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

• Market Cap: ¥85.28B
• Dividend Yield: 3.36%
• Average Volume (3M): 127.03K
• Price to Earnings (P/E): 10.0
• 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: ¥1,796.00 ▲(16.85% 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

Sustained mid-single-digit to double-digit revenue growth signals expanding product adoption in core therapeutic areas and strengthens recurring domestic sales. This durable top-line momentum supports continued R&D funding and commercialization scale over the next several quarters.

High Gross Margin

A near-46% gross margin provides a structural buffer to absorb cost pressures and funds reinvestment into R&D and commercialization. High product-level margins indicate pricing strength and efficient manufacturing that support sustainable profitability over a multi-quarter horizon.

Conservative Leverage

Low leverage and a high equity ratio give the company financial flexibility to fund clinical programs, absorb regulatory or development delays, and pursue opportunistic M&A without stressing solvency. This capital structure reduces long-term default and refinancing risk.

Negative Factors

Negative Free Cash Flow

Persistent negative free cash flow constrains self-funded R&D, commercial expansion, or dividend capacity and increases reliance on external financing. Over months, continued negative FCF can force prioritization of programs and limit strategic optionality.

Weak Cash Conversion / Liquidity Pressure

Low conversion of accounting profits into cash and declining cash balances create structural liquidity risk. This undermines the firm's ability to absorb trial delays or invest opportunistically and may necessitate external funding or belt-tightening over the medium term.

Margin Volatility

Inconsistent operating margins point to exposure to product mix shifts, one-off items, or cost variability, complicating multi-quarter earnings predictability. This operational volatility raises execution risk for sustaining margin-driven profitability in coming quarters.

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: 1537.00
• 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:4569, the sentiment is Positive. The current price of 1537 is below the 20-day moving average (MA) of 1607.10, below the 50-day MA of 1546.16, and above the 200-day MA of 1490.48, indicating a bullish trend. The MACD of 22.10 indicates Positive momentum. The RSI at 60.48 is Neutral, neither overbought nor oversold. The STOCH value of 46.55 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	¥176.93B	8.57	11.81%	2.14%	9.32%	30.85%
4534	73 Outperform	¥123.18B	19.11	5.11%	2.34%	4.35%	48.30%
4569	69 Neutral	¥85.28B	9.98	―	3.36%	11.65%	93.46%
4886	67 Neutral	¥66.48B	14.87	―	2.52%	5.44%	-20.33%
4547	66 Neutral	¥187.89B	13.63	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 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.

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.

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.