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Otsuka
(4768)
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Rating:79Outperform
Price Target:
¥3,783.00
▲(25.02% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by strong fundamentals—especially the conservatively financed balance sheet with improving ROE and consistent profitability—tempered by limited margin expansion and some cash-flow volatility. Technicals are supportive with a clear uptrend and positive momentum, while valuation is reasonable but not compelling at a ~18.7 P/E despite a solid ~2.9% dividend yield.
Positive Factors
Conservative balance sheet
Extremely low leverage and rising equity provide durable financial flexibility, lowering refinancing and solvency risk. This capital structure lets management fund organic growth, opportunistic M&A, or shareholder returns without adding debt, supporting resilience across cycles.
Negative Factors
Gross margin erosion
A persistent decline in gross margin implies structural cost pressure or weakening pricing power. Over time this compresses operating leverage and limits the ability of revenue growth to translate into higher profits, challenging sustainable margin expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Extremely low leverage and rising equity provide durable financial flexibility, lowering refinancing and solvency risk. This capital structure lets management fund organic growth, opportunistic M&A, or shareholder returns without adding debt, supporting resilience across cycles.
Read all positive factors
Otsuka (4768) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.24T
Dividend Yield2.9%
Average Volume (3M)936.91K
Price to Earnings (P/E)18.7
Beta (1Y)0.37
Revenue Growth16.90%
EPS Growth18.13%
CountryJP
Employees10,079
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)177.11
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 TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)170.96
Revenue Forecast (FY)¥1.35T
Otsuka Business Overview & Revenue Model
Company Description
Established in Tokyo, Japan, in 1961, Otsuka Corporation offers a comprehensive range of technology services within Japan. Its operations are primarily divided into two main segments: System Integration and Service & Support. The System Integratio...
How the Company Makes Money
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Otsuka Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
73
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.39T | 1.32T | 1.11T | 977.37B | 861.02B | 851.89B |
| Gross Profit | 261.95B | 252.18B | 224.47B | 203.98B | 184.17B | 176.89B |
| EBITDA | 104.65B | 99.86B | 82.33B | 72.87B | 64.84B | 66.21B |
| Net Income | 67.16B | 64.30B | 53.48B | 47.45B | 40.02B | 39.93B |
Balance Sheet | ||||||
| Total Assets | 823.30B | 729.20B | 684.85B | 565.20B | 526.13B | 490.20B |
| Cash, Cash Equivalents and Short-Term Investments | 257.02B | 252.06B | 229.53B | 229.66B | 203.31B | 205.78B |
| Total Debt | 8.28B | 7.18B | 6.86B | 8.19B | 8.44B | 8.85B |
| Total Liabilities | 403.97B | 329.61B | 309.60B | 218.25B | 203.40B | 188.43B |
| Stockholders Equity | 413.81B | 394.32B | 370.80B | 343.11B | 319.39B | 298.74B |
Cash Flow | ||||||
| Free Cash Flow | 86.58B | 87.85B | 34.49B | 67.66B | 27.95B | 52.67B |
| Operating Cash Flow | 89.61B | 92.22B | 37.71B | 71.65B | 29.20B | 57.87B |
| Investing Cash Flow | -31.26B | -20.48B | -11.95B | -21.47B | -8.36B | -9.16B |
| Financing Cash Flow | -34.40B | -47.61B | -25.89B | -23.84B | -23.31B | -21.96B |
Otsuka Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ¥1.24T | 18.67 | 17.15% | 3.14% | 16.90% | 18.13% | |
74 Outperform | ¥234.87B | 7.42 | 18.07% | 2.94% | 20.29% | 94.09% | |
72 Outperform | ¥56.98B | 14.16 | ― | 4.12% | 12.94% | 85.20% | |
67 Neutral | ¥21.01B | 11.73 | ― | 4.14% | 21.81% | -49.75% | |
64 Neutral | ¥44.30B | 13.97 | ― | 5.16% | 2.80% | -33.11% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | ¥45.96B | 40.75 | 2.17% | 1.17% | -0.53% | 121.05% |
* Technology Sector Average
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Otsuka Corporate Events
Otsuka Corporation Delivers Higher First-Half Earnings and Raises Dividend Outlook
Aug 3, 2026
Otsuka Corporation reported a 9.0% year-on-year increase in net sales to ¥757.5 billion for the six months ended June 30, 2026, with operating profit up 8.0% to ¥53.1 billion and profit attributable to owners of the parent rising 8.4% to...
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.