Otsuka (4768) AI Stock Analysis

• Market Cap: $1.24T
• Dividend Yield: 3.65%
• Average Volume (3M): 936.91K
• Price to Earnings (P/E): 19.5
• Beta (1Y): 0.53
• Revenue Growth: 21.85%
• EPS Growth: 24.41%
• Country: JP
• Employees: 9,680
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): 32.71
• Shares Outstanding: 380,004,240
• 10 Day Avg. Volume: 844,640
• 30 Day Avg. Volume: 936,913
• PEG Ratio: 2.01
• Price to Book (P/B): 3.69
• Price to Sales (P/S): 1.24
• P/FCF Ratio: 39.67
• Enterprise Value/Market Cap: 0.72
• Enterprise Value/Revenue: 0.69
• Enterprise Value/Gross Profit: 3.60
• Enterprise Value/Ebitda: 8.97
• 1Y Price Target: $2,945.40
• Price Target Upside: -10.17% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: ¥3,699.00 ▲(12.81% Upside)

Otsuka's strong financial performance and solid technical indicators are the primary drivers of its stock score. The company's robust balance sheet and consistent revenue growth underpin its financial health. Technical analysis suggests bullish momentum, although caution is advised due to potential overbought conditions. The valuation is fair, with an attractive dividend yield enhancing the stock's appeal.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective product adoption, supporting long-term business sustainability.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability and provides flexibility for future investments and growth.

Cash Flow Growth

Robust free cash flow growth improves financial resilience and supports reinvestment in R&D and strategic initiatives.

Negative Factors

Gross Profit Margin Decline

A declining gross profit margin may indicate rising costs or pricing pressures, which could impact profitability if not managed.

Cash Conversion Efficiency

Inefficient cash conversion can limit the company's ability to fund operations and growth initiatives, affecting long-term financial health.

Cost Pressures

Persistent cost pressures could erode margins and profitability, necessitating strategic cost management to maintain financial performance.

Otsuka Business Overview & Revenue Model

Company Description

Otsuka Corporation provides system integration, support, and other services in Japan. The System Integration Business segment offers system services, including consulting, system design and development, transport and installation work, and network construction. It also provides management systems and collaborative software, such as ERP packages and groupware to cover a range of specialized fields, including CAD and web technologies; and software, hardware, intranet, and security products for the construction and expansion of computer networks. In addition, this segment sells computers, copiers, and communications equipment and software; and develops consigned software. The Service and Support Business segment offers supplies, hardware and software maintenance, telephone support, and outsourcing services; emergency computer rescue services for corporate and individual clients; and network support and services for the planning, design, construction, and operation of corporate information systems, as well as out-sources system engineers. It also provides educational support services. The company was founded in 1961 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Otsuka generates revenue primarily through the sale of its pharmaceutical products, which include branded medications and generics. The company has a diverse portfolio featuring treatments for psychiatric disorders, such as Abilify, and other conditions like kidney diseases and cancer. Additionally, the nutraceutical segment contributes to revenue through the sale of health-focused products, including vitamins and functional foods. Key revenue streams include direct sales to healthcare providers, hospitals, and retail outlets, as well as licensing agreements and collaborations with other pharmaceutical firms, which enhance its product offerings and market reach. Partnerships with research institutions and involvement in clinical trials further bolster Otsuka's innovation pipeline, leading to potential new revenue opportunities.

Otsuka Financial Statement Overview

Summary

Otsuka exhibits strong financial performance with consistent revenue growth, efficient operations, and a solid financial structure. The company maintains a low debt-to-equity ratio and strong ROE, although there is room for improvement in cash generation.

Income Statement

Otsuka has demonstrated strong revenue growth with a 6.62% increase in TTM, supported by stable gross and net profit margins. The EBIT and EBITDA margins are healthy, indicating efficient operations and cost management. The consistent revenue growth trajectory over the years highlights the company's robust market position.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.017, reflecting prudent financial leverage. Return on Equity is strong at 15.81%, showcasing effective utilization of shareholder funds. The equity ratio is solid, indicating a stable financial structure with a good balance between debt and equity.

Cash Flow

Otsuka's cash flow performance is commendable, with a significant 104.82% growth in free cash flow in the TTM. The operating cash flow to net income ratio is modest, suggesting room for improvement in cash generation relative to earnings. The free cash flow to net income ratio is healthy, indicating efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.29T	1.11T	977.37B	861.02B	851.89B	836.32B
Gross Profit	246.92B	224.47B	203.98B	184.17B	176.89B	173.72B
EBITDA	99.10B	82.65B	72.86B	64.84B	66.22B	65.23B
Net Income	63.38B	53.48B	47.45B	40.02B	39.93B	39.31B
Balance Sheet
Total Assets	696.26B	673.90B	561.80B	523.02B	486.25B	471.29B
Cash, Cash Equivalents and Short-Term Investments	216.94B	228.14B	228.69B	202.29B	204.70B	178.07B
Total Debt	6.00B	6.86B	7.30B	8.44B	8.85B	8.89B
Total Liabilities	319.05B	298.66B	214.85B	200.29B	184.48B	191.26B
Stockholders Equity	372.36B	370.80B	343.11B	319.39B	298.74B	277.35B
Cash Flow
Free Cash Flow	54.88B	34.49B	61.30B	22.12B	46.99B	23.63B
Operating Cash Flow	59.45B	37.71B	71.65B	29.20B	57.87B	32.50B
Investing Cash Flow	-19.69B	-11.95B	-21.47B	-8.36B	-9.16B	-8.72B
Financing Cash Flow	-47.62B	-25.89B	-23.84B	-23.31B	-21.96B	-20.99B

Otsuka Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3279.00
• 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:4768, the sentiment is Positive. The current price of 3279 is above the 20-day moving average (MA) of 3229.80, above the 50-day MA of 3111.72, and above the 200-day MA of 3039.51, indicating a bullish trend. The MACD of 54.06 indicates Positive momentum. The RSI at 60.32 is Neutral, neither overbought nor oversold. The STOCH value of 37.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4768.

Otsuka Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8154	81 Outperform	¥195.10B	8.34	14.97%	2.94%	9.67%	45.58%
4768	79 Outperform	$1.24T	19.53	17.07%	3.65%	21.85%	24.41%
3107	76 Outperform	¥268.22B	8.90	―	3.08%	22.81%	504.99%
9824	75 Outperform	¥89.10B	14.09	―	2.72%	-0.41%	-10.32%
7513	71 Outperform	¥91.38B	19.41	―	1.85%	4.79%	17.77%
6638	66 Neutral	¥47.96B	8.30	―	3.07%	1.56%	1.72%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Otsuka Corporate Events

Otsuka Corporation Reports Strong Financial Growth for 2025

Otsuka Corporation reported significant financial growth for the nine months ending September 30, 2025, with a 22.3% increase in net sales and a 27.5% rise in operating profit compared to the previous year. This robust performance underscores the company’s strong market positioning and operational efficiency, reflecting positively on its stakeholders and future financial outlook.