Otsuka Corporation (JP:4768)
:4768
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Otsuka
(4768)
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Rating:71Outperform
Price Target:
¥3,154.00
▲(2.90% Upside)
Action:Reiterated
Date:05/02/26
The score is primarily driven by strong financial performance, especially the conservatively financed balance sheet and steady growth. This is partially offset by weak technical momentum (price below key moving averages and negative MACD), while valuation/dividend yield is moderately supportive.
Positive Factors
Balance-sheet strength
Extremely low leverage and a growing equity base reduce financial risk and provide durable flexibility. With returns on equity improving into the mid-to-high teens, the company can fund organic growth, absorb cyclical shocks, and invest in services or cloud capabilities without relying on debt.
Negative Factors
Limited margin expansion
Stable but low mid-single-digit margins suggest constrained pricing power and limited operating leverage. If revenue growth slows, margin constraints reduce earnings upside and limit capacity to finance higher-margin strategic initiatives without structural cost changes.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet strength
Extremely low leverage and a growing equity base reduce financial risk and provide durable flexibility. With returns on equity improving into the mid-to-high teens, the company can fund organic growth, absorb cyclical shocks, and invest in services or cloud capabilities without relying on debt.
Read all positive factors
Otsuka (4768) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.14T
Dividend Yield3.65%
Average Volume (3M)936.91K
Price to Earnings (P/E)17.2
Beta (1Y)0.46
Revenue Growth16.90%
EPS Growth18.13%
CountryJP
Employees9,680
SectorTechnology
Sector Strength88
IndustryTechnology Distributors
Share Statistics
EPS (TTM)175.37
Shares Outstanding380,004,240
10 Day Avg. Volume844,640
30 Day Avg. Volume936,913
Financial Highlights & Ratios
PEG Ratio0.94
Price to Book (P/B)3.11
Price to Sales (P/S)0.93
P/FCF Ratio13.95
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥2,620.00Price Target Upside-14.52% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering1
EPS Forecast (FY)169.27
Revenue Forecast (FY)¥1.32T
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...
How the Company Makes Money
Otsuka makes money primarily through a combination of (1) selling IT products and (2) providing services around the design, implementation, and ongoing operation of customers’ IT environments. A major revenue stream comes from distributing and res...
Otsuka Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.35T | 1.32T | 1.11T | 977.37B | 861.02B | 851.89B |
| Gross Profit | 257.64B | 252.18B | 224.47B | 203.98B | 184.17B | 176.89B |
| EBITDA | 101.84B | 99.86B | 82.33B | 72.87B | 64.84B | 66.21B |
| Net Income | 66.50B | 64.30B | 53.48B | 47.45B | 40.02B | 39.93B |
Balance Sheet | ||||||
| Total Assets | 749.49B | 729.20B | 684.85B | 565.20B | 526.13B | 490.20B |
| Cash, Cash Equivalents and Short-Term Investments | 260.07B | 252.06B | 229.53B | 229.66B | 203.31B | 205.78B |
| Total Debt | 8.20B | 7.18B | 6.86B | 8.19B | 8.44B | 8.85B |
| Total Liabilities | 351.87B | 329.61B | 309.60B | 218.25B | 203.40B | 188.43B |
| Stockholders Equity | 392.34B | 394.32B | 370.80B | 343.11B | 319.39B | 298.74B |
Cash Flow | ||||||
| Free Cash Flow | 112.13B | 87.85B | 34.49B | 67.66B | 27.95B | 52.67B |
| Operating Cash Flow | 115.48B | 92.22B | 37.71B | 71.65B | 29.20B | 57.87B |
| Investing Cash Flow | -20.62B | -20.48B | -11.95B | -21.47B | -8.36B | -9.16B |
| Financing Cash Flow | -34.39B | -47.61B | -25.89B | -23.84B | -23.31B | -21.96B |
Otsuka Technical Analysis
Positive
3065.00
Price Trends
2999.84
Positive
3070.58
Negative
3048.64
Negative
Market Momentum
-13.54
Negative
51.46
Neutral
62.78
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 3065 is above the 20-day moving average (MA) of 2986.18, above the 50-day MA of 2999.84, and above the 200-day MA of 3048.64, indicating a neutral trend. The MACD of -13.54 indicates Negative momentum. The RSI at 51.46 is Neutral, neither overbought nor oversold. The STOCH value of 62.78 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥202.85B | 5.88 | 17.09% | 2.94% | 20.29% | 94.13% | |
72 Outperform | ¥55.32B | 14.67 | ― | 4.12% | 6.27% | 31.76% | |
71 Outperform | ¥1.14T | 17.16 | 17.15% | 3.65% | 16.90% | 18.13% | |
67 Neutral | ¥21.59B | 15.35 | ― | 3.83% | 21.81% | -49.75% | |
64 Neutral | ¥40.20B | 8.77 | ― | 5.16% | 1.23% | -22.74% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | ¥47.44B | 32.39 | 1.55% | 1.34% | -14.56% | 181.24% |
* Technology Sector Average
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Otsuka Corporate Events
Otsuka Delivers Strong Q1 Earnings but Guides Cautiously for 2026
Apr 30, 2026
Otsuka Corporation reported solid growth for the quarter ended 31 March 2026, with net sales rising 9.3% year-on-year to ¥344.8 billion and profit attributable to owners of parent up 15.2% to ¥16.7 billion, supported by higher operating ...
Otsuka Corporation Outside Director Resigns, Board Remains in Compliance
Feb 20, 2026
Otsuka Corporation announced that outside director Makiko Hamabe has resigned from the company’s board, effective February 20, 2026, citing personal reasons. The company emphasized that, despite this departure, its board composition remains ...
Otsuka Corporation to Add Two Outside Directors with Tech and Legal Expertise
Feb 20, 2026
Otsuka Corporation has announced board-level changes, resolving at its February 20, 2026 meeting to appoint two new outside directors, with the changes to take effect on March 27, 2026. The appointments, which remain subject to formal approval at ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.