Otsuka Holdings Co (4578) AI Stock Analysis

• Market Cap: ¥4.80T
• Dividend Yield: 1.42%
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.73
• Revenue Growth: 6.56%
• EPS Growth: 201.49%
• Country: JP
• Employees: 35,338
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 234.69
• Shares Outstanding: 542,988,900
• 10 Day Avg. Volume: 977,130
• 30 Day Avg. Volume: 1,112,043
• PEG Ratio: 0.07
• Price to Book (P/B): 1.70
• Price to Sales (P/S): 2.00
• P/FCF Ratio: 20.67
• 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: ¥9,525.00
• Price Target Upside: 16.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: ¥10,624.00 ▲(30.36% Upside)

Otsuka Holdings Co's strong financial performance and positive technical indicators are the primary drivers of its high stock score. The company's robust revenue and profit growth, coupled with efficient cost management and a stable balance sheet, position it well in the drug manufacturing industry. The technical analysis supports a bullish outlook, with the stock trading above key moving averages and showing strong momentum. The valuation is reasonable, with a fair P/E ratio and a modest dividend yield.

Positive Factors

Revenue Growth

Otsuka's robust revenue growth indicates strong market demand and effective product strategy, enhancing its competitive position in the healthcare sector.

Product Development

The NDA submission for zipalertinib reflects Otsuka's commitment to innovation and could lead to new revenue streams, strengthening its pharmaceutical portfolio.

Profitability

Improved profit margins indicate effective cost management and operational efficiency, supporting sustainable long-term profitability.

Negative Factors

Cash Flow Decline

A decline in free cash flow growth may limit Otsuka's ability to invest in new projects or weather financial downturns, potentially impacting future growth.

Cash Generation Challenges

Moderate cash generation from operations could constrain Otsuka's ability to fund new initiatives and maintain financial flexibility.

Free Cash Flow

While cash flow metrics are solid, the decline in free cash flow growth suggests potential future liquidity constraints, affecting strategic investments.

Otsuka Holdings Co Business Overview & Revenue Model

Company Description

Otsuka Holdings Co., Ltd. is a global healthcare company based in Japan, primarily engaged in the pharmaceutical and nutraceutical sectors. The company operates through two main segments: Pharmaceuticals, which focuses on the development of innovative drugs in areas such as central nervous system disorders, oncology, and cardiovascular health; and Nutraceuticals, which offers products designed to enhance health and wellness, including functional foods and beverages. Otsuka is known for its commitment to research and development, aiming to improve the quality of life through advanced medical solutions and nutritional products.

How the Company Makes Money

Otsuka Holdings generates revenue primarily through the sale of its pharmaceutical products, which include prescription medications and treatments for various medical conditions. Key revenue streams come from the commercialization of innovative drugs, particularly in the areas of psychiatry, nephrology, and oncology, as well as from its nutraceutical offerings. The company also engages in strategic partnerships and collaborations with other pharmaceutical companies and research institutions, which can lead to shared development costs and expanded market access. Additionally, Otsuka benefits from licensing agreements and royalties associated with its patented products, further enhancing its earnings potential.

Otsuka Holdings Co Financial Statement Overview

Summary

Otsuka Holdings Co exhibits strong financial health with impressive revenue and profit growth, a stable balance sheet with low leverage, and robust cash flow generation. Minor concerns include a slight increase in debt and cost pressures affecting EBIT margins.

Income Statement

Otsuka Holdings Co has demonstrated strong revenue growth, with a TTM revenue growth rate of 35.6%. The company maintains healthy profitability metrics, with a gross profit margin of 72.2% and a net profit margin of 14.7% in the TTM period. EBIT and EBITDA margins are also robust, indicating efficient operations. However, the slight decline in EBIT margin from the previous year suggests potential cost pressures.

Balance Sheet

The balance sheet of Otsuka Holdings Co is solid, with a low debt-to-equity ratio of 0.095, indicating conservative leverage. The return on equity is strong at 13.3%, reflecting effective use of shareholder funds. The equity ratio stands at a healthy level, showcasing financial stability. However, the slight increase in total debt over the period could be monitored for future leverage trends.

Cash Flow

Cash flow analysis reveals a significant improvement in free cash flow growth, with a TTM growth rate of 382.6%. The operating cash flow to net income ratio is stable, and the free cash flow to net income ratio is strong at 66.9%, indicating efficient cash conversion. The company has shown resilience in generating cash, supporting its operational and strategic initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.40T	2.33T	2.02T	1.74T	1.50T	1.42T
Gross Profit	1.73T	1.67T	1.41T	1.17T	1.00T	983.08B
EBITDA	515.32B	452.62B	224.20B	266.93B	244.25B	273.37B
Net Income	408.85B	343.12B	121.62B	133.91B	125.46B	148.14B
Balance Sheet
Total Assets	3.79T	3.74T	3.36T	3.10T	2.82T	2.63T
Cash, Cash Equivalents and Short-Term Investments	411.11B	426.17B	513.34B	471.63B	410.68B	356.85B
Total Debt	211.51B	189.38B	214.19B	194.16B	212.45B	226.08B
Total Liabilities	1.00T	961.09B	924.93B	840.17B	775.73B	744.38B
Stockholders Equity	2.72T	2.73T	2.39T	2.23T	2.01T	1.85T
Cash Flow
Free Cash Flow	340.80B	225.28B	168.56B	104.06B	115.71B	134.96B
Operating Cash Flow	434.32B	354.64B	283.23B	211.85B	228.86B	232.84B
Investing Cash Flow	-239.59B	-268.27B	-190.54B	-81.58B	-95.29B	-99.86B
Financing Cash Flow	-246.53B	-186.89B	-60.17B	-95.47B	-95.84B	-104.93B

Otsuka Holdings Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8150.00
• 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:4578, the sentiment is Positive. The current price of 8150 is below the 20-day moving average (MA) of 9059.47, below the 50-day MA of 8751.55, and above the 200-day MA of 7702.40, indicating a bullish trend. The MACD of 47.94 indicates Positive momentum. The RSI at 59.22 is Neutral, neither overbought nor oversold. The STOCH value of 56.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4578.

Otsuka Holdings Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4578	78 Outperform	¥4.80T	10.79	16.30%	1.42%	6.56%	201.49%
4507	75 Outperform	¥2.56T	14.48	12.22%	2.22%	4.48%	11.08%
4519	74 Outperform	¥13.85T	34.89	20.99%	1.17%	6.25%	2.62%
4503	69 Neutral	¥4.03T	32.08	7.97%	3.61%	13.24%	127.88%
4502	66 Neutral	¥8.05T	235.34	0.54%	4.11%	-2.84%	-88.29%
4568	63 Neutral	¥6.60T	23.61	16.66%	2.07%	12.56%	14.58%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Otsuka Holdings Co Corporate Events

Otsuka’s VOYXACT Gains FDA Approval for IgAN Treatment

Otsuka Holdings has received accelerated FDA approval for VOYXACT, a novel treatment for reducing proteinuria in adults with primary immunoglobulin A nephropathy (IgAN) at risk for disease progression. This approval, based on significant results from a Phase 3 study, marks a significant advancement in IgAN treatment, offering a new therapeutic option with a unique mechanism of action that targets the APRIL pathway, potentially impacting the company’s market position and providing hope for patients with this chronic kidney disease.

The most recent analyst rating on (JP:4578) stock is a Buy with a Yen9950.00 price target. To see the full list of analyst forecasts on Otsuka Holdings Co stock, see the JP:4578 Stock Forecast page.

Otsuka’s Sibeprenlimab Shows Promising Results in IgAN Treatment

Otsuka Holdings Co. announced promising 12-month interim results from its Phase 3 VISIONARY trial for sibeprenlimab, a treatment for immunoglobulin A nephropathy (IgAN). The trial showed a significant reduction in proteinuria, a marker for kidney disease progression, with a favorable safety profile. The company has filed a Biologics License Application with the U.S. FDA, receiving a Priority Review designation, which could enhance its market position in nephrology treatments.

The most recent analyst rating on (JP:4578) stock is a Buy with a Yen9366.00 price target. To see the full list of analyst forecasts on Otsuka Holdings Co stock, see the JP:4578 Stock Forecast page.

Otsuka Holdings Reports Strong Financial Growth and Expands Consolidation

Otsuka Holdings Co., Ltd. reported a significant increase in its consolidated financial results for the nine-month period ending September 30, 2025, with a 5.1% rise in revenue and a notable 56.1% increase in operating profit compared to the previous year. The company also announced the inclusion of two new companies, Araris Biotech AG and Otsuka ICU Medical LLC, into its consolidation scope, which may enhance its market position and operational capabilities.

The most recent analyst rating on (JP:4578) stock is a Buy with a Yen9366.00 price target. To see the full list of analyst forecasts on Otsuka Holdings Co stock, see the JP:4578 Stock Forecast page.