Otsuka Holdings Co (4578) AI Stock Analysis

• Market Cap: ¥3.47T
• Dividend Yield: 1.82%
• Average Volume (3M): 1.32M
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.82
• Revenue Growth: 14.52%
• EPS Growth: 156.70%
• Country: JP
• Employees: 35,338
• Sector: Healthcare
• Sector Strength: 42
• Industry: Drug Manufacturers - General
• EPS (TTM): 158.57
• Shares Outstanding: 542,988,900
• 10 Day Avg. Volume: 1,123,070
• 30 Day Avg. Volume: 1,322,343
• PEG Ratio: 4.00
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.09
• 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: ¥9,019.49
• Price Target Upside: 37.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 72 Outperform
• Price Target: ¥7,581.00 ▲(15.20%Upside)

Otsuka Holdings Co's strong financial performance is the most significant factor in its overall stock score, driven by robust revenue growth, high profitability, and a solid balance sheet with low leverage. The valuation component also contributes positively, as the stock appears undervalued with a low P/E ratio and a reasonable dividend yield. However, technical analysis indicates a bearish trend, which slightly dampens the overall score.

Otsuka Holdings Co Business Overview & Revenue Model

Company Description

Otsuka Holdings Co., Ltd. engages in pharmaceuticals, nutraceuticals, consumer products, and other businesses worldwide. The company develops pharmaceutical products in the fields of oncology, cardiovascular system, renal system, digestive system, ophthalmology, diagnostics, and intravenous solutions, as well as medical devices businesses. It also provides EQUELLE, a product for women's health and beauty; BODYMAINTÉ Jelly, a conditioning food product; BODYMAINTÉ Drink, a drinkable-liquid; POCARI SWEAT, a drink; Calorie Mate, a nutritional food; OS-1, an oral rehydration solution; HINEX-R, a concentrated liquid diet; and Oronine H Ointment, a household antiseptic medicine. In addition, the company offers soft drinks, food products, and wines; chemicals; clinical testing and medical equipment; cosmetics; warehousing and transport services; analysis and measurement equipment; pharmaceutical intermediates; vehicle headlight testers; synthetic resin molded products; paper products; artificial turf; ceramic boards, ceramic walls, reliefs, terracotta, OT ceramics, and ceramic portraits and sign boards; functional films; stable isotopes; software and services to enhance management of mental healthcare systems; potassium titanate; polyolefin foams; spring and mineral water; industrial chemicals; hydrazine; insecticide and toiletry products; and adhesive tapes. Further, it operates a hotel. Otsuka Holdings Co., Ltd. was founded in 1921 and is based in Tokyo, Japan.

How the Company Makes Money

Otsuka Holdings Co. makes money primarily through the sales of its pharmaceutical products, which constitute the largest portion of its revenue. The company develops and markets a range of prescription medications, notably in the fields of mental health, oncology, and cardiovascular health. Additionally, Otsuka generates revenue from its nutraceutical and consumer products divisions, which offer health and wellness products such as nutritional supplements and functional foods. The company leverages strategic partnerships and collaborations with other pharmaceutical and biotechnology companies to enhance its product offerings and market reach, further contributing to its revenue streams. Otsuka also invests in research and development to drive innovation and maintain a competitive edge in the healthcare market.

Otsuka Holdings Co Financial Statement Overview

Summary

Otsuka Holdings Co exhibits a robust financial position with strong revenue growth, high profitability margins, and a solid balance sheet characterized by low leverage. The company's consistent cash flow generation underpins its financial health, supporting ongoing growth and investment. The overall financial performance is strong, with low financial risk, positioning the company well in the Drug Manufacturers industry.

Income Statement

Otsuka Holdings Co has demonstrated strong revenue growth with a 37.25% increase from 2020 to 2025. The gross profit margin for the TTM period is robust at 72.18%, and the net profit margin stands at a healthy 14.65%. EBIT and EBITDA margins for TTM are 17.89% and 22.14%, respectively, indicating efficient operational management. The company has consistently increased its revenue annually, contributing to a strong overall performance.

Balance Sheet

The balance sheet reflects a strong equity base with an increasing stockholders' equity over the years, reaching ¥2,648,194 million in the TTM period. The debt-to-equity ratio is low at 0.10, indicating low leverage. The equity ratio is high at 71.69%, showcasing the company's stability and low financial risk. The strong equity buffer provides a solid foundation for future growth.

Cash Flow

Otsuka Holdings Co's cash flow generation is solid, with a free cash flow growth rate of 67.91% from 2020 to 2025, reflecting efficient use of capital. The operating cash flow to net income ratio is 1.21 for TTM, indicating strong cash conversion. The free cash flow to net income ratio is 0.81, suggesting a healthy level of liquidity. Although the capital expenditures have increased, the strong cash flows provide assurance of continued investment capacity.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.33T	2.02T	1.74T	1.50T	1.42T
Gross Profit	1.67T	1.41T	1.17T	1.00T	983.08B
EBITDA	452.62B	224.20B	279.83B	231.43B	291.03B
Net Income	343.12B	121.62B	133.91B	125.46B	148.14B
Balance Sheet
Total Assets	3.74T	3.36T	3.10T	2.82T	2.63T
Cash, Cash Equivalents and Short-Term Investments	426.17B	513.34B	489.12B	430.76B	401.77B
Total Debt	189.38B	214.19B	194.16B	212.45B	226.08B
Total Liabilities	961.09B	924.93B	840.17B	775.73B	744.38B
Stockholders Equity	2.73T	2.39T	2.23T	2.01T	1.85T
Cash Flow
Free Cash Flow	225.28B	168.56B	104.06B	115.71B	134.96B
Operating Cash Flow	354.64B	283.23B	211.85B	228.86B	232.84B
Investing Cash Flow	-268.27B	-190.54B	-81.58B	-95.29B	-99.86B
Financing Cash Flow	-186.89B	-60.17B	-95.47B	-95.84B	-104.93B

Otsuka Holdings Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6581.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 6581 is below the 20-day moving average (MA) of 6793.94, below the 50-day MA of 6840.65, and below the 200-day MA of 7747.62, indicating a bearish trend. The MACD of -101.34 indicates Positive momentum. The RSI at 39.93 is Neutral, neither overbought nor oversold. The STOCH value of 26.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4578.

Otsuka Holdings Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4507	80 Outperform	$2.19T	12.44	12.99%	2.33%	0.73%	7.75%
4519	79 Outperform	¥11.52T	28.10	22.80%	3.57%	17.96%	25.65%
4578	72 Outperform	¥3.47T	10.11	13.46%	1.82%	14.52%	156.70%
4503	72 Outperform	$2.61T	51.10	3.22%	5.11%	19.25%	294.48%
4568	68 Neutral	¥6.71T	23.07	17.60%	1.67%	17.77%	49.34%
4502	65 Neutral	$6.88T	63.50	1.50%	4.51%	7.45%	-25.77%
Sector *	52 Neutral	$7.36B	-0.07	-63.77%	2.36%	16.35%	0.03%

Otsuka Holdings Co Corporate Events

Otsuka’s Sibeprenlimab Shows Promising Results in Phase 3 IgAN Study

Otsuka Holdings has announced promising interim results from its Phase 3 VISIONARY study, showing that its investigational drug sibeprenlimab achieved a significant 51.2% reduction in proteinuria for patients with Immunoglobulin A Nephropathy (IgAN). The study’s findings, presented at the European Renal Association Congress, highlight sibeprenlimab’s potential as a new treatment option, with a favorable safety profile and a novel mechanism targeting the disease’s immunologic pathogenesis. The drug has received Priority Review from the FDA, indicating its potential impact on the treatment landscape for this chronic kidney disease.

The most recent analyst rating on (JP:4578) stock is a Hold with a Yen7200.00 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 BLA Accepted by FDA for Priority Review

Otsuka Holdings Co., Ltd. announced that the FDA has accepted the Biologics License Application for sibeprenlimab, a monoclonal antibody for treating IgA nephropathy, with a priority review. This development could significantly impact Otsuka’s positioning in the nephrology market by offering a new treatment option that allows patients to self-administer the medication, potentially improving convenience and clinical outcomes for those with this chronic kidney disease.

The most recent analyst rating on (JP:4578) stock is a Buy with a Yen10400.00 price target. To see the full list of analyst forecasts on Otsuka Holdings Co stock, see the JP:4578 Stock Forecast page.

Otsuka Holdings Announces Change in Major Shareholders

Otsuka Holdings Co., Ltd. announced a change in its major shareholder structure due to a partial refund of shares by members of the Otsuka Founders Shareholding Fund. This adjustment has led to a slight decrease in the voting rights ratio of the major shareholder, The Nomura Trust and Banking Co., Ltd., but it will not impact the company’s management or business performance.

Otsuka Holdings Reports Strong Q1 2025 Financial Performance Amid Strategic Expansion

Otsuka Holdings Co., Ltd. reported a significant increase in revenue and profits for the first quarter of 2025, with revenue rising by 12.2% and operating profit by 35.2% compared to the same period in the previous year. Despite the positive financial performance, the company’s total comprehensive income saw a sharp decline of 96.9%. The company also announced the acquisition of Araris Biotech AG, indicating a strategic move to expand its scope of operations.

Otsuka Holdings Corrects Joint Venture Disclosure

Otsuka Holdings Co., Ltd. announced a correction to a previous disclosure regarding the establishment of a joint venture between Otsuka Pharmaceutical Factory, Inc. and ICU Medical. The correction involved an error in the stated capital of ICU Medical, which was initially reported as USD2.04 billion and has been corrected to USD2.45 million. This correction ensures accurate financial reporting and maintains transparency with stakeholders.

Otsuka Holdings Completes Treasury Share Disposal for Stock Compensation

Otsuka Holdings Co., Ltd. has completed the payment for the disposal of 88,340 treasury shares as part of its restricted stock compensation plan. This move is aimed at aligning the interests of its directors with those of the company, potentially impacting its governance and stakeholder relations positively.