ASKA Pharmaceutical Holdings Co., Ltd. (4886) AI Stock Analysis

• Market Cap: ¥52.88B
• Dividend Yield: 2.62%
• Average Volume (3M): 49.10K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.56
• Revenue Growth: 5.44%
• EPS Growth: -20.33%
• Country: JP
• Employees: 762
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 34.61
• Shares Outstanding: 28,763,199
• 10 Day Avg. Volume: 37,820
• 30 Day Avg. Volume: 49,100
• PEG Ratio: -0.39
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 1.02
• P/FCF Ratio: -137.50
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ¥2,305.00 ▲(16.00% Upside)

ASKA Pharmaceutical Holdings shows strong financial performance with solid revenue growth and financial stability, but faces challenges in improving net profit margins and cash flow management. The technical analysis indicates a bearish trend, which could be a concern for short-term investors. Valuation metrics suggest the stock is reasonably priced, with a decent dividend yield providing some appeal.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective product strategies, supporting long-term business expansion.

Financial Stability

Improved debt-to-equity ratio and strong equity position enhance financial stability, enabling sustained investment in growth initiatives.

Gross Profit Margins

Strong gross profit margins reflect efficient cost management and pricing power, which are crucial for long-term profitability.

Negative Factors

Net Profit Margin Decline

Declining net profit margins suggest rising costs or pricing pressures, potentially impacting future profitability if not addressed.

Cash Flow Management

Weak cash flow management can limit operational flexibility and investment capacity, affecting long-term growth prospects.

Operational Efficiency

Suboptimal operational efficiency may hinder cost control and profitability, necessitating strategic improvements for sustained growth.

ASKA Pharmaceutical Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

ASKA Pharmaceutical Holdings Co.,Ltd., through its subsidiaries, engages in the pharmaceutical, animal health, and hormone testing businesses in Japan. The company researches, develops, manufactures, and markets pharmaceutical products in the areas of endocrinology, obstetrics and gynecology, and urology; and manufactures, sells, imports, and exports veterinary medicines, veterinary medical devices, feed and feed additives, reagents, agrochemicals, industrial chemicals, hygiene products, and food products and their raw materials. It is also involved in the clinical examination and biological testing activities; and offers medical devices. The company was founded in 1920 and is headquartered in Tokyo, Japan.

How the Company Makes Money

ASKA Pharmaceutical Holdings generates revenue primarily through the sales of its pharmaceutical products, which include both prescription medications and over-the-counter drugs. The company’s revenue model is based on a combination of direct sales to healthcare providers, pharmacies, and hospitals, as well as partnerships and collaborations with other pharmaceutical firms for joint development and marketing efforts. Significant revenue streams include royalties from patented drugs, sales of proprietary medications, and income from research collaborations with academic institutions and biopharmaceutical companies. Additionally, government contracts and reimbursement from health insurance systems for approved pharmaceuticals contribute to ASKA's earnings.

ASKA Pharmaceutical Holdings Co., Ltd. Financial Statement Overview

Summary

ASKA Pharmaceutical Holdings demonstrates solid revenue growth and financial stability, with strong equity and manageable debt levels. However, there are areas for improvement, particularly in net profit margins and cash flow management. The company should focus on enhancing operational efficiencies and ensuring consistent positive cash flows to support future growth and stability.

Income Statement

ASKA Pharmaceutical Holdings has shown consistent revenue growth over the years, with a substantial increase from 2020 to 2025. The company maintains solid gross profit margins, averaging around 48.5% across the years. However, net profit margins have slightly declined from 12.0% in 2024 to 8.0% in 2025, indicating a need to manage expenses better. The EBIT and EBITDA margins, while healthy, also show room for improvement in maintaining operational efficiency.

Balance Sheet

The company's balance sheet reflects a stable equity position with a debt-to-equity ratio that has improved from 0.35 in 2020 to 0.17 in 2025, indicating a reduction in leverage. The equity ratio has remained strong, maintaining around 65% to 70%, showcasing financial stability. However, the total debt, although reduced, still requires careful management to ensure long-term financial health.

Cash Flow

ASKA Pharmaceutical has faced fluctuating free cash flow, with a significant drop in 2025 compared to 2024. Despite this, the company has managed to maintain a positive operating cash flow to net income ratio, reflecting operational efficiency. The free cash flow to net income ratio indicates that cash reserves are not as robust as needed, emphasizing the need for better cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	67.11B	64.14B	62.84B	60.46B	56.61B	55.18B
Gross Profit	31.79B	31.34B	30.66B	28.59B	26.35B	25.38B
EBITDA	7.45B	8.49B	12.57B	8.53B	9.10B	6.97B
Net Income	5.07B	5.10B	7.54B	4.24B	4.29B	2.71B
Balance Sheet
Total Assets	102.95B	100.53B	90.75B	87.14B	83.30B	82.58B
Cash, Cash Equivalents and Short-Term Investments	7.23B	11.16B	17.24B	17.91B	17.10B	10.51B
Total Debt	13.77B	10.90B	9.48B	12.62B	14.05B	16.39B
Total Liabilities	33.72B	31.34B	28.82B	32.61B	34.41B	38.07B
Stockholders Equity	65.44B	65.31B	61.93B	54.53B	48.89B	44.51B
Cash Flow
Free Cash Flow	0.00	-475.00M	33.00M	2.60B	465.00M	5.44B
Operating Cash Flow	0.00	2.48B	1.49B	3.35B	2.84B	6.54B
Investing Cash Flow	0.00	-6.12B	1.71B	-1.13B	6.74B	-2.87B
Financing Cash Flow	0.00	-2.96B	-3.94B	-1.82B	-3.00B	-455.00M

ASKA Pharmaceutical Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1987.00
• 50DMA: Negative
• 100DMA: Negative
• 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:4886, the sentiment is Neutral. The current price of 1987 is below the 20-day moving average (MA) of 1997.10, below the 50-day MA of 2064.08, and below the 200-day MA of 2253.10, indicating a neutral trend. The MACD of -29.97 indicates Negative momentum. The RSI at 49.59 is Neutral, neither overbought nor oversold. The STOCH value of 78.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4886.

ASKA Pharmaceutical Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4534	73 Outperform	¥117.23B	18.18	5.11%	2.32%	4.35%	48.30%
4554	71 Outperform	¥45.11B	15.02	6.49%	2.48%	12.01%	-51.35%
4569	69 Neutral	¥79.22B	9.27	―	3.46%	11.65%	93.46%
4886	67 Neutral	¥52.88B	11.82	―	2.62%	5.44%	-20.33%
4577	63 Neutral	¥40.14B	20.30	―	2.81%	7.56%	-48.91%
4538	60 Neutral	¥19.76B	-4.81	―	3.86%	7.50%	-281.41%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

ASKA Pharmaceutical Holdings Co., Ltd. Corporate Events

ASKA Pharmaceutical Revises FY2025 Financial Forecasts Amid Strategic Adjustments

ASKA Pharmaceutical Holdings Co., Ltd. has revised its consolidated financial forecasts for FY2025, lowering its net sales and profit expectations due to a change in sales recording methods and increased R&D expenses. The revision reflects a strategic shift in accounting practices and a focus on enhancing drug discovery capabilities, which may impact the company’s financial performance and stakeholder expectations.

ASKA Pharmaceutical Reports Q2 FY2025 Financial Results with Revised Full-Year Forecast

ASKA Pharmaceutical Holdings Co., Ltd. reported its consolidated financial results for the second quarter of FY2025, showing a year-on-year increase in net sales by 8.9% to 35,253 million yen. However, the company experienced a decline in operating profit by 20.8% and a decrease in profit attributable to owners of the parent by 13.0%. The company has revised its forecast for the full fiscal year, expecting a 10.7% increase in net sales and a 12.5% rise in operating profit, indicating a cautious yet optimistic outlook for the remainder of the fiscal year.

ASKA Pharmaceutical Reports Record Sales and Raises FY2025 Forecast

ASKA Pharmaceutical Holdings Co., Ltd. reported record-high sales for the second quarter of FY2025, driven by steady domestic performance and contributions from its overseas business. Despite increased R&D and sales promotion expenses impacting operating profit, the company revised its financial forecast upward, expecting a 10.7% increase in net sales and a 12.5% rise in operating profit for the fiscal year.

ASKA Pharmaceutical Revises Financial Results for FY2025 Q1

ASKA Pharmaceutical Holdings Co., Ltd. announced corrections to its financial results for the first quarter of FY2025, specifically regarding the sales transactions of its Vietnamese subsidiary, Hataphar. The company revised its sales recording method to a net basis, impacting net sales and cost of sales by a decrease of 1,680 million yen, without affecting operating or ordinary profits.

ASKA Pharmaceutical Revises Q1 FY2025 Financial Results

ASKA Pharmaceutical Holdings Co., Ltd. announced corrections to its financial results for the first quarter of FY2025, specifically regarding sales transactions by its Vietnamese subsidiary, Hataphar. The company revised its sales recording method from a gross to a net basis, resulting in adjustments to net sales and cost of sales by 1,680 million yen each, but with no impact on profits. This correction reflects a more accurate representation of the company’s financial dealings and ensures compliance with accounting policies, potentially affecting stakeholders’ perception of the company’s financial transparency.

ASKA Secures OTC Approval for NORLEVO® Emergency Contraceptive Pill

ASKA Pharmaceutical Co., Ltd., in collaboration with Daiichi Sankyo Healthcare, has obtained marketing authorization for the emergency contraceptive pill NORLEVO® to be sold over-the-counter (OTC) in Japan. This move aims to empower women by enhancing accessibility to reproductive health products, marking a significant milestone in sexual reproductive health and rights. The impact on the company’s financial year 2025 is under evaluation, and further details on product specifications and sales timing will be announced later.

ASKA Pharmaceutical Maintains Defense Against Potential Share Acquisition

ASKA Pharmaceutical Holdings Co., Ltd. has decided to continue its Response Policy regarding the potential large-scale purchase of its shares by Dalton. Despite Dalton’s withdrawal of its intent to purchase, ASKA remains cautious, citing unresolved concerns that such an acquisition could conflict with the interests of general shareholders and potentially harm the company’s long-term value. The decision reflects ASKA’s commitment to safeguarding shareholder interests and maintaining corporate value.

ASKA Pharmaceutical Halts Share Purchase Procedures After Dalton Withdrawal

ASKA Pharmaceutical Holdings announced the termination of procedures related to a large-scale purchase of its share certificates following the withdrawal of a statement of intent by Dalton Investments and its affiliates. This decision halts the previously initiated evaluation process by the board of directors and ends the requirement for Dalton to disclose further information, potentially stabilizing ASKA’s market position and operations.

ASKA Pharmaceutical Reiterates Request for Transparency in Share Purchase

ASKA Pharmaceutical Holdings Co., Ltd. has reiterated its request to Dalton Investments and others to provide necessary information regarding their large-scale purchase of ASKA’s share certificates. Despite guidelines emphasizing transparency in corporate takeovers, Dalton has not complied, leading to concerns about the impact on shareholder decision-making and the company’s strategic options.