Daito Pharmaceutical Co., Ltd. (4577) AI Stock Analysis

• Market Cap: ¥36.98B
• Dividend Yield: 4.28%
• Average Volume (3M): 62.81K
• Price to Earnings (P/E): 18.7
• Beta (1Y): 0.27
• Revenue Growth: 7.56%
• EPS Growth: -48.91%
• Country: JP
• Employees: 1,070
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 23.24
• Shares Outstanding: 30,096,880
• 10 Day Avg. Volume: 56,650
• 30 Day Avg. Volume: 62,806
• PEG Ratio: -0.39
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.59
• P/FCF Ratio: -31.31
• 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): 76.7
• Revenue Forecast (FY): ¥52.70B

• Rating: 63 Neutral
• Price Target: ¥1,261.00 ▲(3.62% Upside)

Daito Pharmaceutical Co., Ltd. receives an overall score of 63, primarily influenced by its mixed financial performance and bearish technical indicators. While the company shows revenue growth, declining profit margins and increasing leverage are concerns. The stock's valuation is reasonable with an attractive dividend yield, but technical indicators suggest a lack of strong momentum. The absence of earnings call and corporate events data limits further insights.

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

Company Description

Daito Pharmaceutical Co., Ltd. (4577) is a Japan-based company specializing in the development, manufacturing, and marketing of pharmaceutical products. The company operates primarily in the sectors of prescription drugs, over-the-counter medications, and biopharmaceuticals. Daito Pharmaceutical focuses on therapeutic areas such as oncology, cardiology, and infectious diseases, offering a range of innovative medications and healthcare solutions to improve patient outcomes.

How the Company Makes Money

Daito Pharmaceutical generates revenue through multiple streams, including the sale of prescription pharmaceuticals and over-the-counter products. The company profits from the licensing of its proprietary drug formulations and technologies to other pharmaceutical firms, as well as from collaborations and partnerships with research institutions and healthcare providers. Additionally, Daito Pharmaceutical engages in contract manufacturing for third parties, which contributes to its earnings. The company’s strong focus on research and development allows it to maintain a competitive edge and introduce new products, further enhancing its revenue potential.

Daito Pharmaceutical Co., Ltd. Financial Statement Overview

Summary

Daito Pharmaceutical Co., Ltd. demonstrates a mixed financial performance with revenue growth but declining profit margins and increasing leverage. The balance sheet shows a stable equity position, but rising debt levels could impact future financial flexibility. Cash flow challenges, particularly in free cash flow, suggest the need for strategic adjustments to enhance cash generation and profitability.

Income Statement

Daito Pharmaceutical Co., Ltd. has shown a consistent revenue growth rate of 6.91% in the latest year, indicating a positive trajectory. However, the gross profit margin has decreased over the years, from 26.36% in 2022 to 17.06% in 2025, which could suggest rising costs or pricing pressures. The net profit margin has also declined from 10.74% in 2022 to 3.77% in 2025, reflecting challenges in maintaining profitability. Despite these challenges, the company has managed to maintain a positive EBIT and EBITDA margin, although both have seen a downward trend.

Balance Sheet

The company's debt-to-equity ratio has increased from 0.07 in 2022 to 0.23 in 2025, indicating a rising leverage which could pose a risk if not managed properly. The return on equity has decreased from 9.87% in 2022 to 3.67% in 2025, suggesting a decline in the efficiency of generating profits from shareholders' equity. The equity ratio remains stable, indicating a solid capital structure, but the increasing debt levels warrant caution.

Cash Flow

The free cash flow has been negative in recent years, with a significant decline in free cash flow growth rate of -68.60% in 2025. This indicates potential challenges in generating sufficient cash to cover investments and obligations. The operating cash flow to net income ratio has been relatively stable, suggesting that the company is still generating cash from its operations, but the negative free cash flow to net income ratio highlights the need for improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	48.84B	50.64B	46.90B	45.10B	43.46B	48.71B
Gross Profit	8.92B	8.64B	9.84B	10.33B	11.46B	10.79B
EBITDA	7.65B	7.41B	7.92B	8.96B	9.88B	9.04B
Net Income	2.17B	1.91B	3.29B	3.60B	4.67B	4.25B
Balance Sheet
Total Assets	76.63B	78.00B	77.71B	70.55B	64.94B	57.74B
Cash, Cash Equivalents and Short-Term Investments	2.38B	2.21B	2.73B	3.61B	4.38B	3.37B
Total Debt	10.49B	11.88B	8.72B	4.96B	3.45B	3.39B
Total Liabilities	25.01B	25.93B	25.44B	19.58B	17.27B	15.82B
Stockholders Equity	51.53B	52.00B	52.07B	50.67B	47.30B	41.62B
Cash Flow
Free Cash Flow	-3.05B	-957.00M	-1.09B	-1.40B	-363.00M	-1.17B
Operating Cash Flow	1.84B	5.90B	5.18B	4.16B	4.37B	5.18B
Investing Cash Flow	-5.29B	-7.37B	-5.93B	-5.57B	-4.40B	-6.32B
Financing Cash Flow	3.96B	1.00B	-183.00M	616.00M	989.00M	1.42B

Daito Pharmaceutical Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1217.00
• 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:4577, the sentiment is Positive. The current price of 1217 is below the 20-day moving average (MA) of 1224.55, below the 50-day MA of 1223.46, and above the 200-day MA of 1100.75, indicating a bullish trend. The MACD of 4.26 indicates Negative momentum. The RSI at 50.19 is Neutral, neither overbought nor oversold. The STOCH value of 35.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4577.

Daito Pharmaceutical Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4554	74 Outperform	¥38.47B	12.51	7.10%	2.84%	12.06%	-51.89%
4595	71 Outperform	¥30.59B	10.88	―	6.85%	-12.03%	-19.61%
4577	63 Neutral	¥36.98B	18.70	―	4.28%	7.56%	-48.91%
2929	60 Neutral	¥23.21B	62.56	―	3.12%	5.01%	-88.17%
4538	60 Neutral	¥18.61B	―	―	3.86%	8.71%	-325.91%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Daito Pharmaceutical Co., Ltd. Corporate Events

Daito Pharmaceutical Completes Treasury Share Acquisition and Plans Cancellation

Daito Pharmaceutical Co., Ltd. has completed the acquisition of 242,000 treasury shares, equivalent to 0.8% of its total shares, as part of its capital policy to enhance shareholder returns and improve capital efficiency. The company plans to cancel these shares by May 2026, which will reduce the total number of shares issued, potentially impacting shareholder value and market perception.

The most recent analyst rating on (JP:4577) stock is a Hold with a Yen1261.00 price target. To see the full list of analyst forecasts on Daito Pharmaceutical Co., Ltd. stock, see the JP:4577 Stock Forecast page.

Daito Pharmaceutical Announces Strategic Treasury Share Acquisition and Cancellation

Daito Pharmaceutical Co., Ltd. has announced a strategic move to acquire and subsequently cancel a significant portion of its treasury shares, amounting to up to 1,250,000 shares or 4.2% of the total shares issued. This decision, part of the company’s Medium-Term Management Plan, aims to enhance shareholder returns and improve capital efficiency, reflecting a proactive approach to capital management and shareholder value enhancement.

The most recent analyst rating on (JP:4577) stock is a Hold with a Yen1261.00 price target. To see the full list of analyst forecasts on Daito Pharmaceutical Co., Ltd. stock, see the JP:4577 Stock Forecast page.

Daito Pharmaceutical to Acquire and Cancel Treasury Shares

Daito Pharmaceutical Co., Ltd. announced its decision to acquire and subsequently cancel a significant portion of its treasury shares as part of its capital policy under the Medium-Term Management Plan. This move aims to enhance shareholder returns and improve capital efficiency, with up to 1,250,000 shares, representing 4.2% of the total shares issued, set to be acquired and cancelled. The acquisition will be conducted through the Tokyo Stock Exchange, with the cancellation scheduled for May 2026.

The most recent analyst rating on (JP:4577) stock is a Hold with a Yen1261.00 price target. To see the full list of analyst forecasts on Daito Pharmaceutical Co., Ltd. stock, see the JP:4577 Stock Forecast page.

Daito Pharmaceutical Reports Positive Q3 Financial Results

Daito Pharmaceutical Co., Ltd. reported a 2.6% increase in net sales for the three months ended August 31, 2025, compared to the same period last year. The company also saw significant improvements in operating profit and profit attributable to owners of the parent, with increases of 17.6% and 12.8% respectively. These results reflect a positive financial trajectory and suggest a strengthening position within the industry, despite the exclusion of Daiwa Pharmaceutical Co., Ltd. from consolidation due to a merger.

The most recent analyst rating on (JP:4577) stock is a Hold with a Yen1261.00 price target. To see the full list of analyst forecasts on Daito Pharmaceutical Co., Ltd. stock, see the JP:4577 Stock Forecast page.