KYORIN Pharmaceutical Co.,Ltd. (4569) AI Stock Analysis

• Market Cap: ¥79.22B
• Dividend Yield: 3.46%
• Average Volume (3M): 127.03K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.52
• Revenue Growth: 11.65%
• EPS Growth: 93.46%
• Country: JP
• Employees: 2,042
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -10.56
• Shares Outstanding: 59,945,640
• 10 Day Avg. Volume: 147,840
• 30 Day Avg. Volume: 127,030
• PEG Ratio: 0.13
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.66
• P/FCF Ratio: -39.38
• 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: 69 Neutral
• Price Target: ¥1,653.00 ▲(9.98% Upside)

KYORIN Pharmaceutical's strong financial performance and attractive valuation are offset by bearish technical indicators. The company's robust revenue growth and profitability are promising, but liquidity concerns and negative cash flow need addressing. The stock's low P/E ratio and high dividend yield suggest it is undervalued, offering potential for long-term investors despite current market momentum challenges.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, enhancing long-term business sustainability.

Profitability Margins

Strong profitability margins reflect efficient operations and cost control, supporting sustained earnings and competitive positioning.

Financial Stability

A high equity ratio signifies robust financial health, providing resilience against economic fluctuations and supporting strategic investments.

Negative Factors

Cash Flow Challenges

Persistent negative cash flow can limit operational flexibility and investment capacity, posing risks to long-term growth and stability.

Liquidity Concerns

Declining cash reserves may strain liquidity, affecting the company's ability to meet short-term obligations and invest in growth opportunities.

Operational Volatility

Volatility in operational performance can lead to unpredictable earnings, impacting investor confidence and strategic planning.

KYORIN Pharmaceutical Co.,Ltd. Business Overview & Revenue Model

Company Description

KYORIN Holdings, Inc., through its subsidiaries, researches and develops, produces, and sells ethical and generic drugs in Japan and internationally. The company offers Flutiform, a drug for the treatment of asthma; Desalex, an antiallergic agent; Beova, Uritos, and Imidafenacin KYORIN therapeutic agents for overactive bladder; Lasvic, a quinolone synthetic antibacterial agent; Pentasa, a remedy for ulcerative colitis/Crohn's disease; Nasonex, an allergic rhinitis therapeutic agent; and Kipres, a leukotriene receptor antagonist anti-bronchial asthma and allergic rhinitis drug. It also provides Mucodyne, a mucoregulating drug; Montelukast KM, a drug for the treatment of bronchial asthma and allergic rhinitis; GeneSoC, a real-time PCR system; Rubysta, a disinfectant cleaner; Milton, a disinfectant; over-the-counter drugs; prescription medicines and quasi-drugs, diagnostics, and industrial chemicals; and reagents and intermediates. In addition, the company offers subcontracted drug manufacturing services. Further, it is involved in the discovery and evaluation of candidate compounds; and research and analysis of other companies' technologies and collection of information concerning clinical trial. KYORIN Holdings, Inc. was founded in 1923 and is based in Tokyo, Japan.

How the Company Makes Money

KYORIN Pharmaceutical generates revenue through several key streams, including the sale of prescription pharmaceuticals, over-the-counter products, and generic medications. The company benefits from its proprietary drug development, particularly in its specialized therapeutic areas, which allows it to command higher prices for its innovative products. Additionally, KYORIN engages in partnerships and collaborations with other pharmaceutical companies and research institutions, which can lead to joint ventures or licensing agreements that contribute to its revenue. The company also focuses on expanding its presence in international markets, which diversifies its revenue sources and enhances its overall profitability.

KYORIN Pharmaceutical Co.,Ltd. Financial Statement Overview

Summary

KYORIN Pharmaceutical shows strong revenue growth and improving profitability margins, driven by effective cost management and operational efficiency. The balance sheet is stable with low leverage, but declining cash reserves might impact liquidity. Cash flow challenges persist, particularly with negative free cash flow, highlighting areas needing improvement in cash management.

Income Statement

KYORIN Pharmaceutical has demonstrated robust revenue growth with a significant increase of 8.83% from 2024 to 2025. The gross profit margin remains strong at 45.75%, indicating effective cost management. Notably, the net profit margin improved to 6.98%, reflecting enhanced profitability. EBIT and EBITDA margins also saw positive trends, showcasing improved operational efficiency. However, the fluctuations in EBIT and EBITDA margins over the years suggest potential volatility in operational performance.

Balance Sheet

The company's balance sheet reflects solid equity with an equity ratio of 70.39%, suggesting financial stability. The debt-to-equity ratio is relatively low at 0.21, indicating conservative leverage. Return on equity stands at 6.67%, showing moderate profitability on shareholders' investments. However, the decrease in cash and equivalents over the years could be a concern for liquidity management.

Cash Flow

The cash flow statement reveals a challenging scenario with negative free cash flow growth, moving from -4.70 billion JPY in 2024 to -2.19 billion JPY in 2025. The operating cash flow to net income ratio is low at 0.39, suggesting inefficiencies in converting profits to cash flows. However, the free cash flow to net income ratio reflects some improvement, albeit still negative, indicating potential cash management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	131.90B	130.09B	119.53B	113.27B	105.53B	102.90B
Gross Profit	60.44B	59.51B	51.41B	50.17B	49.44B	51.63B
EBITDA	18.87B	17.55B	11.37B	10.81B	8.72B	11.98B
Net Income	10.30B	9.09B	5.47B	4.72B	3.93B	6.13B
Balance Sheet
Total Assets	190.57B	193.62B	177.68B	176.04B	171.92B	167.13B
Cash, Cash Equivalents and Short-Term Investments	16.62B	16.51B	13.98B	19.39B	27.49B	30.84B
Total Debt	26.48B	28.44B	20.95B	21.28B	21.62B	21.88B
Total Liabilities	54.41B	57.33B	46.90B	50.59B	47.42B	42.47B
Stockholders Equity	136.15B	136.28B	130.78B	125.46B	124.51B	124.66B
Cash Flow
Free Cash Flow	0.00	-2.19B	-4.70B	-7.40B	3.66B	65.00M
Operating Cash Flow	0.00	3.51B	1.55B	2.01B	6.35B	5.19B
Investing Cash Flow	0.00	-6.32B	-3.19B	-6.28B	-2.56B	-4.26B
Financing Cash Flow	0.00	3.95B	-3.35B	-3.36B	-4.11B	-4.92B

KYORIN Pharmaceutical Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1503.00
• 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:4569, the sentiment is Positive. The current price of 1503 is above the 20-day moving average (MA) of 1480.50, above the 50-day MA of 1447.14, and above the 200-day MA of 1473.23, indicating a bullish trend. The MACD of 16.71 indicates Negative momentum. The RSI at 59.75 is Neutral, neither overbought nor oversold. The STOCH value of 72.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4569.

KYORIN Pharmaceutical Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4553	81 Outperform	¥175.94B	8.52	11.81%	2.24%	9.32%	30.85%
4534	73 Outperform	¥117.23B	18.18	5.11%	2.32%	4.35%	48.30%
4569	69 Neutral	¥79.22B	9.27	―	3.46%	11.65%	93.46%
4886	67 Neutral	¥52.88B	11.82	―	2.62%	5.44%	-20.33%
4547	66 Neutral	$188.51B	13.49	6.57%	2.49%	13.11%	41.57%
4551	65 Neutral	―	―	―	―	10.91%	2.93%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

KYORIN Pharmaceutical Co.,Ltd. Corporate Events

KYORIN Pharmaceutical Reports Mixed Financial Results for H1 2025

KYORIN Pharmaceutical Co., Ltd. reported its financial results for the six months ended September 30, 2025, showing a 6.5% increase in net sales compared to the previous year. However, the company experienced a decline in operating and ordinary profit by 12.0% and 22.8%, respectively. Despite these challenges, the profit attributable to owners of the parent increased by 19.0%. The company maintains a strong equity ratio of 73.4% and plans to commence dividend payments on December 2, 2025. The forecast for the full fiscal year ending March 31, 2026, anticipates a decrease in net sales and profits, reflecting ongoing challenges in the market.

KYORIN Partners with Hinge Bio for SLE Drug Development in Japan

KYORIN Pharmaceutical Co., Ltd. has entered into an exclusive license agreement with Hinge Bio Inc. to develop and commercialize HB2198, a new drug candidate for systemic lupus erythematosus (SLE) and other diseases, in Japan. This collaboration aligns with KYORIN’s strategic goal to expand its development pipeline and is expected to impact its fiscal year earnings due to the upfront payment to Hinge Bio, which will be recorded as R&D expenses.

KYORIN Pharma Announces Phase 3 Study Results for Pulmonary Sarcoidosis Treatment

KYORIN Pharmaceutical Co., Ltd. announced the topline results from a Phase 3 clinical study of KRP-R120 (Efzofitimod) for treating pulmonary sarcoidosis. The study did not meet its primary endpoint but showed some promising secondary outcomes, such as a higher rate of complete steroid withdrawal in patients treated with KRP-R120 compared to placebo. The drug was well-tolerated, and the results will be presented at the European Respiratory Society Congress. KYORIN and aTyr Pharma are discussing future development plans for KRP-R120, and the study costs have been included in the company’s financial forecasts.