Fuso Pharmaceutical Industries,Ltd. (4538) AI Stock Analysis

• Market Cap: ¥20.96B
• Dividend Yield: 3.71%
• Average Volume (3M): 17.49K
• Price to Earnings (P/E): 5.8
• Beta (1Y): 0.62
• Revenue Growth: 7.50%
• EPS Growth: -281.41%
• Country: JP
• Employees: 1,370
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 99.84
• Shares Outstanding: 9,451,169
• 10 Day Avg. Volume: 18,340
• 30 Day Avg. Volume: 17,486
• PEG Ratio: 0.02
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.34
• P/FCF Ratio: -3.84
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ¥2,508.00 ▲(8.34% Upside)
• Action: Reiterated Date: 10/29/25
• Date: Action: Reiterated 10/29/25

Fuso Pharmaceutical Industries' overall stock score is driven by solid financial performance in terms of revenue growth and profitability, but is hampered by significant cash flow challenges. Technical indicators suggest neutral momentum, while valuation is mixed with a negative P/E ratio but a strong dividend yield.

Positive Factors

Revenue Growth

Sustained top-line growth (9.31% YoY) indicates durable demand for hospital-use pharmaceuticals and infusion products. Steady revenue expansion supports longer-term scale economics, predictable production planning, and a base for reinvesting in product development and commercial channels.

Prudent Balance Sheet

Manageable leverage (D/E 0.54) and a nearly 50% equity ratio provide financial flexibility to fund R&D, capex, or M&A without excessive refinancing risk. A solid equity base helps the company absorb industry cycles and supports long-term strategic initiatives.

Stable Profitability Margins

Relatively healthy gross margin (27.3%) and an improving net margin reflect durable cost controls and pricing power in hospital channels. Consistent profitability enables reinvestment, supports dividend policy, and provides a buffer against competitive or input-cost pressures over the medium term.

Negative Factors

Negative Free Cash Flow

Material negative free cash flow (-¥5.43bn) signals persistent cash-generation shortfalls versus accounting profits. Over months, this constrains funding for capex, R&D, and dividends, and may force reliance on external financing, increasing financial risk and limiting strategic optionality.

Earnings Volatility

Severely negative EPS growth indicates earnings instability or large one-time hits that undermine forward earnings visibility. Persistent volatility in reported profits complicates planning, weakens investor confidence in sustainable returns, and raises questions about recurring profitability drivers.

Moderate Operating Efficiency

Modest EBIT (6.82%) and EBITDA (10.39%) margins leave limited headroom to absorb cost inflation or competitive price pressure. Structural margin constraints require efficiency gains or portfolio upgrades to sustainably improve cash conversion and defend long-term profitability.

Fuso Pharmaceutical Industries,Ltd. Business Overview & Revenue Model

Company Description

Fuso Pharmaceutical Industries,Ltd. manufactures and sells pharmaceutical products in Japan. The company offers ethical drugs, such as injectables and artificial kidney dialysates; and medical machinery and equipment. It also rents real estate properties. The company was founded in 1937 and is headquartered in Osaka, Japan.

How the Company Makes Money

Fuso Pharmaceutical Industries, Ltd. primarily makes money by selling pharmaceutical products (mainly prescription/hospital-use drugs and related medical products) in Japan through distribution channels serving hospitals, clinics, and pharmacies. Revenue is generated from product sales volume and pricing across its portfolio, and supported by its manufacturing operations for these products. Information on the precise breakdown of revenue by product category, named major products, material licensing income, or specific significant partnerships contributing to earnings is null.

Fuso Pharmaceutical Industries,Ltd. Financial Statement Overview

Summary

Fuso Pharmaceutical Industries shows solid revenue growth and stable profitability margins. However, it faces significant challenges in cash flow management, with negative free cash flow and cash generation issues. The balance sheet remains robust with manageable debt levels.

Income Statement

Fuso Pharmaceutical Industries has shown consistent revenue growth, with a 9.31% increase from 2024 to 2025. The gross profit margin for 2025 stands at 27.3%, indicating efficient cost management. The net profit margin improved to 4.59%, reflecting enhanced profitability. However, the EBIT and EBITDA margins, while improved, are moderate at 6.82% and 10.39% respectively, suggesting room for operational efficiency improvements.

Balance Sheet

The balance sheet is stable with a debt-to-equity ratio of 0.54, reflecting prudent leverage levels. The return on equity is 7.11%, showing satisfactory returns on shareholders' investments. Equity ratio is healthy at 49.48%, indicating a strong equity base relative to total assets. However, the slight increase in total debt warrants attention for future leverage control.

Cash Flow

The cash flow statement shows challenges, with a negative free cash flow of -5.43 billion yen in 2025, marking a significant decline. The operating cash flow to net income ratio is negative, highlighting cash generation issues. The free cash flow to net income ratio is also negative, underscoring the need for improved cash management practices.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	15.50B	60.56B	55.41B	51.02B	49.63B	49.25B
Gross Profit	4.08B	16.19B	13.52B	13.36B	12.91B	13.62B
EBITDA	1.24B	5.96B	3.69B	4.47B	4.30B	4.60B
Net Income	462.00M	-3.29B	1.38B	1.60B	1.48B	1.61B
Balance Sheet
Total Assets	86.99B	82.52B	76.46B	72.81B	69.66B	70.23B
Cash, Cash Equivalents and Short-Term Investments	3.16B	6.26B	5.12B	8.01B	7.35B	7.07B
Total Debt	28.23B	21.29B	12.72B	11.41B	12.09B	13.20B
Total Liabilities	53.81B	49.48B	39.79B	37.15B	35.12B	36.54B
Stockholders Equity	33.18B	33.04B	36.66B	35.65B	34.53B	33.68B
Cash Flow
Free Cash Flow	0.00	-5.43B	-2.62B	1.32B	2.20B	2.09B
Operating Cash Flow	0.00	-3.31B	627.00M	2.87B	3.61B	3.27B
Investing Cash Flow	0.00	-3.17B	-3.54B	-1.39B	-1.66B	-1.02B
Financing Cash Flow	0.00	7.62B	14.00M	-813.00M	-1.67B	-2.45B

Fuso Pharmaceutical Industries,Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2315.00
• 50DMA: Positive
• 100DMA: Positive
• 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:4538, the sentiment is Neutral. The current price of 2315 is below the 20-day moving average (MA) of 2439.85, below the 50-day MA of 2384.96, and above the 200-day MA of 2212.54, indicating a neutral trend. The MACD of 14.63 indicates Positive momentum. The RSI at 46.13 is Neutral, neither overbought nor oversold. The STOCH value of 21.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4538.

Fuso Pharmaceutical Industries,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4574	66 Neutral	¥14.72B	16.22	―	―	-5.41%	―
4524	65 Neutral	¥9.38B	15.24	―	2.55%	3.23%	42.87%
4539	64 Neutral	¥6.33B	11.64	―	3.21%	4.25%	―
4538	60 Neutral	¥20.96B	5.79	―	3.71%	7.50%	-281.41%
2929	52 Neutral	¥19.35B	72.72	―	3.65%	9.53%	-155.76%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4512	48 Neutral	¥12.11B	7.11	―	1.06%	5.42%	-62.03%

Fuso Pharmaceutical Industries,Ltd. Corporate Events

Fuso Pharmaceutical Profit Slumps Despite Modest Sales Growth

Fuso Pharmaceutical Industries reported non-consolidated net sales of ¥48.27 billion for the nine months ended December 31, 2025, up 3.4% year on year, but operating profit dropped 34.8% to ¥2.37 billion and ordinary profit fell 33.7%, with profit declining almost 30%, reflecting margin pressure despite modest revenue growth. The company’s total assets rose to ¥89.45 billion while its equity ratio slipped to 38.7%, and it maintained its dividend policy with a planned annual payout of ¥90 per share for the fiscal year ending March 31, 2026, alongside a full-year forecast of only slight sales growth and lower profits, underscoring a more challenging earnings environment for shareholders.

The most recent analyst rating on (JP:4538) stock is a Hold with a Yen2469.00 price target. To see the full list of analyst forecasts on Fuso Pharmaceutical Industries,Ltd. stock, see the JP:4538 Stock Forecast page.

Fuso Pharmaceutical Sees Profit Slide Despite Higher Sales, Keeps Dividend Outlook Firm

Fuso Pharmaceutical Industries reported non-consolidated net sales of ¥48.27 billion for the nine months ended December 31, 2025, up 3.4% year on year, while operating profit fell 34.8% and profit dropped 29.9%, signaling margin pressure despite modest top-line growth. Total assets increased to ¥89.45 billion and net assets to ¥34.66 billion, but the equity ratio declined from 40.4% to 38.7%, indicating a slightly weaker capital structure.

The company maintained its dividend policy, having paid ¥82 per share in the prior fiscal year and forecasting a higher total dividend of ¥90 per share for the year ending March 31, 2026, underscoring continued shareholder returns. For the full year, Fuso projects modest 1.5% sales growth to ¥61.5 billion but expects double-digit declines in operating and ordinary profit, highlighting ongoing earnings headwinds even as it preserves stable payouts.

The most recent analyst rating on (JP:4538) stock is a Hold with a Yen2482.00 price target. To see the full list of analyst forecasts on Fuso Pharmaceutical Industries,Ltd. stock, see the JP:4538 Stock Forecast page.