Santen Pharmaceutical Co (4536) AI Stock Analysis

• Market Cap: ¥527.02B
• Dividend Yield: 2.32%
• Average Volume (3M): 1.30M
• Price to Earnings (P/E): 17.8
• 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: 322,268,550
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥2,200.00
• Price Target Upside: 37.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥1,829.00 ▲(14.53% Upside)

Santen Pharmaceutical Co's stock is supported by strong financial performance and positive technical indicators, suggesting stability and potential for growth. However, challenges in revenue growth and free cash flow, along with a moderate valuation, slightly temper the overall outlook.

Positive Factors

Strong Profitability

High gross profit margins indicate effective cost management and pricing power, supporting long-term financial health and competitive positioning.

Conservative Leverage

Low leverage provides financial stability and flexibility, allowing the company to navigate economic fluctuations and invest in growth opportunities.

Effective Cash Generation

Strong cash generation supports ongoing operations and investments, ensuring the company can fund R&D and strategic initiatives without relying heavily on external financing.

Negative Factors

Negative Revenue Growth

Declining revenue growth can hinder the company's ability to scale and compete, potentially impacting its market share and long-term growth prospects.

Decline in Free Cash Flow

Decreasing free cash flow limits the company's ability to invest in new projects and return capital to shareholders, potentially affecting future growth and shareholder value.

Moderate Equity Reliance

Relying on equity financing can be risky if asset values decline, potentially diluting shareholder value and affecting the company's financial stability.

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 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	291.48B	300.00B	301.96B	279.04B	266.26B	249.60B
Gross Profit	160.89B	171.03B	178.71B	166.09B	156.59B	151.38B
EBITDA	61.85B	68.83B	56.46B	14.30B	54.52B	30.01B
Net Income	31.41B	36.25B	26.64B	-14.95B	27.22B	9.31B
Balance Sheet
Total Assets	389.14B	409.28B	435.70B	421.18B	459.98B	405.29B
Cash, Cash Equivalents and Short-Term Investments	66.08B	93.00B	94.96B	58.68B	84.31B	63.41B
Total Debt	35.63B	34.23B	35.16B	36.21B	32.93B	10.15B
Total Liabilities	115.53B	124.10B	130.33B	127.88B	123.13B	95.30B
Stockholders Equity	274.77B	286.24B	306.06B	293.98B	337.49B	310.18B
Cash Flow
Free Cash Flow	38.82B	54.27B	61.96B	12.56B	10.20B	15.00B
Operating Cash Flow	46.19B	60.93B	72.65B	37.15B	46.04B	38.81B
Investing Cash Flow	-13.32B	-8.22B	-6.14B	-26.78B	-35.17B	-53.35B
Financing Cash Flow	-57.04B	-53.31B	-34.03B	-37.22B	5.56B	-16.68B

Santen Pharmaceutical Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1597.00
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 1597 is below the 20-day moving average (MA) of 1597.12, above the 50-day MA of 1560.99, and above the 200-day MA of 1544.78, indicating a bullish trend. The MACD of 18.59 indicates Negative momentum. The RSI at 61.80 is Neutral, neither overbought nor oversold. The STOCH value of 76.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	75 Outperform	$1.02T	21.36	6.03%	3.68%	4.00%	-48.73%
4523	74 Outperform	¥1.27T	26.02	5.75%	3.55%	6.79%	22.14%
4536	72 Outperform	¥527.02B	17.76	10.89%	2.32%	-3.66%	25.93%
4151	71 Outperform	¥1.32T	36.20	4.27%	2.34%	-3.36%	-55.41%
4503	69 Neutral	¥3.75T	30.21	7.97%	3.61%	13.24%	127.88%
4568	63 Neutral	¥6.12T	22.21	16.66%	2.09%	12.56%	14.58%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Santen Pharmaceutical Co Corporate Events

Santen Pharmaceutical Reports Decline in Financial Performance but Maintains Dividend Strategy

Santen Pharmaceutical Co. reported a decline in its financial performance for the six months ended September 30, 2025, with revenue and profits decreasing compared to the previous year. Despite the downturn, the company plans to maintain its dividend payments and has resolved to cancel treasury shares, indicating a strategic focus on shareholder value.

Santen Pharmaceutical to Cancel 19.8 Million Treasury Shares

Santen Pharmaceutical Co., Ltd. announced the cancellation of 19.8 million treasury shares, representing 5.8% of its outstanding shares, effective November 28, 2025. This strategic move is expected to impact the company’s share structure, reducing the total number of outstanding shares to approximately 322.3 million, which could potentially influence shareholder value and market perception.

Santen Completes Share Buyback to Enhance Shareholder Value

Santen Pharmaceutical Co. announced the completion of a share buyback, repurchasing 153,400 common shares for 232,930,350 yen between November 1 and November 5, 2025. This move is part of a broader strategy approved by the Board of Directors to repurchase up to 19.8 million shares, representing 5.8% of the total shares outstanding, with the aim of enhancing shareholder value and optimizing capital structure.

Santen Pharmaceutical Updates on Share Buyback Progress

Santen Pharmaceutical Co., Ltd. announced the status of its share buyback program, having repurchased 3,071,200 common shares for a total of 4,765,731,250 yen between October 1 and October 31, 2025. This buyback is part of a broader initiative 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.

Santen Completes Disposal of Treasury Shares for Stock Remuneration Plan

Santen Pharmaceutical Co., Ltd. has completed the disposal of 57,909 treasury shares as part of its Post-delivery Type Performance-Linked Stock Remuneration Plan. This strategic move, based on a Board of Directors resolution, aims to align the interests of directors and corporate officers with company performance, potentially impacting the company’s operational efficiency and stakeholder value.

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.

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.

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.