ltd. announced the status of its share buyback, having repurchased 4,188,500 common shares for 6,971,424,200 yen between July 1 and July 31, 2025. This buyback is part of a broader plan approved by the Board of Directors to repurchase up to 19,800,000 shares, representing 5.8% of the total shares outstanding, with a maximum budget of 35 billion yen. The buyback aims to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:4536) stock is a Buy with a Yen1900.00 price target. To see the full list of analyst forecasts on Santen Pharmaceutical Co stock, see the JP:4536 Stock Forecast page.