RaQualia Pharma Inc. (4579) AI Stock Analysis

• Market Cap: ¥15.31B
• Dividend Yield: N/A
• Average Volume (3M): 433.14K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.67
• Revenue Growth: 57.13%
• EPS Growth: -66.39%
• Country: JP
• Employees: 64
• Sector: Healthcare
• Sector Strength: 55
• Industry: Biotechnology
• EPS (TTM): -0.24
• Shares Outstanding: 24,457,172
• 10 Day Avg. Volume: 611,580
• 30 Day Avg. Volume: 433,140
• PEG Ratio: -8.20
• Price to Book (P/B): 4.70
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.84
• 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: 62 Neutral
• Price Target: ¥666.00 ▲(6.39%Upside)

RaQualia Pharma Inc. scores moderately due to strong technical momentum and a stable financial structure, but its valuation is hampered by unprofitability and lack of dividend yield. Improving operational efficiency to achieve profitability could enhance its overall appeal.

RaQualia Pharma Inc. Business Overview & Revenue Model

Company Description

RaQualia Pharma Inc. (4579) is a pharmaceutical company based in Japan, specializing in the research, development, and commercialization of innovative pharmaceutical products. The company focuses on therapeutic areas such as pain management, gastrointestinal disorders, and oncology, aiming to address unmet medical needs and improve patient outcomes through cutting-edge drug discovery and development processes.

How the Company Makes Money

RaQualia Pharma Inc. generates revenue primarily through the development and licensing of its proprietary pharmaceutical products and technologies. The company forms strategic partnerships and collaborations with other pharmaceutical companies to jointly develop and commercialize its drug candidates. Licensing agreements often include upfront payments, milestone payments, and royalties based on product sales. Additionally, RaQualia may engage in contract research and development services for third-party clients, further contributing to its revenue streams. The company's growth and profitability are closely tied to the successful advancement of its drug pipeline, securing of partnerships, and regulatory approvals for its products.

RaQualia Pharma Inc. Financial Statement Overview

Summary

RaQualia Pharma Inc. has strengths in cash flow management and a stable balance sheet, highlighted by a strong operating cash flow and manageable leverage. However, the company faces challenges with consistent profitability and revenue growth, needing to convert strong gross margins into net profits.

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
3.42B	3.11B	1.90B	2.92B	2.78B	1.11B
	Gross Profit
2.57B	2.48B	1.66B	2.69B	2.46B	969.29M
	EBIT
-164.79M	-213.38M	-337.37M	866.24M	707.86M	-486.08M
	EBITDA
260.15M	188.27M	-111.80M	1.00B	1.02B	-403.25M
	Net Income Common Stockholders
-422.14M	-495.03M	-323.66M	723.39M	755.79M	-606.99M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.76B	3.34B	3.76B	3.93B	2.66B	2.11B
	Total Assets
9.51B	9.66B	6.87B	6.26B	5.23B	4.25B
	Total Debt
3.34B	3.45B	367.72M	222.34M	39.07M	45.52M
	Net Debt
580.06M	310.40M	-3.35B	-3.45B	-2.31B	-1.35B
	Total Liabilities
4.01B	4.08B	752.00M	760.67M	446.19M	240.11M
	Stockholders Equity
5.50B	5.57B	6.12B	5.50B	4.79B	4.01B
Cash Flow		Free Cash Flow
194.90M	84.24M	-940.80M	1.45B	260.61M	-445.56M
	Operating Cash Flow
289.54M	180.94M	-718.60M	1.48B	366.03M	-289.21M
	Investing Cash Flow
69.73M	-3.67B	-135.37M	-47.65M	-279.25M	225.47M
	Financing Cash Flow
-754.96M	2.98B	793.45M	-29.56M	-16.44M	-6.96M

RaQualia Pharma Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 626.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 626 is above the 20-day moving average (MA) of 612.10, above the 50-day MA of 476.24, and above the 200-day MA of 460.80, indicating a bullish trend. The MACD of 44.89 indicates Positive momentum. The RSI at 58.61 is Neutral, neither overbought nor oversold. The STOCH value of 10.17 is Positive, 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	68 Neutral	¥14.30B	284.55		0.69%	-13.57%	-106.11%
4579	62 Neutral	¥15.31B	―		―	57.13%	-66.39%
4888	55 Neutral	¥13.68B	―		―	256.62%	82.54%
Sector *	54 Neutral	$5.34B	3.27	-45.10%	3.30%	16.80%	0.02%
4978	49 Neutral	¥18.20B	178.37		―	8.46%	49.97%
4599	47 Neutral	¥21.19B	―		―	-100.00%	-1079.89%
4588	44 Neutral	¥15.28B	―		―	11.93%	15.04%

RaQualia Pharma Inc. Corporate Events

RaQualia Pharma Reports Strong Sales Growth Amid Profitability Challenges

RaQualia Pharma Inc. reported a significant increase in net sales and operating profit for the first quarter of 2025, with net sales rising by 48.8% compared to the previous year. Despite the positive sales growth, the company recorded a slight loss attributable to the owners of the parent, indicating ongoing challenges in achieving profitability. The financial results reflect the company’s strategic focus on expanding its market presence and improving operational efficiencies, although it continues to face hurdles in translating sales growth into net profit.