Taiko Pharmaceutical Co., Ltd. (4574) AI Stock Analysis

• Market Cap: ¥15.83B
• Dividend Yield: N/A
• Average Volume (3M): 93.84K
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.82
• Revenue Growth: -5.41%
• EPS Growth: N/A
• Country: JP
• Employees: 214
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 5.05
• Shares Outstanding: 50,636,900
• 10 Day Avg. Volume: 93,940
• 30 Day Avg. Volume: 93,840
• PEG Ratio: 6.05
• Price to Book (P/B): 1.76
• Price to Sales (P/S): 2.34
• P/FCF Ratio: 28.62
• 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): 15.92
• Revenue Forecast (FY): ¥6.08B

• Rating: 66 Neutral
• Price Target: ¥333.00 ▲(9.18% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by improving financial fundamentals (profitability and cash flow recovery with materially lower leverage), supported by positive technical momentum. Valuation is broadly reasonable but not especially compelling given the modest dividend yield, and the recent history of earnings/cash-flow volatility remains a key risk.

Positive Factors

Improved leverage

Material debt reduction to ~¥0.82B with sizable equity (~¥8.52B) meaningfully improves balance-sheet flexibility. This durable de-risking lowers refinancing and interest burden, increases capacity for R&D investment or partnerships, and strengthens resilience to sector shocks over the medium term.

Return to profitability

A sustained earnings recovery in 2024–2025 with positive operating profit and ~¥0.9B net income indicates the business can generate profits from current operations. Durable profitability supports internal funding for development, reduces reliance on external capital, and enables strategic reinvestment.

Positive cash flow recovery

Operating and free cash flow turned positive and strengthened in 2024–2025, providing an ongoing source of liquidity. Improving cash generation enhances the firm's ability to fund working capital, R&D and manufacturing without heavy external financing, supporting durable operational autonomy.

Negative Factors

Earnings volatility

Multi-year swings—from strong profits in 2020 to heavy losses 2021–2023 and then recovery—highlight inconsistent earnings quality. This structural volatility complicates forecasting, budgeting and investment decisions, and raises execution risk for sustaining margins and cash conversion long term.

Uneven revenue trend

Modest, uneven revenue growth after a post-2020 contraction suggests the top line lacks steady momentum. For a specialty/generic drug maker, inconsistent revenue trends can limit scale economies, constrain predictable R&D funding, and leave the company exposed to product lifecycle and competitive pressures.

Historic weak returns and shrinking assets

Deeply negative returns on equity in prior years and a declining asset base indicate periods when capital produced poor returns. This legacy weakens structural earning power, may limit reinvestment capacity, and implies management must sustain improvements to restore long-term return profiles.

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

Company Description

Taiko Pharmaceutical Co.,Ltd. engages in pharmaceuticals, infection control, and other businesses. The company manufactures and sells non-prescription drugs under the Seirogan and Seirogan Toi-A brands for the treatment of loose stools, diarrhea, food and water poisoning, vomiting, and related conditions; tablets for diarrhea; and quasi-drugs, such as Trumpet Intestinal Regulator BF. It also manufactures and sells sanitation control products under the Cleverin brand name to wholesalers, as well as Cleverin generator, a machine that emits low concentrations of chlorine dioxide gas; and supplies products using the patented Cleverin technology through OEM agreements and products developed jointly with other companies. It exports its products to the United States, Canada, Thailand, Vietnam, Malaysia, and Mongolia. Taiko Pharmaceutical Co.,Ltd. was incorporated in 1946 and is headquartered in Osaka, Japan.`

How the Company Makes Money

Taiko Pharmaceutical generates revenue primarily through the sale of its pharmaceutical products, which include both branded and generic medications. The company leverages its research and development capabilities to bring new drugs to market, often forming strategic partnerships with other pharmaceutical firms for co-development and distribution. Additionally, Taiko Pharmaceutical may earn revenue from licensing agreements, where it licenses its technology or products to other companies in exchange for royalties. The company's strong focus on therapeutic areas with high unmet medical needs allows it to capture significant market share and drive sales growth.

Taiko Pharmaceutical Co., Ltd. Financial Statement Overview

Summary

Turnaround is evident with a return to profitability in 2024–2025 and improving free cash flow, alongside sharply reduced debt. However, multi-year volatility (strong 2020, heavy losses 2021–2023) and still-unproven consistency in cash conversion keep the score in the mid-range.

Income Statement

The company has staged a sharp earnings recovery after heavy losses in 2021–2023, returning to solid profitability in 2024–2025 (annual net income ~¥0.9B) with positive operating profit. Revenue has stabilized and is growing modestly (about 3% in 2024 and ~9% in 2025). However, the track record is volatile—revenues were far higher in 2020 and then contracted materially, and profitability swung from strong profits (2020) to large losses (2021–2023) before recovering—so overall earnings quality and consistency remain a key watch item.

Balance Sheet

Leverage has improved meaningfully: total debt fell from ~¥3.25B (2023) and ~¥2.03B (2024) to ~¥0.82B (2025), while equity remains sizable (~¥8.52B in 2025). This supports financial flexibility and reduces balance-sheet risk versus prior years. Offsetting that, total assets have drifted down since 2020, and returns on equity were deeply negative during 2021–2023, highlighting that profitability has not been consistently strong across the cycle.

Cash Flow

Cash generation has improved with the earnings rebound: operating cash flow and free cash flow turned positive in 2024 and strengthened further in 2025 (operating cash flow ~¥0.81B; free cash flow ~¥0.52B). That said, the company has a recent history of negative operating and free cash flow (notably 2020–2023), and 2024 cash conversion was still relatively light versus reported profits, suggesting cash flow stability is not yet fully proven.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.84B	6.40B	6.29B	6.12B	5.04B	10.72B
Gross Profit	3.31B	3.48B	3.67B	2.58B	1.08B	2.75B
EBITDA	893.00M	724.00M	882.00M	-2.85B	-3.75B	-5.57B
Net Income	413.00M	923.00M	898.00M	-3.61B	-4.89B	-9.59B
Balance Sheet
Total Assets	11.68B	12.27B	12.91B	13.22B	15.05B	22.54B
Cash, Cash Equivalents and Short-Term Investments	4.14B	4.26B	4.53B	5.48B	3.50B	6.10B
Total Debt	1.32B	816.00M	2.03B	3.25B	3.81B	4.77B
Total Liabilities	3.73B	3.75B	4.95B	6.48B	7.00B	9.73B
Stockholders Equity	7.95B	8.52B	7.96B	6.74B	8.04B	12.80B
Cash Flow
Free Cash Flow	0.00	523.00M	205.00M	-421.00M	-2.08B	-3.19B
Operating Cash Flow	0.00	814.00M	362.00M	-307.00M	-1.99B	-1.59B
Investing Cash Flow	0.00	142.00M	-5.00M	1.17B	190.00M	-1.62B
Financing Cash Flow	0.00	-1.23B	-1.18B	1.54B	-997.00M	3.96B

Taiko Pharmaceutical Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 305.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4574, the sentiment is Positive. The current price of 305 is above the 20-day moving average (MA) of 296.30, above the 50-day MA of 296.48, and above the 200-day MA of 289.51, indicating a bullish trend. The MACD of 2.22 indicates Positive momentum. The RSI at 51.25 is Neutral, neither overbought nor oversold. The STOCH value of 16.88 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4574.

Taiko Pharmaceutical Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4574	66 Neutral	¥15.83B	17.20	―	―	-5.41%	―
4524	65 Neutral	¥9.59B	17.19	―	2.55%	3.23%	42.87%
4539	64 Neutral	¥6.42B	11.77	―	3.21%	4.25%	―
4538	60 Neutral	¥22.09B	-5.37	―	3.71%	7.50%	-281.41%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4512	48 Neutral	¥11.59B	38.82	―	1.06%	5.42%	-62.03%
2929	47 Neutral	¥18.69B	-9.94	―	3.65%	9.53%	-155.76%

Taiko Pharmaceutical Co., Ltd. Corporate Events

Taiko Pharmaceutical Outlines FY2025 Results and FY2026 Outlook

Taiko Pharmaceutical Co., Ltd. released its consolidated financial results for the fiscal year ended December 31, 2025, outlining performance at the group level and by business segment. The disclosure also covers differences between prior full-year earnings forecasts and actual results, and sets out the company’s FY2026 earnings outlook and strategic initiatives, signaling how it plans to manage growth and operations in the coming year.

The report’s inclusion of segment performance and forecast variances offers investors insight into which areas are driving or dragging results. By presenting its FY2026 forecast and future initiatives, Taiko communicates its operational priorities and expectations, giving stakeholders a clearer view of its positioning and plans within the competitive pharmaceutical market.

The most recent analyst rating on (JP:4574) stock is a Hold with a Yen315.00 price target. To see the full list of analyst forecasts on Taiko Pharmaceutical Co., Ltd. stock, see the JP:4574 Stock Forecast page.

Taiko Pharmaceutical Moves to Strengthen Board Oversight With Governance Rule Changes

Taiko Pharmaceutical plans to amend its Articles of Incorporation to strengthen governance by allowing the appointment of substitute directors who serve as Audit and Supervisory Committee Members if the number of sitting committee members falls below the level required by law. The company will also clarify that resolutions appointing these substitute directors remain effective until the start of the annual shareholders’ meeting for the final fiscal year ending within two years of their appointment, with both the shareholder vote and the effective date scheduled for March 27, 2026.

These changes are designed to ensure continuity in the company’s audit and supervisory functions by preventing any gaps in legally mandated oversight roles. By formalizing both the method of appointing substitute committee members and the duration of their appointment resolutions, Taiko Pharmaceutical aims to reinforce its internal control framework and signal to investors and other stakeholders that it is proactively managing compliance and board stability under Japan’s corporate governance regime.

The most recent analyst rating on (JP:4574) stock is a Hold with a Yen315.00 price target. To see the full list of analyst forecasts on Taiko Pharmaceutical Co., Ltd. stock, see the JP:4574 Stock Forecast page.

Taiko Pharmaceutical Beats FY2025 Forecasts, Resumes Dividend and Unlocks Reserves for Future Payouts

Taiko Pharmaceutical reported fiscal 2025 consolidated results modestly above its earlier net sales forecast and significantly ahead on profits, driven by stronger-than-expected performance in its Infection Control Business, favorable foreign exchange, and continued reductions in production and SG&A costs as well as lower retirement benefit expenses. In a move signaling improved financial health and confidence in its earnings base, the company decided to resume year-end dividends for the fiscal year ended December 2025 ahead of its original schedule and to reverse ¥7.86 billion from general reserves to retained earnings, eliminating accumulated deficits and enhancing flexibility for future dividend payments and capital policy.

The reversal of general reserves is an internal reclassification within net assets and does not affect total equity or current profit and loss, but it positions Taiko Pharmaceutical to sustain dividends in line with its medium-term targets for dividend on equity and to strengthen its financial soundness. These measures collectively underscore management’s focus on balancing growth investment with shareholder returns and may bolster investor confidence in the company’s earnings stability and capital management discipline.

The most recent analyst rating on (JP:4574) stock is a Hold with a Yen315.00 price target. To see the full list of analyst forecasts on Taiko Pharmaceutical Co., Ltd. stock, see the JP:4574 Stock Forecast page.

Taiko Pharmaceutical Posts Higher FY2025 Profit, Plans Dividend Hike Despite Margin Pressure

Taiko Pharmaceutical reported consolidated net sales of ¥6.4 billion for the fiscal year ended December 31, 2025, a modest 1.7% increase year on year, while operating profit fell 27.1% to ¥459 million and ordinary profit dropped 29.8% to ¥482 million. Despite this margin compression, profit attributable to owners of parent rose 2.8% to ¥923 million, equity strengthened with the equity ratio climbing to 69.4%, and the company resumed shareholder returns with a year-end dividend of ¥3.30 per share.

Management forecasts a stronger top line for 2026, projecting net sales of ¥7.2 billion, up 12.5%, and a mild recovery in operating profit to ¥500 million and ordinary profit to ¥520 million, while profit attributable to owners of parent is expected to decline to ¥550 million due to one-off factors reflected in the prior year. The planned dividend increase to ¥3.50 per share underscores a shift toward a more active capital return policy, suggesting a balance between growth investment, particularly in its core OTC healthcare franchise, and enhanced shareholder rewards.

The most recent analyst rating on (JP:4574) stock is a Hold with a Yen315.00 price target. To see the full list of analyst forecasts on Taiko Pharmaceutical Co., Ltd. stock, see the JP:4574 Stock Forecast page.