Otsuka (4768) AI Stock Analysis

• Market Cap: $1.14T
• Dividend Yield: 4%
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): 18.7
• Beta (1Y): 0.50
• Revenue Growth: 20.18%
• EPS Growth: 23.93%
• Country: JP
• Employees: 9,680
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): 51.78
• Shares Outstanding: 380,004,240
• 10 Day Avg. Volume: 1,029,400
• 30 Day Avg. Volume: 1,094,196
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.78
• Enterprise Value/Revenue: 0.72
• Enterprise Value/Gross Profit: 3.71
• Enterprise Value/Ebitda: 9.36
• 1Y Price Target: $3,474.03
• Price Target Upside: 15.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 75 Outperform
• Price Target: ¥3,407.00 ▲(13.57% Upside)

Otsuka's strong financial performance and reasonable valuation are the primary drivers of its overall score. The technical analysis presents mixed signals, with some potential for upward momentum. The absence of earnings call data and corporate events does not impact the score.

Otsuka Business Overview & Revenue Model

Company Description

Otsuka Holdings Co., Ltd. is a Japanese multinational conglomerate headquartered in Tokyo, Japan, primarily involved in the pharmaceuticals and nutraceuticals sectors. The company operates through its subsidiaries in various industries, with a focus on research and development, manufacturing, and marketing of innovative products. Its core offerings include pharmaceutical products for central nervous system disorders, oncology, and cardiovascular diseases, as well as nutritional and consumer products such as nutritional drinks and supplements.

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 exhibits strong financial performance with consistent revenue growth, efficient operations, and a solid financial structure. The company has a low debt-to-equity ratio and strong return on equity. While cash flow metrics are positive, 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	1.23T	1.11T	977.37B	861.02B	851.89B	836.32B
Gross Profit	239.91B	224.47B	203.98B	184.17B	176.89B	173.72B
EBITDA	94.94B	82.65B	72.86B	64.84B	66.22B	65.23B
Net Income	60.68B	53.48B	47.45B	40.02B	39.93B	39.31B
Balance Sheet
Total Assets	729.86B	673.90B	561.80B	523.02B	486.25B	471.29B
Cash, Cash Equivalents and Short-Term Investments	233.25B	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	348.17B	298.66B	214.85B	200.29B	184.48B	191.26B
Stockholders Equity	377.10B	370.80B	343.11B	319.39B	298.74B	277.35B
Cash Flow
Free Cash Flow	26.04B	34.49B	61.30B	22.12B	46.99B	23.63B
Operating Cash Flow	30.43B	37.71B	71.65B	29.20B	57.87B	32.50B
Investing Cash Flow	-16.65B	-11.95B	-21.47B	-8.36B	-9.16B	-8.72B
Financing Cash Flow	-30.56B	-25.89B	-23.84B	-23.31B	-21.96B	-20.99B

Otsuka Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3000.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 3000 is below the 20-day moving average (MA) of 3092.10, above the 50-day MA of 2973.72, and below the 200-day MA of 3184.72, indicating a neutral trend. The MACD of 8.24 indicates Positive momentum. The RSI at 45.36 is Neutral, neither overbought nor oversold. The STOCH value of 18.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4768.

Otsuka Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4768	75 Outperform	$1.14T	18.75	17.11%	4.00%	20.18%	23.93%
Sector *	61 Neutral	$35.45B	8.20	-10.60%	1.91%	8.56%	-9.51%
9V2	―	€1.00B	9.63	11.40%	―	―	―
3107	79 Outperform	¥298.91B	9.85		2.89%	21.63%	659.16%
9824	74 Outperform	¥72.70B	10.70		3.03%	7.56%	12.07%
6638	66 Neutral	¥52.03B	8.58		2.39%	5.88%	21.14%
7513	64 Neutral	¥86.60B	18.33		1.65%	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.