Fuji Pharma Co., Ltd. (4554) AI Stock Analysis

• Market Cap: ¥57.67B
• Dividend Yield: 2.39%
• Average Volume (3M): 86.41K
• Price to Earnings (P/E): 25.1
• Beta (1Y): 0.79
• Revenue Growth: 12.01%
• EPS Growth: -51.38%
• Country: JP
• Employees: 1,658
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 13.28
• Shares Outstanding: 24,891,100
• 10 Day Avg. Volume: 111,080
• 30 Day Avg. Volume: 86,410
• PEG Ratio: -0.24
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.73
• P/FCF Ratio: 9.88
• 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): 152.3
• Revenue Forecast (FY): ¥53.93B

• Rating: 68 Neutral
• Price Target: ¥2,615.00 ▲(38.51% Upside)
• Action: Downgraded Date: 02/07/26
• Date: Action: Downgraded 02/07/26

The score is driven primarily by solid financial progress (consistent revenue growth) but tempered by margin volatility, rising leverage, and only moderate cash conversion. Technicals are supportive due to a strong uptrend, though overbought RSI elevates near-term risk, while valuation is fair-to-moderate with a modest dividend yield.

Positive Factors

Consistent revenue growth

Fuji Pharma's multi-year consistent revenue growth, including a notable increase in the latest period, supports durable demand for its marketed drugs and contract manufacturing services. Predictable top-line expansion enhances the firm's ability to fund R&D, scale production, and broaden distribution over the medium term.

Improved free cash flow

Reported improvements in free cash flow and positive FCF growth indicate stronger cash generation capacity. Sustained free cash flow allows Fuji Pharma to fund capex, support selective business development or dividends, and reduce dependence on external financing, bolstering long-term financial flexibility.

Focused women's-health franchise and CDMO capabilities

A niche focus on women's health combined with in‑house contract manufacturing positions Fuji Pharma with differentiated products and recurring institutional relationships. This specialization can create durable competitive advantages via regulatory know‑how, long-term supply contracts and higher customer stickiness.

Negative Factors

Margin volatility and recent declines

Recent volatility and declines in EBIT and net profit margins reduce earnings predictability and compress internal funding for growth. Persistent margin pressure from pricing, reimbursement shifts or rising input costs would constrain free cash flow and limit the company's ability to reinvest or buffer against shocks.

Rising leverage

An increasing debt‑to‑equity ratio elevates interest and refinancing risk and narrows strategic flexibility. Higher leverage can force tighter capital allocation, raise funding costs, and reduce capacity to pursue M&A or expand R&D if operating performance weakens or macro conditions tighten.

Weaker operating cash conversion

Operating cash flow lagging reported earnings implies weaker cash conversion. If persistent, this shortfall may require external financing to cover working capital or investment needs, undermining the benefits of improved free cash flow and constraining sustainable funding for R&D, dividends, or debt reduction.

Fuji Pharma Co., Ltd. Business Overview & Revenue Model

Company Description

Fuji Pharma Co., Ltd. engages in the research and development, manufacture, and marketing of pharmaceutical products in Japan and internationally. The company offers injection agents, internal drugs, drugs for external use, and diagnostic products. It also provides medical care for women; in vitro diagnostics, acute medical care products, and curative medicines; and information regarding pharmaceuticals and health. Fuji Pharma Co., Ltd. was incorporated in 1965 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Fuji Pharma generates revenue through the sale of its pharmaceutical products, which include both generic and proprietary medications. The company’s revenue model is primarily based on direct sales to hospitals, pharmacies, and healthcare providers. Key revenue streams include prescription drug sales, licensing agreements, and collaborations with other pharmaceutical companies for research and development. Additionally, Fuji Pharma may benefit from partnerships with healthcare institutions for clinical trials and product testing, which can provide funding and shared resources for new drug development. The company's focus on niche therapeutic areas helps it maintain a competitive edge and potentially higher profit margins.

Fuji Pharma Co., Ltd. Financial Statement Overview

Summary

Revenue growth is consistently positive, but profitability has become more volatile with weaker net profit and EBIT margins in the latest year. Balance sheet risk has risen due to increasing leverage, while cash flow trends improved (higher free cash flow) but operating cash generation versus earnings remains a relative weakness.

Income Statement

Fuji Pharma has demonstrated consistent revenue growth over the years, with a notable increase in the latest period. However, margins have shown some volatility, with a decline in net profit margin and EBIT margin in the most recent year. Despite this, the company maintains a solid gross profit margin, indicating effective cost management.

Balance Sheet

The company's debt-to-equity ratio has increased over time, indicating rising leverage, which could pose a risk if not managed carefully. However, the equity ratio remains stable, suggesting a balanced capital structure. Return on equity has been relatively stable, reflecting consistent profitability.

Cash Flow

Fuji Pharma's cash flow situation has improved, with positive free cash flow growth in the latest period. However, the operating cash flow to net income ratio indicates that cash generation from operations could be stronger. The free cash flow to net income ratio has improved, suggesting better cash management.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	51.68B	46.14B	40.89B	35.43B	33.99B
Gross Profit	19.29B	17.84B	16.52B	14.56B	14.75B
EBITDA	8.30B	12.15B	7.54B	6.52B	5.53B
Net Income	3.00B	6.15B	3.44B	2.70B	2.43B
Balance Sheet
Total Assets	93.41B	90.00B	85.33B	75.54B	64.24B
Cash, Cash Equivalents and Short-Term Investments	7.25B	4.58B	2.32B	3.55B	10.20B
Total Debt	30.94B	29.25B	28.95B	24.57B	18.66B
Total Liabilities	46.49B	44.44B	44.16B	39.73B	31.56B
Stockholders Equity	46.91B	45.56B	41.17B	35.80B	32.68B
Cash Flow
Free Cash Flow	3.82B	-221.00M	-1.98B	-13.08B	2.10B
Operating Cash Flow	5.80B	4.15B	1.92B	-658.00M	5.99B
Investing Cash Flow	-4.22B	-1.66B	-5.24B	-11.27B	-2.35B
Financing Cash Flow	954.00M	-435.00M	1.92B	5.09B	-5.43B

Fuji Pharma Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1888.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4554, the sentiment is Positive. The current price of 1888 is below the 20-day moving average (MA) of 2216.20, below the 50-day MA of 2027.06, and above the 200-day MA of 1616.82, indicating a bullish trend. The MACD of 116.03 indicates Negative momentum. The RSI at 72.21 is Negative, neither overbought nor oversold. The STOCH value of 54.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4554.

Fuji Pharma Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4886	76 Outperform	¥66.08B	14.41	―	2.52%	5.44%	-20.33%
4534	73 Outperform	¥133.39B	21.89	5.11%	2.34%	4.35%	48.30%
4569	69 Neutral	¥89.33B	9.20	―	3.36%	11.65%	93.46%
4554	68 Neutral	¥57.67B	25.14	6.49%	2.39%	12.01%	-51.38%
4577	63 Neutral	¥43.78B	19.77	―	2.75%	7.56%	-48.91%
4538	60 Neutral	¥21.74B	-5.28	―	3.71%	7.50%	-281.41%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Fuji Pharma Co., Ltd. Corporate Events

Fuji Pharma Lifts Sales Outlook but Slashes Profit Forecast on Alvotech Valuation Loss

Fuji Pharma revised its earnings forecasts for the second quarter and full year ending September 2026, projecting higher net sales, operating profit and ordinary profit on the back of stronger-than-expected sales of its main products, while keeping its dividend outlook unchanged. However, the company sharply cut its forecast for profit attributable to owners of parent after booking a ¥2.46 billion valuation loss on investment securities, triggered by a significant share price decline in Alvotech Holdings S.A., a key biosimilar partner whose shares Fuji holds to reinforce their strategic collaboration and secure access to biosimilar pipelines, underscoring the increased earnings volatility tied to its investment-driven growth strategy.

The most recent analyst rating on (JP:4554) stock is a Buy with a Yen2093.00 price target. To see the full list of analyst forecasts on Fuji Pharma Co., Ltd. stock, see the JP:4554 Stock Forecast page.

Fuji Pharma Books ¥2.46 Billion Securities Valuation Loss on Alvotech Stake

Fuji Pharma has recognized an impairment loss on its portfolio of available-for-sale securities for the first quarter of the fiscal year ending September 2026, booking a valuation loss of ¥2,457 million after a significant decline in the share price of Alvotech Holdings S.A., a key partner in its biosimilars growth strategy. The company notes that the valuation of these securities is reassessed quarterly under a wash-up method and may fluctuate with future share price movements, and it has indicated that the impact on its consolidated earnings forecast for the first half and full year to September 2026 is addressed in a separate revision of earnings guidance released the same day, underscoring potential implications for profitability and investor expectations.

The most recent analyst rating on (JP:4554) stock is a Buy with a Yen2093.00 price target. To see the full list of analyst forecasts on Fuji Pharma Co., Ltd. stock, see the JP:4554 Stock Forecast page.