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

• Market Cap: ¥14.87B
• Dividend Yield: N/A
• Average Volume (3M): 93.84K
• Price to Earnings (P/E): 17.5
• Beta (1Y): 0.87
• Revenue Growth: -5.41%
• EPS Growth: N/A
• Country: JP
• Employees: 214
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 7.76
• Shares Outstanding: 50,636,900
• 10 Day Avg. Volume: 93,940
• 30 Day Avg. Volume: 93,840
• PEG Ratio: -0.15
• Price to Book (P/B): 2.09
• Price to Sales (P/S): 2.64
• P/FCF Ratio: 81.03
• 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): 935.75
• Revenue Forecast (FY): ¥982.53B

• Rating: 63 Neutral
• Price Target: ¥311.00 ▲(4.71% Upside)

The overall stock score for Taiko Pharmaceutical is driven primarily by its strong financial performance and reasonable valuation. The company's robust revenue growth and profitability improvements are significant strengths. However, technical indicators suggest some short-term weakness, which slightly offsets the positive financial outlook. The absence of earnings call data and corporate events means these factors do not influence the score.

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

Taiko Pharmaceutical has demonstrated a strong recovery in its financial performance, particularly in revenue growth and profitability. The balance sheet remains robust with low leverage and a strong equity position. While cash flow metrics have improved, further enhancements in cash generation are necessary. Overall, the company is on a positive trajectory, but continued focus on operational efficiency and cash flow management will be crucial for sustained growth.

Income Statement

Taiko Pharmaceutical has shown a significant recovery in its income statement metrics. The revenue growth rate of 37.41% in the latest year indicates strong top-line growth. Gross profit margin improved to 58.26%, reflecting better cost management. The net profit margin turned positive at 14.27%, a substantial improvement from previous losses, indicating a return to profitability. However, the EBIT margin remains relatively low at 9.95%, suggesting room for operational efficiency improvements.

Balance Sheet

The balance sheet of Taiko Pharmaceutical shows a stable financial position with a debt-to-equity ratio of 0.25, indicating low leverage. The return on equity is positive at 11.28%, reflecting effective use of equity to generate profits. The equity ratio stands at 61.66%, suggesting a strong equity base relative to total assets. Overall, the company maintains a healthy balance sheet with manageable debt levels.

Cash Flow

Cash flow analysis reveals a positive shift with free cash flow growth turning positive. The operating cash flow to net income ratio is 0.13, indicating that cash generation is still catching up with net income. The free cash flow to net income ratio is 0.57, suggesting that a significant portion of net income is being converted into free cash flow. While improvements are evident, the company needs to enhance its cash flow generation further.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.29B	6.12B	5.04B	10.72B	17.68B
Gross Profit	3.67B	2.58B	1.08B	2.75B	12.42B
EBITDA	882.00M	-2.85B	-3.75B	-5.57B	5.92B
Net Income	898.00M	-3.61B	-4.89B	-9.59B	3.85B
Balance Sheet
Total Assets	12.91B	13.22B	15.05B	22.54B	31.76B
Cash, Cash Equivalents and Short-Term Investments	4.53B	5.48B	3.50B	6.10B	4.94B
Total Debt	2.03B	3.25B	3.81B	4.77B	94.89M
Total Liabilities	4.95B	6.48B	7.00B	9.73B	8.98B
Stockholders Equity	7.96B	6.74B	8.04B	12.80B	22.78B
Cash Flow
Free Cash Flow	205.00M	-421.00M	-2.08B	-3.19B	-3.74B
Operating Cash Flow	362.00M	-307.00M	-1.99B	-1.59B	-1.52B
Investing Cash Flow	-5.00M	1.17B	190.00M	-1.62B	-2.76B
Financing Cash Flow	-1.18B	1.54B	-997.00M	3.96B	-649.45M

Taiko Pharmaceutical Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 297.00
• 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:4574, the sentiment is Positive. The current price of 297 is above the 20-day moving average (MA) of 289.60, above the 50-day MA of 291.74, and above the 200-day MA of 285.37, indicating a bullish trend. The MACD of 2.49 indicates Negative momentum. The RSI at 55.52 is Neutral, neither overbought nor oversold. The STOCH value of 79.17 is Neutral, 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
4524	65 Neutral	¥8.73B	15.08	―	2.58%	3.23%	42.87%
4539	64 Neutral	¥5.57B	11.12	―	2.99%	4.25%	―
4574	63 Neutral	¥14.87B	17.49	―	―	-5.41%	―
4538	60 Neutral	¥19.32B	―	―	3.86%	7.50%	-281.41%
4582	51 Neutral	¥5.73B	―	―	―	-50.27%	-3.33%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4512	48 Neutral	¥10.07B	-308.15	―	1.05%	5.42%	-62.03%

Taiko Pharmaceutical Co., Ltd. Corporate Events

Taiko Pharmaceutical Unveils Medium-Term Management Plan for FY2026-2028

Taiko Pharmaceutical Co., Ltd. announced the formulation of a medium-term management plan for the fiscal years 2026 to 2028, as decided in their recent board of directors meeting. This strategic plan is expected to guide the company’s operations and potentially impact its industry positioning, reflecting its commitment to future growth and stakeholder value.

Taiko Pharmaceutical Revises Earnings Forecast for 2025

Taiko Pharmaceutical Co., Ltd. has revised its full-year consolidated earnings forecast for the fiscal year ending December 31, 2025. The company expects operating and ordinary profits to exceed previous forecasts due to lower production costs, reduced selling, general and administrative expenses, and favorable foreign exchange rates, while net sales remain consistent with initial projections.

Taiko Pharmaceutical Reports Decline in Financial Performance for 2025

Taiko Pharmaceutical Co., Ltd. reported a decline in its financial performance for the first nine months of 2025, with net sales decreasing by 7.6% and operating profit dropping by 55.3% compared to the previous year. Despite the challenging financial results, the company’s equity-to-asset ratio improved to 69.3%, indicating a stronger financial position. The company has revised its earnings forecasts for the full fiscal year, anticipating minimal growth in net sales and significant declines in operating and ordinary profits, which may impact its market positioning and stakeholder confidence.

Taiko Pharmaceutical Revises Earnings Forecast Following Subsidiary Liquidation

Taiko Pharmaceutical Co., Ltd. has completed the liquidation of its subsidiary, Taiko Environmental Technologies (Shanghai) Co., Ltd., resulting in a special gain of 142 million yen. This liquidation and subsequent gain have led the company to revise its consolidated earnings forecast for the fiscal year ending December 2025, increasing the profit attributable to owners of the parent by 50% compared to the previous forecast.