Otsuka (4768) AI Stock Analysis

• Market Cap: $1.18T
• Dividend Yield: 3.85%
• Average Volume (3M): 989.39K
• Price to Earnings (P/E): 19.5
• Beta (1Y): 0.50
• Revenue Growth: 20.18%
• EPS Growth: 23.93%
• Country: JP
• Employees: 9,680
• Sector: Technology
• Sector Strength: 98
• Industry: Technology Distributors
• EPS (TTM): 51.78
• Shares Outstanding: 380,004,240
• 10 Day Avg. Volume: 1,405,700
• 30 Day Avg. Volume: 989,386
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.75
• Enterprise Value/Revenue: 0.77
• Enterprise Value/Gross Profit: 3.86
• Enterprise Value/Ebitda: 10.11
• 1Y Price Target: $3,304.86
• Price Target Upside: 5.93% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 80 Outperform
• Price Target: ¥3,743.00 ▲(19.97% Upside)

Otsuka's strong financial performance and reasonable valuation contribute positively to its overall score. Technical analysis suggests positive momentum, although caution is advised due to overbought signals. The recent decline in operating cash flow warrants monitoring.

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 Holdings makes money primarily through its pharmaceuticals and nutraceuticals divisions. The pharmaceutical segment generates revenue from the development and sale of prescription medications, with a strong focus on treatments for mental health conditions, cancer, and cardiovascular diseases. This includes globally recognized products such as antipsychotic drugs and oncology treatments. The nutraceutical segment contributes to earnings through the sale of nutritional drinks, supplements, and other health-related consumer products. Strategic partnerships and collaborations with other pharmaceutical companies and research institutions also play a crucial role in enhancing product development and expanding market reach, thereby contributing to the company's financial performance.

Otsuka Financial Statement Overview

Summary

Otsuka has demonstrated strong revenue growth and profitability, with a healthy gross profit margin and solid operational management. The balance sheet is robust, with low leverage and high liquidity. However, the recent decline in operating cash flow suggests 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.11T	977.37B	861.02B	851.89B	836.32B
Gross Profit	224.47B	203.98B	184.17B	176.89B	173.72B
EBITDA	82.65B	72.86B	63.06B	63.81B	63.92B
Net Income	53.48B	47.45B	40.02B	39.93B	39.31B
Balance Sheet
Total Assets	673.90B	561.80B	523.02B	486.25B	471.29B
Cash, Cash Equivalents and Short-Term Investments	228.14B	228.69B	202.29B	204.70B	178.07B
Total Debt	6.86B	7.30B	7.51B	7.99B	8.02B
Total Liabilities	298.66B	214.85B	200.29B	184.48B	191.26B
Stockholders Equity	370.80B	343.11B	319.39B	298.74B	277.35B
Cash Flow
Free Cash Flow	34.49B	61.30B	22.12B	46.99B	23.63B
Operating Cash Flow	37.71B	71.65B	29.20B	57.87B	32.50B
Investing Cash Flow	-11.95B	-21.47B	-8.36B	-9.16B	-8.72B
Financing Cash Flow	-25.89B	-23.84B	-23.31B	-21.96B	-20.99B

Otsuka Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3120.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 3120 is above the 20-day moving average (MA) of 2939.55, above the 50-day MA of 2921.88, and below the 200-day MA of 3203.55, indicating a neutral trend. The MACD of 64.62 indicates Negative momentum. The RSI at 64.00 is Neutral, neither overbought nor oversold. The STOCH value of 61.46 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
4768	80 Outperform	$1.18T	19.50	17.11%	3.85%	20.18%	23.93%
Sector *	50 Neutral	C$3.26B	5.38	-49.37%	9.08%	2.09%	-13.61%
9V2	―	€1.06B	9.20	11.40%	―	―	―
3107	79 Outperform	¥290.07B	9.55		2.95%	21.63%	659.16%
9824	74 Outperform	¥73.76B	10.79		3.02%	7.56%	12.07%
6638	72 Outperform	¥55.42B	9.05		1.94%	11.02%	65.67%
7513	69 Neutral	¥96.47B	20.41		1.29%	6.08%	19.69%

Otsuka Corporate Events

Otsuka Corporation Reports Strong Financial Growth in First Half of 2025

Otsuka Corporation reported a significant increase in its financial performance for the first half of 2025, with net sales rising by 22% and operating profit by 26.6% compared to the previous year. This growth reflects the company’s strong market positioning and effective business strategies, signaling positive implications for stakeholders and reinforcing its competitive edge in the technology solutions industry.

The most recent analyst rating on (JP:4768) stock is a Hold with a Yen3500.00 price target. To see the full list of analyst forecasts on Otsuka stock, see the JP:4768 Stock Forecast page.