Santen Pharmaceutical Co (4536) AI Stock Analysis

• Market Cap: $513.49B
• Dividend Yield: 2.59%
• Average Volume (3M): 1.30M
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.38
• Revenue Growth: -3.41%
• EPS Growth: 22.21%
• Country: JP
• Employees: 3,744
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 17.32
• 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: 1.00
• Enterprise Value/Revenue: 1.71
• Enterprise Value/Gross Profit: 3.08
• Enterprise Value/Ebitda: 7.52
• 1Y Price Target: $2,153.23
• Price Target Upside: 44.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 65 Neutral
• Price Target: ¥1,688.00 ▲(12.91% 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.

Santen Pharmaceutical Co Business Overview & Revenue Model

Company Description

Santen Pharmaceutical Co., Ltd. (Ticker: 4536) is a global pharmaceutical company headquartered in Japan, specializing in the research, development, manufacturing, and marketing of products primarily for ophthalmology. Established in 1890, Santen focuses on innovative treatments for various eye diseases and conditions, including glaucoma, retinal disorders, and dry eye disease. The company operates in multiple sectors, including prescription pharmaceuticals, over-the-counter (OTC) products, and medical devices, aiming to improve the quality of life for patients worldwide.

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 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

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	300.00B	300.00B	301.96B	279.04B	266.26B	249.60B
Gross Profit	166.42B	162.22B	178.71B	166.09B	156.59B	151.38B
EBITDA	68.10B	68.83B	56.46B	14.30B	54.52B	30.01B
Net Income	36.25B	36.25B	26.64B	-14.95B	27.22B	9.31B
Balance Sheet
Total Assets	409.28B	409.28B	435.70B	421.18B	459.98B	402.35B
Cash, Cash Equivalents and Short-Term Investments	93.00B	93.00B	94.96B	58.68B	84.31B	63.41B
Total Debt	0.00	34.23B	35.16B	36.21B	32.93B	10.15B
Total Liabilities	124.10B	124.10B	130.33B	127.88B	123.13B	95.30B
Stockholders Equity	286.24B	286.24B	306.06B	293.98B	337.49B	310.18B
Cash Flow
Free Cash Flow	54.27B	54.27B	61.96B	12.56B	10.20B	15.00B
Operating Cash Flow	60.93B	60.93B	72.65B	37.15B	46.04B	38.81B
Investing Cash Flow	-8.22B	-8.22B	-6.14B	-26.78B	-35.17B	-53.35B
Financing Cash Flow	-53.31B	-53.31B	-34.03B	-37.22B	5.56B	-16.68B

Santen Pharmaceutical Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1495.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 1495 is below the 20-day moving average (MA) of 1546.05, below the 50-day MA of 1576.05, and below the 200-day MA of 1521.90, indicating a bearish trend. The MACD of -26.07 indicates Positive momentum. The RSI at 38.73 is Neutral, neither overbought nor oversold. The STOCH value of 25.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4536.

Santen Pharmaceutical Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4528	―	$862.27B	20.09	6.00%	4.38%	-0.72%	-63.97%
4568	―	$7.65T	25.33	18.32%	1.55%	14.09%	31.96%
4503	―	$2.89T	35.26	5.46%	4.61%	14.29%	368.64%
4523	―	$1.28T	25.44	5.96%	3.50%	9.43%	56.53%
4536	―	$513.49B	16.39	10.89%	2.59%	-3.41%	22.21%
4151	―	$1.17T	30.49	4.61%	2.57%	3.62%	-59.69%
Sector *	―	$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.