Otsuka (4768) AI Stock Analysis

• Market Cap: $1.11T
• Dividend Yield: 3.06%
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): 19.8
• Beta (1Y): 0.48
• Revenue Growth: 15.49%
• EPS Growth: 18.42%
• Country: JP
• Employees: 9,680
• Sector: Technology
• Sector Strength: 86
• Industry: Technology Distributors
• EPS (TTM): 38.22
• Shares Outstanding: 380,004,240
• 10 Day Avg. Volume: 1,074,410
• 30 Day Avg. Volume: 1,069,293
• PEG Ratio: 82.90
• Price to Book (P/B): 2.47
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 35.62
• 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: $2,755.59
• Price Target Upside: -6.14% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• Price Target: ¥3,274.00 ▲(11.51%Upside)

The company's strong financial performance is the most significant factor, supported by healthy revenue growth and a strong balance sheet. However, technical indicators are not particularly favorable, reflecting a neutral to slightly bearish sentiment. The fair valuation and attractive dividend yield provide some positive aspects.

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 makes money through multiple revenue streams primarily derived from its pharmaceuticals and nutraceuticals divisions. In the pharmaceuticals sector, the company generates revenue by developing and selling prescription medications, with a strong emphasis on central nervous system disorders and oncology. Key products include antipsychotic medications and cancer treatments. The nutraceuticals division contributes to the company's earnings by offering health and wellness products, such as electrolyte drinks and nutritional supplements, directly to consumers. Otsuka also benefits from strategic partnerships and collaborations with other pharmaceutical companies and research institutions, expanding its market reach and leveraging shared resources for product development. The company invests significantly in research and development to maintain a robust pipeline of new products, ensuring long-term revenue growth.

Otsuka Financial Statement Overview

Summary

Otsuka's financial health is strong with robust revenue growth and profitability. The balance sheet is well-managed with low leverage and high liquidity, although recent declines in operating cash flow suggest potential pressures on cash generation.

Income Statement

Otsuka has demonstrated strong revenue growth, with a significant increase in total revenue over the past year. The gross profit margin is healthy, indicating efficient cost management. Net profit margin and EBIT margin show solid profitability, reflecting effective operational management. However, the recent decrease in operating cash flow raises some concerns about future profitability sustainability.

Balance Sheet

The company maintains a strong balance sheet with a solid equity ratio, suggesting a stable financial position. The debt-to-equity ratio is low, which indicates prudent use of leverage. Return on equity is robust, driven by consistent net income growth. The high level of cash and short-term investments enhances liquidity and financial flexibility.

Cash Flow

Otsuka's cash flow performance is generally positive, with consistent free cash flow generation. However, the notable decline in operating cash flow in the most recent TTM period could indicate potential pressures on cash generation. The free cash flow to net income ratio remains healthy, but the operating cash flow to net income ratio has weakened, suggesting a need for monitoring operational cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.16T	1.11T	977.37B	861.02B	851.89B	836.32B
Gross Profit	230.98B	224.47B	203.98B	184.17B	176.89B	173.72B
EBITDA	88.15B	82.65B	72.86B	63.06B	63.81B	63.92B
Net Income	56.29B	53.48B	47.45B	40.02B	39.93B	39.31B
Balance Sheet
Total Assets	685.99B	673.90B	561.80B	523.02B	486.25B	471.29B
Cash, Cash Equivalents and Short-Term Investments	199.54B	228.14B	228.69B	202.29B	204.70B	178.07B
Total Debt	6.00B	6.86B	7.30B	7.51B	7.99B	8.02B
Total Liabilities	325.29B	298.66B	214.85B	200.29B	184.48B	191.26B
Stockholders Equity	356.34B	370.80B	343.11B	319.39B	298.74B	277.35B
Cash Flow
Free Cash Flow	12.71B	34.49B	61.30B	22.12B	46.99B	23.63B
Operating Cash Flow	17.99B	37.71B	71.65B	29.20B	57.87B	32.50B
Investing Cash Flow	-14.16B	-11.95B	-21.47B	-8.36B	-9.16B	-8.72B
Financing Cash Flow	-30.66B	-25.89B	-23.84B	-23.31B	-21.96B	-20.99B

Otsuka Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2936.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 2936 is above the 20-day moving average (MA) of 2903.46, above the 50-day MA of 2927.81, and below the 200-day MA of 3268.06, indicating a neutral trend. The MACD of -10.63 indicates Negative momentum. The RSI at 53.97 is Neutral, neither overbought nor oversold. The STOCH value of 17.59 is Positive, 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
4768	73 Outperform	$1.11T	19.78	16.17%	3.06%	15.49%	18.42%
Sector *	63 Neutral	$33.22B	5.99	-11.76%	1.91%	5.50%	-19.96%
9V2		€885.78M	7.95	10.70%	4.02%	―	―
6638	80 Outperform	¥56.72B	9.01		2.60%	11.02%	65.67%
3107	80 Outperform	¥247.17B	9.58		3.46%	17.47%	493.79%
9824	76 Outperform	¥70.01B	10.24		3.26%	7.56%	12.07%
7513	76 Outperform	¥93.70B	19.27		1.32%	6.46%	67.90%

Otsuka Corporate Events

Otsuka Corporation Reports Strong Q1 2025 Financial Results

Otsuka Corporation reported strong financial results for the first quarter of 2025, with a notable increase in net sales and profits compared to the previous year. The company’s performance reflects its robust market positioning and strategic initiatives, which have positively impacted its financial health and stakeholder confidence.