RaQualia Pharma Inc. (4579) AI Stock Analysis

• Market Cap: ¥14.33B
• Dividend Yield: N/A
• Average Volume (3M): 236.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.76
• Revenue Growth: 40.66%
• EPS Growth: 24.86%
• Country: JP
• Employees: 64
• Sector: Healthcare
• Sector Strength: 52
• Industry: Biotechnology
• EPS (TTM): -15.25
• Shares Outstanding: 24,457,672
• 10 Day Avg. Volume: 189,820
• 30 Day Avg. Volume: 236,670
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• 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: ¥541.00
• Price Target Upside: -6.24% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 47 Neutral
• Price Target: ¥541.00 ▼(-6.24% Downside)

RaQualia Pharma Inc.'s stock score is primarily impacted by its financial performance challenges, including negative revenue growth and profitability issues. Technical analysis suggests a neutral trend with potential for upward movement, but valuation remains unattractive due to a negative P/E ratio and lack of dividend yield.

RaQualia Pharma Inc. Business Overview & Revenue Model

Company Description

RaQualia Pharma Inc. is a Japan-based pharmaceutical company engaged in the research, development, and commercialization of innovative pharmaceutical products. The company focuses on creating novel drugs primarily within the therapeutic areas of pain management, gastrointestinal disorders, and oncology. Through its dedication to advancing healthcare solutions, RaQualia Pharma strives to address unmet medical needs and improve patient outcomes.

How the Company Makes Money

RaQualia Pharma Inc. generates revenue through the development and commercialization of pharmaceutical products. The company primarily earns money by out-licensing its proprietary drug candidates to larger pharmaceutical companies that have the resources to conduct late-stage clinical trials and bring the products to market. These licensing agreements typically involve upfront payments, milestone payments based on the achievement of specific development goals, and royalties on sales once the products are commercialized. Additionally, the company may engage in collaborative research and development partnerships, which can provide financial support and shared expertise, further contributing to its revenue streams.

RaQualia Pharma Inc. Financial Statement Overview

Summary

RaQualia Pharma Inc. shows potential in financial health with strong cash flow management and a stable balance sheet. However, it faces challenges in achieving consistent profitability and revenue growth. The company needs to focus on converting strong gross margins into net profits while leveraging its robust equity position for future growth.

Income Statement

RaQualia Pharma Inc. has shown a volatile revenue growth pattern with recent TTM revenue increasing by 10.19% from the previous annual report, but with a declining trend compared to earlier years. The company struggles with profitability as indicated by negative net profit margins and EBIT margins in the recent periods, primarily due to consistent net losses. While gross profit margins remain strong at around 74.96% in TTM, the company needs to focus on reducing operational losses to improve overall profitability.

Balance Sheet

The balance sheet reveals a moderate financial structure with a debt-to-equity ratio of 0.61 in TTM, indicating manageable leverage. The equity ratio remains robust at 57.82%, reflecting a solid equity base relative to total assets. However, the recent reduction in stockholders' equity highlights potential risks. Despite these concerns, the company maintains healthy liquidity with substantial cash reserves, suggesting resilience against short-term financial stress.

Cash Flow

Cash flow analysis shows a promising trend with a strong operating cash flow to net income ratio of -0.69 in TTM, highlighting efficient cash generation relative to reported losses. The free cash flow has improved significantly, growing by 131.36% from the last annual report, indicating better cash management. However, the company needs to ensure sustainable operating cash flows to support long-term growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.23B	3.11B	1.90B	2.92B	2.78B	1.11B
Gross Profit	2.31B	2.48B	1.66B	2.69B	2.46B	969.29M
EBITDA	229.81M	188.27M	-111.80M	1.00B	1.02B	-403.25M
Net Income	-525.92M	-495.03M	-323.66M	723.39M	755.79M	-606.99M
Balance Sheet
Total Assets	9.94B	9.66B	6.87B	6.26B	5.23B	4.25B
Cash, Cash Equivalents and Short-Term Investments	3.62B	3.34B	3.76B	3.93B	2.66B	2.11B
Total Debt	3.20B	3.45B	367.72M	222.34M	39.07M	45.52M
Total Liabilities	3.65B	4.08B	752.00M	760.67M	446.19M	240.11M
Stockholders Equity	6.29B	5.57B	6.12B	5.50B	4.79B	4.01B
Cash Flow
Free Cash Flow	-46.84M	84.24M	-940.80M	1.45B	260.61M	-445.56M
Operating Cash Flow	65.77M	180.94M	-718.60M	1.48B	366.03M	-289.21M
Investing Cash Flow	-48.06M	-3.67B	-135.37M	-47.65M	-279.25M	225.47M
Financing Cash Flow	462.90M	2.98B	793.45M	-29.56M	-16.44M	-6.96M

RaQualia Pharma Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 577.00
• 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:4579, the sentiment is Positive. The current price of 577 is above the 20-day moving average (MA) of 567.80, above the 50-day MA of 550.20, and above the 200-day MA of 467.36, indicating a bullish trend. The MACD of 5.56 indicates Negative momentum. The RSI at 54.90 is Neutral, neither overbought nor oversold. The STOCH value of 70.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4579.

RaQualia Pharma Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4880	66 Neutral	¥12.03B	284.55		0.81%	-13.57%	-106.11%
Sector *	51 Neutral	$7.93B	-0.32	-43.43%	2.21%	22.30%	-1.88%
4888	50 Neutral	¥13.31B	―		―	268.05%	83.57%
4978	49 Neutral	¥18.48B	206.40		―	13.83%	34.66%
4579	47 Neutral	¥14.33B	―		―	40.66%	24.86%
4599	47 Neutral	¥19.45B	―		―	―	8.47%
4588	44 Neutral	¥16.82B	―		―	-9.04%	2.12%

RaQualia Pharma Inc. Corporate Events

RaQualia Pharma Reports First Half 2025 Financial Results with Increased Sales

RaQualia Pharma Inc. reported its consolidated financial results for the first half of the fiscal year ending December 31, 2025. The company experienced an increase in net sales by 8.9% compared to the same period last year, although it still reported a net loss. The financial position showed an improvement in total assets and equity ratio, indicating a stronger balance sheet. Despite the losses, the company maintains its forecast for the fiscal year, suggesting confidence in its strategic direction.