Santen Pharmaceutical Co (4536) AI Stock Analysis

• Market Cap: $525.44B
• Dividend Yield: 2.3%
• Average Volume (3M): 1.46M
• Price to Earnings (P/E): 16.8
• Beta (1Y): 0.40
• Revenue Growth: -3.41%
• EPS Growth: 22.21%
• Country: JP
• Employees: 3,744
• Sector: Healthcare
• Sector Strength: 47
• Industry: Drug Manufacturers - General
• EPS (TTM): 17.32
• Shares Outstanding: 342,059,540
• 10 Day Avg. Volume: 1,909,350
• 30 Day Avg. Volume: 1,456,326
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 1.71
• Enterprise Value/Gross Profit: 3.08
• Enterprise Value/Ebitda: 7.52
• 1Y Price Target: $2,310.99
• Price Target Upside: 47.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 76 Outperform
• 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 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 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

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	300.00B	301.96B	279.04B	266.26B	249.60B
Gross Profit	162.22B	163.88B	166.09B	156.59B	151.38B
EBITDA	68.83B	56.46B	14.30B	54.52B	30.01B
Net Income	36.25B	26.64B	-14.95B	27.22B	6.83B
Balance Sheet
Total Assets	409.28B	435.70B	421.18B	459.98B	402.35B
Cash, Cash Equivalents and Short-Term Investments	93.00B	94.96B	58.68B	84.31B	63.41B
Total Debt	0.00	35.16B	36.21B	32.93B	10.15B
Total Liabilities	124.10B	130.33B	127.88B	123.13B	95.30B
Stockholders Equity	286.24B	306.06B	293.98B	337.49B	307.58B
Cash Flow
Free Cash Flow	54.27B	61.96B	12.56B	10.20B	15.00B
Operating Cash Flow	60.93B	72.65B	37.15B	46.04B	38.81B
Investing Cash Flow	-8.22B	-6.14B	-26.78B	-35.17B	-53.35B
Financing Cash Flow	-53.31B	-34.03B	-37.22B	5.56B	-16.68B

Santen Pharmaceutical Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1567.00
• 50DMA: Negative
• 100DMA: Negative
• 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:4536, the sentiment is Neutral. The current price of 1567 is below the 20-day moving average (MA) of 1589.42, below the 50-day MA of 1635.58, and above the 200-day MA of 1550.34, indicating a neutral trend. The MACD of -23.67 indicates Positive momentum. The RSI at 44.62 is Neutral, neither overbought nor oversold. The STOCH value of 39.20 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
4536	76 Outperform	$525.44B	16.81	10.89%	2.30%	-3.41%	22.21%
Sector *	51 Neutral	$7.83B	-0.18	-40.10%	2.29%	21.46%	-2.03%
ALPMF	―	$19.87B	35.99	5.46%	4.53%	―	―
DSKYF	―	$45.29B	24.00	18.32%	1.68%	―	―
ESALF	―	$8.87B	26.81	5.96%	3.45%	―	―
KYKOF	―	$9.09B	34.81	4.61%	3.36%	―	―
OPHLF	―	$5.14B	19.77	5.58%	4.47%	―	―

Santen Pharmaceutical Co Corporate Events

Santen Pharmaceutical Co. Revises Year-End Dividend Forecast

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

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

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.