Otsuka (4768) AI Stock Analysis

• Market Cap: ¥1.09T
• Dividend Yield: 4.19%
• Average Volume (3M): 910.86K
• Price to Earnings (P/E): 19.3
• Beta (1Y): 0.48
• Revenue Growth: 15.49%
• EPS Growth: 18.42%
• Country: JP
• Employees: 9,680
• Sector: Technology
• Sector Strength: 94
• Industry: Technology Distributors
• EPS (TTM): 38.22
• Shares Outstanding: 380,004,240
• 10 Day Avg. Volume: 796,820
• 30 Day Avg. Volume: 910,860
• PEG Ratio: 3.63
• Price to Book (P/B): 3.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 84.50
• 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: ¥2,750.63
• Price Target Upside: -3.92% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 70 Outperform
• Price Target: ¥3,164.00 ▲(10.51%Upside)

Otsuka's strong financial performance, characterized by robust revenue growth and profitability, is the primary strength of the stock. However, weak technical indicators and market momentum, along with some concerns about cash flow sustainability, moderate the overall score. The fair valuation and attractive dividend yield provide additional support to the stock's investment case.

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 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: Negative
• Last Price: 2863.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 2863 is below the 20-day moving average (MA) of 2889.90, below the 50-day MA of 2895.84, and below the 200-day MA of 3232.43, indicating a bearish trend. The MACD of -14.52 indicates Positive momentum. The RSI at 44.39 is Neutral, neither overbought nor oversold. The STOCH value of 31.16 is Neutral, 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
3107	79 Outperform	¥255.64B	9.91		3.35%	17.47%	493.79%
7513	78 Outperform	¥102.80B	21.75		1.20%	6.08%	19.69%
9824	75 Outperform	¥67.89B	9.93		3.36%	7.56%	12.07%
6638	74 Outperform	¥62.97B	10.01		2.69%	11.02%	65.67%
8154	74 Outperform	¥156.42B	8.76	10.70%	3.86%	0.94%	-16.06%
4768	70 Outperform	¥1.09T	19.29	16.17%	4.19%	15.49%	18.42%
Sector *	68 Neutral	¥228.97B	14.57	7.50%	3.81%	9.28%	6.70%

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.