Towa Pharmaceutical Co Ltd (JP:4553)
:4553
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Towa Pharmaceutical Co
(4553)
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Rating:67Neutral
Price Target:
¥4,373.00
▲(20.80% Upside)
Action:DowngradedDate:02/18/26
The score is driven primarily by mixed fundamentals: a clear earnings recovery and revenue growth, but constrained by elevated leverage and weak, inconsistent free-cash-flow generation. Valuation is supportive with a low P/E, while technicals are bullish but appear overbought, adding near-term pullback risk.
Positive Factors
Revenue Growth
Sustained top-line growth indicates continued demand for the company’s generic portfolio and effective product launches. For the next 2–6 months, higher recurring sales improve revenue visibility, support scale advantages in manufacturing, and underwrite operating leverage if sustained.
Negative Factors
High Leverage
Elevated leverage constrains financial flexibility and increases interest and refinancing risk. With substantial outstanding debt relative to equity, the company may face limited capacity to invest or absorb shocks, making deleveraging a multi-quarter structural task.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained top-line growth indicates continued demand for the company’s generic portfolio and effective product launches. For the next 2–6 months, higher recurring sales improve revenue visibility, support scale advantages in manufacturing, and underwrite operating leverage if sustained.
Read all positive factors
Towa Pharmaceutical Co (4553) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥194.89B
Dividend Yield2.14%
Average Volume (3M)112.31K
Price to Earnings (P/E)5.1
Beta (1Y)0.69
Revenue Growth6.54%
EPS Growth11.22%
CountryJP
Employees4,588
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)435.61
Shares Outstanding51,516,000
10 Day Avg. Volume138,760
30 Day Avg. Volume112,306
Financial Highlights & Ratios
PEG Ratio0.40
Price to Book (P/B)0.77
Price to Sales (P/S)0.51
P/FCF Ratio-24.72
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥4,500.00Price Target Upside24.31% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)412.39
Revenue Forecast (FY)¥296.81B
Towa Pharmaceutical Co Business Overview & Revenue Model
Company Description
Towa Pharmaceutical Co., Ltd., together with its subsidiaries, researches, develops, produces, and sells ethical drugs, active pharmaceutical ingredients, and intermediates in Japan. The company provides its products in the therapeutic areas of di...
How the Company Makes Money
Towa Pharmaceutical generates revenue primarily through the sale of generic drugs and ethical pharmaceuticals. Its revenue model is largely based on producing high-quality, cost-effective medications that cater to the needs of healthcare providers...
Towa Pharmaceutical Co Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
56
Neutral
Cash Flow
41
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 269.92B | 259.59B | 227.93B | 208.86B | 165.62B | 154.90B |
| Gross Profit | 99.11B | 94.73B | 81.38B | 72.71B | 70.19B | 65.45B |
| EBITDA | 46.25B | 43.34B | 35.54B | 24.92B | 29.49B | 30.35B |
| Net Income | 21.44B | 18.99B | 16.17B | 2.20B | 15.91B | 13.96B |
Balance Sheet | ||||||
| Total Assets | 488.89B | 470.82B | 430.65B | 371.35B | 332.10B | 245.67B |
| Cash, Cash Equivalents and Short-Term Investments | 39.82B | 45.47B | 29.65B | 24.26B | 32.83B | 22.91B |
| Total Debt | 233.66B | 230.98B | 202.36B | 161.52B | 140.70B | 82.39B |
| Total Liabilities | 299.19B | 299.19B | 274.76B | 234.45B | 199.93B | 129.07B |
| Stockholders Equity | 189.69B | 171.63B | 155.89B | 136.89B | 132.17B | 116.60B |
Cash Flow | ||||||
| Free Cash Flow | 6.34B | -5.33B | -29.64B | -26.19B | 10.99B | 2.87B |
| Operating Cash Flow | 30.83B | 23.40B | 8.21B | 2.54B | 22.13B | 12.01B |
| Investing Cash Flow | -27.75B | -31.29B | -40.39B | -30.28B | -59.73B | -9.10B |
| Financing Cash Flow | 6.09B | 21.57B | 35.41B | 17.48B | 46.54B | 184.00M |
Towa Pharmaceutical Co Technical Analysis
Positive
3620.00
Price Trends
4093.41
Positive
3782.05
Positive
3363.89
Positive
Market Momentum
80.13
Negative
59.27
Neutral
79.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4553, the sentiment is Positive. The current price of 3620 is below the 20-day moving average (MA) of 4183.56, below the 50-day MA of 4093.41, and above the 200-day MA of 3363.89, indicating a bullish trend. The MACD of 80.13 indicates Negative momentum. The RSI at 59.27 is Neutral, neither overbought nor oversold. The STOCH value of 79.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4553.
Towa Pharmaceutical Co Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥146.78B | 93.62 | -2.58% | 4.16% | -18.95% | -118.32% | |
79 Outperform | ¥176.46B | 14.92 | 6.70% | 2.48% | 14.28% | 27.25% | |
73 Outperform | ¥114.51B | 12.60 | 4.81% | 2.34% | 6.18% | 12.52% | |
69 Neutral | ¥80.38B | 8.41 | ― | 3.36% | 9.63% | 179.86% | |
67 Neutral | ¥194.89B | 5.05 | 12.02% | 2.14% | 6.54% | 11.22% | |
59 Neutral | ¥205.51B | 13.89 | ― | 2.28% | 9.06% | -111.21% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
JP:4553
Towa Pharmaceutical Co
3,960.00
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Towa Pharmaceutical Co Corporate Events
Towa Pharmaceutical Details Group Structure and Merger in Q3 Supplement
Feb 13, 2026
Towa Pharmaceutical has clarified the structure of its domestic and overseas operations in supplementary materials for its third-quarter results for the year ending March 31, 2026. The company now categorizes several group firms under “Towa ...
Towa Pharmaceutical Posts Profit Growth and Raises Dividend for FY2025
Feb 13, 2026
Towa Pharmaceutical reported consolidated net sales of ¥204.1 billion for the nine months ended 31 December 2025, up 5.3% year on year, with operating profit rising 4.7% to ¥19.5 billion and profit attributable to owners of parent climbi...
Towa and Otsuka Forge Manufacturing Alliance to Stabilize Supply of Off‑Patent Drugs
Jan 21, 2026
Towa Pharmaceutical has entered into a basic agreement with Otsuka Pharmaceutical to establish a strategic collaborative framework for pharmaceutical manufacturing focused on long-listed and essential off-patent products. Under the collaboration, ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.