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

• Market Cap: ¥31.31B
• Dividend Yield: 3.43%
• Average Volume (3M): 88.37K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.31
• Revenue Growth: 8.07%
• EPS Growth: -45.20%
• Country: JP
• Employees: 1,070
• Sector: Healthcare
• Sector Strength: 42
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 10.17
• Shares Outstanding: 30,696,880
• 10 Day Avg. Volume: 115,330
• 30 Day Avg. Volume: 88,369
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• 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

• Rating: 73 Outperform
• Price Target: ¥1,186.00 ▲(16.27%Upside)

Daito Pharmaceutical Co., Ltd. demonstrates financial stability with strong operational efficiency and a solid balance sheet, but needs to address free cash flow challenges. The stock's reasonable valuation and attractive dividend yield enhance its appeal, though technical signals are mixed.

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

Company Description

Daito Pharmaceutical Co., Ltd. (4577) is a Japanese company engaged in the pharmaceutical industry, primarily focusing on the development, manufacturing, and marketing of generic drugs. The company plays a crucial role in providing cost-effective medication options, which are bioequivalent to brand-name drugs, thereby contributing to the healthcare system by making essential medications more accessible and affordable to the public.

How the Company Makes Money

Daito Pharmaceutical Co., Ltd. generates revenue through the production and sale of generic pharmaceutical products. The company's primary revenue streams include sales to hospitals, pharmacies, and wholesalers who distribute the generic drugs to end consumers. Additionally, Daito may engage in contract manufacturing, providing production services for other pharmaceutical companies. The company's financial performance may be influenced by factors such as drug approval rates, patent expirations of branded drugs, and healthcare policies that encourage the use of generics. Strategic partnerships with other pharmaceutical firms or research institutions can also play a role in expanding their product offerings and market reach.

Daito Pharmaceutical Co., Ltd. Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
46.90B	45.10B	43.46B	48.71B	45.00B
	Gross Profit
9.84B	10.33B	11.46B	10.79B	9.48B
	EBIT
3.89B	5.21B	6.55B	5.91B	5.36B
	EBITDA
7.92B	9.08B	9.88B	9.04B	8.56B
	Net Income Common Stockholders
3.29B	3.60B	4.67B	4.25B	3.94B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.73B	3.61B	4.38B	3.37B	3.08B
	Total Assets
77.71B	70.55B	64.94B	57.74B	54.25B
	Total Debt
8.72B	4.96B	3.45B	3.39B	3.37B
	Net Debt
5.99B	1.35B	-934.00M	21.09M	280.90M
	Total Liabilities
25.44B	19.58B	17.27B	15.82B	17.38B
	Stockholders Equity
52.07B	50.67B	47.30B	41.62B	36.51B
Cash Flow		Free Cash Flow
-1.09B	-1.40B	-363.00M	-1.17B	1.53B
	Operating Cash Flow
5.18B	4.16B	4.37B	5.18B	4.31B
	Investing Cash Flow
-5.93B	-5.57B	-4.40B	-6.32B	-2.68B
	Financing Cash Flow
-183.00M	616.00M	989.00M	1.42B	-350.46M

Daito Pharmaceutical Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1020.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 1020 is above the 20-day moving average (MA) of 999.68, below the 50-day MA of 1023.11, and below the 200-day MA of 1046.84, indicating a neutral trend. The MACD of -0.87 indicates Negative momentum. The RSI at 52.63 is Neutral, neither overbought nor oversold. The STOCH value of 51.30 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	73 Outperform	€31.57B	9.91	7.01%	3.59%	13.46%	-46.40%
4577	73 Outperform	¥31.31B	14.43		3.43%	8.07%	-45.20%
2929	71 Outperform	¥28.04B	10.18		2.82%	-7.27%	-42.40%
4595	71 Outperform	¥29.20B	8.16		6.52%	4.00%	-0.03%
4538	65 Neutral	¥18.94B	6.63		3.80%	9.31%	103.53%
Sector *	54 Neutral	$5.31B	3.29	-45.39%	2.79%	16.77%	-0.07%

Daito Pharmaceutical Co., Ltd. Corporate Events

Daito Pharmaceutical Announces Share Repurchase

Daito Pharmaceutical Co., Ltd. announced the repurchase of 105,200 of its own shares for 220,726,800 yen, conducted through market purchases on the Tokyo Stock Exchange in April 2025. This move is part of a broader strategy approved by the Board of Directors to repurchase up to 300,000 shares, aiming to enhance shareholder value and optimize capital structure.

Daito Pharmaceutical Revises Earnings Forecast Amid Cost Challenges

Daito Pharmaceutical Co., Ltd. has revised its earnings forecast for the fiscal year ending May 31, 2025, due to lower than expected sales of high-value products and increased costs. Despite strong net sales, the company anticipates a decrease in operating, ordinary, and attributable profits, citing factors such as inventory valuation losses, higher outsourcing expenses, and increased R&D costs.

Daito Pharmaceutical Reports Increased Sales but Declining Profits

Daito Pharmaceutical Co., Ltd. reported a 5.6% increase in net sales for the nine months ending February 28, 2025, compared to the previous year. However, the company experienced a significant decline in profits, with operating profit down by 39.8% and ordinary profit by 34.9%. The financial results indicate challenges in maintaining profitability despite increased sales, which may impact the company’s strategic positioning and stakeholder confidence.

Daito Pharmaceutical Announces Share Repurchase

Daito Pharmaceutical Co., Ltd. announced the repurchase of 36,300 shares of its own common stock for a total of 77,881,300 yen, conducted through market purchases on the Tokyo Stock Exchange. This move is part of a broader strategy approved by the Board of Directors to repurchase up to 300,000 shares, aiming to enhance shareholder value and optimize capital structure.