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

• Market Cap: ¥66.32B
• Dividend Yield: 2.52%
• Average Volume (3M): 49.10K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.46
• Revenue Growth: 5.44%
• EPS Growth: -20.33%
• Country: JP
• Employees: 762
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 59.10
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 183.1
• Revenue Forecast (FY): ¥69.09B

• Rating: 76 Outperform
• Price Target: ¥2,624.00 ▲(28.75% Upside)
• Action: Upgraded Date: 02/03/26
• Date: Action: Upgraded 02/03/26

The score is driven mainly by solid financial fundamentals (growth and a stronger balance sheet), partially tempered by weaker 2025 profitability and cash-flow consistency. Technicals add support with a clear uptrend and positive momentum, while valuation is reasonable with a modest dividend yield.

Positive Factors

Consistent multi-year revenue growth

Sustained revenue expansion over multiple years indicates durable demand for ASKA’s prescription portfolio and successful lifecycle management. This supports predictable cash flows, funds ongoing R&D and commercialization, and strengthens bargaining position with distributors over a 2–6 month horizon and beyond.

High gross profit margins

Near-50% gross margins reflect structural pricing power and cost-efficient manufacturing in specialty pharmaceuticals. High gross margins provide a lasting buffer to absorb higher R&D and regulatory costs, enabling reinvestment into pipelines and preserving operating leverage over medium-term planning cycles.

Reduced leverage and strong equity ratio

A materially lower debt-to-equity and high equity ratio improve financial flexibility and lower interest and covenant risk. This structural balance-sheet strength enhances resilience to shocks, supports capital allocation for M&A or clinical programs, and reduces refinancing pressure over time.

Negative Factors

Declining net profit margins in 2025

A meaningful drop in net margin signals rising operating or non-operating costs that erode converted profit from sales. If persistent, margin compression will weaken cash generation capacity, limit funding for R&D or dividends, and may require structural cost or pricing responses to restore profitability.

Significant free cash flow decline in 2025

A sizable fall in free cash flow reduces available internal funds for investment, debt service, and shareholder returns. Over the medium term this can force trade-offs between R&D, capex and payouts, increase reliance on external financing, and constrain strategic execution if the trend persists.

Concentration in Japan and women’s health

Heavy reliance on the domestic Japanese market and a narrow therapeutic focus raises concentration risk to local regulatory changes, pricing reforms, and competitive entrants. Limited geographic and therapeutic diversification can amplify revenue volatility and constrain growth opportunities over the medium term.

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

Strong multi-year revenue growth and solid gross margins, supported by a stronger balance sheet with reduced leverage (debt-to-equity down to 0.17) and a high equity ratio. Offsetting factors include weaker profitability in 2025 (net margin down to 8.0%) and a notable decline in free cash flow versus 2024.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Positive
• Last Price: 2038.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 2038 is below the 20-day moving average (MA) of 2442.50, below the 50-day MA of 2247.20, and below the 200-day MA of 2258.07, indicating a bullish trend. The MACD of 68.47 indicates Positive momentum. The RSI at 62.34 is Neutral, neither overbought nor oversold. The STOCH value of 54.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
4521	80 Outperform	¥159.74B	-44.66	0.44%	4.16%	-5.99%	-96.04%
4886	76 Outperform	¥66.32B	14.41	―	2.52%	5.44%	-20.33%
4534	73 Outperform	¥134.92B	21.89	5.11%	2.34%	4.35%	48.30%
4569	69 Neutral	¥90.80B	9.20	―	3.36%	11.65%	93.46%
4554	68 Neutral	¥58.59B	25.14	6.49%	2.39%	12.01%	-51.38%
4577	63 Neutral	¥44.23B	19.77	―	2.75%	7.56%	-48.91%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

ASKA Pharmaceutical Holdings Co., Ltd. Corporate Events

ASKA Pharma Hits Record Sales but Profit Slips on Higher R&D and Overseas Costs

ASKA Pharmaceutical Holdings reported consolidated net sales of 54.4 billion yen for the third quarter of FY2025, a 9.1% year-on-year increase and a record-high level, driven by steady domestic performance and growing contributions from its overseas business. However, operating profit declined 10.6% to 4.9 billion yen as higher R&D and sales promotion expenses outpaced gross profit growth, while the cost of sales ratio rose due to the consolidation of overseas operations and the SG&A ratio increased with intensified development and marketing activities, highlighting a strategic shift toward longer-term growth investment at the expense of short-term margins.

The most recent analyst rating on (JP:4886) stock is a Hold with a Yen2610.00 price target. To see the full list of analyst forecasts on ASKA Pharmaceutical Holdings Co., Ltd. stock, see the JP:4886 Stock Forecast page.

ASKA Pharmaceutical Boosts Sales but Sees Profit Decline, Keeps FY2025 Outlook Intact

ASKA Pharmaceutical Holdings reported consolidated net sales of ¥54.5 billion for the nine months ended December 31, 2025, up 9.1% year on year, but operating profit fell 10.6% to ¥4.9 billion and profit attributable to owners of parent declined 4.7% to ¥3.9 billion, resulting in lower earnings per share despite higher revenue. The company’s financial position remained solid, with total assets rising to ¥112.7 billion and an equity ratio of 61.0%, and it maintained its full-year forecast for FY2025, targeting a 10.7% increase in net sales to ¥71.0 billion and double-digit growth in operating and ordinary profit, while keeping its annual dividend forecast unchanged at ¥55 per share, signaling confidence in earnings resilience and shareholder returns amid profit margin pressure.

The most recent analyst rating on (JP:4886) stock is a Hold with a Yen2610.00 price target. To see the full list of analyst forecasts on ASKA Pharmaceutical Holdings Co., Ltd. stock, see the JP:4886 Stock Forecast page.

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.

The most recent analyst rating on (JP:4886) stock is a Hold with a Yen2305.00 price target. To see the full list of analyst forecasts on ASKA Pharmaceutical Holdings Co., Ltd. stock, see the JP:4886 Stock Forecast page.

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.

The most recent analyst rating on (JP:4886) stock is a Hold with a Yen2305.00 price target. To see the full list of analyst forecasts on ASKA Pharmaceutical Holdings Co., Ltd. stock, see the JP:4886 Stock Forecast page.

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.

The most recent analyst rating on (JP:4886) stock is a Hold with a Yen2305.00 price target. To see the full list of analyst forecasts on ASKA Pharmaceutical Holdings Co., Ltd. stock, see the JP:4886 Stock Forecast page.

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.

The most recent analyst rating on (JP:4886) stock is a Hold with a Yen2305.00 price target. To see the full list of analyst forecasts on ASKA Pharmaceutical Holdings Co., Ltd. stock, see the JP:4886 Stock Forecast page.

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.

The most recent analyst rating on (JP:4886) stock is a Hold with a Yen2305.00 price target. To see the full list of analyst forecasts on ASKA Pharmaceutical Holdings Co., Ltd. stock, see the JP:4886 Stock Forecast page.