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

• Market Cap: ¥90.01B
• Dividend Yield: 3.36%
• Average Volume (3M): 127.03K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.53
• 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): 45.70
• 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): 84.2
• Revenue Forecast (FY): ¥127.00B

• Rating: 69 Neutral
• Price Target: ¥1,872.00 ▲(21.80% Upside)
• Action: Downgraded Date: 09/20/25
• Date: Action: Downgraded 09/20/25

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 (8.83% YoY) indicates sustained product demand and effective commercialization in core therapeutic areas. This top-line momentum supports scale economies, funds R&D and marketing, and underpins durable margin and cash-generation potential over the medium term.

Profitability & Margins

High gross margin (45.75%) and improving net margin (6.98%) reflect pricing power and disciplined cost control across manufacturing and commercialization. These structural margins provide recurring profitability that can finance pipeline investment and buffer the business against industry cyclicality.

Balance Sheet Strength

A high equity ratio (70.39%) and low leverage (D/E 0.21) give the company strong financial flexibility. This conservative capital structure reduces refinancing risk, enables sustained R&D funding or M&A, and supports resilience through multi-quarter industry or product-cycle shocks.

Negative Factors

Negative Free Cash Flow

Persistent negative free cash flow, albeit improved, means the business still consumes cash to run and invest. Over time this can force reliance on external financing, constrain dividends or R&D spending, and limit the company's ability to self-fund strategic initiatives sustainably.

Weak Cash Conversion

A low OCF-to-net-income ratio (0.39) signals that reported profits are not translating into cash, possibly due to working capital or non-cash accounting items. Over months this can strain liquidity, hamper capital expenditure plans, and reduce the firm's operational flexibility.

Modest ROE

An ROE of 6.67% is modest for a specialty pharmaceutical company and may indicate limited capital efficiency. Sustained mid-single-digit returns could constrain long-term shareholder value creation versus higher-return peers and reflect conservative deployment of capital or margin pressure.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: 1537.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1537 is below the 20-day moving average (MA) of 1669.15, below the 50-day MA of 1615.88, and above the 200-day MA of 1511.67, indicating a bullish trend. The MACD of 26.00 indicates Negative momentum. The RSI at 69.54 is Neutral, neither overbought nor oversold. The STOCH value of 87.98 is Negative, 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
4521	80 Outperform	¥155.06B	-44.06	0.44%	4.16%	-5.99%	-96.04%
4516	77 Outperform	¥336.50B	11.28	―	2.12%	4.07%	22.59%
4534	73 Outperform	¥131.18B	21.28	5.11%	2.34%	4.35%	48.30%
4569	69 Neutral	¥90.01B	9.12	―	3.36%	11.65%	93.46%
4553	67 Neutral	¥214.08B	9.99	11.81%	2.14%	9.32%	30.85%
4547	66 Neutral	¥198.72B	14.42	6.57%	2.48%	13.11%	41.57%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

KYORIN Pharmaceutical Co.,Ltd. Corporate Events

Kyorin Pharma Overhauls Governance With New Mandate-Based Officer System

Kyorin Pharmaceutical will introduce a mandate-based corporate officer system from April 1, 2026, alongside its existing employment-based framework. The move is designed to strengthen corporate governance by further separating decision-making and oversight from day-to-day business execution, with mandate-based roles applying to managing corporate officers and above.

In conjunction with the structural change, the company announced a series of executive reassignments, including redefining the roles of its president and key managing corporate officers overseeing finance, strategy, quality, business development, sales, R&D and HR. These changes aim to clarify responsibilities, enhance management transparency and support more robust oversight as Kyorin navigates its strategic and operational priorities.

The most recent analyst rating on (JP:4569) stock is a Hold with a Yen1804.00 price target. To see the full list of analyst forecasts on KYORIN Pharmaceutical Co.,Ltd. stock, see the JP:4569 Stock Forecast page.

KYORIN Wins Approval for Faster, More Sensitive GeneSoC FluA/B Influenza Test Kit

KYORIN Pharmaceutical has received regulatory approval from Japan’s Ministry of Health, Labour and Welfare for its new GeneSoC FluA/B Detection Kit, an in vitro diagnostic designed to rapidly detect and differentiate influenza A and B viruses when used with the company’s GeneSoC mini series analyzers. The kit offers higher detection sensitivity and shorter measurement time—around 15 minutes—than the currently marketed GeneSoC influenza test, reinforcing KYORIN’s strategy to expand its GeneSoC-based respiratory and infectious disease portfolio and support early, accurate influenza diagnosis at the point of care, although the impact on earnings for the fiscal year ending March 31, 2026, is expected to be negligible.

The most recent analyst rating on (JP:4569) stock is a Hold with a Yen1725.00 price target. To see the full list of analyst forecasts on KYORIN Pharmaceutical Co.,Ltd. stock, see the JP:4569 Stock Forecast page.

KYORIN Pharma Releases Nine-Month Consolidated Results and Outlook

KYORIN Pharmaceutical Co., Ltd. released supplementary information on its consolidated financial results for the nine months ended December 31, 2025, covering business performance highlights, detailed financial outcomes, forecasts, main product sales trends, and the status of its development pipeline. The material is framed as investor-focused disclosure and emphasizes that its performance forecasts, goals, and development outlooks are subject to risks and uncertainties, underscoring that actual results and development progress may differ significantly, which is important for stakeholders evaluating the company’s prospects and risk profile.

The most recent analyst rating on (JP:4569) stock is a Hold with a Yen1725.00 price target. To see the full list of analyst forecasts on KYORIN Pharmaceutical Co.,Ltd. stock, see the JP:4569 Stock Forecast page.

KYORIN Pharmaceutical Lifts Nine-Month Profit but Keeps Lower Full-Year Outlook

KYORIN Pharmaceutical reported consolidated net sales of ¥92.5 billion for the nine months ended December 31, 2025, up 3.6% year on year, with operating profit surging 47.9% to ¥4.6 billion and profit attributable to owners of parent jumping 68.9% to ¥4.1 billion, supported by improved profitability and resulting in a stronger equity ratio of 71.5%. Despite the strong nine‑month performance, the company maintained its full-year forecast, projecting a slight decline in net sales and a sharp drop in profit versus the prior year, while keeping its dividend outlook unchanged at a total annual payout of ¥57 per share, signaling a commitment to shareholder returns even as it anticipates earnings pressure ahead.

The most recent analyst rating on (JP:4569) stock is a Hold with a Yen1725.00 price target. To see the full list of analyst forecasts on KYORIN Pharmaceutical Co.,Ltd. stock, see the JP:4569 Stock Forecast page.

KYORIN Taps Lunatus to Launch Antibacterial Drug Lasvic Across Middle East

KYORIN Pharmaceutical has signed an exclusive distribution agreement with Dubai-based Lunatus Marketing & Consulting to supply its oral fluoroquinolone antibacterial drug Lasvic (lascufloxacin hydrochloride) for respiratory and ENT infections across nine Middle Eastern countries, including Saudi Arabia, the UAE and Qatar. Under the deal, KYORIN will act as Marketing Authorization Holder and provide the product to Lunatus, which will leverage its regional regulatory, marketing and distribution network to build Lasvic’s presence, aligning with KYORIN’s strategy to maximize the value of its proprietary products through out-licensing; while the immediate impact on earnings for the fiscal year ending March 2026 is expected to be negligible, the partnership strengthens KYORIN’s long-term positioning in the Middle East anti-infective market and supports broader Japan–Middle East collaboration in healthcare.

The most recent analyst rating on (JP:4569) stock is a Hold with a Yen1653.00 price target. To see the full list of analyst forecasts on KYORIN Pharmaceutical Co.,Ltd. stock, see the JP:4569 Stock Forecast page.