RaQualia Pharma Inc. (4579) AI Stock Analysis

• Market Cap: ¥18.34B
• Dividend Yield: N/A
• Average Volume (3M): 352.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• Revenue Growth: 9.87%
• EPS Growth: -24.41%
• Country: JP
• Employees: 64
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -8.80
• Shares Outstanding: 24,457,672
• 10 Day Avg. Volume: 795,170
• 30 Day Avg. Volume: 352,926
• PEG Ratio: -0.32
• Price to Book (P/B): 1.49
• Price to Sales (P/S): 2.67
• P/FCF Ratio: 98.67
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 4,070.49
• Revenue Forecast (FY): ¥601.37B

• Rating: 58 Neutral
• Price Target: ¥1,096.00 ▼(-0.81% Downside)

RaQualia Pharma Inc. presents a mixed investment case. The most significant strength is the strong technical momentum, indicating positive market sentiment. However, this is offset by poor financial performance and valuation metrics, with negative profitability and cash flow challenges. Investors should be cautious due to the high technical indicators suggesting overbought conditions and the lack of earnings call or corporate event data to provide further insights.

Positive Factors

Strong Gross Profit Margin

A strong gross profit margin indicates efficient cost management at the production level, which can support long-term profitability if revenue growth improves.

Balanced Debt-to-Equity Ratio

A balanced debt-to-equity ratio suggests prudent financial management, providing the company with flexibility to leverage opportunities without excessive risk.

Revenue from Strategic Partnerships

Strategic partnerships and licensing agreements diversify revenue streams, enhancing stability and providing resources for innovation and growth.

Negative Factors

Negative Revenue Growth

Negative revenue growth indicates challenges in market expansion and product adoption, which could hinder long-term financial performance.

Negative Profitability

Negative profitability reflects operational inefficiencies and market challenges, which could impact the company's ability to sustain operations and invest in growth.

Negative Free Cash Flow Growth

Negative free cash flow growth limits the company's ability to invest in new projects and handle financial obligations, potentially affecting long-term viability.

RaQualia Pharma Inc. Business Overview & Revenue Model

Company Description

RaQualia Pharma Inc. engages in the research and development of pharmaceutical compounds worldwide. Its human products portfolio includes tegoprazan for gastroesophageal reflux disease, which is in phase 1 clinical trial in the United States; and grapiprant for pain management, which is in phase II clinical trial in the United States and phase I clinical trial in China, as well as in phase I clinical trial in China and the United States to treat cancer. The company also provides veterinary products such as, grapiprant for osteoarthritis in dogs; ghrelin receptor agonist to treat cancer-related anorexia/cachexia syndrome, and constipation resulting from spinal cord injury; and ELURA, a drug for the management of weight loss in cats with chronic kidney disease. In addition, it provides TRPM8 blocker for the target indication of neuropathic pain; motilin receptor agonist to treat gastrointestinal dysmotility, including gastroparesis, functional dyspepsia, and post-operative ileus; potassium-competitive acid blocker to treat gastro-esophageal reflux disease that has completed phase 1 clinical trial; 5-HT4 partial agonist to treat gastroparesis, functional dyspepsia, and chronic constipation; 5-HT2B antagonist to treat irritable bowel syndrome with diarrhea; EP4 antagonist, a pain management drugs for dogs; serotonin 5-HT2A and dopamine D2 receptor blocker to treat schizophrenia; EP4 antagonist to treat cancer that is in phase I clinical trial, as well as in phase 1 clinical trial for the indication of pain; Cyclooxygenase-2 inhibitor, Phase I clinical trials for the indication of pain; CB2 agonist; selective sodium channel blocker; P2X7 receptor antagonist, which is in Phase I clinical trials for the target indication of neuropathic pain; and retinoic acid receptor alpha agonist. It has a collaborative agreement with Interprotein Corporation, ASKA Pharmaceutical. Co., Ltd., and Epigeneron, Inc. The company was incorporated in 2008 and is headquartered in Nagoya, Japan.

How the Company Makes Money

RaQualia Pharma Inc. generates revenue through a combination of product sales, licensing agreements, and partnerships with larger pharmaceutical companies. The company markets its proprietary drugs directly or through collaborations, receiving royalties on sales from licensed products. Additionally, strategic partnerships and collaborations with research institutions and other biotech firms provide funding and resources for drug development, contributing to revenue through milestone payments and profit-sharing arrangements. The company's ability to innovate and bring new therapies to market is crucial for sustaining its earnings.

RaQualia Pharma Inc. Financial Statement Overview

Summary

RaQualia Pharma Inc. is facing significant financial challenges, particularly in terms of profitability and cash flow generation. While the company maintains a strong gross profit margin and a balanced debt-to-equity ratio, negative revenue growth and net losses are areas of concern. The company needs to focus on improving its cash flow and profitability to enhance its financial stability.

Income Statement

RaQualia Pharma Inc. has experienced a decline in revenue growth, with a negative growth rate of -5.6% in the TTM period. The company is facing challenges in profitability, as indicated by negative net profit and EBIT margins. However, the gross profit margin remains relatively strong at 74.9%, suggesting efficient cost management at the production level.

Balance Sheet

The company's debt-to-equity ratio is moderate at 0.61, indicating a balanced approach to leveraging. However, the return on equity is negative, reflecting challenges in generating returns for shareholders. The equity ratio is healthy, indicating a strong equity base relative to total assets.

Cash Flow

RaQualia Pharma Inc. is experiencing negative free cash flow growth, which is concerning for liquidity. The operating cash flow to net income ratio is low, indicating inefficiencies in converting income into cash. Despite these challenges, the free cash flow to net income ratio is relatively high, suggesting some ability to cover net losses with free cash flow.

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: 1105.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 1105 is above the 20-day moving average (MA) of 648.40, above the 50-day MA of 595.68, and above the 200-day MA of 517.62, indicating a bullish trend. The MACD of 110.57 indicates Negative momentum. The RSI at 86.93 is Negative, neither overbought nor oversold. The STOCH value of 89.67 is Negative, 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
4579	58 Neutral	¥18.34B	―	―	―	9.87%	-24.41%
4880	55 Neutral	¥10.13B	-202.30	―	1.04%	-13.81%	-107.95%
4588	53 Neutral	¥27.27B	―	―	―	-9.04%	13.09%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4978	49 Neutral	¥14.69B	―	―	―	1.24%	-33.41%
4599	47 Neutral	¥16.96B	-8.77	―	―	―	5.58%
4888	45 Neutral	¥10.58B	-77.98	―	―	248.15%	76.92%

RaQualia Pharma Inc. Corporate Events

RaQualia Pharma Reports Financial Results for First Nine Months of 2025

RaQualia Pharma Inc. reported a decrease in net sales by 2.5% for the first nine months of 2025 compared to the same period in 2024, with a net loss of 568 million yen. Despite the decline in sales and profitability, the company maintained a strong equity ratio of 63.0% as of September 2025, indicating a stable financial position. The company has not announced any changes to its dividend forecasts, and it plans to hold a financial results briefing via webcast, reflecting its commitment to transparency with stakeholders.

The most recent analyst rating on (JP:4579) stock is a Hold with a Yen545.00 price target. To see the full list of analyst forecasts on RaQualia Pharma Inc. stock, see the JP:4579 Stock Forecast page.